I've avoided putting handling fees in my shipping charges as long as I can. I really can't do this anymore and stay as profitable as I want to make this worthwhile.
What I did this morning was to compare two low-end items, lets say, a $5 book, and a $10 widget.
The things I thought were fair to combine into a handling charge were the following: bubblewrap, tape, special mailers, and the applicable increase in PayPal's fees (since I've been building the 30 cent swipe fee into my opening bids already).
I've come up with a 50 cent handling charge. This totally compensates me for materials, etc., on my book sales, and is about half of what I spend on materials to pack non-books (which, though a lower return on investment, are usually more dollars profit per package).
I'd really appreciate input on this from sellers and buyers alike.
posted on June 8, 2001 08:09:11 AM
Stop ripping yourself off and and at least charge what you put out for supplies.
Take a tour of most Amazon Zshop book sellers or ABE booksellers and you'll see that they charge a reasonable amount that covers postage, supplies, handling....and they get sales.
Heck.... even Amazon Marketplace charges the buyer $3.49 (though they give the seller only $2.20) and expect the book to be mailed Media
I think it is great for you to start charging a handling fee. That is exactly where costs such as those you describe should be included. Covering those expenses on your book shipments is wonderful, but loosing money on your widgets is not so good. Here's a suggestion that might help you out. Try charging fixed prices for s/h. By combining the postage and the handling fee, you can make the auction look more attractive to the bidder (they don't have to add all these different little charges together themselves). It also helps if you make this fixed price avaliable directly in the auction. That way you don't have to calculate the shipping charge and send estimates all the time. Finally, you can do different levels of fixed prices depending on the merchandise. They way I deal with this is as follows:
High bidder is responsible for any and all shipping and handling charges. Small items are shipped for $2.50 in a protective bubble-mailer. Advertisements are
shipped for $3.00 in a protective stay-flat mailer or sturdy mailing tube. Larger items under 2lbs will be shipped by USPS priority mail for $5.00. Larger items over 2lbs will have shipping charges based upon their approximate weight. Multiple items may be shipped together for an additional $.50 per additional item to save on the total s/h charges. International s/h charges depend on the country and item that is shipped. If you have questions on s/h , please contact me before the auction has ended.
These terms help to answer just about all the questions I've ever had on shipping. (multiple items, carrier, class, international, etc..) If you sell a lot of similiar items, you might want to try something like this. Hope this helps!
posted on June 8, 2001 08:12:53 AM
I've been selling on ebay for just over a year. On all items that are not going to be shipped Priority mail, for instance books, I always have described my fee as "$1.50 for Book Rate/shipping material". I felt that this way the customer understood the few extra pennies (usually 25 to 50 cents) was actually going to the extra expense in packing items in non-Priority shipping supplies. I never want to be accused of inflating shipping expenses to add to my profits.
But, I must admit with Paypal's latest increase announcement, I wish I could add something to my auction terms to the effect that there will be a 25 or 50 cent surcharge for Paypal users. I realize I'm not allowed to do this. So, like Sadie, I'm starting to think I may have to add an across the board handling charge.
So I guess I agree with you Sadie. Will this affect future sales? Let's hope not!
If this is kind of rambling I apologize! My allergies are driving me crazy this morning and I think I've overdone the antihistamines!
[ edited by mapledr1216 on Jun 8, 2001 08:13 AM ]
posted on June 8, 2001 08:59:29 AMBut, I must admit with Paypal's latest increase announcement, I wish I could add something to my auction terms to the effect that there will be a 25 or 50 cent surcharge for Paypal users.
Add 50¢ to your shipping/handling/whatever charge, and offer a 50¢ discount for all payments other than PayPal.
