I thought I'd start a thread where users could contribute their tips on how to avoid getting burned. This will cover getting burned by the Post Office as well as dishonest individuals.
The number of problems around here is pretty minimal. When a problem occurs, it tends to get a lot of attention because it's a rare event. However, there are some things you should know and some good practices to have. A large number of transactions occur here and elsewhere every day without problem. There is no need to distrust everyone. What are and aren't necessary measures to take are up to you. Use your best judgment.
I don't know much about international shipping and trading. I hope someone can chime in some useful information.
First thing you should do is read Suggestions for having a good Buying / Selling / Trading experience
Packaging
First I'd recommend reading How Should You Package Knives for Shipping? if you haven't done so already. Be sure to package any item so it doesn't get damaged!
I would avoid bubble envelopes for security reasons, at least for items that you'd be upset about losing. It is possible to feel the size of the item through the packaging with these. That means a dishonest postal employee knows if they can easily pocket the item. They're also very easy to cut or tear through. Standard Priority Mail starts at $3.85. If your bubble mailer has an "insured" sticker and the shipping was $8, it says "steal me!". It takes just a quick cut with a box cutter and your item is gone.
For privacy and security reasons, you may wish to use an abbreviation. For example if your business name is "Joe Smith Custom Knives", it may be a good idea to abbreviate "Joe Smith C. K."
Shipping
There is often confusion about the Post Office's services like Delivery Confirmation and Signature Confirmation.
Delivery Confirmation only shows that the item was delivered and when it was delivered. This means that it could've been delivered to a neighbor, for instance. In small claims court, Delivery Confirmation would not hold up for a seller. However, PayPal will accept it as proof that the item was delivered.
Signature Confirmation, on the other hand, requires a signature from the individual who accepts the package. This is excellent proof that the item was delivered to them. You can request a copy of the recipient's signature via fax or mail.
The cost of these services is available at the USPS web site. It's up to you to decide whether or not they're worth it. Personally, I'd recommend Signature Confirmation on any item you consider high-dollar and would be very upset with losing.
Registered Mail has the most security out of any Post Office service. However, there is a significant cost and hassle associated with it. You may wish to set a standard - for example use Registered on items $400+ or irreplaceable items. The packaging and eligibility standards are available here.
Some buyers will give a PO box as a shipping address. Some prefer not to let the world know that they collect high-end custom knives for instance. However, PO boxes are sometimes used by scammers because it gives them some anonymity. Their address can be subpoenaed by police though. You may wish to ask for something like a phone number as an additional security measure. Call it if you feel it is necessary. You may also wish to not ship to PO boxes. Be warned that you may lose some customers, however.
Payment
I am of the opinion that a buyer should always pay first before a seller ships. As we've seen, some can be a bit "reluctant" after they already have the item in hand.
Various methods of payment each have their own advantages and disadvantages for both buyers and sellers. First off I'd never use cash. Period.
With money orders, checks, and cashier's checks, you should always have the payment cashed before you ship. Always.
Postal money orders are cheap and available at any Post Office. They offer some anti-counterfeiting measures. You should familiarize yourself with them. However, it is still possible to receive a stolen or "missing" money order. If this is the case, you should contact the Postal Inspectors. As a buyer, always fill out the money order and keep the stub.
Personal checks, too, can also be stolen or counterfeit. They can also bounce. You may wish to ask for the buyer's phone number or only ship to an address on the check. As a buyer, you may be able to do a stop payment if you are quick. Modern electronic banking systems are making this much more difficult, however.
Cashier's checks and store money orders suffer from the same problems as postal money orders. You also may not be familiar with a particular organization's checks or money orders. This could leave you more vulnerable to counterfeiting. If you have a problem, contact the police.
PayPal offers some advantages but also pitfalls. Problems with stolen PayPal accounts are becoming more and more common. Both buyers and sellers should be verified. You get additional protection from PayPal this way. A good policy is not to do business with unverified individuals. If you are a buyer, you could theoretically do a chargeback with a credit card. However, try to resolve any dispute with PayPal first. They will gleefully yank your account for a chargeback.
Records
Always keep records. Let me repeat it again: always keep records.
This includes, but isn't limited to:
Emails and PMs
Bought and sold prices
Any shipping and insurance and payment receipts
Names and addresses
Dates of shipment and receipt of payment or merchandise
Serial numbers, if applicable
Photographs of items
Disputes
If you have a dispute with someone, your best bet is to email or call them. Some individuals are more likely to give you an answer or take action if you call them.
Some things you don't want to do are be very impatient, be rude or use profanities. This doesn't help.
If you are a buyer and feel the merchandise was misrepresented, politely ask for a return. Some sellers will accept unconditional returns. However I feel that "buyer's remorse" is a bit of an abuse.
If you haven't received merchandise or payment and the individual has said they finally shipped it, ask for proof if applicable. Some scammers have been known to stall you so you can no longer work with PayPal or do a chargeback or file a claim.
Eventually if you can't work things out and you are a buyer, you should try to reverse a payment.
If all else fails, there are the police as well as civil suits. If it comes to that, try having a chat with their or your local law enforcement. Be prepared to present all of your records. You did keep records, right?
