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Shipping charges versus costs

I'm still a newbie here in the eBay land, but I have noticed on a few items we actually lost money in the shipping, using eBay's system.  They know where I am, they know where the customer is, who the shipper will be and can get the rate.  They add on their processing fee - so why can't they charge the customer at least a break-even for the seller, or let the seller make 5-10% on the shipping?  Seems like they want to keep the freight charges low at our expense.  So now everything I list is higher than it would be, just to cover that, and the customers have no idea why the price is "high" or offer/counter offers are tight.  -- Chip

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Re: Shipping charges versus costs


@inhawaii wrote:

I've never used calculated shipping.

I figure out what the shipping will be before I list a item then charge MORE than that amount for shipping.....


Since you're shipping from Hawaii, nearly all of your US buyers will be in postage Zone 8.

 

For sellers on the mainland, choosing a flat shipping price is much more difficult. The online postage cost to mail a 3-pound package via Priority Mail ranges from $8.42 to $18.45.

Message 16 of 24
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Re: Shipping charges versus costs


@simply-the-best-for-you wrote:

@iamalwaysright wrote:

On a related topic, it would be nice if ebay allowed you to add a handling fee or whatever you would call it "markup fee" that you can add onto all of your listings either by percent or set amount. It's not to say you can't do this yourself through other means or workarounds. But having that "markup section" would give us more control in pricing when prices and fees change.

For instance, I would use that field to add 15% of the shipping I charge the buyer to cover for the ebay fees off shipping and any packing supplies. Ebay would then just add that to final shipping price shown in the front end. As my shipping price changes, that price would change automatically. Very helpful especially if you offer multiple shipping services for one listing.


@iamalwaysright  Not sure what you mean.  That already exists, it's Handling Fee.  I use one on all my listings & have for decades.   Unless I'm missing something.   


Handling has to be a flat fee - you can't enter a percent which is what (I think) the wish-list item is referring to. Unless I'm missing something.

 

My wish list item is to add a handling fee at the service level. So if I offer both UPS and USPS as choices in the same listing and I wanted to add a handling fee for UPS to cover package pickups, but not apply that fee to USPS because they pick up free on their daily route.

GLORIOUS!

Confused about the switch to eBay discounted shipping? Read this discussion to make an informed decision about opt in / opt out.
Message 17 of 24
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Re: Shipping charges versus costs


@st-shshi-vrxilvd3 wrote:

I'm still a newbie here in the eBay land, but I have noticed on a few items we actually lost money in the shipping, using eBay's system.  They add on their processing fee 


By processing fee, do you mean the final value fee (FVF) @st-shshi-vrxilvd3?

 

As others said, if you need to bump the cost to cover fees and packing materials you can add a handling fee.

GLORIOUS!

Confused about the switch to eBay discounted shipping? Read this discussion to make an informed decision about opt in / opt out.
Message 18 of 24
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Re: Shipping charges versus costs

There have been several posts here where UPS and FEDEX will send the seller a bill for more shipping fees.  One person got a bill that was several hundred dollars more.  READ the many posts here. I will not ship Fed Ex or UPS after reading some of the horror stories here regarding UPS and FEDEX extra charges.

Message 19 of 24
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Re: Shipping charges versus costs


@wastingtime101 wrote:

@simply-the-best-for-you wrote:

@iamalwaysright wrote:

On a related topic, it would be nice if ebay allowed you to add a handling fee or whatever you would call it "markup fee" that you can add onto all of your listings either by percent or set amount. It's not to say you can't do this yourself through other means or workarounds. But having that "markup section" would give us more control in pricing when prices and fees change.

For instance, I would use that field to add 15% of the shipping I charge the buyer to cover for the ebay fees off shipping and any packing supplies. Ebay would then just add that to final shipping price shown in the front end. As my shipping price changes, that price would change automatically. Very helpful especially if you offer multiple shipping services for one listing.


@iamalwaysright  Not sure what you mean.  That already exists, it's Handling Fee.  I use one on all my listings & have for decades.   Unless I'm missing something.   


Handling has to be a flat fee - you can't enter a percent which is what (I think) the wish-list item is referring to. Unless I'm missing something.

 

My wish list item is to add a handling fee at the service level. So if I offer both UPS and USPS as choices in the same listing and I wanted to add a handling fee for UPS to cover package pickups, but not apply that fee to USPS because they pick up free on their daily route.


Yes, you are correct of course, but @iamalwaysright  said "Either by percent or set amount", so I thought they were open to either.  Not sure b/c they haven't come back, but Handling Fee has been around for decades, so I'm not sure if they just don't know or are asking something else. 

This one goes to Eleven - Nigel Tufnel

Simply-the-best-for-you Volunteer Community Mentor
eBay Seller since 1996

Message 20 of 24
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Re: Shipping charges versus costs


@inhawaii wrote:

I've never used calculated shipping.

I figure out what the shipping will be before I list a item then charge MORE than that amount for shipping.

Example:  If shipping is going to cost $10, I charge $12.

Or as others have suggested, just add a few bucks to the price of the item.


Obviously you do what works best for you, as I know you are a successful seller.  I just want to point out for newbies, that a benefit of Calculated is that you don't have to change it twice a year when rates increase.   I personally love Calculated & it works perfectly.  I've used it for around 8 years now & would never go back.  Mainly due to said postal increases LOL. 

This one goes to Eleven - Nigel Tufnel

Simply-the-best-for-you Volunteer Community Mentor
eBay Seller since 1996

Message 21 of 24
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Re: Shipping charges versus costs

EBay shipping app is pretty accurate. It's up to you to select your preferences and shipping charges, so you won't loose money. The only fee EBay collects from Buyers is the sales tax. By the way, EBay gives the Sellers a shipping discount for using their app, and in reality is to offset the fees EBay collect from the Sellers based on the total amount the Buyer paid (shipping charge included if any).

Message 22 of 24
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Re: Shipping charges versus costs

@iamalwaysright --it would be nice if ebay allowed you to add a handling fee

They do.

Right there on the Selling Form

While most sellers using Calculated Shipping use the discount they get buying labels through eBay to cover their handling costs, some prefer to add a separate handling fee, especially if they have elaborate packaging, which costs in either labour or materials.

 

Or you can include it in your asking price like your Cookie Jar Insurance premiums or "free" shipping.

Message 23 of 24
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Re: Shipping charges versus costs

This is probably a good place to remind newbies that Free Shipping is great for sales, buyers love it.

But.

Free shipping is a marketing term.

It means the cost of shipping is not a line item, but is massaged into the asking price for the item.

Which is cheapest?

 A $10 item with $5 shipping?

 A $5 item with $10 shipping?

A $15 item with Free Shipping?

 

In the same way, the cost of insuring against the (very occasional) Claim and your cost for packaging should be massaged into your asking price.

And of course your asking price already includes your eBay/Managed Payments fees, which are charged on your customer's ENTIRE payment, made up of selling price, shipping charged, and sales tax* charged .

 

 

 

*You are not paying the sales tax, your buyer does. But his payment includes the tax and therefore we are charged payment processing fees on tax as part of the payment.

Message 24 of 24
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