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Is This Shipping Price Reasonable?

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Pillar of the Community

United States
1590 Posts
 Posted 02/15/2013  12:57 pm Show Profile   Bookmark this topic Add jmkendall to your friends list Get a Link to this Message Number of Subscribers
I sell on ebay. For my coins with a value over $50 I insist on shipping in a priority, flat rate, small box. I charge the customer the actual cost of $5.20 and I pay the insurance/tracking.

For those under $50 I ship first class.

My concern is that I have received a few emails complaining about the high cost of shipping. Now mind if it goes over $130 I offer free shipping.

I honestly consider this the safest way to ship coins of value.

Am I out of line?
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weerdsteev's Avatar
United States
1291 Posts
 Posted 02/15/2013  1:07 pm  Show Profile   Bookmark this reply Add weerdsteev to your friends list Get a Link to this Reply
From what you've written, no. However, ebay is doing their best to drive everyone towards free shipping, so the tide is swinging towards THAT, and may be affecting opinions of what's fair and what isn't.

What do you charge for those under $50 first class packages?
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beaglebailey's Avatar
United States
716 Posts
 Posted 02/15/2013  1:47 pm  Show Profile   Bookmark this reply Add beaglebailey to your friends list Get a Link to this Reply

If the total cost of the coin (coin price + shipping charges) is within what I am willing to pay then I will buy the coin. As a buyer, I never look at shipping charges separately. I do the same on Heritage or
Teletrade. My upper limit on a bid includes my bid + buyer's premium + shipping charges.
Pillar of the Community
United States
1590 Posts
 Posted 02/15/2013  1:52 pm  Show Profile   Bookmark this reply Add jmkendall to your friends list Get a Link to this Reply
First class in a bubble mailer is $1.99. I actually lose a bit of money with the eBay/pay fees, cost of the bubble mailer and postage.
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weerdsteev's Avatar
United States
1291 Posts
 Posted 02/15/2013  2:11 pm  Show Profile   Bookmark this reply Add weerdsteev to your friends list Get a Link to this Reply
You can't count ebay fees when you're determining how much to charge for shipping. Selling fees (listing fees, final value fees, PayPal fees) are ONE thing, postage and supplies are another. Either just go after your true shipping costs or admit that you're trying to recoup some of your "cost of doing business" costs in your shipping fees.
Valued Member
Fatman's Avatar
United States
362 Posts
 Posted 02/15/2013  2:47 pm  Show Profile   Bookmark this reply Add Fatman to your friends list Get a Link to this Reply

Quote:
eBay is doing their best to drive everyone towards free shipping


Of course they are, if I understand correctly they make more money on their percentages on the sale not the shipping.
Pillar of the Community
United States
1590 Posts
 Posted 02/15/2013  3:13 pm  Show Profile   Bookmark this reply Add jmkendall to your friends list Get a Link to this Reply
You miss understand me. When I say I lose some money on shipping it's true. But I don't figure it into the shipping.

Bubble mailer equals $0.60 each. Postage for a 1st Class package averages $1.41 each. Ninty percent of my first class shipping is $1.99, regardless of whether the postage is at a LOW of $1.24 (plus mailer equals $1.84) or whether my postage is $4.00; in which case I take a bath.

At this point I'm already losing money; albeit only $0.02. Add in the 12 percent that ebay charges for shipping fees and I'm losing $0.26 on each transaction. How in the world is this recouping "cost of doing business"?

Actually that is kinda insulting. How in the world is $1.99 for shipping recouping my cost of doing business?

"Selling fees (listing fees, final value fees, PayPal fees) are ONE thing, postage and supplies are another."

Really? Don't include the cost of doing business in your calculations? Wow. I think I'll tell my brick and morter guy not to count the cost of electricity, heating, banking, wages, insurance and whatnot in the cost of his coins

Lets look at a typical sale of a Morgan.

