I think the point several are trying to make is that what may appear to be a handling fee may not be such AND that sometimes actual postage can be excessive in the eye of the beholder.
In my example about the $1.50 charge for the $.97 postage & $.50 box, I don't consider the $.53 difference over actual postage a "handling" fee. It's basically the actual cost to ship the item.
But some might look at it & say, "Oh Gosh, I'm being ripped off for $.53".
On the other hand, some might consider paying $3.50 priority for an item they know can be shipped for $1.50 to be excessive.
So what's "excessive" and what's "milking the customer" is very subjective and unless ALL the facts are considered, it's hard to make blanket statements about them.
I think it's wonderful you take so much time to try & keep your shipping costs as low as you can.
BUT, for those who run lots of auctions and do this full time (or even heavily part time), it's simply not always economically feasible to spend time cutting down boxes & priority doesn't fit every need.
posted on June 8, 2001 11:08:11 PM
I used to. And ironically enough, a postal clerk suggested how I could wrap brown paper around the boxes to save on postage. I thought it was so cool since the boxes were the perfect size for the movies I sometimes sale.
posted on June 8, 2001 11:13:45 PM
"The USPS will send Priority boxes and packing tape right to your house, free of charge."
What amazes me is that anyone thinks the USPS is giving anything away for free. The "handling fee opponents" seem to not realize that the cost for these boxes (including the cost of those that are "illegally used" ) are included in the postage price (in fact you pay for them wether the item you shipped is packed in one of these boxes or not)...they are hardly free. The real question here should be...Is the USPS including the cost of these supplies in the cost of postage any different than a seller including the cost of non-USPS supplies in the shipping cost?
posted on June 10, 2001 05:02:39 AM
Why do you people keep talking about milking. I tried free shipping I tried actualy shipping. Nobody bid on my stuff. I lowered the pirce $13 and added a $13 s&h fee and I sell a ton now. We have to do what we have to do. Also I have found that Fed Ex ground is really cheap. You get a signature, tracking number, and insurance for far less than priority or UPS. It also helps that I live next door to a major Fed Ex hub. If people are willing to pay a price you are not milking them. If anybody is milking people it is Ebay. I sell items under $50 so I basicly split my profit with Ebay. They make as much as I do on my auctions.
posted on June 10, 2001 06:42:17 AM
revvassago....
But you were kinda of telling everyone else what to do because you keep on harping that you "don't feel it is right to do it"
As for
"my customers appreciate the fact that I don't" ....well yeah..most customers would greatly appreciate if you didn't charge them anything at all.
Ebay is now a Baghdad Marketplace filled with sharks. I see little difference in charging a BUSINESS STANDARD s/h fee versus an antique dealer making a 900% markup on a collectible doodad. If one is greedy enough to make that that type of markup then why stop and not make a few bucks back on s/h.
It's business not a non-profit charity. The name of the game is to make as much profit as ethically possible.
Speaking of business ethics or perhaps rather the lack of, how does everyone feel about this Dutch auction method that's getting very popular on Ebay and according to SafeHarbor has Ebay's blessing.
Item was a cheap wall hung 31-day clock.
Same picture and description straight out of the B&F System/Maxam wholesale catalog. Tired and false sales claim of "cut out the middleman, I'm the direct source" and "previously sold for $200 on Ebay".
(MSRP is $129.95)
Wholesale cost on this clock is $27.27 with possible further discounts for over 2 quantities. Shipping weight is 15lbs. UPS charges from zone 1 through zone 8 range from $7.34 to $14.93
The opening bid is $9.75 and the S/H charges,
discretely displayed at the very very bottom of the auction ad are $36.25. This is how the numbers work out with a day left to go.
I'll assume no further discount on the clocks and assume the max zone 8 shipping costs. The item will be shipped in the manufacturer's carton so there won't be any packaging cost...just slap a shipping label on it.
