What is the point of charging a much higher shipping charge?

[froggyjump]

I've noticed for so long people charging $20 shipping for an item that costs $5 or something to that effect.

The item probably costs $10 to ship using a priority flat rate envelope (plus ebay charges fees on that)

Is it because when the buyer wants to return, they only get the $5 back and not the 20? When the buyer is provided a return label, is the shipping label from Ebay cost $20 or the real cost to ship ?

[buyselljack2016]

A package return service label is generally the same cost as the label used to ship the item if a  label was purchased through eBay to ship the item

On a "remorse" return if shipping was charged for the purchase the seller may have the option to withhold  original shipping when refunding.

Some sellers have a high shipping because they have a handling charge , or are putting some of the item cost over into shipping to make the item appear to cost less.

[alcoforever]

Some sellers like to put most of their profit in the shipping charge.   That allows them to have a low item price.   Plenty of anecdotal evidence that buyers don't look at shipping charge until they get the bill so the low item price sucks in a certain amount of buyers.

As always, shipping charge means nothing.   It is the total price that counts.

[fab_finds4u]

Are the sellers pricing the item low and making up the difference in the higher shipping cost?

Do those sellers offer returns?  Then what they're doing is screwing the buyer who wants to return something because the seller keeps the original shipping money in a remorse return.  

[wrong66]

Or just pocket extra money at the expense of the buyer.

[donsdetour]

Shipping and handling: any one remember the handling part of this????

I remember back when it was 4 to 6 weeks to get an item in the old days...

People are in such a hurry these days it seems....

Oh and the answer to the topic: because they can do such is the why.

[dhaga]

I think it, as mentioned previously, a strategy to show a low teaser price and make up for it with "handling" charges. As always it is buyer beware and the full charges, buy price and shipping price, are transparent in the listings. I find the high "shipping and handling" charges to be off putting, personally, but it is allowed and it is just a matter of opinion as to how it is perceived. 

[popblox]

In addition to what others have mentioned, I'd say the most beneficial reason for charging excessive shipping on eBay is to take advantage of promoted listings, which only charges a fee on the item price (if sold). Currently:

If you sell  a $100 item w/ free shipping through a 6% PL campaign, you pay a $6 fee.

If you sell  a $20 item w/ $80 shipping through a 6% PL campaign, you pay a $1.20 fee.

Of course, this will all change on March 1st when eBay starts charging PL fees on the total amount paid by the buyer. I anticipate we'll subsequently see a flood of threads from sellers who are shocked and outraged that their shenanigans have become futile. 

[dariudaudery_0]

Ebay charges fees from both shipping and item price so in the end it DOES NOT MATTER what is shipping cost.

Lets say i sell something for 1 USD and shipping 9 USD or 10 USD with free shipping or 5 USD price 5 USD shipping. 

In the end is all the same, just looks different. If Total price is too high - Do Not Buy. No one is forcing you to pick seller who has high shipping price over seller who has free shipping.

Only difference shipping price makes is Remorse return - Buyer pays return shipping and does not get original shipping credited back. So sellers may put more on the shipping if they accept returns.

[my-cottage-books-and-antiques]

@popblox  I agree that Promoted Listings is one reason some sellers have put more of the total price into shipping. Just a small correction: The change to the way the Promoted Listing fee is calculated is set for June 1st, not March 1st.

[femmefan1946]

Remorse return - Buyer pays return shipping and does not get original shipping credited back.

But you'd think, since Buyers hate paying any shipping, never mind shipping that is higher than purchase cost, that they would lose sales when the customer notices.

It also says that the seller expects to have a lot of returns, well above the norm of one failed transaction in one hundred sales.

Then there is the general opinion that bargain hunting customers are the least likely to be happy with their purchase.

Basically, not a good business plan.

[soh.maryl]

IMHO, a smart buyer looks at the TOTAL price before deciding whether or not to buy.

If a buyer wants to return because the item is, in his eyes, NAD, he is supposed to be refunded his TOTAL payment.  But I'm sure you know that.  

[popblox]

Yes, thank you! My bad, I can't seem to keep up with the dates on the changes this go round!

[katzrul15]

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@femmefan1946 wrote:

Remorse return - Buyer pays return shipping and does not get original shipping credited back.

But you'd think, since Buyers hate paying any shipping, never mind shipping that is higher than purchase cost, that they would lose sales when the customer notices.

It also says that the seller expects to have a lot of returns, well above the norm of one failed transaction in one hundred sales.

Then there is the general opinion that bargain hunting customers are the least likely to be happy with their purchase.

Basically, not a good business plan.

---

And on a mobile device, often harder to discern the shipping amount, etc - same when you see a promoted listing before you click it - only displays the item cost.  

[buyologist-3]

In the Olden days, fees were based on the selling price.  Making the shipping higher and making the price lower made the fees lower.  Doesn't work that way now but some sellers haven't figured that out---yet.  On the bright side, for the buyer, the buyer is charged a lower Sales TAX price!  I've saved quite a bit of money that way, just gotta watch and know current prices of things you're looking for.  If an item sells for $100.00 and it's split in two in the listing, I pay tax on the $50.00, not $100.00.  I never return anything (I'm a sure-shopper) so I get a decent reduction! 

Most buyers don't think like sellers, so sellers look at it from their side as you can see in these posts.  From a buyers point of view:  SMILES!