Medium riskMarketplace

Marketplace Shipping Insurance Scam

In this scam, a marketplace 'buyer' insists on using their own courier and asks the seller to pay a refundable shipping insurance or handling fee upfront, promising reimbursement that never arrives.

Quick verdict

Risk level
Medium risk
Scam type
Advance-fee (seller-targeted)
Main red flag
A buyer asks you, the seller, to pay a shipping or insurance fee first, to be 'reimbursed' later.
What to do first
Never pay a fee to complete a sale. Use the platform's own shipping and payment instead.

Understanding this scam

In this scam, a marketplace 'buyer' insists on using their own courier and asks the seller to pay a refundable shipping insurance or handling fee upfront, promising reimbursement that never arrives.

Marketplace scams target both buyers and sellers on platforms like Facebook Marketplace and classified listings. Fraudsters fake payments, send bogus "buyer protection" emails, push deals off-platform, or use overpayment tricks to make you ship goods or send money for nothing.

If you take one thing from this guide, make it this: A buyer asks you, the seller, to pay a shipping or insurance fee first, to be 'reimbursed' later. Never pay a fee to complete a sale. Use the platform's own shipping and payment instead.

If your message looks slightly different, check the Fake Shipping Label Scam or the Overpayment Scam, both are close cousins of this pattern. Every related guide lives in the Marketplace Scams guides, and the scam checker can scan the text you received.

A typical example

Example pattern, not a real report
Example pattern: 'My shipping company needs you to pre-pay $90 insurance, then they'll add it to my payment. Just send it via this link and I'll repay you with the item cost.'

This is a fictional, anonymised example used to illustrate the pattern. It is not a verified real message, and any names are used only to show how the scam typically reads.

The tell here: A buyer asks you, the seller, to pay a shipping or insurance fee first, to be 'reimbursed' later.

What the data shows

$1.4B
reported lost to fraud that started on social media in the US in 2023
Source: US Federal Trade Commission
Top category
online shopping is consistently among the most-reported fraud types to the FTC
Source: US Federal Trade Commission

Warning signs

  • A buyer asking the seller to pay any fee to complete a sale
  • Insistence on an unknown third-party courier or shipping agent
  • A promise to 'reimburse' you after you pay first
  • Payment requested by gift card, transfer, or an outside link
  • Pressure to move off the platform to arrange shipping

Your safest response

  • Refuse to pay any upfront fee; sellers should never pay to receive a payment
  • Use the marketplace's official shipping and payment tools
  • Keep all communication on the platform
  • Report the buyer if they push outside fees or couriers

If you have already engaged

  • Stop before sending any further 'fees' to release a payment
  • If you paid, contact your bank or payment provider to dispute it
  • Keep the messages as evidence
  • Report the account to the marketplace and to fraud authorities

What to avoid

  • Do not pay a fee to complete a sale you are making
  • Do not use a buyer's unknown 'shipping agent'
  • Do not move the deal off-platform to arrange payment

You might also see

Medium risk Marketplace

Fake Shipping Label Scam

This scam targets sellers when a 'buyer' sends a prepaid shipping label or claims to have overpaid for shipping and asks for the difference back, or sends a fake label so the parcel is redirected. The underlying payment is usually fake or later reversed.

Created by Scam or Safe Editorial Team
High risk Bank & Payment

Overpayment Scam

A buyer, employer, or 'client' sends you a payment or cheque for more than they owe, then asks you to send the extra back. The original payment is fake or is later reversed, leaving you out of pocket for the refund you sent.

Created by Scam or Safe Editorial Team
High risk Marketplace

Fake Escrow Scam

In a high-value marketplace deal, the other party insists on a specific 'escrow' or 'secure payment' website to hold the funds, but the site is fake and simply collects your money or card details.

Created by Scam or Safe Editorial Team

Questions people ask

Should a seller ever pay shipping insurance to a buyer?
No. In a genuine sale, the seller does not pay fees to a buyer or their 'courier' to receive payment. Any such request is a scam pattern.
They promised to repay me with the item price. Is that real?
No. The 'reimbursement' never comes, and the supposed payment for your item does not exist. Use only the platform's official shipping and payment.
Why use their courier instead of mine?
An unknown courier is part of the trick, letting the scammer invent fees and reasons to pay in advance. Stick to trusted, platform-supported shipping.
I sent the fee. Can I recover it?
Stop sending money, contact your bank or payment provider to dispute the charge, and report the buyer with your evidence.

Last reviewed June 2026 · Written & reviewed by the

Disclaimer: This page provides educational information only to help you recognise common scam patterns. It is not legal, financial, cybersecurity, or law enforcement advice, and it does not confirm whether any specific message, company, or person is genuine or fraudulent. When in doubt, contact the official organisation directly and report concerns to your local authorities.