Q&A: Is USPS Delivery Confirmation worth the money?
QUESTION: I'm fairly new to selling on Amazon (about eight months now). I've sold on eBay for many years (not books). On eBay I've always shipped with UPS (larger items than books.) With Amazon I sell primarily books and DVDs, and ship with USPS. I use Delivery Confirmation on items over a certain dollar threshold, and for expensive items I also add insurance.My problem is with Delivery Confirmation. I've had two cases now where the customer says they never received the item, but the Post Office shows it as delivered. I've tried the reasonable approach of filing a lost package report and suggesting that the customer wait and see or request a refund from Amazon (I know Amazon won't give it if the Post Office shows the delivery, but I figure it will buy some time for the item to show up or for the Post Office to do their job). I also end every e-mail with a request that if the customer has any questions, other problems, or needs any other assistance, to let me know.
In both cases, after about a week, the customer didn't contact me, but left negative feedback. I don't want negative feedback, and work hard to keep my feedback at 99 percent. So I give the customer a full refund and they remove the negative (I don't ask them to, they just do it after the refund).
If I'm going to end up giving a refund anyway, what's the point of Delivery Confirmation? My complaint is with the Post Office; their service is terrible. They make a mistake, claim a delivery that was not made, and stand by it -- no matter what. My experience with UPS is completely different. First of all, UPS can actually track a package, the USPS can't (their tracking is a joke).
UPS gives me a refund 100 percent of the time, and within two weeks for a lost or damaged package. Of course, UPS is too expensive to use for books or DVD's so I'm stuck with the Post Office.
So, what good is Delivery Confirmation? I'm considering dropping it completely.
ANSWER: You're right, on the surface it doesn't make a whole lot of business sense to use Delivery Confirmation. Although I've been too chicken to drop DC myself (yet), I agree with every point you've made.
For example, at the end of 2005 I tallied up how much I'd spent on DC during that year. It was over $4,000, even with the discounted online rate from using Endicia. Obviously I didn't get my money's worth. During that time I had three or four A to Z claims worth perhaps a total of $100 that I was able to get reversed because I was able to show DC. So I spent $4,000-plus to save $100?
Also, during 2005 I answered about 400 or 500 e-mails from people who I'd sent a DC number to, but they couldn't get a tracking result from the Postal Service. (At the time I sent the DC number in my shipping confirmation e-mail). I heard back from the people who couldn't get a tracking result from the USPS Web site because their package was never scanned until delivery. So when the customer checked the tracking, they got the impression I had never shipped the package despite what I'd said in my shipping-confirmation e-mail.
After I took a look at those numbers from 2005 I decided to stop giving the DC number in my shipping confirmation e-mail because I decided it was causing more work for me, not less. It's irritating to pay good money for a service (DC) that ends up causing a bunch of extra work for you.
So why am I still using DC? Good question. I've seriously considered dropping it but have just been avoiding the decision. One thing that is hard to quantify: How many customers who might otherwise try pulling a scam are kept "honest" because they assume from seeing the DC barcode that there is certain proof of delivery?
Also, Amazon monitors your refund rate and A to Z claims. Once you get to 5 percent of refunds, you'll be in trouble. But if you're fulfilling your orders promptly, there's not much chance your refunds will reach 5 percent, even allowing for the occasional Postal Service screwup.
Also, I'll add a few words in defense of the Postal Service, despite the aggravation they cause me. Media Mail is very economical and it's the only real choice for booksellers who want to maximize their profits -- especially us used booksellers who are operating on just a few dollars' profit margin on each sale. And it's possible that Delivery Confirmation will show "delivered" even though the buyer doesn't receive the package. For example, anyone walking down the street can swipe a package out of a mailbox.
Labels: customer service, Postal Service
posted by Steve Weber at 4/22/2007
18 Comments:
DC is for 'Delivery Confirmation' not tracking. They only scan when delivered...you can't track the package. There are scammers out there everywhere and I don't know what the answer is. I'd think that Amazon would stand in your defense if the package is scanned but the 'big boys' only care about the bottom line and only care to please the buyers..that's where their money comes from!!!
