Poll: eBay S&H Pricing

[gmarguli]

Sorry for writing so much... I'm looking for some input into S&H pricing on eBay.

 

About 50% of my buyers only purchase one item, 45% purchase 2-3 items, and 5% purchase 4+ and usually in the 6-8 range.

 

According to eBay, my average selling price is around $45-$50, but I would suspect it is actually lower than that with most items falling into these areas: $10-$20 items, $35-$45 items, and $70-$90 items. Few items sell below $10.

 

In the past I used to offer $2 S&H for the first item and $.50 for each additional item. Insurance was extra and at the USPS rates. I stopped this because, believe it or not, it was too confusing to the buyers. They would either pay $2 for each item purchased or more frequently, ask me to send them an invoice for the two items they purchased so they could figure out the total shipping cost. This method took too much of my time.

 

For the past year or so I have offered $3 S&H no matter how much you buy. Insurance is extra at $2 for the first hundred and $1 for each additional hundred. The insurance is cheaper than the USPS rates as I have switched to a private insurance carrier.

 

I'm considering changing my shipping rates once again. This is due to two main reasons.

 

1) The Post Office just raised shipping rates and even though it wasn't a big increase, it adds up when the buyer purchases a few items from you. I also usually ship using padded mailers instead of the bubble mailers as I feel they provide more protection. These weigh more (cost more to mail) and they cost more to purchase. Insurance was also raised.

 

2) PayPal has decided to take the wrong stance and go against what was standard with shipping. In the past, if the buyer declined insurance and you could prove you shipped, you were clear if the item was lost. However, PayPal is requiring the item be delivered or you are going to have an automatic chargeback if it gets lots. It does not matter if the buyer refuses insurance.

 

Now, my problem. I'd prefer to set a S&H rate that covers all buyers. It's easier and I can set the rate when listing the auction so there are no screw-ups. I also want to protect myself against any unfair chargebacks due to a lost item. I don't think it is fair that some buyers purchase insurance, yet those that don't can just do a chargeback and screw me.

 

I'm thinking of including insurance in the cost of S&H and everyone gets it automatically. My problem is that the cost of this will have to be passed on to the buyer (I am willing to take a small hit to provide this protection) and it might cost too much to provide this - especially if the buyer is only buying one cheap item. And, is it wanted? I'd guess that only half my buyers request insurance and it has no relation to the cost of the items purchased.

 

And just FYI, I'm not looking to make money on S&H, but I really don't want to lose. I've also not had any problems with unfair chargebacks.

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[midwest]

2) PayPal has decided to take the wrong stance and go against what was standard with shipping. In the past, if the buyer declined insurance and you could prove you shipped, you were clear if the item was lost. However, PayPal is requiring the item be delivered or you are going to have an automatic chargeback if it gets lots. It does not matter if the buyer refuses insurance.

 

Intresting. Does this mean that delivery confirmation and signature confirmation are now not needed but insurance is? Or does it still help to use either of those two services?

[gmarguli]

2) PayPal has decided to take the wrong stance and go against what was standard with shipping. In the past, if the buyer declined insurance and you could prove you shipped, you were clear if the item was lost. However, PayPal is requiring the item be delivered or you are going to have an automatic chargeback if it gets lots. It does not matter if the buyer refuses insurance.

 

Intresting. Does this mean that delivery confirmation and signature confirmation are now not needed but insurance is? Or does it still help to use either of those two services?

 

If you use Delivery Confirmation, it only helps you if the buyer is lying about it being delivered. If the item really never arrives, you are screwed.

 

As for Signature Confirmation, that's only needed above $150 for PayPal to protect you. However, if it is insured, no need for the PayPal protection. The insurance will make you whole regardless of what action PayPal takes.

[Bruceswar]

$5.00 is a small fee to pay for insurance postage and handling... I would not balk at the price... you may lose a bidder or two.. but in the long run it will all help. Not only do you have to cove the all the shipping cost... but your time it takes the pack the items cost as well... and if you are packing 30 items... this could take a few hours...$5.00 for all you can eat is a great deal..... Just my thoughts... we ship quite a bit from our shop and the time it takes to box items up gets figured into our shipping cost as well.. which we are like you not trying to make money.. burt also not trying to lose...

