posted on September 3, 2000 05:25:51 PM new
We used to never charge a handling fee but after seeing how much money we actually put into packing supplies and cleaning items (plus the time we put into packaging, mailing, etc) we started charging a $.75 handling fee. We recently dropped this fee to $.50.
I am wondering, as a buyer, how much do you feel is too much to charge for these services?. Should the seller eat the charges?
posted on September 3, 2000 05:37:57 PM new
I tried it for about 3 weeks, bids were down, so I quit. I do not know if it was because ebay has been so slow for my categories or if it was the handling fees. I only get the urge to do this when I spend a fortune on packing supplies. By the way, did anyone see Karen's shooting star bubble wrap sale? I got several of the small rolls at an excellent price. I can eat that easily. Heather
posted on September 3, 2000 05:40:08 PM new
feistyone - Handling fee in real business is used to offset some of the cost associated with shipping. Buyers don't really complain about handling fees we complain about unfair ones and those which include things which should be recovered elsewhere in the business.
Here's a fair way to compute what a fair handling fee for your business is.
First off buy your packing supplies in advance so you know how many shipments you have supplies for. Divide the cost of the material by the number of packages it allows you to ship. That is a fair handling fee.
If you use priotity boxes they are free so your handling fees only cover peanuts and bubble wrap. Same formula as above.
Now I am confused on this cleaning fee? Please explain that to me. But your handling of 75 cents isn't unfair to me. If you ship 100 packages a month you have 75 dollars to buy packing supplies with. Don't know what you sell but $75.00 may or may not cover the supplies for 100 shipments.
posted on September 3, 2000 05:48:58 PM new
networker67
We sell designer clothing, vintage clothing, wedding dresses, etc.. We go through a ton of supplies, oxyclean and other stain removers, leather cleaners and conditioners and we also use fresh care drycleaner to freshen the items before shipping. The cleaning fee is mostly for freshening the item before shipping. We've seen other clothing sellers do this and thought it wasn't such a bad idea.
posted on September 3, 2000 05:54:43 PM new
When I buy, I naturally prefer to only pay the precise amount of postage. Often it seems like a seller basically rounds up the price, such as $3.20 to $4. Or maybe $2 for book rate when it would cost them $1.58. I've started doing that on Amazon auctions for sheer simplicity, and also to recoup a little for packaging expenses (in my case, mostly tape). As a buyer I don't really notice it or mind unless it sticks out like a sore thumb that there is excessive "handling".
posted on September 3, 2000 06:04:29 PM new
"handling fee" just sounds bad.
For under two pounds, priority mail, items selling for $20 and above, total shipping as stated in the description:
$3.20 total shipping: no positive impact
$4 total shipping: no impact, "par"
$5 total shipping: litte or no impact
$6 total shipping: some, but minor impact
$$6.01-$9.99 total shipping: moderate impact $10+ total shipping: serious impact
$13+ total shipping: forget any sales
If stated in terms of postage + handling fee:
$1.00 handling fee: some, but minor impact
$$1.50..$3.00 handling fee: moderate impact
$3.01 or more: serious impact
$5.00+ forget any sales
The "offensive point": $6.50 for total shipping cost stated in advance, $4.70 if stated as a handling charge plus postage, calculated after the end of the auction. This is the point that at least some customers start to be seriously irritated.
The worst: a "small handling fee will be added". Almost any fee is offensive when "described" this way.
posted on September 3, 2000 06:09:10 PM new
I don't think there is a ceiling for handling fees. If it costs a lot for supplies and you wish to charge bidders for them, that's your decision. If they are high because of the need for special supplies, perhaps list them with an explanation on an "about me" page and put in your description to please read your page.
No bidder with a grain of sense will object to reasonable charges. I think that all the angst about the handling charges comes when they are not classified as such and the bidder (especially new ones) think that the shipping fee when in reality part of it is for handling. Maybe say something along the lines of "Shipping $10.00, $4.00 is handling, please see "about me" page".
I have emailed sellers and been told that part of the shipping cost is for gas, time spent in line at the p.o., etc. This is their right to charge, but I think they should put it in the TOS. For example, I know that two napkins can be sent priority. If I see a shipping charge of $6.00, I would also like to see $3.20 priority, $2.80 handling, insurance extra.
