Shipping questions

Hi,
There could be many reasons shipping cost more that the items. Example: I sold a ceramic statue for $5.00. The S&H on the action was $9.95 almost twice the sold price. In most cases this is fine becase if you think about it the shipping box cost $1.25, bubble wrap $1.00, plus tape labels and my time. So by the time you add up my cost to ship the package $5.00 plus supplies $2.50 you are into the package for $7.50. So what is the other $2.45 for? It is for the time you spend wrapping, packaging, shopping for supplies and delivering the package to a shipping location. After all I dont know of any one who goes to word without being paid for the time they send doing the job. I have found that 99% of the customers do not have a problem with this exspecialy if you are up front with these charges. Just put up a not that shipping charges include a $4.95 sir-charge packaging materials and supplies.

If a customer finds a high shipping charge and nothing else they may be turned off by the auction. But If they know what they are paying for you will find they have no problems with it.

A method, I've used, is to take the item bought with the highest shipping cost* and have them pay that and offer 50% off regular shipping costs on any other item up to a max of 5 items going to the same address.

For example:
First item costs $5.00 Shipping cost $2.00
Second item cost $6.95 Shipping cost $2.50
Third Item cost $7.95 Shipping cost $3.50
Fourth Item coat $10.00 Shipping cost $4.00
Fifth Item cost $25.00 Shipping cost $15.00*

Total $54.90 Shipping cost $27.00

Customer saves $12 on shipping ($2 + $2.50 + $3.50 + $4.00) and you get more sales. This is just an example to give you the idea.

For large, heavy items ... I don't offer combined shipping and check freight costs/packing with my carrier.

Usually, I can ship a small $200 item coast to coast by UPS Ground for $22 (including tracking and Insurance). If they want "RUSH" delivery then the same item would ship for $57.

Point is, make it attractive to the customer, encourage him/her to buy more and you should never let shipping eat into your margin.

U.S.Postal Service will send you free shipping supplies (Boxes, Lables, Mailers, etc.)for Priority Mail plus pick it up at your location for free. Of course you have to charge Priority mail prices.

UPS offers free shipping supplies but charges $10.38 for local pickup. If you have a UPS pick-up point within reasonable driving distance you have it made, if you use UPS.

My daughter uses FEDEX, she says it's cheaper than UPS. I don't know.

Anyway, that's my penny's worth.

Bill

quote:

Originally posted by Doone:
If you sell something that is only worth a couple of bucks how can you justify selling it on ebay when the flat rate shipping costs more than the value of the item itself. How do you guys get around that? Thanks in advance!

In that case it's not the shipping that cuts into profits but the eBay fees. All shipping & handling should be paid for by the buyer. You can also roll eBay fees into your handling costs (but you can't say so) although that's harder to do for an item that only sells for a few bucks.