[Hoot]

$5.00 is a small fee to pay for insurance postage and handling... I would not balk at the price... you may lose a bidder or two.. but in the long run it will all help. Not only do you have to cover the all the shipping cost... but your time it takes the pack the items cost as well... and if you are packing 30 items... this could take a few hours...$5.00 for all you can eat is a great deal..... we are like you not trying to make money.. but also not trying to lose...

 

I completely agree. If you are to have a non-progressive flat rate, I believe this is the most fair to you as the seller and to all of us as buyers. Indeed, with the rising costs of first class shipping, this is damn cheap. I could hardly blame anyone if they were in the 5-7 dollar range flat rate.

 

Hoot

[cpm9ball]

$5.00 is a small fee to pay for insurance postage and handling... I would not balk at the price... you may lose a bidder or two.. but in the long run it will all help. Not only do you have to cover the all the shipping cost... but your time it takes the pack the items cost as well... and if you are packing 30 items... this could take a few hours...$5.00 for all you can eat is a great deal..... we are like you not trying to make money.. but also not trying to lose...

 

I completely agree. If you are to have a non-progressive flat rate, I believe this is the most fair to you as the seller and to all of us as buyers. Indeed, with the rising costs of first class shipping, this is damn cheap. I could hardly blame anyone if they were in the 5-7 dollar range flat rate.

 

Hoot

 

DITTO!

[James_OldeTowne]

I voted "no", "yes", and $3.00. However, I have a different philosophy altogether. I never charge additional postage at all, except in the case of bulk or heavy items. Bidders recognize this, and that tends to lead to higher bids, which covers postage.

 

Also, I don't bother to insure anything under $30 regardless. I just throw a dollar into a jar for each package I mail out. Above $30, I insure everything, period. Last year, I came out ahead to the tune of some $150!

 

James

[cpm9ball]

I voted "no", "yes", and $3.00. However, I have a different philosophy altogether. I never charge additional postage at all, except in the case of bulk or heavy items. Bidders recognize this, and that tends to lead to higher bids, which covers postage.

 

Also, I don't bother to insure anything under $30 regardless. I just throw a dollar into a jar for each package I mail out. Above $30, I insure everything, period. Last year, I came out ahead to the tune of some $150!

 

James

 

C R E A T I V E

 

T H I N K I N G

 

Chris

[jtryka]

Shipping is a strange thing, with some unusual supply/demand characteristics. On low price items, shipping is very important, and higher shipping costs may drive buyers away, or at least cause them to reduce bids (I think I'm like most bidders, if I see a $15 coin and shipping is $1 I bid up to $14, if it's $5 then I bid only $10, so my total price paid is the cost of the coin). When you start getting up to higher priced coins, high S&H is a good thing, as I believe it signals to the buyer the value of the coin being sold. If I list a Double Eagle, with $5 shipping, I am signalling to buyers that I think this coin is worth melt, if I include $15 insured shipping I am signalling that this coin is worth $1,000! But again, this phenomena does not occur on coins worth less than a couple hundred bucks.

 

There are a lot of creative options for you to consider (and I won't influence you with my opinions):

 

1. Free shipping for all! On most coins this will result in higher bids.

2. Tiered shipping, charge a flat shipping rate for each item, but change the rate based on what you think the coin will sell for. If you think it's a $10-20 coin, charge $3 flat, $35-45 charge $4, $70-90 charge $5.

3. Charge a flat $5 for all auctions.

4. Combine shipping: can be one fee for all items closing the same day, could be one fee for 1-3 items, then another fee for the next three (this will help only on the 5% that purchase a lot of items.

5. You could make insurance optional on low $ items, like the $10-20, but automatically include it on the higher $ items.

6. You could offer a shipping discount on additional items, like full fee on item #1 and 50% off each additional shipping fee.

 

There are probably a lot more options from people more creative than I am. The important thing to remember is to make it simple and easy for buyers to understand, and that sometimes S&H costs have signals attached to them, whether conscious or unconscious.

[braddick]

I charge a straight $4. for insured, USPS mailing, no matter how pricey or cheap the first item. Each subsequent item is $1. per auction lot.

 

It's simple and on average it works out.

 

I never give the option of insurance as not offering it would only allow opportunist to claim non-delivery.

 

I've only had a single incident of someone claiming the package didn't arrive and when I requested they send me a signed note stating they hadn't received the coin so I could forward it along with a claim to the fraud department of the USPS for internal investigation (I tell them the post office now has almost all transactions on video) the coin mysteriously turns up a day or two later.