What bidders object to is sneakiness. Listing shipping as $3.20 and sending first class for $2.00.
posted on September 3, 2000 06:23:14 PM new
As a seller I'm not charging any handling fee. I get most of my bookrate stuff free from work and priority comes from the post office. I try to keep the shipping as cheap as possible to get more bids. I'm new to the selling so things could change after awhile.
As a buyer, I factor the price of shipping into my maximum bid. I prefer the bookrate, it gets here in about a week but priority near the holidays. Sellers that mark priority up to $4.00 when it should be $3.20 doesn't bother me too much, but I will buy from another seller for the cheaper shipping. If the seller wants to mark the shipping up to $5.00 when it is $3.20, they won't get my business. I'll wait for another to come along or pay another seller more for their item with the cheaper shipping. I guess it will work out to the same price in the end in most cases, but I just can't stand to pay someone that much more for something that they have to do to do business on ebay.
posted on September 3, 2000 06:30:24 PM new
I Use the S/H term in my auctions but in reality I only charge actaual shipping fee
the handleing it self comes from the selling.
if how ever I had to hire a book keeper and some one to help package item to ship rent storage space.
If I was selling old chairs tables and whatnot I was repairing or hireing others to clean fix refinish I would have good reason to have a service handleing fee or incress starting prices to meet costs.
but its a family operation may times you can get shipping peanuts and bubble wrap still fine for use for free.
boxes to ship in can be had free from more then one source even the PO.
and at the odd time I need to go buy bubble wrap I have found it at Kmarts for $1.77 and thought its a small roll it is many times enough for up to three or for items.
I am willing to give a little to make a sale, and happy hopefully returning buyer.
I will go as far if someone buys a heavy item that will cost loads to ship 50% off the shipping of that Item for the bid if they win more then one item from me in that week or even at times on small items free shipping if they win three or more items at one of my auctions.
I dont look at a sale as a loss to me buyers are paying there winning bid if I only get one bid my starting bid was set so I am not give it away this mean I am makeing my investment + back they are paying shipping.
I think the buyers showing good faith in me by placeing there bid with me and sending money in advance of haveing there item.
that is worth the .75 or $1 in its self to me.
posted on September 3, 2000 06:42:24 PM new
I'm a much better buyer than I am a seller, so here's my two cents. As a buyer, I like to see that when I pay $6 for S&H, $6 goes into S&H. If it's just a priority box and I get charged $6, that irritates me. If I get a priority box, delivery confirmation, and bubble wrap, that makes me feel better. I think that the S&H should include just packing materials and actual postage (round up a few cents if you want to). Any cleaning, folding, sanding, restoring, or blessing of the item should be included in its price. Remember, the buyer generally doesn't know all the work that goes into selling and restoring stuff, so they shouldn't be expected to be happy about high S&H when they don't see the work you put into it. ($0.75 is really not much to gripe about though.)
posted on September 3, 2000 06:54:55 PM new
I am really surprised no one has posted
I never bid on an auction with a handling fee yet!
I hope that most bidders who look at a seller on ebay that obviously sells for a living realise that our costs have to be covered someplace in the sale, otherwise we cease to make a profit, and thus could not remain in "business" .
I am happy to read the posts so far on the bidders that do not mind a reasonable handling fee.
I have often posted that even if the "handling fee" is not mentioned, and the item shipped "actual cost" , then the cost and time of packaging has probably been added into the starting bid.
To answer the question posted here, I take into consideration the item I am bidding on when looking at the shipping charges. A small handling fee, $1 or so I do not mind if it is sticking something in an envelope, and a larger h/f is OK if the item is fragile.
And I always ask the seller if I could pay to upgrade to Priority (before the auction ends) if they don't mention it .
It is a better service to me, I have had too many problems when I shipped parcel post or first class.
[ edited by barrelracer on Sep 3, 2000 06:56 PM ]
posted on September 3, 2000 07:15:16 PM new
For myself, it would depend totally on what kind of item is being shipped. If I were buying a breakable item (such as glass) I would expect to pay a handling fee. Of course, I would also expect that handling fee to be used to pack the item to that it arrives safely.
