Shipping and liability when using Paypal
My issue is a global issue that affects all Sellers using Paypal
When you sign up with paypal, you agree that it is your responsibility that the package arrive to the buyers. What does this really mean?
It means you assume all the the liability if the post office ruins your package, looses your package or delivers it improperly. This is why you see an ADVERTISEMENT FOR THE USPS (United States Post Office) at the top of every paypal receipt. Where else can a company nto have any liability if they do not do their job and make another company pay. At paypal and Ebay and Etsy.
I have become very concerned about the risk that paypal subrogates to their customers. As a result, it has become an unsafe way to transact business for Sellers.
1. The post office does not have to really worry about how they deliver the mail, even with delivery confirmation. Delivery confirmation only says it was dropped off somewhere. IT DOES NOT INCLUDE ANY INSURANCE. There is also no way a buyer can purchase insurance when they purchase and item on Ebay or ETSY.
The Seller must take the responsibility for the USPS errors.. The problem is if you insure your packages, it makes your price appear high because most buyers do not know how this all works,.
I have had packages stolen worth over $200 when the post office delivered it on the grass next to the postal box. They said it was too large to fit in the mail box. The Post office manger at the Arvada post office said this was considered delivered.
2. I have had padded 8×4″ Kraft bubble mailers sent through the letter processing machine breaking and smashing all the contents. Again, the post office said they were not responsible.
3. Paypal is advertised on a government service when you print the label. Of course, they love you guys, as they are never accountable for their actions. They can smash our packages, run them through the wrong machine, run over them, leave then on the street or in plain view and they are not responsible. According to your POLICIES and agreement, the sellers are. If you don’t think it is a problem, why doesn’t paypal take the risk for awhile and see how that works out.
4. I have filed valid insurance claims when purchasing insurance, but they never seem to get paid.
5. When I see the ebay not perform as predicted financially, I believe it is partly because Paypal has made a safe place for buyers but not for sellers. This area simply needs attention even though you believe it may not be an issue. Of all the areas that bother sellers the most, this is one area that will make sellers see red. Just go to any post office. It is a constant subject of discussion there. Every person has a story to tell where they have lost quite of bit of money due to this unfair policy. Whether you realize or not, you have created a lot of negative goodwill in this area. Negative goodwill Does impact financial performance.
6. Solution: It is pretty darn simple. If a buyer elects not to buy insurance, don’t make it the sellers problem. Why in the world would you think it is Fair for small sellers to take of the risk of the post office when they have no control over their actions? There is no longer a way to for a buyer to purchase the insurance on an ebay or paypal transaction easily. Figure out a way to make sell sunder $250 insured if you don’t want insurance on the checkout or make the post office accountable. If not, at least , make a disclosure at the bottom of the receipt that the buyer is responsible for the postal errors if they do not insure their packages if Paypal doesn’t think the post office should have to do their job.
It would be interesting how much of our taxpayers dollars go to pay for this marketing and advertisement on the paypal receipts. it just seems that the USPS should not be endorsing a form of payment.
7. It just makes good business sense as I think now it is cutting into EBAY?Paypal financial performance. Maybe this email will just go on the stack of other “complaints” Don’t look at it this way as I am trying to offer a solution. Besides it could be your job when ebay looses customers.
Hopefully, somebody may listen and think about how this makes it a safe place for EVERYONE (Sellers and buyers) to transact business.
Maybe some smart lawyer could figure out how this has hurt the paypal customers and start a class actions suit that would just make them stop this practice and make it a safe place for sellers as well as buyers.
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Posted: August 22, 2012 at 4:10 pm







So when I ship and have to take out insurance because the package is worth over $250 the insurance still wont cover me? With all the fees i pay ebay, paypal and the usps there is very little left for me at the end of each sale and you think I should get what i pay for like insurance but instead the post office can throw it back in my face and tell me that I am responsible until the buyer gets it because paypal said so. That’s just crazy. Is it the same deal if i ship with fedex or ups?
Nothing is safe when using PayPal I guess. I can’t believe the USPS won’t help and don’t hold them selves accountable for broken items and lost packages. I think shipping Fed Ex and UPS is better because you can send a package and have it sent signature required so they can’t just leave it anywhere and they are pretty good with insurance as well. It might be a little more money to ship but how much does peace of mind cost?
But requiring a signature is an option with USPS. So is insurance and with eBay you have 2 insurance options.
And when taking (or not) responsibility, I don’t think the USPS cares how you paid for your postage (ebay, credit or cash).
I disagree with UPS as better than USPS. Lately, I used UPS to ship an item on ebay and pay the insured fee. UPS still denied my claim when item was damage during transit using reason of shipper didn’t meet shipping guideline.
I rank USPS and Fedex above UPS because they handle shipper package better than UPS. If you disagree just followed the forum thread over on ebay website about UPS, Fedex, and USPS.
Now I donot use UPS service because they are terrible at handling my package and terrible customer service.