Half a croissant, on a plate, with a sign in front of it saying '50c'
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Return Shipping Insurance

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People can pay a monthly fee (or yearly) to you as insurance but all it does is when you receive a product from a seller which ends up being defective (e.g. let's say a PSU has limited warranty -- that's where u pay shipping to get it back so it can be repaired by the PSU's manufacturer) then you 1st prove it's either under limited warranty (receipt) or the product is defective.

We'd then pay for shipping the product to us to check it (just for defective product claims) then if all checks out then we ship the product to the originating seller. For those with validated limited warranty, upon getting the proof of purchase receipt, an emailed Printing Label would be sent.

So all this biz does is pay shipping on all products back to their manufacturer. This could solve the annoying problem of say buying a DOA product from China and being forced to eat the cost because the shipper says "tough luck, ship it back and i refund", but the shipping cost is 10x more than the cost of the product. They know you won't ship it back so they shipped you a defective one.

corezz, Sep 10 2017

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       Insurance mostly covers risks of a size that the customer can't afford to swallow. For risks where the worst-case loss is ... what? ... $50? ... it's more efficient for the customer to self-insure.   

       I suppose this might work if it were conceived not so much as insurance but as a kind of demand aggregation. Perhaps your business could bundle up the small gripes of 10 000 western consumers into something big enough to sue a Chinese supplier for, and your business model would include having friends in the Chinese Communist Party.   

       After you'd deducted your costs, your customers would only get a penny each of compo, so the model would depend on the emotional satisfaction to them of not letting the bastards get away with it.   

       It sounds like a hard and possibly dangerous way to make a living.
pertinax, Sep 11 2017
  

       I think the aggregation model might work. Ultimately, the company then just acts as a bulk carrier, bundling many small expensive shipments into one large and relatively cheap one. Things would need to be bundled at this end (into returns for multiple Chinese suppliers) and then unbundled (into returns for each supplier) at the other end.   

       I do sometimes wonder how Chinese companies do their shipping. I can buy things on eBay for £1.99 from China and get free delivery within a week or two. The cheapest I can send a small, light package from the UK to China is £3.55.
MaxwellBuchanan, Sep 11 2017
  

       //I do sometimes wonder how Chinese companies do their shipping. I can buy things on eBay for £1.99 from China and get free delivery//   

       I think it's something to do with the concentration gradient of £1.99 objects.
bs0u0155, Sep 11 2017
  

       Yes but, according to my hazy understanding of diffusion, a 100 gram object should take (very approximately) for ever to diffuse from China to Cambridge.
MaxwellBuchanan, Sep 11 2017
  

       // how Chinese companies do their shipping. //   

       Consolidation.   

       Packages for transport to an area are packed very tightly into a standard shipping container, along with a bicycle and a very small Chinese person with a supply of rice, water, and plastic bags for ... hygiene purposes.   

       On arrival, the container is opened by those who are part of the scheme. The small Chinese person grabs packages and delivers them using the bicycle as transport.   

       When all the packages are delivered, they are given the bicycle, fake documents, and contact details for a gangmaster organizing cockle-picking teams.   

       Most of them subsequently drown, since they refuse to relinquish their grasp on their only worldly posession, and bicycles are not particularly buoyant.   

       And thus the ecological balance is maintained.
8th of 7, Sep 11 2017
  
      
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