Is sticker shock at the checkout causing buyers to quit?

[liawri-75]

I have had at least 2 people win bids and I send them an invoice, wait for payment, and they never pay.  The bid has to be cancelled.

Thinking out loud:  Are buyers sticker shocked by all the fees and taxes they don't want to pay?

An item that cost $1 can balloon up to $8-10 when you add in shipping, taxes and other charges.

[bamorris]

I doubt it's sticker shock. Probably just deadbeat thrill bidders who get a quick rush on placing a bid and watching an auction close. Taxes are charged based on their location, so it shouldn't be a shock. Shipping is clearly stated in the auction.

The bigger question is why would you want to sell an item for $1? eBay charges you final value fee based on total cost. So unless you have lots of margin hidden in the shipping, you're going not make very much money on such a listing.

[inhawaii]

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@liawri-75 wrote:

Are buyers sticker shocked by all the fees and taxes they don't want to pay?

An item that cost $1 can balloon up to $8-10 when you add in shipping, taxes and other charges.

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Buyers pay the item price + shipping + tax (if applicable).

What fees or "other charges" do they have to pay?

[soh.maryl]

Why would it be "sticker shock"? When I buy on eBay, seldom any more, I see all the information up front.  Did they think that shipping would be free? And don't they pay state taxes at WalMart? Target? 

ETA:  And what "other charges"? 

[dbfolks166mt]

     About the only time this may possibly happen is if the buyer is international and the VAT tax is not shown upfront when the buyer places a bid. For any domestic sales as others have stated the cost should be shown up front. It is more likely the buyer changed their mind, found it cheaper elsewhere, had something happen or it was a sport bidder. 

[soh.maryl]

And why are you sending invoices? At the end of the listing/auction, the buyer is shown the amount he needs to pay.  If you are actually sending invoices, then that usually resets the amount of time a buyer has to pay.  Think about it.  

[ensemble_emporium]

I don't believe that it is sticker shock.  Oftentimes, buyers will bid an item and win and simply not pay.  I normally send out reminders and that will get them to pay.  Very few of them do not and I will then cancel the sale and relist the item.

[dirk12955]

I believe the buyer also receives a reminder at the 48 hour mark from ebay,   If he hasn't paid.   

[bonjourami]

What fees? Buyers expect to pay shipping and state tax on their purchases.

[luckythewinner]

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@liawri-75 wrote:

I have had at least 2 people win bids and I send them an invoice, wait for payment, and they never pay.  The bid has to be cancelled.

Thinking out loud:  Are buyers sticker shocked by all the fees and taxes they don't want to pay?

An item that cost $1 can balloon up to $8-10 when you add in shipping, taxes and other charges.

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The buyer sees the shipping cost before he commits to buy. It is not a surprise at invoice time.

Yes there is sales tax but that pay that wherever they buy.

What are the "other charges"?

[1tuna]

special fees are like special sauce

here in America you can get hit with them

renting a car perhaps

paying for shop supplies  and old rags at a car inspection

purchasing new tires/special tire taxes

getting a hotel room.my favorite is a resort fee

none of these have anything to do with ebay fees

to be fair I think there is some special battery tax fee in California that sellers have complained about

most ebayers know the ropes

@liawri-75 

[coolections]

NO sticker shock. When the buyer bids they already know the shipping cost that you inserted into the ad. The only shock might be taxes. Unlike Ebay who scams charging on shipping and taxes, the government only charges on the sale price.

[soh.maryl]

What government? On eBay, you will notice that there are many states, maybe the majority, who charge state sales tax on the total sale, which means the state sales tax is charged on every penny that the buyer paid for their item, including shipping.  

[femmefan1946]

Wrong questions.

win bids

You are using auctions which are less than 15% of transactions because buyers don't like auctions.

This is the age of Immediate Gratification.

By the time your auction is over, the bidder has moved on, bought elsewhere , and is opening their shipment.

 The bid has to be cancelled.

You should be opening an Unpaid Item Dispute after 96 hours.

The deadbeat gets a Strike and you get your fees back.

Are buyers sticker shocked by all the fees and taxes they don't want to pay?

Buyers don't pay fees. Sellers include the fees they will pay in their asking price.

Shipping does not depend on the value of the contents but on weight, dimensions and usually destination.

Use Calculated Shipping so the buyer can see those costs in advance.

If you decide to use Free Shipping, remember that means all your shipping costs are included in the asking price.

Which is cheaper? A $5 dress with $10 shipping or a $15 dress with Free Shipping?

If you use Flat Rate you can set whatever you want as the asking price and as the shipping price.

You want $5 for your item.

Shipping will be $8-$10.

You can set a selling price of $10  with $5 shipping. Or $% with $10 shipping . Or $7.50 with $7.50 shipping.

Your fees will be the same.

by all the fees and taxes

Buyers do pay their local sales taxes. This has been true for a couple of years and most online buyers are used to it.

But I agree with others that there is a bottom limit under which it is impossible to make any profit.

For me that's $9.99. and I ship without tracking using deeply discounted older postage stamps which can halve my shipping costs.

[coolections]

A state tax authority is a government. Hope that helps. Yes "some" states charge the total but they are like Ebay and scammers. Many states "only" charge tax on the sale price.