That's about all I can think of for now. I'll amend this if I can think of more. I'd like some people to add their own ideas to this thread too.
The number of problems around here is pretty minimal. When a problem occurs, it tends to get a lot of attention because it's a rare event. However, there are some things you should know and some good practices to have. A large number of transactions occur here and elsewhere every day without problem. There is no need to distrust everyone. What are and aren't necessary measures to take are up to you. Use your best judgment.
I don't know much about international shipping and trading. I hope someone can chime in some useful information.
First thing you should do is read Suggestions for having a good Buying / Selling / Trading experience
Packaging
First I'd recommend reading How Should You Package Knives for Shipping? if you haven't done so already. Be sure to package any item so it doesn't get damaged!
I would avoid bubble envelopes for security reasons, at least for items that you'd be upset about losing. It is possible to feel the size of the item through the packaging with these. That means a dishonest postal employee knows if they can easily pocket the item. They're also very easy to cut or tear through. Standard Priority Mail starts at $3.85. If your bubble mailer has an "insured" sticker and the shipping was $8, it says "steal me!". It takes just a quick cut with a box cutter and your item is gone.
For privacy and security reasons, you may wish to use an abbreviation. For example if your business name is "Joe Smith Custom Knives", it may be a good idea to abbreviate "Joe Smith C. K."
Shipping
There is often confusion about the Post Office's services like Delivery Confirmation and Signature Confirmation.
Delivery Confirmation only shows that the item was delivered and when it was delivered. This means that it could've been delivered to a neighbor, for instance. In small claims court, Delivery Confirmation would not hold up for a seller. However, PayPal will accept it as proof that the item was delivered.
Signature Confirmation, on the other hand, requires a signature from the individual who accepts the package. This is excellent proof that the item was delivered to them. You can request a copy of the recipient's signature via fax or mail.
The cost of these services is available at the USPS web site. It's up to you to decide whether or not they're worth it. Personally, I'd recommend Signature Confirmation on any item you consider high-dollar and would be very upset with losing.
Registered Mail has the most security out of any Post Office service. However, there is a significant cost and hassle associated with it. You may wish to set a standard - for example use Registered on items $400+ or irreplaceable items. The packaging and eligibility standards are available here.
Some buyers will give a PO box as a shipping address. Some prefer not to let the world know that they collect high-end custom knives for instance. However, PO boxes are sometimes used by scammers because it gives them some anonymity. Their address can be subpoenaed by police though. You may wish to ask for something like a phone number as an additional security measure. Call it if you feel it is necessary. You may also wish to not ship to PO boxes. Be warned that you may lose some customers, however.
Payment
I am of the opinion that a buyer should always pay first before a seller ships. As we've seen, some can be a bit "reluctant" after they already have the item in hand.
Various methods of payment each have their own advantages and disadvantages for both buyers and sellers. First off I'd never use cash. Period.
With money orders, checks, and cashier's checks, you should always have the payment cashed before you ship. Always.
Postal money orders are cheap and available at any Post Office. They offer some anti-counterfeiting measures. You should familiarize yourself with them. However, it is still possible to receive a stolen or "missing" money order. If this is the case, you should contact the Postal Inspectors. As a buyer, always fill out the money order and keep the stub.
Personal checks, too, can also be stolen or counterfeit. They can also bounce. You may wish to ask for the buyer's phone number or only ship to an address on the check. As a buyer, you may be able to do a stop payment if you are quick. Modern electronic banking systems are making this much more difficult, however.
Cashier's checks and store money orders suffer from the same problems as postal money orders. You also may not be familiar with a particular organization's checks or money orders. This could leave you more vulnerable to counterfeiting. If you have a problem, contact the police.
PayPal offers some advantages but also pitfalls. Problems with stolen PayPal accounts are becoming more and more common. Both buyers and sellers should be verified. You get additional protection from PayPal this way. A good policy is not to do business with unverified individuals. If you are a buyer, you could theoretically do a chargeback with a credit card. However, try to resolve any dispute with PayPal first. They will gleefully yank your account for a chargeback.
Records
Always keep records. Let me repeat it again: always keep records.
This includes, but isn't limited to:
Emails and PMs
Bought and sold prices
Any shipping and insurance and payment receipts
Names and addresses
Dates of shipment and receipt of payment or merchandise
Serial numbers, if applicable
Photographs of items
Disputes
If you have a dispute with someone, your best bet is to email or call them. Some individuals are more likely to give you an answer or take action if you call them.
Some things you don't want to do are be very impatient, be rude or use profanities. This doesn't help.
If you are a buyer and feel the merchandise was misrepresented, politely ask for a return. Some sellers will accept unconditional returns. However I feel that "buyer's remorse" is a bit of an abuse.
If you haven't received merchandise or payment and the individual has said they finally shipped it, ask for proof if applicable. Some scammers have been known to stall you so you can no longer work with PayPal or do a chargeback or file a claim.
Eventually if you can't work things out and you are a buyer, you should try to reverse a payment.
If all else fails, there are the police as well as civil suits. If it comes to that, try having a chat with their or your local law enforcement. Be prepared to present all of your records. You did keep records, right?
That's about all I can think of for now. I'll amend this if I can think of more. I'd like some people to add their own ideas to this thread too.
