EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com

Wed Jan 28 2026 10:46:56

PIP the Cure for eBay Standard Envelope Headaches?

By: Ina Steiner

Many eBay sellers are loathe to mail a low-cost item in an envelope with a first-class stamp because it doesn't offer tracking through USPS. If the buyer files an Item Not Received (INR) claim, the seller has no way of proving to eBay that they sent the item. The alternative is to use a shipping service with tracking - but how many buyers want to pay shipping costs that are the same or even higher than the cost of the item?

Enter eBay Standard Envelope (ESE) in 2020, which offers tracking through eBay (not through USPS, even though it's sent First Class Mail). There's been confusion about the service from the beginning, and we continue to see reports from sellers bemoaning what they say is a lack of protection from INR claims. Some of the issues sellers encounter result from packaging the item incorrectly (rigidity issues); and some result from sellers not understanding the PIP insurance claims process.

When an ESE envelope passes through scanning machinery at a USPS sorting facility, eBay receives a number that it uses as a tracking number. As a developer of eBay tools and frequent poster on the eBay discussion boards Shipscript has explained, "If the item is non-machinable, it won't pass through that machinery and can not be scanned."

The rigidity issue causing items to be "non-machinable" was discussed in a thread on the eBay boards as recently as last month. Seller 1786davycrockett shared another potential roadblock: their belief that postal clerks are uninformed about ESE items:

"Some USPS counter employees refuse to accept ESEs, claiming that the ESEs are "counterfeit" or "fraudulent"; while other USPS counter employees will claim that the ESEs show insufficient postage, and try to make you add an additional stamp; and other USPS counter employees simply set the ESEs aside for later "examination" by a supervisor - and who knows what happens to the ESEs after that."

1786davycrockett recommended sellers deposit ESEs in the "Metered Mail" slot or depositing them into USPS "blue" boxes. "At the daily pick-up time, all this mail gets delivered to the USPS Distribution Centers, where all those letters (including the ESEs) will eventually receive the initial scan - most important for insurance purposes."

But even less understood may be the way sellers should handle claims and the insurance process. In a Reddit thread yesterday, a seller who relies on ESE said eBay notified them that their seller performance "has consistently fallen below our minimum standards in the United States. As a result, there's now a risk that the selling limits will be lowered on your account, and in some cases, you may be permanently restricted from selling on eBay."

Some sellers advised the seller that instead of communicating with the buyer pleading for patience, they should file a PIP claim.

eBay seller "InevitableRhubarb232" responded:

"This is your fault for not dealing with INR cases adequately

"Refund them on day 2 or 3 before it turns into a case.

"File a claim with the ESE company. Super easy. But you do have to make a calendar note for when it's eligible. That's the only annoying part. I just save the needed docs in a folder when I issue a refund and then file them when it's eligible. I've never had one not paid out.

"If it shows delivered in the mean time then appeal the return and eBay will refund you the refunded amount.

"ESE is a wonderful option that opened low value selling opportunities without tracking penalty to sellers. And it offers buyer protections that sites like TCG don't offer (yet, as they're owned by eBay I imagine it will eventually be rolled out)."

Another seller "Ok-Newspaper9926" responded:

"Hey I deal with this same issue, you can't let eBay determine the outcome and refund them. That's why you're losing your seller rating. After 15 days from shipment you can file a pip claim, and USPS sends you your money you from selling the card to your PayPal, and you can just refund the buyer on your end and everyone wins. Even if you refund them before the 15 days, you can submit the claim and get your money.

"I always message people right away and when they open an item not received for an ESE and explain 15 days past shipment they will be sent a full refund, and for them to just keep the card worry free if it ever shows up, since I'm getting my money anyways. This way they'll send you an email that you've had a lot of item not received cases, but not cases closed without resolution. They will add humongous fees to your account if that's the case."

Another seller wrote more succinctly, "Respond to your cases. Apologize, refund and move on. Check the boxes that need to be checked. File for insurance claims."

There appeared to be a lack of awareness about sellers' ability to file PIP claims among some responding in the Reddit thread. According to eBay standard envelope Terms and Conditions, sellers are covered for "shipping loss and damage under the Shipping Protection Plan (SPP):

"The protection offered under the SPP is administered by Parcel Insurance Plan, an independent company and is not affiliated with eBay and additional terms and conditions apply which can be found below. Importantly, the SPP is not an insurance policy, warranty or any type of guaranty."

It's important to read the full terms and conditions carefully, for example, it states, "If a part of a pair or set is lost or damaged, SPP will only pay you a reasonable and fair portion of the total value of the pair or set and NOT the total value."