Our numbers are lower than Steve's, but every time we have had a question about delivery arise, we give the DC, (after the fact, not with the order confirmation email), and every single time, the customer has not responded, nor has anyone left negative feedback. I believe it is worth it--I also think it looks more professional to most customers when they receive a package with a DC number on it.
The first Anonymous correctly points out that "Delivery Confirmation" is not tracking and should not be compared to other companies' tracking service. The Postal Service only offers tracking on Express Mail, and I point this out to customers if they request a "tracking" number. I have never used delivery confirmation (except the free ones with Priority Mail through Endicia), and I have very few delivery problems. You know the date the package was sent and the customer knows the date it was delivered, so who is being helped by delivery confirmation? If you do not trust your customers and they do not trust sellers, you are both conducting business the wrong way. Customers with trust issues would be better served walking up to a counter at Waldenbooks and paying full retail.
I agree DC is a joke. Not only can a package be swiped from someone's mailbox it's also possible that the package can be swiped anywhere along the delivery stream but still scanned as DCed. In a few cases, I've had packages scanned as delivered to homes but for some reason the packages are at the local PO. If a package is delivered but not scanned the local PO has the discretion as to whether or not you get a refund of the DC. So in essence, DC means nothing; but I still use it. I look at it as a cheap sort of insurance that adds support to a buyer's claim against a seller and I have also found that the few people who have claimed no delivery change their tune after I send them the DC number when they claim they have no received the package.
I never send the DC or tell the buyer I'm using DC. The only way they know I use it is when they see the package. Telling them ahead of time creates more work because they think it's a tracking number.
Endicia charges 14 cents for DC so I figure I can afford that for the little bit of piece of mind it gives me even thought that piece of mind looks like a piece of swiss cheese.
I am using DC thru the post office web site, Shipping Assistant, and it costs me 14 cents (will probably go up in May). I have not crunched the numbers to see if it's worthwhile. I use it only on books $5.00 and more. I will say that since starting it I have had much less 'I didn't receive my book.' And I agree the printed official looking label looks more professional and may get the book delivered quicker. Anything under $5.00, if it hasn't arrive in one month, I just refund and tell them to keep it when it arrives. But you are right, it's is not really tracking although sometimes it will tell you that it's in Oklahoma on it's way to California if someone scanned it. At this point I intend to keep using it for books $5.00 and more. And I don't bother to tell the buyer the DC # unless they write and ask. I pay for it, it's for my protection. Anything over $35 or so gets insurance. Hope this helps.
With most Post Offices, at least in my area, your postal receipt shows the zip code for each piece of mail I send out.
A postal receipt and a 25 dollar scanner is more than enough proof that you shipped a item.
The person who submitted the question also asked about buying insurance .
I have sold many books over the 100 dollar mark and have never bought insurance. The reason why? That $1.20 per trasaction we pay is basically a insurane purchase. We are not required to buy insurance and I have seen many cases were the book is supposedly damaged and Amazon will pay it.
Your obligation is to ship it within the time frame ,and show some sort of proof you did it.
I use DC on all packages, which I purchase with Endicia for 14 cents per book. Frankly, as a seller, I think it looks more professional to provide some kind of "tracking", even if in this case it means only proof of delivery. I indicate that DC is provided in all of my listings, and email the DC number with the shipping confirmation.
I wouldn't be surprised if some customers will choose my item over another seller's b/c they feel the use of DC (and insurance in cases where items are above $30) is the mark of a more professional seller. As a buyer, I also look for extras like this. I like to know the seller cares enough to add these services, even if in most instances it is protecting the seller. I have been on the receiving and sending ends when DC has come in handy. I also use the DC info as a seller to guage the approximate transit times for various orders -- it also can be useful for protection against buyers who insist an item took forever when the DC indicates a few days transit time.
All-in-all, the cost is minimal per order when using Endicia, so it seems like just one more cost to doing business that may encourage buyers. Perhaps I will reconsider this as my business expands -- $4000 per year for DC does seem steep!
I worked as a carrier for USPS for fifteen years, and as such, I have an insider's perspective on DCs. As a carrier, I was required to scan all DCs for my route (varied from 20-60 pieces A DAY!) as enroute in the morning, and then required to scan them delivered on the street. In the afternoon, the supervisor would print out each route's DCs, to make sure they were all delivered. That's the service we pay for. Unfortunately, not all offices are as honorable as that.
