posted on July 26, 2001 12:33:16 PM new
After selling on Ebay for 2 years, I have never charged a handling fee. The cost of the listings, Paypal fees or Billpoint, and to use an auction program really starts to takes its toll on your profit. Has anyone changed their way of charging for shipping, etc?
posted on July 26, 2001 12:40:32 PM new
Of course! Sellers who don't charge handling fees usually lose money on the total shipping cost. I hate to lose money so I charge a handling fee. My shipping/handling charge runs approximately 4 times actual postage. Anything less and I lose money on the shipping.
[ edited by MrBusinessMan on Jul 26, 2001 12:41 PM ]
posted on July 26, 2001 12:54:35 PM newMrBusinessMan if you are charging 4 times actual postage as you state, then at $3.50 priority (for 1 lb pkg)you would be charging $14.00 or a profit of $10.50 on shipping. I double checked my figures and this seems OUTRAGEOUS...how long have you been successful in selling on ebay?
posted on July 26, 2001 12:57:41 PM new
ZiLvY: The customer doesn't have to pay it. So long as it's stated up front, who cares?
As for $10.50 above and beyond (and I don't charge this much, no guts), you do have to factor in all the effort it takes and the price you put on your time.
Regardless, if the price is posted, then so be it.
posted on July 26, 2001 01:22:36 PM new
I charge a flat rate on my items which includes a small amount for covering anything above actual postage. I use "shipping & handling" in my TOS and no-one has been hysterical yet.
posted on July 26, 2001 01:26:47 PM new
I have had to up my flat rate shipping fees to absorb both rising postage and the feeBay feePal mentality that has driven up the costs of doing business. It costs about double to run an auction as it did last year, there are fewer bids and prices have stagnated or dropped in many cases.
To help compensate for my bidders, I usually ship second items for free or very little extra. I want my bidders to get a good value without taking repeated lowball bids and not cover my expenses.
The Government taxing body (IRS) accepts all of the above as reasonble business expenses, however I've run into many buyers who refuse to accept the above as ligitimate seller expenses. While I believe it is unfair to gauge buyers with inflated shipping fees, I find it perfectly appropriate to charge a modest fee to recoup some of these legitimate expenses.
I just paid a $200.00 bill for the packing peanuts we used to ship auction orders the last four weeks. After writing this check, I feel no regret charging a little extra to help cover this cost.
posted on July 26, 2001 01:47:35 PM new
I try to but with some of the items I sell there are others who do it for exact cost. I also recieved a neutral for a customer complaining I overcharged by $0.77. I responded that she must think pkg materials are free. the bid she won was for $1.99 Item.
posted on July 26, 2001 01:51:48 PM new
We have an accountant handle all of our tax issues. This includes quarterly estimated taxes and filings, Sales Tax, Year end residual income tax, Federal Unemployment Tax, Corporate Filing tax, Sales Tax, Workman's Compensation tax, Property tax and Annual Business Licenses and reporting.
It's a bit scary when you see all of the taxes you pay and regulation you must navigate just to be in business without any guarantee of profitability.
You can bet full well that we take our .345 milage expense. In fact, it done for our new Infiniti Q45 that is paid for by the business...
posted on July 26, 2001 02:35:02 PM new
Prior to trying my hand at the auction venue I was a retailer. I have NOT been able to make the transition into this venue in anyway I would consider "successful". I do have a cash flow, I do not really have a profit! There is a big difference.
I have followed this board for over a year. I have come to the conclusion that we all seem to have a different idea about what we would call a "successful business" or even what we consider a "real business" vs a "hobby business". I will go so far as to say, judging from lots of post I have read, some of us are even engaged in "non-profit businesses" whether we realize it or not.
All I'll say about it is:
You can generate a cash flow of $1,000,000 a year, butif it cost you $1,000,001 to generate that revenue, you have not been engaged in a "profitable" enterprise you are probably in a "hobby" venture or the 'ole "non-profit" one!
You have to spend money to make money, but you have to make more than you spend to have a profit....Chances are we all spend more than we think we do....permits, property taxes, car expenses, bubble wrap, boxes, envelopes, computer parts, A/C, and dozens and dozens of misc. stuff we really don't think about. In the "real world" those are part of the so-called "cost of doing business" and you have to subtract those cost from your revenue before you can see if you realllllly are a "sucessful" business or a "non-profit" organization or a "hobbiest" .....Did I miss anything?????
If you aren't getting all your "outlay" (obvious and not so obvious) in the startprice of your item, provided it sells, or making a high enough difference between what you paid for the item and what you sold the item for to cover all those little "thingies", you better add a BIG Handling Fee !
posted on July 26, 2001 02:40:03 PM new
I have been Chargeing a Flat or fixed rate since january.
Not a handleing charge Shipping charges and handleing charges are different I dont have employees I pay to handle the items But I am the shipping agent on all the items and my fee is included in my fix priceing.
posted on July 26, 2001 04:19:39 PM new
I usually charge $4.50 to sell something that I send priority mail. I also use delivery confirmation....this is another 35 cents, which takes the postage alone to $3.85. I figure the other 65 cents pays for time, gas and some of the fees involved. I usually lose money on the items I sell.
<b>Has anyone noticed how much shipping things through the post office has increased? Especially Insurance costs. A $61.00 Item I recently insured cost me 2 dollars to insure. </b>
The other thing I would like to mention is that if I put in a shipping amount and it goes over the amount the buyer paid, I pay the difference.
posted on July 26, 2001 04:27:19 PM newMrBusinessMan if you are charging 4 times actual postage as you state, then at $3.50 priority (for 1 lb pkg)you would be charging $14.00 or a profit of $10.50 on shipping. I double checked my figures and this seems OUTRAGEOUS...how long have you been successful in selling on ebay?