 

Go figure.

 

Greg, I've purchased off of you and the way your were doing it always seemed a bit too cheap to me. You could raise your rates and I don't think anyone would bat an eye or complaint.

[EZ_E]

Also, I don't bother to insure anything under $30 regardless. I just throw a dollar into a jar for each package I mail out. Above $30, I insure everything, period. Last year, I came out ahead to the tune of some $150!

 

That sounds smart. List in all of your auctions that Insurance is included in S&H. That lends more credibility to your reputation if the buyer doesn't know you.

 

If they item sell for under $20 then anything over $3 is too much and will discourage alot of buyers. I keep returning to one seller of SCD's because he is an honorably and likable guy and only charges 85 cents delivery. It makes me want to be a return buyer.

 

Priorty mail is a good alternative as well. For $3.85 you can ship most anything expediently. Use the cardboard protectants in a regular envelope and place in the business letter-sized priority mail insert.

 

Any item over, say, $150, charge $10 for Priority Mail shipping which is, of course, the absolute most reliable method.

 

A point to consider: Anything under $150, self-insure as James suggested. Chances are that you will come out ahead and will provide additional prestige to the buyer as well.

 

It seemed that your original policy was simple enough but ....... I guess that this isn't the brightest nation in the world.

[EZ_E]

 

I've only had a single incident of someone claiming the package didn't arrive and when I requested they send me a signed note stating they hadn't received the coin so I could forward it along with a claim to the fraud department of the USPS for internal investigation (I tell them the post office now has almost all transactions on video) the coin mysteriously turns up a day or two later.

 

Go figure.

 

 

Amazing, isn't it!?

 

When I had seven of nine St. Benard puppies to sell, I made no written contract, just took a hundred dollars down with the balance due in 30 days. I had to call each and every buyer regardless of socioeconomic background to remind them. I only got stiffed by one individual who gave a wrong address and would not answer her phone.

 

It is sad to say but, given a chance, most people are . That is why it is important to depend highly upon e-bay's feedback system. However, I have always had good experiences from there both as a buyer and as a seller.

[EricG]

If you use Delivery Confirmation, it only helps you if the buyer is lying about it being delivered. If the item really never arrives, you are screwed.

 

As for Signature Confirmation, that's only needed above $150 for PayPal to protect you. However, if it is insured, no need for the PayPal protection. The insurance will make you whole regardless of what action PayPal takes.

 

Delivery confirmation also does not help you if the Post Office misdelivers the package. The person making the delivery will scan it as delivered but there is no way to prove where the delivered it.

[gmarguli]

If you use Delivery Confirmation, it only helps you if the buyer is lying about it being delivered. If the item really never arrives, you are screwed.

 

As for Signature Confirmation, that's only needed above $150 for PayPal to protect you. However, if it is insured, no need for the PayPal protection. The insurance will make you whole regardless of what action PayPal takes.

 

Delivery confirmation also does not help you if the Post Office misdelivers the package. The person making the delivery will scan it as delivered but there is no way to prove where the delivered it.

 

This is worse. It shows as delivered and you will win a PayPal dispute and insurance will not pay off, but the buyer really got screwed and you think he is a liar.

[goose3]

do you think that if you advertised in your listing title "FREE S/H/I" that you would get even more bids..........enough to cover what you would spend on S/H/I?

[Bruceswar]

For me it does not matter the shipping price that much... If a coin is worth X ammount to me... free shipping is not adding any value to the to me... It is still the same coin.... but to some it would.... You would end up losing I think

[gmarguli]

I also think I would end up losing with free shipping. I've never heard anyone say they get more bids from free shipping.

 

I usually factor in shipping into the bid price. Free shipping would not make me bid higher. I also think it would encourage a lot of lowball bids. However, high shipping would affect my bid.

 

For me, if I want a coin and am willing to pay $25 for it, if shipping is $2, I may not factor that into the bid at all. However, if it is $5, I'll lower my bid. I'd like to find a good line where it is cheap enough that people don't factor it into the bid price, but I don't lose money on shipping.

[TomB]

I rarely sell on ebay but the other week I listed a few lots and put a fixed shipping, handling and insurance cost on each one. In my opinion it was easier to force folks to take insurance and also easier to let them know exactly how much it would be. It was also at a level that was definitely not gouging as I had one coin that sold for $400+ and my SH&I was only $4 for it.

