How Does eBay Insurance Work?
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What Is eBay Insurance?
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There isn't really such as thing as eBay insurance, meaning that eBay does not offer insurance for the transactions conducted through their website. When people talk about eBay insurance, they are referring to either shipping insurance, the PayPal Protection Plan or using an escrow service to complete the transaction.
Why Use Shipping Insurance?
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You may choose to insure the item while it is shipped when you are the buyer or the seller. Shipping insurance has two functions for an eBay purchase. First, it insures the item in the event it is lost or damaged while being shipped. Second, it includes tracking and delivery information so the buyer can see that the purchase is en route, and the seller will know when the package was delivered.
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What is the PayPal Protection Plan?
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PayPal offers protection plans for both buyers and sellers. For buyers, your purchase is protected if you don't receive the item or if the item is not what was listed or in the condition the listing claimed. For sellers, it protects them if the buyer used a fraudulent account to make the purchase. Both options have requirements and restrictions, so read through the terms of service on PayPal to make sure your purchase is covered.
What is an Escrow Service?
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Escrow services act like a middleman for the transaction. If a buyer and seller agree to use an escrow service, the buyer sends payment to the escrow service, and the seller ships the item to the buyer and gives the tracking information for the shipment to the escrow service. Once the item is delivered and the buyer confirms receipt, the escrow service then sends the money to the seller. If the buyer and seller have a conflict about the transaction, the escrow service holds the payment until the matter is resolved.
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