Total bids: 47
Total $ bid amount: $622.00
Total S/H charged: $1703.75
Combined Total: $2325.75
Wholesale cost: $1281.69
MAX shipping cost: $ 668.81 (UPS zone 8)
Total Cost: $1950.50
Gross Profit before Ebay Fees:
$2325.75
- $1950.50
===========
$375.25
This final figure could actually be doubled
if the majority of the orders can ship in the first 3 UPS zones and the shipping cost is cut in half.
Personally as a shopper I would just pass it by. As a seller it seems like a lot of work for such a small net of the gross. On the other hand what's the value of 47 buying customers in your database that would actually fall for a deal like this?
Okay, so let's all sell our items for under cost and give away free shipping
That will solve the problem, won't it?
No, the problem is tacking on an unneccesary extra cost that is usually either in font size 1 or not listed at all.
Make your profits from the auction, not from the handling and jacked up shipping fees. (and no, I am not speaking of you personally, so don't go postal on me)
If someone is dumb enough to overpay by bidding more than an item is worth, that is their problem. My problem lies in tacking on those "hidden" or extra fees.
I consider my time and energy to package an auction item "part of the job". It is not a bidders responsibility to compensate me twice for that - they already did when they won my item.
posted on June 10, 2001 09:36:01 AM
As a buyer, it doesn't matter to me if shipping and handling are excessive. I look at the total it will cost me to aquire the item, including bid price, shipping, insurance, payment fees (mo, stamp) and handling fees.
The only time it bothers me and I won't bid is if it doesn't say what the s/h will be, or I will ask before bidding.
After the auction, I will not leave neutral or negative feedback based on the fees unless there were additional ones not stated in the auction or my prebid questions to the seller.
Some sellers charge for packaging, gas to the post office, ect as a handling fee, some add these costs of doing business to the starting price. It doesn't matter to me, only the total price of the item matters, and that the charges are clear upfront.
So, everyone is right on this thread. There are just different ways of doing things.
ah, now i see why people got steamed at ya. didn't read this thread yesterday.
No, the problem is tacking on an unneccesary extra cost that is usually either in font size 1 or not listed at all
so the real problem you have with handling fees is if they're a) only revealed in the eoa, b) written in a very small font size or otherwise hidden in a lengthy tos. i'd agree with that. but i don't think that's the case with the posters here. nor what i'm thinking of doing.
Make your profits from the auction, not from the handling and jacked up shipping fees.
i don't think anyone would have a problem if you'd written it this way: 'i make my profits from the auction, not from the handling and shipping fees.' the way you've stated it, it certainly sounds to me like you're telling people how you think they should do it.
if you build your expenses into the start price, great. it all works out to be the same in the end then, no? i personally haven't found a way to 'build expenses/fees' into my start price. but that's in another thread.
posted on June 10, 2001 12:14:54 PMif you build your expenses into the start price, great. it all works out to be the same in the end then, no? i personally haven't found a way to 'build expenses/fees' into my start price.
The reason you "haven't found a way to 'build expenses/fees' into my start price" is because there IS NO WAY to build fees into a starting price. Actually, this approach is counter-productive as higher starting prices often result in lower winning bid amounts.
posted on June 10, 2001 12:20:03 PMThe reason you "haven't found a way to 'build expenses/fees' into my start price" is because there IS NO WAY to build fees into a starting price
As I have said before, some of my items I sell only generate one bid, and I know they will only generate one bid, or end with Buy It Now. In those instances, I always cover my costs by raising my opening bid price. I add a reasonable profit, and that is what the item starts at. If it gets one bid, then I have made a profit and have sold the item.
If this weren't the case, all items on eBay would start at $1.00, because what would the point be in starting them higher?
I would rather have an item get only one bid at a higher price than lose money because I started it too low.
Some people offset this risk by padding their auctions with excess handling fees. I have no problem with anyone charging a handling fee to cover their costs. I just don't do it, and don't think it is right to do. But I am not telling anyone that they can't. That is why this is a free country. But KITTYx3, like you said, I just have a problem with those sellers who hide their handling fees in EOA's or in hard to read TOS's. If you feel you have to charge one, tell me what it is before I bid. Don't make me email you to find out, because chances are I won't come back.
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