eBay

skyroot · ‎04-08-2020

I saw a used printer I wanted that only offered expedited usps at $51, I asked the seller if they could add budget shipping. First they ignored the question [sent 2 questions], then [in hindsight], it appears they played dumb about what I was asking for [long time seller], perhaps hoping I'd just leave it at expedited. I walked them through how to add more shipping options, made what I thought was a fair offer, then bought the item and saved $15 with the budget shipping.

After the sale I see they changed the shipper to FedEx. After I questioned why and asked if it was cheaper, I got evasive answer then dead air, then after I spelled it out [change shipper for profit] some run around which in the end seemed to imply that yes, they change shipper to increase profit. Just wondering is this practice of changing shippers post sale to increase profit, without asking, considered good practice? I wouldn't be comfortable doing it myself. The seller is upset with me and my questions.

thanks

orangehound · ‎04-08-2020

Yes, FedEx is cheaper than USPS for heavier and bulkier items.

Yes, eBay allows sellers to change the shipping service so long as the change does not result in a slower service. For example, if you think you were getting USPS Ground (Parcel Select), the seller can change to USPS Priority Mail, FedEx 2-day, or FedEx Ground ... all those services are equal or faster than USPS Ground.

If a seller can save money on shipping, hooray!!!! It is our biggest expense, one of our larger risks, and most sellers do not "profit" from shipping charged to the buyer.

So, yeah ... such a line of questioning to a seller is unnecessary. You paid what you paid, and even if you paid more than it costs the seller, that was your decision.

skyroot · ‎04-08-2020

Thanks for the reply. If this is an accepted practice then I'm willing to admit a mistake. Re: "most sellers do not "profit" from shipping charged to the buyer". My line of inquiry was directed at paying [rounded figures] $35 dollars for shipping for a total of $110. If the shipper then switches to a $25 shipper, isn't the difference considered profit by ebay? I still paid $110, of which $10 did not go to shipping. This seems like a workaround for the final value fees. Prior to the new regulations people would inflate the shipping. Now instead this seller did the opposite, found a cheaper shipper.

redmodelt · ‎04-08-2020

Seller is being charged fees on the shipping cost, so the $10 is not free money. Early on, shipping was not charged as part of the final value, eBay caught on and included it in the total. Too many people inflating the shipping cost example; sell for $1 and charge $30 for shipping for an item that only cost a few bucks to ship.

fern*wood · ‎04-08-2020

I'm a little confused by your post. You asked for cheaper shipping, and I suppose, that is what you paid for. Did you also specify the shipping method you wanted used for budget shipping? I'm surprised USPS would have a method that would save much money. I wouldn't be happy about a seller switching shipping methods, but since you asked for a change, then it seems this might happen.

In general, I shop total price and don't worry about the shipping breakdown.

ninja-fred · ‎04-08-2020

Maybe I'm missing something. If you and the seller negotiated a cheaper price for you and you are happy with the new price, why do you care how they ship the item or what the seller is paying for shipping? As long as you are receiving the item as quickly as you thought, does the shipping method matter? I'd just be happy that I got an item at a reduced rate and sit back and wait for my sweet deal to arrive. Life's to short to sweat how a seller ships something.

buyselljack2016 · ‎04-08-2020

@skyroot wrote:
Thanks for the reply. If this is an accepted practice then I'm willing to admit a mistake. Re: "most sellers do not "profit" from shipping charged to the buyer". My line of inquiry was directed at paying [rounded figures] $35 dollars for shipping for a total of $110. If the shipper then switches to a $25 shipper, isn't the difference considered profit by ebay? I still paid $110, of which $10 did not go to shipping. This seems like a workaround for the final value fees. Prior to the new regulations people would inflate the shipping. Now instead this seller did the opposite, found a cheaper shipper.

I cut my expenses on shipping when the buyers pays for "Retail Ground" (which they agreed to when they purchased), and I then ship by "priority".

So by "cutting my expenses" I do indeed "profit" from shipping charged to the buyer.

Not an uncommon thing.

orangehound · ‎04-08-2020

@skyroot wrote:
If the shipper then switches to a $25 shipper, isn't the difference considered profit by ebay? I still paid $110, of which $10 did not go to shipping. This seems like a workaround for the final value fees. Prior to the new regulations people would inflate the shipping. Now instead this seller did the opposite, found a cheaper shipper.

Two things.

First, business tries to find profit wherever we can. Maybe I ship in a padded envelope instead of a box ... the box is better, but I can save $1 in shipping charges by going with the padded mailer. Maybe I use PirateShip instead of eBay's shipping service because I can get cubic pricing and save another dollar. We resize boxes, re-use boxes, buy packaging materials in huge lots, ship with multiple carriers, and sometimes we even cut the flaps off boxes just to save money and increase profit.

Secondly, just because you may think postage costs $25, you may not realize that (a) eBay and PayPal charged your seller $4.50 to process postage, (b) there are expenses associated with packing materials, (c) there is labor and fuel costs associated with packing, and (d) there is always risk associated with shipping - damage and theft, that have to be paid for.

If I charged you $35 for shipping and only paid $25 for postage, here is what it cost me to ship:

$25 for postage
$4.51 in eBay and PayPal fees
$0.52 in packaging supplies
$3.50 in labor and transportation costs to the shipper
$0.70 in shrink (losses due to dishonest buyers, damage, etc.)

That comes out to $34.23 ... you are right ... I just made 77 cents of profit. Now I can send my kids to college ...

fern*wood · ‎04-08-2020

The really odd part of this OP's rant is they are a seller too. I see they offer parcel select ground for most items, including a laptop, which is sort of unbelievable if they don't use Priority instead. I doubt parcel select is any cheaper, but it certainly would be a less safe way to ship a computer. I wonder if they appreciate my criticism of their shipping method?

buyselljack2016 · ‎04-08-2020

@skyroot wrote:
Thanks for the reply. If this is an accepted practice then I'm willing to admit a mistake. Re: "most sellers do not "profit" from shipping charged to the buyer". My line of inquiry was directed at paying [rounded figures] $35 dollars for shipping for a total of $110. If the shipper then switches to a $25 shipper, isn't the difference considered profit by ebay? I still paid $110, of which $10 did not go to shipping. This seems like a workaround for the final value fees. Prior to the new regulations people would inflate the shipping. Now instead this seller did the opposite, found a cheaper shipper.

The seller is charged the FVF on the total amount paid by the buyer.

$1 item with $100 shipping, or a $100 item with $1 shipping, or a $101 item with "shipping included" results in the same FVF charges from eBay.

buyselljack2016 · ‎04-08-2020

@skyroot wrote:
Thanks for the reply. If this is an accepted practice then I'm willing to admit a mistake. Re: "most sellers do not "profit" from shipping charged to the buyer". My line of inquiry was directed at paying [rounded figures] $35 dollars for shipping for a total of $110. If the shipper then switches to a $25 shipper, isn't the difference considered profit by ebay? I still paid $110, of which $10 did not go to shipping. This seems like a workaround for the final value fees. Prior to the new regulations people would inflate the shipping. Now instead this seller did the opposite, found a cheaper shipper.

It could turn out that I am, or have a friend or relative driving near the package destination that could ship the item at a greatly reduced cost due to the short distance involved.

I can print that shipping label to profit from that action without reducing the service provided to the buyer. With any business the bottom line is profit. If that can be done without an inconvenience/reduced service to the buyer, it is a good "business model". The buyer is "entitled" to receive what they paid for at the price that they paid. Nothing more, nothing less.