I have to ask this question here because if I mention it on ebay, they'll eat me alive. As you know, ebay fees are outrageous. On top of 10% (ebay + paypal) + listing fees, I have to pay fees on fees because paypal takes fee based on total amount, not the net. So, what I've been doing is adding a portion of my fees to the shipping amount to at least minimize the FVF. Plus, it makes it easier for me to calculate my profit as I see the actual selling price. However, I noticed on ebay forums sellers are extremely sensitive to 'overpriced' shipping. Do I have to include all ebay/paypal/listing fees in the selling price?
Shipping Charges and Fees
- Thread starter blinchik
- Start date
what I do is incorporate the 10% into the reserve price. So, for example, if I really want to sell a bag for $600, I will add 10% to that, then list the item at that price. That covers the eBay and Paypal fees. Shipping, however, is different. At first I was charging to little. So, now I go to the USPS website and calculate EXACTly how much it costs to ship to winning bidder and send them email with cost. There is no way around all the fees and if you consign bags, realize that the consignment shop gets 50%, so 10% is not so bad, really. 
First of all let me say, as a seller I am soooo over ebay and paypal fees
! It seems like very month I get a hefty invoice from ebay, and I think "hmmm did I really sell that much?"
ush:. But seriously I try to post lots of pics so that my buyers really know what they are getting. Despite this, I don't feel the need to pass these costs on to my buyers. I sell on ebay because I can make more than I would on consignment.
Having said all that, I'm really frustrated as a seller and a buyer with chipping costs. As a seller, for the last few years I have used the USPS exclusively, I order their FREE shipping supplies on line so I don't pay anything for packaging. I almost always ship priority(except when international), and I always cover my butt with insurance and/or delivery confirmation. Using these methods I have never paid more than $14.00 for domestic shipping(and that was a heavy item!). However lately I have noticed a lot of sellers charging $25-$30 for Priority USPS. Anyone know how this is possible? It seems a bit extreme, no?
! It seems like very month I get a hefty invoice from ebay, and I think "hmmm did I really sell that much?"ush:. But seriously I try to post lots of pics so that my buyers really know what they are getting. Despite this, I don't feel the need to pass these costs on to my buyers. I sell on ebay because I can make more than I would on consignment.Having said all that, I'm really frustrated as a seller and a buyer with chipping costs. As a seller, for the last few years I have used the USPS exclusively, I order their FREE shipping supplies on line so I don't pay anything for packaging. I almost always ship priority(except when international), and I always cover my butt with insurance and/or delivery confirmation. Using these methods I have never paid more than $14.00 for domestic shipping(and that was a heavy item!). However lately I have noticed a lot of sellers charging $25-$30 for Priority USPS. Anyone know how this is possible? It seems a bit extreme, no?
I remember reading that eBay research has found where there are two identical items, the one with the lower opening bid and higher shipping will attract stronger bidding than the one with a higher opening bid and lower shipping. I usually add a little extra to the shipping cost to cover packing, although not when it's a heavy item because I still think high shipping does deter some buyers. Well, I know it puts me off buying when the shipping charge is too high.
I'm in Australia and have had some pretty high shipping charges from US sellers just recently, but I thought that was due to a recent price hike in international postage ...?
I'm in Australia and have had some pretty high shipping charges from US sellers just recently, but I thought that was due to a recent price hike in international postage ...?
The USPS Priority rates changed and they go by both VOLUME and WEIGHT combined, I think they call it DIMMENSIONAL WEIGHT. Anyway, this is similar to the UPS rates. You may have a very heavy item but if you can fit into a small box the rate is not going to be as high in comparison with a lighter item that needs a larger box.
I use the shipping calculator for most items and the hike in postage costs is huge when a box is larger than 12"x12"x12" even though the item is not that heavy, the volume is larger than a cubic foot and the rates hike up. I used to ship most of my handbags and shoes inside the large Priority square boxes (the ones that are 14"x14"x14"), but now I do not any more especially if I can find and fit it inside a 12"x12"x12" or smaller because the larger box rate really makes a big difference.
I was thinking of some really big bulky heavy coats I have sold in the last 2 winters, but I think I managed to squeeze them into the smaller boxes. I don't think I have ever shipped in a 14X14X14, LOL, I guess that why I haven't paid over $14.
Oh and in response to the poster from Australia, what is up with the USPS and Australia? What happend? It seems like its on both ends too, I had a Australian seller propose $50
for shipping of a small silk dress that could have fit in a padded envelope. Also, I sent a package to Iceland recently, and there was only one shipping method and it was $35. My buyer did not seem to mind, but I thought it was crazy! Plus it took like 3 weeks to get to her.
Oh and in response to the poster from Australia, what is up with the USPS and Australia? What happend? It seems like its on both ends too, I had a Australian seller propose $50
That's outrageous. I have a shipping calculator here and don't see how it could have come to more than about US$13 or $14 including a padded envelope. Well, that's what I would have charged anyway.
I don't know what's happened with US -> Aust postage ... it seems to me that when I was purchasing items say about six months ago, most small items - like a wallet - would ship for $15-$20, some even around $10, but now they're all at least $25 and quite often $30 or $35. Makes me think twice about purchasing when that's figured into the price.
USPS has raised international shipping rates quite a bit in the past 6-9 months, unfortunately. That doesn't mean that some sellers aren't gouging, because some are, but I just wanted to mention that the rates really *have* gone up.
About Iceland, by the way--I have a wonderful repeat buyer/consigner in Iceland, and basically she's just used to slow, expensive shipping and paying 40% customs once the item does arrive. We're so spoiled in the US!!
About Iceland, by the way--I have a wonderful repeat buyer/consigner in Iceland, and basically she's just used to slow, expensive shipping and paying 40% customs once the item does arrive.
We're so spoiled in the US!!Yes, you still make more than you would in consignment even with the PayPal and ebay fees. But on the other hand, buyers are also getting a way better deal than they would at a store- discount, no tax, etc- even with higher shipping costs. As a buyer, I always consider the shipping price and factor it into the price of the item before I decide whether or not to buy it- if I still think it's a good deal, I'll buy it. The only time I get turned off by high shipping is if someone's trying to charge like $20 to ship a shirt, or something ridiculous like that. But as a seller, I definitely factor a portion of my fees into the shipping (and my shipping is always reasonable). I figure that the shipping is up front, and if someone doesn't like it or thinks it's too high, they can pass on my auction. JMO.
I add a little bit to the shipping for fees. Buyers want a good priced item and wouldn't buy my item if i Overpriced it to make up for the fees, sadly.
Well, they are going to figure it out that you are padding your shipping to cover fees. Lots of sellers seem to do it.
On the other hand, it has never cost me less than 25-30 to ship a purse. A more expensive purse (2000-3000) can be over 50 with insurance. And that isn't even Hermes. I do build insurance costs into my shipping fees.
They are shipping AND handling fees, and I personally think it's fair for a seller to add a reasonable handling fee that may include Paypal/Ebay fees on top of the regular shipping price. Sure, there are some sellers that add a ridiculous fee on there, but if I don't agree with it, I don't bid on it.
I packed my items very well so my shipping charges are on the higher side but most of my buyers don't seem to have a problem with it.