Shipping policy advice wanted, please.

[DCBluesman]

From the Uniform Commercial Code (emphasis added)

§ 2-509. Risk of Loss in the Absence of Breach.
(1) Where the contract requires or authorizes the seller to ship the goods by carrier
(a) if it does not require him to deliver them at a particular destination, the risk of loss passes to the buyer when the goods are duly delivered to the carrier even though the shipment is under reservation (Section 2-505); but
(b) if it does require him to deliver them at a particular destination and the goods are there duly tendered while in the possession of the carrier, the risk of loss passes to the buyer when the goods are there duly so tendered as to enable the buyer to take delivery.

 

[ed4copies]

I think an important point was made. We (as most vendors on this site) rely heavily on Paypal. So, if a shipment does NOT arrive, the buyer will be able to cancel through paypal.

Still don't know about WHERE to add that cost, but it looks like it has to go SOMEWHERE.

Credit cards and paypal render the "legal" issue mute, I suspect.

 

[Daniel]

1. orders do get lost.
2. I cannot recall any supplier that has not accepted that my payment was witht he expectation that I receive my order and act accordingly.
3. this means that any lost order is going to be replaced.
4. replacing orders is not free so somebody is going to pay for it.
5. In business it is going to be ultimately the customer that pays for everything.

The real problem in this as Ed points out above is just how to add this cost to your sales without being considered a crook. having customers hit the delete button at the last second because they are offended by the idea of handling charges, or otherwise falling in the many pitfalls that surround this issue.

1. charge a handling fee or require insurance and let those that will be offended be offended.
2. add the cost of replacing orders to you regular shipping charges at the risk that those that know what real postage costs will realize this and again be offended.
3. mark up every item you sell by the percentage of losses you have. this one is risky at best and higher mark up means higher price means less competitive. basically across the board damage to your business.
4. pay for all losses out of your pocket as the owner of the business. Damage is to you personally and your business gets to remain sterling. You get to explain to the wife why the pay check is short.

Pick your poison but that is exactly what mistakes are. Damage control so what reduced the damage to it's smallest impact.

I do believe that a strong reputation reduces the risk of people thinking they are being cheated. But that means everyone has to know your reputation.