so, let say a vendor A sells very cheap but asks for a percentage for reships in case something happens.. against a vendor B who sell more expensive and gives you 100% warranty on reships...(both vendor sell exactly the same product, same quality, quantity, etc)
vendor A sells at $42 including shipping and charges 35% for reships. Vendor B sells at $75 including shipping and gives you free reship.
lets say 1/10 packages get lost, which offer is the most interesting?
Well using your numbers, expected cost of Vendor A is about $43-$44. if you use the 10% loss number, expected cost of re ship would be 10% of re ship cost.
The loss number you present is actually very high. Less than a 1/100 loss rate for domestic. But I don't like the idea of not warranting the ship, regardless of price. a "lost" shipment is a big concern. I always get th feel if a vendor doesn't warranty a shipment, there's a problem. It might be unfair but it just feels like a way to lock a sale and then have a hidden fee when your pack happens to not make it.