I know for a fact that the DC will get your item delivered faster. Carriers are required to deliver them the same day, which is not so for media mail without the DC. Especially at Christmas time there were days I simply couldn't get all the mail into the route vehicle, and then those non-priority items would have to wait for the next day.
14 cents (through Endicia) is a great deal for the extra insurance. However, I do wish that Endicia and USPS had some sort of interface to show SOMETHING other than "label was created". I had one priority package that went missing, turned out the customer had provided an insufficient address, the package took 3 WEEKS to come back to me. The label was never scanned. It should have been scanned by the carrier as "returned-insuffcient address".
But, as an aside--I cannot complain too much. I've been selling online since 1999, sent out roughly 6,000 pacakages....and I've only had 3 or 4 go missing. That's an admirable record.
Amazon states: "all orders are to be shipped in a trackable manner"
Your customers may be lying, or in rural areas with unlocked mail boxes and stoop or porch dropped packages there may be pilferage or passing-theft.
I have found tracking helpfu lwith a package "stuck" due to falling off a converyor belt in Raleigh Nothr Carolina; or a scammer/buyer claiming they never reived it and the USPS site showing it was delivered and after forwarding teh info never getting a response from my multiple subsequent emails.
DC is insurance against your vendor bumping you off of a venue as well as in the case of AZ being policy. Biblio also recently is encouraging the input of a Tracking/DC number.
I actually in nearly 5 years have had no book losses but at time serious combined delays in the Media Rate system
The rates [rats] are going up 32.5% yet this will not be put towards service improvements.
Delivery confirmation gives me peace of mind. If a buyer has a question about their book, I can give them some sort of answer besides, "I shipped it within 24 hours".
Marla,
When did customers start reading decriptions? *wink
Okay, maybe I'm naiive, but I know I read descriptions carefully (and I take the time to write them)...but your point is well-taken! I have had my share of customers who haven't bothered to notice they are ordering EX-LIBRARY, etc. Still, I believe noting the DC in my listing can only help : )
it's worth the .14 to keep buyers honest. There's been a spate of buyers claiming non-delivery lately, and always on the packages that DON'T have DC on them. It never happens on the packages that DO have DC on them. DC keeps buyers honest.
I definitely agree with that. There are people out there who are looking to get over anyway possible. A delivery confirmation helps prevent this.
Next month there are two changes: 1) Postal rates go way up, and 2) Amazon makes shipping notification emails much more difficult. In view of these, I've decided to cut down or stop getting DC. The email change means I won't be sending out notifications anymore, so DC no longer works as a customer service. I don't have Endicia or a scale so $0.60 is too much for DC.
I've always used $25.00 as the cut-off price for getting DC. Now I think I'll raise that to $35 or $40.
I find it interesting that some here insist on purchasing insurance when they are already covered if they sell through Amazon.
Thats like telling your local Hospital, I know I am covered for this operaion by blue cross, but I would rather pay myself.
Also many buyers are wise about Amazons A-Z. They know if a package is damaged Amazon willtake care of it.
If I recieved a package through a Third Party Seller with Insurance on it,I would think they are either new or havent bothered to read the seller agreement.
You should realize Curtis, that most tof us sell on other sites, and some sites in paticular sellers need to insire to protect themeselves.
However if a book only cost $2, I don't insure even if I sell it for $100.
Also some sites will take the refund out of the sellers pocket unless they can show a DC number that was scanned at some point, doesn't have to be delivered jsut scanned.
Geez there is more out there than Amazon.
In Reply to Anon,who said
"Anonymous said...
You should realize Curtis, that most tof us sell on other sites, and some sites in paticular sellers need to insire to protect themeselves.
However if a book only cost $2, I don't insure even if I sell it for $100.
Also some sites will take the refund out of the sellers pocket unless they can show a DC number that was scanned at some point, doesn't have to be delivered jsut scanned.
Geez there is more out there than Amazon."
If you actually took the time to read my statement,Me >
"I find it interesting that some here insist on purchasing insurance when they are already covered if they sell through Amazon."
See, If they sell through Amazon.That was the context.
Please try again with a usefull comment.
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