If I were buying a beanie baby or a deck of Pokemon cards, I would not expect to pay a handling fee, but would expect the item (s) to be in some sort of waterproof bag because you just never know what the post office will do with a package. (I use ziplocks, and find they work very well).
I would be more inclinded to bid on an auction that had the handling charge stated, and perhaps a short explanation of what the charge was for. For example, a handling fee of X.XX is charged for bubble wrap, cardboard, whatever that is used in shipping to protect your item during shipping.
posted on September 3, 2000 07:36:13 PM new
How absurd to think buyers will completely withdraw if you charge above $13.00 shipping.
Only some will, and this is why I sell on ebay. That type of frugal buyer has been coming in my shop for years. Frankly they are only of use in selling my rejects.
Not everybody posts socks @ $1-$9.99. On many occasion I have charged over US$100.00 to post an Item and been paid. I've charged as much as $50.00 handling and why shouldn't I if it takes me 1- 4hrs to organise & make a crate. 'WHAT IS A FAIR LABOUR RATE?'
A 'FAIR' rate to charge for handling is a 'small' amount above "ACTUAL LABOUR COST". That's how any professional business would do it.
Prices 'WILL' be whatever the market will bear and if you don't charge it , ebay or the post office will by putting their charges up.
posted on September 3, 2000 07:41:33 PM new
50 cents to $1.00 seems reasonable to me, as long as the auction description mentions that a handling fee is charged.
feistyone -- I'm curious -- do you do the cleaning/freshening after the item sells? Or before you put it up for auction? I have not bought any clothing on ebay, yet. But I am allergic to many chemicals and it would be nice to be able to forgo treatment with dryer fabric softener sheets, Febreeze and similar products if I were purchasing clothing. I appreciate that you dry clean or launder them, though. Your handling charge seems reasonable to me (provided I could opt out of the treatments that would cause me allergy problems).
Violetta
(Not known by this nickname anywhere but here.)
posted on September 3, 2000 08:06:00 PM new
Since no package can possibly be shipped without handling--I add a small "fudge" factor into my flat rate shipping charges. No one complains and they get their packages faster than from most other sellers.
posted on September 3, 2000 08:06:59 PM new
Micheneraddict,
You made two comments that confuse me.
"I get most of my bookrate stuff free from work . . . but, I just can't stand to pay someone that much more for something that they have to do business on ebay."
Forgive me, but have I misunderstood? When you say that you get most of your bookrate stuff free from work -- does that mean that your employer is paying for your ebay shipping supplies? If that is true, I think that you should re-examine your statement concerning paying "someone for something that they have to do business on ebay."
I pay for all of my supplies and the cost is included in my flat-rate shipping and handling charge. My flat-rate is slightly less than my actual costs, but that is the price of trying to stay competitive.
I do not want to factor the cost of shipping supplies into the opening bid price. If it were, then I'd have to pay e-bay a percentage of those costs in the final value fee. That would also mean that my in-state buyers would be charged state taxes on the cost of shipping supplies. As it is, they resent taxes -- I certainly wouldn't want to charge them any more than necessary.
I think that most bidders want a low opening bid price and a firm price for shipping and handling.
posted on September 3, 2000 08:22:14 PM new
DWest,
When I say that I get most of my bookrate stuff from work, what I mean is the boxes, shredded paper for the packaging, etc. When I started the selling, I asked about this stuff because the company throws it all in the trash compactor. So I get it for free. As for the priority stuff, I ordered it from the USPS like I found that I could do here at AW.
As for the second part, from being a buyer I look at the packaging as something that you have to do, to be in business on ebay. What I mean by that is, if you want to sell and have to ship to buyers all over the world, your items have to be packaged in something. That is written from my perspective as a buyer, but becoming a seller may change all of that.
posted on September 3, 2000 08:42:12 PM new
As a buyer (200+ items since the beginning of April this year), anything over $00.00 for handling is too much. If a TOS even suggests that there is a handling charge, I avoid the auction completely ...
posted on September 3, 2000 09:07:34 PM new
I agree costa this thread is definately talking small item shiping here when they say $1 handleing is fair and $13 or more to ship forget the sale.
many of us have no Idea of the cost of pine straping building sturdy crates cost of nails glue foam padding to protect finishes.