You the indignant buyer pay an average of $34 for a Morgan. Ok. Now I've already shown that I've lost twenty six cents on shipping. eBay/paypal fees, which I'm supposed to completely disregard are going to be $0.50 plus 12 percent on the $34 for the coin and the $1.99 for shipping. This comes to $5.22 plus $0.26 loss on shipping for a total of $5.46 in fees. Subtract that from the $34 purchase price and the net sale is for $28.54. My cost for Morgans is dependent on the spot price but for the last 90 days has averaged around $26. My profit? $2.54.

I'm going to assume that you were not trying to insult me, that you are instead just very, very ignorant.

At the very least since ebay CHARGES me $0.24 cents for postage, that cost would then be a legitimate cost factor in determining shipping cost. Because absent shipping that cost would not be applied. Note that I don't actually figure that cost in, see first para; but have no problem with someone that does.
Pillar of the Community
United States
1590 Posts
 Posted 02/15/2013  3:15 pm  Show Profile   Bookmark this reply Add jmkendall to your friends list Get a Link to this Reply
Fatman, ebay changed their policies awhile back the fees are charged on the total sale now; to include the shipping fees. They could care less what you charge for shipping since the more you charge the more they make.
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weerdsteev's Avatar
United States
1291 Posts
 Posted 02/15/2013  3:34 pm  Show Profile   Bookmark this reply Add weerdsteev to your friends list Get a Link to this Reply
Ouch! Ouch! Ouch! The minute I hit "send" I knew what I said would be misunderstood. First...I'm sorry...I was NOT trying to insult you. However, you said, "I actually lose a bit of money with the eBay/pay fees, cost of the bubble mailer and postage" and I interpreted that to mean that the $1.99 you were charging did NOT make up all those fees....which could also be construed as you trying to make up some of the fees...and that's what I said..."some". So...are we clear there? You said it oddly, and I took it the wrong way. The truth is that if you were trying to make up all your ebay and PayPal fees you'd have to charge way more than $1.99 - I get that. $1.99 is NOT unreasonable. In fact I'd classify it as at least "fair".

Now...let's talk about your shipping fees. First off, if you're paying .60 cents for a mailer, you're doing something wrong. Did you mean .06 perhaps? Also...if you're using the eBay/PayPal system you should be getting charged $1.69 for any and all first class packages between 1 and 3 ounces, so your true SHIPPING COST of a small 1st class package should be about $1.75 for the postage and the bubble mailer.

I don't think anything you've said constitutes unfair shipping practices, and bidders certainly have the option not to bid on your stuff if they think you are being unfair. I do find myself wondering why the priority small box as opposed to first class with delivery confirmation...and maybe insurance.

Let me ask...who's doing the complaining, the first classers or the priority boxers...?
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HippieOutcast's Avatar
United States
615 Posts
 Posted 02/15/2013  3:37 pm  Show Profile   Bookmark this reply Add HippieOutcast to your friends list Get a Link to this Reply
I have no idea why people are complaining. My lowest rate is $2.50 and I have a 4.95 on shipping charges. If they buy 2-3 items, I charge $3.00 and up depending on how many. Buyers need to realize that ebay is a buyer's market, in which the seller is charged:

1. Listing fee
2. % of selling value
3. % of shipping value
4. Paypal flat rate fee
5. Paypal % fee
6. Cost of materials to ship.

It's silly when they complain, honestly I don't feel any remorse making a few bucks on shipping.


Edit: My Engrish today is lacking.
Edited by HippieOutcast
02/15/2013 3:40 pm
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trout1105's Avatar
Australia
7096 Posts
 Posted 02/15/2013  3:53 pm  Show Profile   Bookmark this reply Add trout1105 to your friends list Get a Link to this Reply
I have never had a grizzle about shipping costs I charge.
I buy prepaid express or registered shipping supplies from the post office and this works out to be the cheapest option (in Australia) to send with a tracking number.
Overseas postage from Aus however is a bloody nightmare and expensive compaired to other countries

I only charge what I pay at the post office ( No handling fee,stocking fee type BS) and always combine items at the cost of one item (unlike some of the sellers )
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basebal21's Avatar
13014 Posts
 Posted 02/15/2013  6:24 pm  Show Profile   Bookmark this reply Add basebal21 to your friends list Get a Link to this Reply
Theres really no reason someone should complain about a shipping fee when you charge what was listed. They can see what the shipping fee will be and if its that big of a deal to them they should move on to the next seller. The only real reason to complain about the charge would be if they charge priority mail then send it first class or something like that.

