Let’s face it: the only zero-risk transaction is hand delivery to a trusted friend in exchange for cash. Every other option involves at least some risk of shipping or financial loss–and many common transaction methods are actually very risky.

So, what’s a Cardhound to do? Most business these days is conducted online, whether via eBay, or social media, or some other platform. And while you might think “I purchased USPS insurance, so I’m protected,” unfortunately it’s not that simple. It’s the same with “Goods and Services” protection–it sounds foolproof, but there are still plenty of loopholes scumbags can exploit.

I asked members in the Vintage Baseball Cards Facebook group for anecdotes–“lost package” stories with either happy or sad outcomes. And from those stories and my own experience, I have assembled a list of “best practices” for mitigating risk of shipping loss when buying and selling online.

Key Points Covered:

• Most shipping loss is due to theft from the recipient’s porch or mailbox
• USPS has many shipping options that range from “extremely risky” to “extremely safe,” so choose wisely
• Shipping Insurance isn’t the cure-all you might think it is
• Goods and Services protection is useful, but is not a guarantee

Collector Story #1

“I lost a package that was supposed to be going to SGC. I mailed it out on Dec 15th. The package got to West Palm Beach post office the next day. Then it vanished . . .13 cards, worth $115,000 at the time . . . 2-Ruth’s, 2 Cobbs, a Leaf Jackie and an SGC 9 white letter Mantle. They were scheduled to be reholdered. SGC was no help, the post office was no help, the insurance I bought was useless . . . CIS didn’t pay because the post office said it was delivered. I asked SGC to watch for the cards, and they didn’t. If you are mailing something you have to video tape everything. I hired an investigator and he was met with opposition every step of the way. Now, anything over $10,000, I fly people around to drop it off.”

 

First, a Disclaimer

It’s important to note that the vast majority of packages shipped with USPS, UPS, and FedEX get where they are going just fine. The OTP (On-Time Performance) rate of each is around 95%, and while it is hard to find an exact number, the percentage of packages lost due to error / theft / fraud by the shipper is surely a tiny fraction of one percent. This advice in this article is built from anecdotes, but the point is to help illustrate how we can learn from these stories, however rare, and transact as safely as possible.

There are many common-sense strategies for staying safe online, and Cardhound has covered many of them elsewhere. This article is about mitigating shipping loss specifically. We focus on USPS options here but the same principles apply to UPS and FedEx.

The Number One Cause of Shipping Loss Is . . . 

Most packages that don’t get where they are going aren’t lost by the carrier–they are stolen from the recipient’s porch or mailbox. Package thefts totaled 119 million in 2023, which is about 1 in every 180 packages delivered. That’s a staggering problem and is getting worse year by year. America’s porch pirate problem is very real.

The best safeguard against porch theft, other than beefing up security on the site, is adding signature confirmation to the package. But frankly, once a package tracks as “delivered,” the seller is likely off the hook for liability. As a buyer, if you live in an apartment, or an area where porch pirates are lurking, you should pay the extra few bucks for the peace of mind.

USPS Options: Ranked by Risk

Once you factor in all of the add-ons, USPS provides dozens of possible options for shipping a package, and they all vary by price and risk. This risk scale typically coincides with price (low price = high risk and vice versa). Here are some examples:

PWE: Low Price, High Risk

PWE (plain white envelope)–a couple stamps, a couple of cards in a greeting card, and hope for the best. OK for cheap set filler cards, but not much else. No protection for the buyer.

USPS First-Class Ground (Ground Advantage) / Priority Mail: Higher Price, Lower Risk

Priority is faster, but both ground and priority are tracked and “insured” for $100, with the option of adding more. (My recommendation: don’t. Read on.)

USPS Express: High Price, Lower Risk

There are many Express options available (overnight vs. 1-2 day), and this service minimizes risk of loss via more direct routes. Fewer exchanges = fewer opportunities for loss.

USPS Registered Mail: High Price, Low Risk

Registered mail is slow, but it is safe. It involves hand-to-hand delivery of your package, with each carrier handing off to the next. It is as close to foolproof as you can get.

USPS Seller Tips

• Don’t accept Goods and Services payment for PWE since it is not tracked. A scam buyer can file a claim for “Item Not Received,” and there’s no proof either way.
• Pack as though the package will be dropped from an airplane into a toilet. Cardhound has a tutorial here.
• Tape the box shut every which way as a deterrent.
• Take pictures of cards prior to mailing, and also take good pictures of your packaging in progress.
• Double check the address.
• Add signature confirmation, and don’t check the box allowing the carrier to sign for it.