No, my previous post was NOT a joke. I charge $3.25 to ship my items via first class mail. The postage varies from 80¢ to $1.30, depending on how many widgets are in the padded mailer. I don't ship any items priority. To answer your question, I've been selling on ebaY for 2 years and from my web site for 5. I receive very few complaints about the shipping charges (less than most people judging by the posts on these boards)but many, many compliments on my fast shipping and secure packaging (in an 18¢ #0 padded envelope).
posted on July 27, 2001 01:23:35 AM new
Well, I didn't used to charge handling fees. However, since I also buy items on Ebay and consistently have seen anywhere from $1 to $4 added to actual postage (and most of us DO look at the postage that sellers slap on), I've decided that IF YOU CAN'T BEAT THEM, JOIN THEM! So sadly, yes--I now slap on that extra handling fee. In the old days, I would send an email saying something like, "What gives? Why the extra $3?", as well as not leaving positive feedback. Oh well, things change...
posted on July 27, 2001 05:15:41 AM new
Reluctantly, I added a "supply" fee when Paypal started charging fees. I do purchase NEW boxes and NEW bubble wrap and while it is wholesale, it's just another bill I have to pay. I only charge $1.00 and clearly stated FIXED shipping, and so far, no complaints besides one person who wanted to know if she could skip the bubble wrap (item wasn't breakable) and skip the $1.00 - and oh, by the way, I bought this from someone else and shipping was cheaper.
I get really annoyed w/ this considering it is all stated in my auction. It is not optional, but the part that gets me is WHY ask me at the end of the auction. I'm typically VERY easy going if they would just write me DURING the auction, otherwise, I feel browbeat. They don't seem to be "asking" at that point... Ya know?
Anyway, back to $1.00 and fixed. I kept reading these boards... asking myself... do I list postage or not? I sell mostly medium size breakables. So, sometimes they are HEAVY and the shipping is an outrage, but I don't make the rates! Well, after making the change, I don't notice a difference in my sales and I certainly don't think it had an impact.
Here's a question though for some of you. If shipping is 80 cents and you want to charge handling of 3.50 - are you listing it as such? Or do you simply say "shipping is $4.30"? Just curious.
posted on July 27, 2001 05:24:01 AM new
As a seller, I charge small handling fees (from .25 to 1.00). I didn't intend to do that when I started selling, but bubble wrap and peanuts aren't cheap and I didn't want to be tempted to cut corners on packing since I deal mainly in glassware.
I think the most important thing to most rational buyers is that the handling/materials charges be disclosed up front. As a buyer, my preference is to see the handling charges spelled out in the auction listing. Second, instead of the seller's EOA notice lumping S/H/I into one amount, I prefer that it be broken down into individual components.
If a lump sum S/H/I seems unreasonable, I email the seller and ask for the packed shipping weight and to break the charges down by postage, handling and insurance. Quite a few times the seller has suddenly realized he made a "mistake" and the total S/H/I suddenly looks more reasonable.
Gerald
"Oh but it's so hard to live by the rules/I never could and still never do."
posted on July 27, 2001 05:48:22 AM new
I've gone to a fixed rate on my media items of $2.00. The actual postage might be anywhere from $1.33 to $2.23 with most being either $1.78 or $2.23.
So far, no handling fees here, but at times I'm tempted...
I simply state, "$4.30 priority shipping/handling" when the item is going priority or "$2.50 shipping/handling" if an item is going non-priority.
If I have some books, I'll use "2.30 printed matter shipping/handling" or media, or whatever the appropriate terminiology is.
Personally I don't show the handling as a separate amount, just roll it into one "shipping/handling" price but I do like to let the customers know whether they are paying for priority or getting it via other methods.
The fewer "assumption" made in the mind of the buyer, some misunderstandings can be avoided.
So far (and I'm sure the day is coming), no-one has complained about the extra over the actual postage.
posted on July 27, 2001 05:59:57 AM new
since I scrounge bubble wrap ,penuts and box's the only thing I pay for is tape.
I have started adding .50 to 1.00 to pay for tape and postage miscalculations.
posted on July 27, 2001 06:26:45 AM new
I wouldn't call it "free money". Many people, when bidding, take into consideration the total they will be paying (their high bid + the shipping/handling). Thus, if I was inclined to pay $100 for something, and the seller stated a $10 shipping and handling fee, I would bid $90. There may be a slight savings in ebay fees, though.
posted on July 27, 2001 06:33:58 AM new
petertdavis,
Most likely, cdnbooks was joking. His sense of humor is well recognized on these boards.
Hey, Bill,
My daughter found a 70 acre horse farm in "Perth County" last night on ebay & was real excited...thought she was going to be Ian's neighbor until I pointed out Perth County & Perth (the city) aren't exactly the same.
posted on July 27, 2001 07:06:53 AM new
There is one place I avoid adding much to shipping and that is for international shipments. It can get pretty pricey to ship something over the border. The downside is that it does take a bit more work to do them, but it's part of being in a service business.
posted on July 27, 2001 09:33:44 AM newHere's a question though for some of you. If shipping is 80 cents and you want to charge handling of 3.50 - are you listing it as such? Or do you simply say "shipping is $4.30"? Just curious.
