I just thought i'd share one of my extra profit making techniques. It may have been mentioned on here before but I can't find it if it has.

If you are selling low value items I always set the ebay postal insurance to optional and the postal insurance price to 99p.

We all know that if an item gets lost you will have to provide a tracking number to prove it's been delivered. If the customer says the item is lost and you can't provide a tracking number paypal will debit the money straight back out of your account. So you really have to provide postal insurance whether the customer pays for it or not. So you should include it in your costs when you are working out the profit on an item.

So if you include an option for postal insurance and the customer takes it you are basically getting an extra 99p profit on the item, for absolutely nothing.

If you send items by Royal Mail 1st Class/2nd Class Standard you can claim up to £34 if the item gets lost anyway, even without a tracking number. Also if you set the ebay postal options to Royal Mail 1st or 2nd Class Standard the customer will be more likely to pay the extra insurance as they will think the package isn't insured.

I find about 20% of my customers take the optional postal insurance so with ebay pushing everyone to offer free postage I think this is one of the best ways to get extra money out of a customer.

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Last edited by ADC; 29-10-2008 at 12:57 AM.

Is it fair to them? Is it fair to your customers?

Would you like to be treated like that?

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Originally Posted by ADC

the customer says the item is lost and you can't provide a tracking number paypal will debit the money straight back out of your account.

Surely if a customer doesn't receive a 'non tracked' item you automaticvally send them a free replacement or a refund?

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Originally Posted by Andy777

Is it fair to them? Is it fair to your customers?

Would you like to be treated like that?

Why is the customer being treated badly?

Originally Posted by greedyboy

Surely if a customer doesn't receive a 'non tracked' item you automaticvally send them a free replacement or a refund?

Yes of course.

Originally Posted by ADC

So if you include an option for postal insurance and the customer takes it you are basically getting an extra 99p profit on the item, for absolutely nothing.

This should answer your question - you're taking extra money for a service that's already covered.

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Originally Posted by Andy777

This should answer your question - you're taking extra money for a service that's already covered.

It's the customers choice whether they pay it or not. I've never had a single complaint. A good way to make extra profit if you ask me. After all we are in this business to make money.

Ripping off the consumer? Might as well be a ticket tout...

....or a tax fiddler

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Whilst i understand ADC's point/tip, its something i personally wouldnt do. As a buyer i wouldnt pay the insurance as i know the seller would have to replace the item if it didn't arrive.

As a seller i wouldnt offer "optional" insurance as those who pay it are clearly "not in the know" and therefore i would feel i am ripping them off, something i never do to my customers, Give me a super happy customer over a 99p profit any day of the week.

Not bashing you ADC but its not the done thing in my eyes, its a bit of a scam.

So the tip for buyers is : Dont pay the optional insurance as you are covered if the item doesnt reach you. The seller has the obligation to get the items to you as you have ordered, regardless of if you have paid insurance or not.