Or stop offering PayPal altogether and leave your shipping/handling/whatever charge as it is. I don't know what you sell, but I dropped PayPal as an option months ago, and it hasn't affected me in the least. Maybe you don't need PayPal as much as they want you to think you do.
posted on June 8, 2001 09:01:54 AM
I would definitely charge the handling fee. Now, with PayPal's new increase, I'm going to change mine too. In the past I just decided to eat the PayPal fees, but now I will be adding $0.75 to all s&h charges, plus shipping supplies expenses. For instance, on a $3.95 Priority Mail shipping charge, I'll charge maybe $0.50 for bubble wrap (or whatever it happens to be) + $0.75 handling charge. This would make it $5.20. I'll then say that you get a $0.75 discount when paying by money order, c2it, or eCount. I've excluded Billpoint, PayPal, and personal checks (I don't like the hassle of holding until they clear, so I won't give the discount for that).
posted on June 8, 2001 09:05:42 AM
I do 1.00 handling no complaints yet if its a small item going priority I dont tack it on evrything else I do got to cover overhead.
posted on June 8, 2001 09:09:50 AM
HI mrpotatohead,
Two questions:
first of all, can we actually charge .50 cent discount for non-PayPal transactions and list it in our auctions as that? Does ebay allow this? Sounds really good to me!
secondly, I have almost 100 auctions synched to list tonight at ebay. Do you if there is a way I can edit out PayPal without having to go into each and every one individually? All I want to do is just delete PayPal as a payment option.
Thank you for any insight you can give! By the way, I enjoy your postings.....
posted on June 8, 2001 09:20:49 AM
You can't charge a stated surcharge for any credit card - PayPal, BillPoint, C2it etc. - transaction. You can offer a discount for checks, money orders or cash.
You can bury the surcharge for credit cards in a generic handling charge. Or you can tack it on to your starting price. But both of these ways pass it on to everyone regardless of payment method.
I think your choice would depend on your price point.
I use an HTML editor to make my auctions, and it has the ability to replace HTML "A" with HTML "B", so you could have it replace your code with whatever you want. It must be identical in each auction though, or it won't work. I've used this feature often. The program is called HomeSite, but you might not want to download it and install it just to make this change.
It is my understanding that offering a cash discount does not violate eBay's rules at this time. As far as editing your auctions, I can't offer you any suggestions- sorry.
posted on June 8, 2001 10:01:45 AM
mrpotatoheadd -
Thank you for your input! I think I might try the discount idea - sounds wonderful!
As for editing, I think I will let these go - too much work. But I did go to my PayPal account and remove the auto insertion of their tags. On the next batch, I will remove them altogether.
Just a thought - it's a shame they can't take a lesson or two from BidPay and others that charge the buyers that use the service. I would be more inclined to continue with PayPal if they would split the fee with the buyers. I know, I know, it will never happen....just a thought!
posted on June 8, 2001 10:15:42 AM...it's a shame they can't take a lesson or two from BidPay and others that charge the buyers that use the service.
They wouldn't have been able to sign up as many users as they have this way. Much better (from their standpoint, anyway) to say "free" to buyers, and get the buyers to pester sellers to accept their service.
People are paying a credit card fee nearly everyplace they go regardless of whether they're using a cc or not. You never see it, but if the store you're shopping at takes credit cards, it's included in the price you pay. Apparently, however, it makes a lot of people unhappy to have to actually see it.
posted on June 8, 2001 10:32:39 AM
Why would not espect to have a store include the cost of using a credit card system into their prices?? Their prices also include an amount to cover shoplifting. If they didn't put this amounts into their prices---they wouldn't stay in business.
posted on June 8, 2001 10:47:56 AM
Well, of course businesses must include their costs in the price of the items they sell (assuming they want to remain in business, that is). To be fair, though- the cost of a credit card system should be paid by those using the system. Comparing this to the cost to cover shoplifting is comparing apples to oranges. All consumers are affected by the costs of shoplifting to the same extent, while the costs to process the payment for their purchases are not all the same.