USPS Buyer Tips

• Obviously, know your seller, and use Goods and Services payment unless you are buying from a personal friend.
• Track the incoming package (you can sign up for text messages), so you know when it will arrive.
• Have someone home to get the mail, especially if a signature is required.

 

Collector Story #2:

“Fedex opened and re-sealed then delivered a package. A page of autographed cards was removed / stolen from a binder including a ’61 Topps Clemente and a ’61 Topps Hornsby! Fedex ‘investigated’- worthless. They’ll take your $$$ for insurance but only pay out a max of $1K for ‘collectible’ claims. I think the question and article you are working on is important – forewarned is forearms!

Understanding Shipping Insurance

Here’s the single biggest misconception regarding insurance: “I paid for a $5,000 policy with USPS, so if my package is lost, I get $5,000.”

Frankly, almost no insurance works like this. If your house burns down and you are insured for $250,000 in contents, this means that you can receive up to $250,000, depending on the actual value of your loss. USPS will fight you every step of the way on value, and you’ll have an especially tough time establishing market value of raw cards. Private insurance is the best overall option, but there are some caveats.

Carrier Insurance

I have heard many times that USPS will only reimburse up to $1,000 for cards, regardless of policy amount, but I have been unable to confirm this either way. If any reader has concrete details on USPS, UPS, or FedEx coverage or sublimits for collectibles, please share in the comments.

Homeowner’s or Renters Insurance

Your homeowner’s or renters policy probably does not cover any loss in this case–even in the event of fire, flood, or theft from your home! And even if so, the sublimit is likely very low ($1,000 is common). So if your $100,000 collection goes up in flames or down the river, you’ll get $1,000 or whatever that collectibles limit is. Your insurer may offer an additional policy or rider, but it is likely expensive and cumbersome. Always keep purchase / sale records and take scans or pictures that are stored in the cloud.

Private Insurance

Many in the hobby, including me, use CIS (Collectibles Insurance Services) for shipping insurance. They sell “collector” and “dealer” policies, and if shipping loss is your main exposure, just get a dealer policy. “Collectors” might catch flack for losses during selling, especially. Their policies are cost-effective, and their claim support is solid. Like with any insurance, there are some requirements if you hope to make a successful claim. For example, a signature is required for any package valued over $400. Whatever insurance you choose, know your policy and requirements.

Collector Story #3

“I had a card sent to me by someone I’ve done business with a couple times. The card was tracked and said delivered and left in my mailbox but I never received it. I called my post office annex and interestingly found out that when the mailman scans the package there is a gps recording of where they are when the box is scanned. Come to find out they delivered it to a Pine Terrace in my town and I live on Pine Ave. I kindly knocked on the door of the wrong house and got my package.”

Goods and Services Protection: The Good and The Bad

Many respondents reported smooth, though slow, reimbursement through Paypal Goods and Services protection. I personally have used it one time, successfully, when a well-known online dealer simply did not ship my goods or respond to me or to Paypal. The process took about 2 weeks.

The main pitfall to avoid is this: make sure the address you ship to matches the Paypal address of the buyer. If a buyer claims “item not received,” Paypal will only side with you as the seller if the package tracks as delivered to the buyer’s address on file with Paypal.

Good pictures can also save you from a fraudulent claim: a scam buyer might claim you shipped an empty box, or sent the wrong cards, or sent damaged cards, or . . . The more documentation you have, the better your chances of avoiding this kind of shipping loss.

Did You Know?

Finally, here are a few more tips and “did you know?” items to mitigate shipping loss:

• Your post office may have scans of your package at various checkpoints–this may help you figure out where damage or theft occurred, and strengthen a claim against the shipper.
• Your post office may have GPS info on where a “delivered” package was left. Perhaps your package to “Oakwood Avenue” was delivered to “Oakwood Trail,” and if so, can hopefully be recovered.
• If a package seems “stuck” in tracking limbo, your post office can tell whether it is receiving a physical scan or just an automated “batch scan.” The postmaster can also email the facility and ask them to locate a missing package. USPS will formally intervene only after several days of delay past the initial delivery estimate.
• USPS “In Transit to Next Facility” is a meaningless tracking message–it translates to “We Are Not Sure Where Your Package Is Right Now.” But usually, it’s just sitting somewhere, waiting for its next move. As frustrating as it can be to watch your package bounce between facilities, patience usually pays off.

Hopefully, the tips and tricks above can help you avoid a potentially costly loss. Knowledge is power!

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