Under the heading "CLAIM PROCEDURE," the Terms state:

"You will electronically file claims with PIP via the link provided through the www.ebay.com website within 90 days of the date the shipping label is created.

"Claims for LOST shipments may not be submitted earlier than 15 days after the shipping label is created.

"All damaged property for which payment (not repair costs) or replacement has been requested or made must on request be returned to PIP.

"An approved claim will be paid to your PayPal account within 7 business days of PIP's receipt of all required claim documentation and requested damaged goods.

"Upon payment or replacement for loss or damage, your rights to recover from the Carrier are transferred to PIP. You will assist us in every reasonable manner to secure recovery.

"If you have questions concerning a pending claim, please contact PIP at 800-325-7390 or claims@pipinsure.com."

For sellers who ship low-cost items ($20 or less), ESE is an alternative worth considering. If you've had experience using ESE, good or bad, let us know and please share any tips you've learned along the way.

Comments (2) | Leave Comment | Permalink

Readers Comments

PIP the Cure for eBay Standard Envelope Headaches?

by: etectra

Wed Jan 28 16:00:22 2026

"For sellers who ship low-cost items ($20 or less), ESE is an alternative worth considering. If you've had experience using ESE, good or bad, let us know and please share any tips you've learned along the way."

I sell items for under $20, but I would never package them in envelope if they could fit, even though most would never fit.

Packaging it in a envelope, poly mailer of bubble mailer means you could care less about what happens to your customer's items, lack common sense, and do not understand what type of handling your item will face from the carrier and its contractors.

Everything I ship foes in box. The only time I send it in a envelope is when its already in a small box and I need to increase the surface area of the package for a label or in past when it was cheaper to use a Priority Mail bubble mailer or flat rate envelope.

I frankly cannot believe the incompetence when it comes to packaging I see in YouTube videos by so called eBay "experts". One well know book seller from down under can be seen showing one book after another bubble mailers. How does it make sense to shove a book, especially a large paperback book, into a bubble mailer and hope for the best. What do these people think will happen if the corner of that bubble mailer is dropped on a hard surface with but a 1/8" thick piece of bubble mailer protecting it? It will damage the book.

A book should be wrapped in new newsprint or kraft paper to reinforce the book and provide scuff protection. Then it should go inside a box you sourced for free from a local store. The box should be big enough to provide a couple inches of room for crumpled newspapers.

As a result of my packaging practices only one item has been damaged and that was done by a UPS forklift stabbing the outer box, product foam and foam shell inside the product box. The actual product inside the retail box was not damaged, but its retail packaging. Customer kept item with a discount. not much you can do to protect an item from that type of damage as the forklift could have easily stabbed through the entire package.

PIP the Cure for eBay Standard Envelope Headaches?

by: clarkphilatelics

Thu Jan 29 01:21:08 2026

eBay standard envelopes fall far short of their potential. The value limit is too low. I sell older collectible postage stamps and original color slides. Every stamp is different and must be fully described and imaged front and back. Every color slide is unique. The median cost of shipping each stamp by USPS Ground Advantage is now approximately five dollars. Stamp or slide orders for less than about one hundred dollars go by USPS First Class mail. Losses have been minimal.

eBay Standard Envelopes have been used for under $20 orders. Unfortunately, it is extremely difficult to print the address and label indica directly on an envelope. Larger #10 envelope envelopes are heavier than #6 and must bend more to pass through mail sorting machinery. An attached printed label adds rigidity and could become too rigid with a piece of comic book board in the envelope to protect the stamp.

Snipping the ESE label, saving it as a PDF file and converting it to Microsoft Word sort of works, but Adobe Acrobat does not respect image size. A more direct process removes borders from the eBay label, reduces the canvas size and eliminates the ugly border to fit on a #6 envelope in the Microsoft Word template. Unfortunately, eBay places the label image in the center of the document and does not allow it to be repositioned. The printer does not natively support #6 envelope printing, but Microsoft Word does. Automation should be possible, but would it be worth it?

If eBay removed or raised the value limit to say $150, it could be used to fill the tracked shipping gap. I would be happy with keeping the insurance at $20. It seems ironic to have insurance on under $20 items and $100 insurance on USPS Ground Advantage with nothing in between. Tracking is important but insurance is not. Properly packaged stamps and slides seldom disappear from the mail. Less than ten of the most recent 5,000 or so orders have been lost in the mail.

I wish that eBay would support printing on the front of a #6 envelope and raise the value limit from $20 to at least $100. For me, tracking is more important than full insurance coverage.

Is eBay a viable site for selling stamps valued less than $20?

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