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K-BID Shipping Terms & Fraud Prevention Guide

Chris Schwartz
Updated

Overview

This guide outlines K‑BID’s bidder verification processes, what shipping insurance does and does not cover, and a robust framework for affiliates to mitigate fraud—especially for high-risk items. Following these steps will enhance your protection and professionalism when shipping.

1. What K‑BID Does to Verify Bidders  

K‑BID employs several verification steps to reduce fraudulent bidding. However, no system is flawless and it's difficult to protect against 100% of fraudulent activity.

Verification Steps:

  • Credit Card on File: Required at registration with a matching billing address.

  • Phone Verification: Verified via SMS or call.

  • Internal Fraud Screening: Cross-checked against previously flagged users.

  • Terms Acceptance: Includes auction and shipping terms logged upon account creation.

Why This Matters:

While these steps significantly lower fraud risk, sophisticated fraudsters can still slip through. Always apply additional scrutiny for:

  • Transactions over $500

  • New users with no history

  • High-risk categories (coins, bullion, luxury electronics)

  • Mismatched billing/shipping addresses

  • Buyers unwilling to confirm or talk via phone

2. Additional Checks / External Fraud Prevention Tools You Can Use

By clicking on a bidder ID, affiliates can view the bidder history (number of invoices, paid amount, unpaid invoices) as well as the billing information and IP address used to sign up with.  

Bidder-500291-K-BID-09-02-2025_03_50_PM.png

When in doubt, supplementary tools can help confirm buyer legitimacy.

Optional Tool: IPQualityScore (IPQS)

Use it to evaluate:

  • IP address risk (proxy, VPN, geolocation)

  • Email reputation

  • Phone legitimacy (burner, VoIP, etc.)

  • Overall fraud risk score

Affordable or free plans are available and ideal for repeated use—especially useful if shipping valuable items.

 

3. High-Risk Shipping Items — What Makes Them Risky?

  • Precious metals (gold, silver, bullion)

  • Currency or coins

  • Jewelry and luxury watches

  • High-end tech or designer goods

  • Assets with a higher value that are easy to resell are ideal targets.  

Recommended precautions:

  • Require wire transfer or certified funds

  • Purchase insurance for all shipments

  • Require signature upon delivery

  • Photograph items before and after packing

  • Turn off online payment for higher risk items, require alternative payment methods.  

  • Call the buyer to confirm shipping details

4. Shipping Insurance: What It Covers — and What It Doesn’t

What Shipping Insurance Typically Covers:

  • Loss or damage during transit

  • Theft before delivery (only when carrier accepts liability)

  • Mis-delivery by carriers

What It Does Not Cover:

  • Fraudulent chargebacks

  • Scams where buyers claim non-receipt despite confirmed delivery

Fraud Protection Tips:

  • Require delivery signature for items over $500

  • Only ship to the verified billing address

  • Use fraud-screening tools like IPQS on any deliveries of concern.  

  • Take photos of the item and packing process

  • Prefer wire transfer for high-value or high-risk shipments

  • Keep all shipping and communication records

5. Handling Shipping Disputes: What You Can Do

If a buyer makes a claim like "item not received" or "damaged," follow these steps:

  1. Before Shipping:

    • Photograph the item and final packaging with the shipping label visible.

  2. During Shipment:

    • Use a carrier with tracking and signature confirmation.

  3. After an Issue Arises:

    • Provide tracking updates and photos.

    • Advise buyers to claim via the carrier if damage occurred.

    • Use all records (photos, comms, signature) to your advantage if challenged or disputed.

    See here for information regarding chargebacks.  

6. Packaging Best Practices—Protect Goods, Reduce Risk

  • Use new or sturdy recycled boxes (double-walled for heavy items)

  • Fill voids with bubble wrap, peanuts, or kraft paper

  • Avoid just newspaper for fragile goods

  • Tape all seams; don’t rely on a single strip

  • Label 'Fragile' when needed

  • Include a packing slip or invoice inside the package

7. International Shipping: Red Flags & Cautions

  • Only offer with prior approval

  • Always declare the accurate value for customs

  • Be aware of potential VAT/import duties leading to returns or delays

  • Use caution with buyers using freight forwarders or PO boxes

  • International shipping significantly increases risk of fraud or scams

8. Tracking Your Shipping Performance (Optional)

High-volume affiliates will benefit from tracking these metrics:

  • % of auctions offering shipping

  • Average shipping turnaround

  • Average shipping cost per lot

  • Dispute rates or refunds related to shipping

  • Profit margins when using flat shipping fees

Tracking these over time helps refine both pricing and process efficiently.

9. Recommended Shipping Equipment & Software

Hardware:

  • Label printers: Rollo or Dymo 4XL

  • Digital shipping scale (up to 70 lbs)

  • Bubble mailers and padded envelopes

  • Invoice slip sleeves to protect labels and slips

Tools & Shipping Platforms:

  • ShippingSaint.com - Shipping program built for auctioneers.  

  • PirateShip.com — free USPS-label generation

  • ShipStation.com — multi-carrier batch shipping

  • SpeeDee Delivery — regional Midwest service

  • Carrier portals: UPS, FedEx, USPS

10. Sample Shipping Terms (With Fraud Protection Built-In)

SHIPPING AVAILABLE ON SELECT ITEMS – PLEASE READ CAREFULLY 

Items marked shippable will be eligible for shipping under the following terms. 

Shipping Costs: 

A $10 handling fee will be charged on top of the carrier/shipping charges.  Our average shipping charge is between $30-$50 (dependent on items/location).  This average is provided to give you an idea of shipping charges prior to bidding.  


 Fraud Prevention & Shipping Rules:
- Shipment will only be made to the billing address tied to the credit card used. No exceptions.
- Additional ID or phone verification may be required before shipping.
- For invoices over $500 or at our discretion, payment must be via wire transfer.
- We reserve the right to cancel shipping and request in-person pickup.
- No international shipping unless previously approved.

Shipping Process:
1. Request shipping via your K‑BID dashboard --> Invoices --> Manage Invoice.  
2. We'll provide a shipping quote and invoice within 2 business days.  This invoice will be sent to the email on file. 
3. Pay for shipping — then tracking is issued.
4. We ship within 3–7 business days of payment.

*Unless otherwise communicated, the address on your K-BID account will be assumed for the shipping address.  

 

Note: All packages include tracking and may include insurance.

Contact:
Have shipping questions? Email **shipping@[yourcompany].com

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