AW Daily - Tips & Tactics - Before the Auction: Creating a Sales Policy

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Before the Auction: Creating a Sales Policy continued ...

Who's Responsible?
The other major policy you'll want to state up front in your sales policy is who is responsible for paying shipping. It's either you or the buyer who ponies up for postage. Typically, sellers pass this expense onto the buyer and add it to the cost of the item. Sellers looking to endear themselves to repeat customers or attract new bidders will pay shipping. This is especially true if they are selling smaller, inexpensive goods that do not require intensive packing. If you decide to go this route, be sure to include it in your written policy at the bottom of your item descriptions. It will distinguish you from the crowd.

Snail Mail
Between the United States Postal Service and United Parcel Service, there are a bewildering number of ways you can ship your merchandise. Before you start selling in bulk, it's wise to look at the different carriers and their services and decide which one suits your auction biz the best. Each one is trying to outgun the other with new value-added services. For instance, UPS now lets you produce and print mailing labels on the Web.

In general, both the USPS and UPS offer many of the same shipping options. Decide which ones are best for your core customers, considering the different rates and your inventory's shipping requirements. For instance, if you are bookseller, buyers will expect the slower but less expensive standard mail rate. Also, while Priority Mail from the USPS seems to be the method of choice, don't feel obligated to use it. First-class or standard mail, which arecheaper, may be sufficient for you and your customers. Some sellers offer several choices or let the buyer decide. (If this is your policy, it is wise to require that the buyer pay mail insurance. This way you are protected if the item is damaged. Also, recognize that sellers get free shipping materials with Priority Mail.)

Handle With Care
Speaking of handling, many sellers will charge shipping and handling fees together, especially if they are shipping expensive, fragile goods, which require additional packing material. They will attach a flat rate to all their goods, which is an aggregate of the price of their shipping materials and shipping fees for an item of its size and weight. Be aware that some people will not bid on items that have shipping and handling fees. Typically, these buyers feel that sellers are trying to artificially inflate the cost of the item to make up for listing fees or money lost on the resale of the item. If you include a shipping and handling fee, describe what services are provided, such as the exact packaging and shipping method.

Insurance
Mail insurance is another issue you'll have to deal with as a seller. Even though it's an added fee for the buyer, many sellers demand it to avoid problems with bidders. In essence, insurance protects sellers from having to refund goods that are damaged or lost en route to the buyer. It also allows sellers to avoid policies such as "all sales final" and "no refunds." Along the same lines, insurance prevents false claims and returns, such as a buyer claiming an item was damaged in transit when in fact it was broken after it was received. Again, some sellers suggest insurance and let buyers choose to use it or not, depending on the merchandise they sell. If you are a dealer in fine china, it's a good idea to incorporate mandatory insurance into your policy.

Guarantees and Refunds
Some sellers offer guarantees on their items to encourage bidding and demonstrate they are customer friendly; however, this is not a prevalent practice. On the one hand, it will definitely elicit more bids and endear you to honest bidders. On the other hand, it could attract the wrong element--buyers looking to take advantage of gracious sellers. As for refunds, some buyers will attempt the old bait and switch: sending back a fake of the item in the hopes of keeping the real one and scoring their money back as well. Fortunately, with a little diligence, this is easy to avoid.

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