Unfortunately, the cc companies would prefer that those costs are not made visible to the consumer, as in:
Total Due:
$9.95 cash/check
$10.45 MC/Visa
so this becomes:
Total Due:
$10.45
for everyone, regardless of how they pay. Great for the cc company, I suppose, but not so hot for the consumer who chooses not to use a cc, wouldn't you say?
posted on June 8, 2001 11:29:47 AM
I don't think this is a very good time to start adding a handling fee. Most sellers are complaining about sales being down. Alot of buyers will not bid on an item with a handling charge.
I do not charge for handling but I send everything Priority mail so my supplies are free.
posted on June 8, 2001 11:58:23 AM
As a buyer, I don't mind paying a reasonable handling charge. My biggest gripe is having to guess how much I'm going to have to pay. For a small item, I am much more likely to bid on an item that states "Buyer pays $5.00 shipping/handling" than one that says "Buyer pays actual postage plus 75 cents handling fee for materials". And if you state "Buyer pays $5.00 S/H for priority package", Wow! -You're one in a million!
posted on June 8, 2001 12:21:03 PM
Thank you all for your ideas and input.
eauctionmgnt, thank you for your advice. I don't think I'm really losing on the widgets because when I buy a widget for resale I usually look at the price, add about a buck in my head for packing materials, triple the new total and ask myself if someone would buy it for that plus shipping - if not, it doesn't end up in my inventory.
toolhound, I don't use Priority exclusively. In fact, on heavier items, I bend over backwards trying to get the best shipping rate for my customers. I've tried to stay competitive in books and videos by using media rate. Even now if I charge, $2.30 (1.30 + 50 cents del conf + 50 cents handling) for media rate on a one pound item, I'll save the customer $1.20 over straight up Priority.
BlondeSense, I'm with you on the guessing. What do you think of this wording?:
For Books:
Shipping is $2.30. Item to be shipped via USPS Media Mail. (Priority is also available for $4.40)
Then the usual blurb about insurance.
And on Priority, the same wording replacing MM with Priority and leaving out the parenthesied (is that a word?) stuff.
I'd like to leave the H word out completely. I don't check the actual shipping option.
Thanks again everyone! I very much appreciate your time and energy.
I do not charge for handling but I send everything Priority mail so my supplies are free.
me too. and up until now i've been willing to eat the paypal costs. now i'm rethinking it, like sadie is. guess for me it's the proverbial last straw. last thing i want to do is overcharge my customers. i believe strongly in 'do unto others.' but i have to be fair to myself as well.
worries me a bit, as sales are slow as it is and i don't like running any risk of putting anything in my auctions that might prevent anyone from hitting that bid button, but ...
i'm also considering throwing in a 'bonus' item into my auctions - things i haven't been able to move, cost me little, and wouldn't increase the shipping, or at least not much. has anyone tried this?
posted on June 8, 2001 12:36:45 PM
I buy new boxes, use bubble wrap annd packing peanuts. I spend about $150 a month on packing supplies alone. I used to eat that cost, I can no longer do that.
Recently, I opened a Federal Express Ground account, the rates are very good, usually 25-50% lower than Priority Mail. I figured what it costs me to mail a package and built that into the shipping cost. I then made a table for my ebay auctions, I put the weight and say something like refer to the chart below for your shipping charge.
There is another advantage to having your own account, no one really knows what it cost you to mail the item, so there will be no complainers when they get their Priority package with the actual postage printed right there. Even with my handling fee built in, I am still cheaper than Priority.
Do I feel bad for charging them for my supplies? Yes, I do. I deal only in vintage china, do they want their items sent in an old box and packed in newspaper? No, they don't. I see a lot of sellers in my area who charge double what I do, and they ship in old boxes and newspaper, how is that fair? Heather
posted on June 8, 2001 12:42:51 PM
I am thinking of charging a flat rate shipping which will have a built in handling fee to cover PayPal and shipping supplies. I plan to rebate customers who pay with money order or cashier's check. No rebates for personal checks as I take the risk of NSF.
I don't think it is fair for customers paying with money orders to subsidize those who pay with PayPal.