I will add though if you print your own labels either through ebay or the usps you can get free tracking on priority mail packages, ebay will let you get free tracking on any type of shipment.

I would also suggest checking out Amazon for bubble mailers. I recently got 100 bubble mailers on there for 8 dollars and if your a prime member the shipping was free. Its basically the same price to get 100 as it would be to get 1 package of them from staples.
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weerdsteev's Avatar
United States
1291 Posts
 Posted 02/15/2013  8:29 pm  Show Profile   Bookmark this reply Add weerdsteev to your friends list Get a Link to this Reply

Quote:
I would also suggest checking out Amazon for bubble mailers. I recently got 100 bubble mailers on there for 8 dollars and if your a prime member the shipping was free. Its basically the same price to get 100 as it would be to get 1 package of them from staples.


Yeah...that's sort of where I was hoping to go with some of my earlier comments...and questions...

If you're serious about selling on ebay, there are things you can do to reduce costs and streamline your overall efforts. I sell enough that it's worth it to me to buy 500 mailers at a time and drive that cost down to about 4 cents per mailer. I use my printer to print postage and avoid spending time in the post office. Printing my postage allows me to get a delivery confirmation on EVERY shipment. Having that delivery confirmation gives me the confidence to ship higher cost items first class instead of in a more expensive flat rate box.

When the things you do to ship efficiently drive your shipping costs down you can offer lower costs to your buyers and perhaps reduce complaints...or perhaps...as I did...just offer free shipping.

People should not be complaining when you charge a reasonable shipping fee but... people are people. I can tell you, however that they NEVER complain when it's completely free.

Each to their own...but I decided not to let them frustrate me with their petty shipping cost complaints. I switched to free shipping and crossed my fingers that they'd be willing to bid higher for the privilege of winning an item that came with no shipping charges...and I believe that's working for me.
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IndianGoldEagle's Avatar
United States
36826 Posts
 Posted 02/15/2013  8:31 pm  Show Profile   Bookmark this reply Add IndianGoldEagle to your friends list Get a Link to this Reply
Your shipping charges seem reasonable. $5.20 only covers the flat rate box, there's an extra .90 for tracking.
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basebal21's Avatar
13014 Posts
 Posted 02/16/2013  03:30 am  Show Profile   Bookmark this reply Add basebal21 to your friends list Get a Link to this Reply

Quote:
When the things you do to ship efficiently drive your shipping costs down you can offer lower costs to your buyers and perhaps reduce complaints...or perhaps...as I did...just offer free shipping.

People should not be complaining when you charge a reasonable shipping fee but... people are people. I can tell you, however that they NEVER complain when it's completely free.


I honestly think theres just some people that like to complain. I usually do the priority shipping just because its easier for pricing, I've guessed wrong a few time on weights.

A lot of people seem to enjoy that it arrives faster if they dont mind the extra price. I did have one buyer leave me a 1 for shipping price though when all I did was charge cost. Wish I knew who it was so I could block them.

Im sure it costs me some buyers but I just use ebay for extra money anyway so its not a big deal if things take a little longer to sell or I have to list them a few times.

When I first started out though I would just go get supplies from staples and would get KILLED on the shipping, Amazon has been more than helpful to keep those extra costs down.

Kind of a side question, does USPS let you print registered mail labels yourself or do you have to do that at the PO?
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weerdsteev's Avatar
United States
1291 Posts
 Posted 02/16/2013  08:09 am  Show Profile   Bookmark this reply Add weerdsteev to your friends list Get a Link to this Reply
basebal21: I've never tried to use the eBay/Paypal system to ship registered mail, but I doubt such an option exists. After my next round of ebay sales finish up and I get ready to ship I'll take a look.

How long ago was it that you received that "1" for shipping fees? There IS a way to out that guy if it's not too far in the past and if you're not a MEGA-seller...
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