Shippo ‑ Simplified Shipping

used to be free and they made money from the purchase of labels. Now they are trying to charge a monthly fee on top of that. Going back to shopify shipping since shippo does not provide any more value than what is already built into shopfiy.

Complaint Against:** XCover and GoShippo
Date of Incident:** 09/16/2024
Insured Value:** $8,544.00
XCover Insurance ID:** 8----M------INS
Created By:** J. L.

I have been using GoShippo for 5 years, shipping millions of dollars in jewelry and paying thousands of dollars in insurance premiums. On September 16, 2024, I purchased a shipping label through GoShippo with UPS for a package insured for $8,544.00.

The package showed as delivered, but no one signed for it. UPS confirmed that the package was lost, and XCover initially agreed to pay out the claim. However, when it came time to pay the full value that I had insured, XCover sent me a breakdown of the payment that was never disclosed when I purchased the insurance. They claimed that their policy terms had changed on January 1st, 2024, without notifying us.

Here is the payment breakdown they provided:
- **Cost of goods:** $8,544.00
- **Deductible:** $1,250.00
- **Subtotal:** $8,544.00
- **Cover limit:** $5,000.00
- **Total approved amount:** $3,750.00

Nowhere during the insurance purchase process was there any mention of a deductible or a coverage limit. GoShippo and XCover require customers to enter the total value of the product when purchasing insurance, implying that the full amount would be covered. This misleading practice has resulted in a significant shortfall of $4,794.00 in coverage.

I demand that XCover and GoShippo honor the full insured value of the necklace as per the insurance I paid for. If this issue is not resolved immediately and fully, I will be forced to pursue legal action for bad faith insurance practices against both GoShippo and XCover.

I expect a swift resolution and full payment of the insured value.

All was fine until first lost package. $700 package lost and have been told by chat support for 3 days the case manager would call us about it, since we can not communicate directly with FedEx because shipment was through Shippo. Rep has still not called and we have no update to provide the customer for a package that has been lost for over a week. Continue to get the run around from their chat and no proactive communication from Shippo.

As a business we don't recommend working with Shippo. They attempt to charge a "address validation fee" even if any parcel will be sent and any shipping label will be used, they just give the final bill with enourmous amounts. Please be aware of this and be aware that this is not a business compliant procedure. We raised a chargeback with our bank and informed our lawyer, they will have to faces legal consequences now. We hope this review could warn many other businesses to stay away from shippo, unless you are actively using the platform and then address validation makes sense. Otherwise stay away and be ready to deal legally with them.

I have tried to use their trial and hopefully switch to Shippo instead of our existing provider but they don't accept 'prepaid' cards. The card I am attempting to use is not a prepaid card, it is a Mastercard provided by Tide with whom we have our BUSINESS CURRENT account with!