ATT ebay sellers: Strange Insurance Change Coming Soon

[SpendTooMuchOnAtari]

I am listing something on ebay right now and just got a message on the page where you hit submit after checking things over. I looked and didn't see a post about this, does everyone know about this change? The insurance part of ebay for sellers is a bit strange now and I don't think I like it, why can't it be the buyers choice anymore after all these years? ebay is so buyer-friendly with their "only positive feedback for the buyer" program they have and the caps on shipping in the games department no matter what size the lot is. I know you can bypass that with the calculated shipping but still, sellers just get jacked up fees, what a mess. Anyway, here is the message I received:

 

Attention Sellers:

 

 

Dear Seller!

Starting the week of September 22, 2009, optional or required buyer-selected shipping insurance will no longer be allowed on eBay.

 

What you can do:

 

You will still be able to insure you items.

 

You can fold the cost of insurance into your item price or handling fee.

 

You can indicate, ‘The item is insured” or “Handling fee includes insurance.”

 

What you cannot do:

You cannot charge the buyer a separate fee for insurance, either in a listing or after the buyer has committed to purchase the item

 

You cannot indicate insurance is only offered upon buyer’s request

 

You cannot indicate you are not responsible for the item once it has been shipped.

 

For more information on the changes to optional insurance, please visit:

 

http://pages.ebay.com/sell/July2009Update/faq/index.html#1-10

[Dino]

 

So as a seller, you cant force buyers to take out insurance, butyou get screwed if the item goes missing...

[Pixelboy]

So as a seller, you cant force buyers to take out insurance, but you get screwed if the item goes missing...

Well, actually, what you do is force buyers to take insurance, but you don't tell them. You just include the cost of this insurance into the global shipping cost by default. What all this really means is that it's no longer okay for sellers to refuse responsability for lost packages that were shipped without a tracking number attached to them. You have to use a shipping method that can be tracked, in order to determine who's really at fault if a package gets lost in transit. And the mandatory insurance coverage means that it's the postal service who will pay if a package gets lost.

 

This will not be good for international transactions. Prices for packages with a tracking number that cross the Atlantic or Pacific ocean are usually extremely expensive.

[the.golden.ax]

Don't get me wrong, I'm no eBay fan boy. This is happening because US Law (See Federal Trade Commission) makes it your problem as seller to cover the item in the event of loss or damage. This change isn't an eBay thing, but a Federal compliance eBay must follow, and they got in trouble for not having done so already. The FTC actually states in the law (2006 I think was when it went into effect) that asking a customer to pay for insurance is coercion. When someone buys an item mail order, or online it is the duty of the seller to make sure it gets into their hands 100% as described, and the onus falls on the seller to do so regardless of what the buyer has paid.

 

 

AX

Edited August 31, 2009 by the.golden.ax

[Buyatari]

The problem was when you sorted lowest to highest with shipping the insurance was not added. Sellers were abusing this and eBay not making any money on insurance just had to step in.

[SpendTooMuchOnAtari]

I believe this is now in effect. The many changes of ebay, I personally have not been a fan of many but I find myself actually avoiding ebay now.

[SpendTooMuchOnAtari]

I was just thinking about the notes above of what you CAN do and it says you can include insurance in your "handling" and even say that insurance is covered with the handling. However, when they cap the shipping price in video games, books, DVDs and all that, how is it possible to come out without losing money since the handling charge would be so low due to their other pre-set rule of capping prices.

 

I'm just not getting it at a seller's or a buyer's standpoint. When I'm a buyer, I certainly did not mind the option of adding insurance and sometimes I did, depending on the item. I know it's already in effect and now that I think of it, the little bit of items I have up probably say insurance is optional which is a No-No now I guess.

 

Off to edit these before I get in trouble for that.

 

[jahfish]

I was just thinking about the notes above of what you CAN do and it says you can include insurance in your "handling" and even say that insurance is covered with the handling. However, when they cap the shipping price in video games, books, DVDs and all that, how is it possible to come out without losing money since the handling charge would be so low due to their other pre-set rule of capping prices.

 

I'm just not getting it at a seller's or a buyer's standpoint. When I'm a buyer, I certainly did not mind the option of adding insurance and sometimes I did, depending on the item. I know it's already in effect and now that I think of it, the little bit of items I have up probably say insurance is optional which is a No-No now I guess.

 

Off to edit these before I get in trouble for that.

 

 

it also means that ebay is now charging u 8% fees on the insurance & handling costs if you have to include them in the auction price ... that's ridiculous ... they just make money on every cent of the transaction!

 

Edited October 4, 2009 by jahfish

[Cebus Capucinis]

it also means that ebay is now charging u 8% fees on the insurance & handling costs if you have to include them in the auction price ... that's ridiculous ... they just make money on every cent of the transaction!

 

Almost as if they are hosting your transaction on their privately owned website and as a private company are attempting to make profit! Oh no!

[whovian]

Some states already had a law governing this for items bought within that state. This is a law that I've been hurt on as a buyer by sellers not following alot more than being hurt as a seller. But, at the same time, I've had VERY FEW items that were damaged in transit, so it's not been bad for me. I think those that will have the hardest time adjusting are the folks that weren't packing the items well anyway.

[SpendTooMuchOnAtari]

I think those that will have the hardest time adjusting are the folks that weren't packing the items well anyway.

 

 

Interesting and valid point, I always package the best I can and also have had very few things ever damaged in transit. I have had people try to say they never received a package but delivery confirmation kicks in and when the USPS site shows delivered, I have been covered - although with inconvenience.