Inflated shipping costs
I notice that some of the listings have very high shipping costs? Is this a way to make more money for the item by inflating the shipping costs?
3 comments
I notice that some of the listings have very high shipping costs? Is this a way to make more money for the item by inflating the shipping costs?
frankenhobbit
·2 years agoFirst thing is that shipping is actually quite expensive for the average seller. Costs have been creeping up steadily. In addition, some items also need extra padding, double boxing or a 'special' box that a seller would have to procure. Plus it takes time to pack, gas to get it to the shipper etc.
Most buyers get that item , though they may not be aware just how much it actually costs for those sellers that only sell occasionally and so cannot buy in bulk and cannot spread the cost of taking the items to the shipper across a dozen items at a time.
In a nutshell, eBay sellers just don't have the economies of scale or the logistical network to offer super cheap shipping
The other factor is ebay fees. eBay charge the seller fees on their shipping charge. typically 13.25 percent. So, if shipping costs me $10 at USPS (how much I pay them), the materials cost me $1.50 and the USPS office is 6 miles away (12 miles at 65 cents a mile=$6.80), the total cost is now $19.30. As in, what it actually costs me. People will say 'those costs are deductible'. That just means you are not taxed on it, not that the IRS pay it for you.
If I charged $19.30, ebay would keep 13.25 percent of it. I would need to charge $22.25 to just cover my costs. Zero profit on shipping. $10 suddenly became $22.25. If it was not 'deductible' , it would be well over $30. Notice we have also not accounted for the time for the person doing all the shipping.
There is also another reason a seller may 'bias' the total cost towards shipping and that is for 'remorse returns'. If a buyer decides they just don't want the item any longer and want to return it, the seller can deduct the original shipping cost from the refund. That doesn't mean the seller expects a return because they sell junk, just their method of covering the costs of returns.
Other sellers understand the 'sticker shock' of shipping and build it into their price.
nobody*s_perfect
·3 years agoYes, the seller might have inflated the shipping cost, oping that you wouldn't notice. That's why it's sensible to shop by total cost, adding the item price plus the shipping cost. This makes it easier to compare the real cost of different items.
However, it's possible that the cost that seems inflated to you is the real shipping cost. Postage costs depend on package weight and dimensions, and distance traveled. There are surcharges for large packages, for instance USPS charges an extra $15 if the package is over 30 inches long. If the package is over 1 cubic foot (1728 cubic inches) then the cost depends on the exact volume of the package and the minimum postage is the price for 11 pounds, even if the actual package weight is less.
maxi314
·2 years agoYours was an excellent reply. Let me preface my comment by saying that I find all the variants and complexities of eBay rather too much for me as a buyer. (I do not sell on eBay, nor elsewhere). I have sufficient difficulty with making a purchse in a brick and mortar store, but at least in such a (nearly nonexistent around here), place, an item sits or hangs. The price is on a tag. You can try it on, move it to different lighting, etc.
One of the many mistakes I make as a buyer is giving undo consideration to the sellers - their time and effort, eBay costs, dealing with USPS - the worst website on the planet - finding the price of a first class stamp is enough to cause palpitations - how much I have imposed with questions...and then, and then, it dawns on me that a specific seller has been not only on eBay for a long time, but I learn, for example, that the seller has been in retail. I want that seller to price the cost of shipping the item as actually the cost, as possible. (It does not say "Shipping and Handling," just "Shipping." And, to build the price wanted for an item accordingly, not price the item lower than what is wanted, but up the shipping.
I do take your approach and factor in the total amount, as one would do with buyer's fees at a standard auction. Still, with a recent purchase, it turned out that the item was so very light, and even factoring in USPS muck and mire, it surely does appear that the seller built in $4.00 over the actual USPS costs. I would have paid that additional $4.00 for the item itself. (I don't use eBay auctions). I have also recently mailed a package from a USPS office, so know how high the costs can be.
I applaud anyone who can sell online, and consider these people experts in every aspect of doing so. I either have to stop buying on line, or get much better at many of the aspects of doing so.