One of the ways that I’m making a bit of extra money is selling stuff on eBay. In a latter post, I talk about shipping domestically, but here I’ll be discussing international shipping from the US.
Sadly, about a third of the international buyers that I’ve dealt with have been a problem. The problems included disputed charges (Paypal chargebacks), claiming the item was never received, and not paying for the item (one guy demanded that I ship the item to him and give him good feedback!). Getting scammed, especially on an expensive item, sucks. Some sellers don’t have a problem, others do; it depends on the types of items you’re selling and whether it’s the sort of thing that a scammer might be interested in. You can take a risk with your first item, but if you’re not willing to issue a full refund at the first sign of trouble, then you are going to get burned.
I can send a small item internationally for only a few bucks — but that doesn’t include tracking. Maybe you’ve got an honest buyer, maybe you don’t. A buyer can claim that they didn’t receive an item, even if they did receive it, and without tracking to prove that it was delivered and signed for eBay will side with the buyer. It’s the seller’s responsibility (that’s you!) to guarantee that the item arrived.
The basic problem is that tracking is expensive. USPS Priority International runs about $14, and Express International $25. For something larger than a letter, such shipping options can be $65 or more. For items under $100, that’s a lot of money to pay for shipping — something few international buyers want to pay. Other carries will cost $50 and more for items small & light enough to send in an envelope! The benefit is the item will arrive quickly — but if you’re trying to sell a cheap item, speed isn’t important enough to justify such outrageous charges. It took a week for your auction to end, many buyers are willing to wait another week for the item to arrive.
And then there’s import charges – even shipping to Canada, UPS and FedEx packages might incur custom brokerage charges (a flat $25) regardless of item value or the price that you paid for shipping. Many countries have a customs, VAT, or other tax that adds even more to the cost to the buyer. As a US seller, it’s hard to learn about these charges, but it’s something that can make buyers very unhappy!
Even if you do add tracking, it might not be enough. The customs number you get when you ship internationally through the post office and fill out that little form isn’t sufficient – it only tracks the item until it leaves US customs. You need delivery confirmation to be protected by eBay Seller Protection. And if the item is over $250, then you also need signature confirmation. Buyers of items over $250 can claim the item was never received and, if there’s no signature on file, they get to keep the item and the money!
And what if the item is damaged? Or if the buyer claims the item is damaged, or not as described? You’ll need to buy insurance coverage for that, which adds more to shipping cost. Insurance can be bought for less than $1.50 per $100 of item value from a company such as Shipsurance, or through the carrier itself, although that does mean declaring a large value which can be a big inconvenience to the buyer.
So here’s our problem:
- we want to ship from the US to another country
- we don’t want to pay too much for shipping
- we want to protect ourselves from fraud
The solution? There isn’t one!
There’s no 100% way to protect yourself from fraud. There’s always a way for a crafty buyer to scam you. The best you can do is to make it hard for them, and work to exclude as many scammers as possible. Problem resolution through eBay and PayPal can be slow and painful, and comes with tight deadlines, the cost and inconvenience of gathering proof and faxing it in, and sometimes fees.
First: pay for tracking. You’re going to have to bite the bullet on this one and pay the extra cost, and that will exclude buyers from your auctions. Without delivery confirmation — that is, tracking directly to the buyer’s doorstep — the buyer has an easy out to claim they never got the item. On anything over $100, you’ll want signature confirmation as well. Even if they signed for the package, they can claim that the item wasn’t as described and generally eBay sides with the buyer on those claims.
Luckily, tracking is usually cheap. USPS has restrictions on it (you can’t track first-class letters), but it only costs 80c at most, and if you print postage online it can be as low as 19c. Tracking comes free with the door-to-door carriers, and with USPS’s more expensive delivery methods.
Second: buy insurance. If there is a claim that the item wasn’t received, if the post office (either in the US or the destination country) mangles the item, or if there’s some other scam that means that PayPal takes the money back, insurance can reimburse you. The process is easier when there’s a genuine problem (e.g. if the item is mangled in transit) and the buyer is willing to cooperate, but at the minimum you’re going to have to provide tracking info to the insurance company (see item #1!).
Third: exclude high-risk countries. Sadly, the countries that I’ve been scammed from include Norway, South Korea, and Japan — not exactly high-risk countries. Being scammed from these places is what prompted me to switch to always using tracking and insurance. Imagine what happens to packages in countries with spottier package delivery, legal measures, etc? I’ll leave it up to you to decide where you want to ship to. Note that eBay seller protection is only valid for buyers from the US, Canada, and the UK!
On the plus side, insisting on signature confirmation and insurance will help discourage scammers from bothering with your auctions, since it will be that much harder for them to dispute the claim. They just want to take the item and run; if you make it hard for them, they’re less likely to even bid.
When you ship an item, definitely compare FedEx, UPS, and USPS. And don’t trust the guy at the counter to give you accurate information about whether the service you want to buy will provide delivery confirmation — make a phone call, and keep asking for a supervisor or specialist until you get someone with direct experience with the country that you are shipping to!
Finally, here’s some guides at eBay itself that provide some more helpful info on international shipping:
Good luck, and happy selling!