When was the last Time one of you seller here auctioned crated and ship a baby grand piano across country.
What was your time effort and cost of labor what was the bill to ship with a freighter crater company.
these things do sell at online auction large antique cabinets pianos the large old tables that seat 20 people and the chairs that go with them I have seen these listing on yahoo with bids sold item where the shipping was hundereds of dollars I know they have to be out there on ebay
How many on ebay have ever sold a home on ebay with .75 cent handleing fee or a car.
you cant definatly charge what the market will bare, I Dont charge actual handleing fee for my sale on my smaller items but I have sold many things with higher then $13 shipping price and they sell fine infact this weekend three Item went down to the postOffice and I paid $29.95 to ship and insure them one item was a album of 12 78 records from the 30s and 40s priority shipping with insurance was $14.85 just over 7 LBS
posted on September 3, 2000 09:12:44 PM new
Micheneraddict,
Thanks for the clarification -- I'm sorry that I misunderstood.
Packaging is something that all e-bay sellers have to do. Unfortunately, not all sellers package adequately enough to protect their product from shipping damage. As a buyer, I never buy a second time from a seller that skimps on the packaging. Afterall, I'm willing to pay for the service.
I live in a large metropolitan area. I can find most things locally. When I buy on e-bay, it is because the item is unique and I really have to have it -- meaning, if I don't get it I'll just die! For those items, I'll gladly pay for careful packaging.
posted on September 3, 2000 11:30:53 PM new
The way I see it there are three types of bidders.
Those who can count, and those who can't.
OK, bad joke.
But I'm serious about the three types of bidders.
1) Those who don't worry about shipping/handling fees.
2) Those who refuse to bid on any auction with a handling fee.
3) Those who "do the math". In other words, if they are willing to pay $20.00 for your wooden widget and your S/H is $4.00, they will bid $16.00, if your S/H is $5.00, they will bid $15.00. (this is the way I bid, and I believe this is the way most bidders think, but hey, I could be wrong).
So, IMHO a handling charge will make money on the #1's, lose money on the #2's, and not make a whit'o difference on the #3's.
Personally, I just round up to the nearest quarter or so for a glitch factor, (and to make life a little easier) and don't worry much about it.
The above is my personal philosophy on selling general garage sale stuff. OTOH if you sell something that is extremely fragile or requires special treatment I would definitely explain the reason for the extra charge in your TOS.
posted on September 4, 2000 01:36:16 AM new
On Amazon I charge $4 for Priority Mail. This covers bubble envelope inside Priority Mail envelope and self-insurance (or postal insurance if item is expensive). Probably because Amazon themselves ships by Priority Mail, customers there don't complain about the shipping charge and I get great feedback about how fast items arrive.
If I tried the same thing on eBay, bidders would either not bid or email constantly asking for lower shipping costs.
I take the total cost into account when pricing the item. I have a system that works really well for packing and shipping with Priority Mail. This is the #1 reason that I have not yet gone to eBay even though Amazon is doing their best to kill the auctions on their site.
posted on September 4, 2000 08:35:29 AM new
Here is an idea....Why not charge as a start out bid price what you absolutely have to have for the item? Shipping time,supplies, etc...already included in that amount? When I place an auction I start the bidding at the amount that I have to have to where I won't be out of nothing.If it goes beyond that it's super but if not....well atleast I broke even. That way nobody sees high "handling fees" or such as one Ebayer called it "cleaning fee" @ .75 cents! As a buyer I see that and think NO WAY!
posted on September 4, 2000 08:49:27 AM new
LikeNew2You -
If you list with "free shipping", the only problem with your approach is that the FVF would be based on your shipping and packing fees as part of the final bid.
posted on September 4, 2000 10:39:21 AM new
One more reason not to put your shipping and handling in your starting price is becuase you will lose sales. One seller was selling an item for .50 plus $5.95 shipping and handling. I was selling the same item for $1.49 plus $4.00 shipping and handling , making my item almost a dollar cheaper. The other seller had way more sales than I did. This leads me to beleive that most people only focus on the selling price and don't take into account the total cost (selling price plus shipping and handling).
