Delivery Confirmation Service Issues

What every seller who prints USPS shipping labels through PayPal should know  

As an eBay seller, I have become very comfortable with the US Post Office as my shipper of choice.  I have found them to be extremely reliable over the years, and they have a near-perfect record with me.  The one time I had a problem, the USPS was very helpful in resolving the issue - and put a scammer in federal prison for 8 to 10 years.  It didn't matter to them that the item in question was only valued at $10.  They pursued the matter like it involved $10,000,000.  

In general, Delivery Confirmation Service from the USPS is a great utility for sellers and buyers alike.  Sellers can see if/when their packages were delivered, and can also use that information as a defense to fraudulent "Item not Received" claims by scammers.  Buyers can see that their package has been accepted by the USPS for shipment, and know they will receive it very soon.  All in all, Delivery Confirmation has helped to reduce the number of "Item not Received" claims and a number of other scams by buyers and sellers alike on eBay.  It is one tool that promotes safety and security on eBay, and reduces the number of disputes and claims filed with eBay and PayPal, allowing them to focus their energies elsewhere.

A good tool gone bad

Sellers who print their USPS shipping labels through PayPal have been required to pay an additional fee for Delivery Confirmation for as long as I can remember.  You don't have an option to waive the service or the fee.  The fee is only $.18 - a small price to pay for the protection that Delivery Confirmation provides.  But the service isn't always provided by the USPS - and PayPal personnel and scammers know this, even though most sellers aren't aware of it.  

PayPal does not mention on the shipping label form that Delivery Confirmation is not available in all US locations.  It does not tell the seller that a large number of Post Offices in small towns across the US do not have the scanners necessary to scan a package upon delivery, and therefore the service for which the seller is being forced to pay may not be completed.   This makes sellers vulnerable to Item not Received scammers, as well as other types of scams.  And until it happens to them, most sellers aren't aware of their vulnerability.  They assume, since they are forced to pay for the service, the service will be completed.  USPS can (and they sometimes do) forego the provision of the service, and simply claim the service was not available for the specific delivery location if something happens.  Recently, a local postmaster in a small town on the East Coast was found to be assisting one "Item not Received" scammer - by not scanning DC labels on packages to the scammer, then supporting the scammer's claim that the item was never received at the local level - and both persons were sharing the ill-gotten gains.  

Recently, PayPal added the following disclaimer under the Delivery Confirmation fee box in the "Shipping Options" portion of the USPS shipping label page:

 Delivery Confirmation can only be used on packages ("Parcels"), not on letters, or large envelopes ("flats").

This means that sellers who ship merchandise (like books, comic strips, sports cards - anything that is flat) in flat shipping envelopes (INCLUDING BUBBLE-PAK ENVELOPES) are liable in the event the service is not provided and an Item not Received claim is filed against the seller.  This disclaimer gives scammers another way to exploit the system and get something for nothing.  How many sellers of cd-roms or dvd's are aware that the flat package or envelope does not qualify for Delivery Confirmation - even though they are charged for the service - simply because it is not a box?  If eBay and PayPal truly wish to eliminate the many various scams which arise out of delivery service issues, they would insist that the service be provided on every package for which the seller purchases postage - regardless the size or shape of the package.  

Sellers who ship merchandise in flat envelopes via first class mail are charged "parcel post" rates for their packages already.  For instance, if you send a letter to someone, as long as it weighs less than an ounce, you pay $.41 for postage.  Through PayPal's USPS label system, sellers shipping an envelope or package that weighs less than one ounce (AND NO BOX WEIGHS LESS THAN AN OUNCE) are charged $1.13 for postage (if they select the First Class Mail - Parcel Service option).  If they select the slower Parcel Post service option for a one-ounce package, the postage price is $8.39!!

To summarize, don't assume that you are protected from scammers - EVEN IF YOU FOLLOW ALL THE PAYPAL OR EBAY RULES.  And hold PayPal and the USPS accountable for any failure to provide the service for which you pay.  They not only have enabled the scams, they are scamming sellers themselves if they charge for, but do not deliver, any goods or services.