[Coin]

So Greg , so far , what d'ya think about the S&H thing? You gonna offer a set price and include insurance or a set price and optional insurance?

 

I bid on an item and check the S&H before I bid just to avoid the ones that do not have a set amount (IE : ones that say they will let ya know after the auction...I never bid on those) and also avoid the ones where the S&H is like way too much for a box , packing and postage....it's not my job to pay for the shipping clerk's salary . I understand it takes time to package and ship , and do not want something just tossed into a #10 envelope without any protection at all , so I am willing to pay for this service to a point , just not gonna buy a 59 cent coin and pay $9 for the S&H and get it plopped into an envelope with 98 cent postage. You know?

 

I do not mind paying more for shipping if in the shipping section the seller describes the armor-plating process that the coin will protected in prior to shipping out....that helps and is worth it .

[gmarguli]

So Greg , so far , what d'ya think about the S&H thing? You gonna offer a set price and include insurance or a set price and optional insurance?

 

I'm still deciding. Based on my personal thoughts and what forum members have said, I'm going to keep "all you can eat" shipping and I think I will start including insurance on all packages. I'll set some personal break point were I actually purchase the insurance versus self-insuring a small dollar package or those where I have a replacement coin.

 

I'm really surprised at the fact so many people thought $5 was an OK S&H price. I thought that was too much and it would cause me to lower my bid. I'm thinking I'll charge $3.50-$4.00.

[Beijim]

I do what TomB does - a fixed shipping charge on each item, where the charge always includes insurance. I set up eBay's shipping charge calculator to automatically figure discounted combined shipping when someone purchases multiple items. I think I set it up to whack a buck off each additional item's normal charge, or something like that.

 

I always charge actual USPS insured shipping, plus $0.50 or so to cover shipping materials, rounded up to the nearest $0.50. My charges are therefore always very reasonable and very close to what it actually costs me.

 

Beijim

[Coin]

I do what TomB does - a fixed shipping charge on each item, where the charge always includes insurance. I set up eBay's shipping charge calculator to automatically figure discounted combined shipping when someone purchases multiple items. I think I set it up to whack a buck off each additional item's normal charge, or something like that.

 

I always charge actual USPS insured shipping, plus $0.50 or so to cover shipping materials, rounded up to the nearest $0.50. My charges are therefore always very reasonable and very close to what it actually costs me.

 

Beijim

 

I like this feature as a buyer...when I find a good dealer who has several items ...I like the automatic shipping calcullator that adjusts the shipping when I get multiple items...makes me want to go ahead and get some of the other coins from the same seller if I know I'll be able to save on shipping without having to email and beg for combined shipping quotes...who has time for that?

[RobertB]

I don't sell as much as you do, but I sold a bit this year and I've come to the following conclusion. I will now send everything priority in the smaller box with as many items as will fit for no extra charge. My PO will not accept any boxes what-so-ever for first class and padded envelopes add up. I will make insurance mandatory as I near hear paypal won't even accept delivery confirmation. So, basicly here's my plan.

Priority w/insurance - as many items as will fit - up to $100 = 6.00

 

above up to $200 = 7.00

 

seems a bit but.........Priority is over $4 now I believe and with insurance and bubble wrap, I ain't scamming on shipping.

 

Just my .02

 

Another note, when I used to charge super low shipping, where I ate a bit of the cost I don't think it ever created higher selling prices to cover the expense. So I'm of the opinion now that low shipping fees just aren't necessary unless you sell many cheapy cheap coins.

[RobertB]

I'm really surprised at the fact so many people thought $5 was an OK S&H price. I thought that was too much and it would cause me to lower my bid. I'm thinking I'll charge $3.50-$4.00.

 

Greg, shipping ain't cheap no more bro-man. To require insurance your at about a buck right off the start. Next, materials, bubble mailers are what .50c to .75c. Then there's the postage which is getting worse and worse. Personally, if I really want a coin, unless the shipping is ridiculous, I DO NOT factor it in to my bid. If it's super cheap then good for me, but it doesn't drive me away. I can't even fathom the idea of going less than $5 flat rate insured. No way.

[gmarguli]

I'm really surprised at the fact so many people thought $5 was an OK S&H price. I thought that was too much and it would cause me to lower my bid. I'm thinking I'll charge $3.50-$4.00.

 

Greg, shipping ain't cheap no more bro-man. To require insurance your at about a buck right off the start. Next, materials, bubble mailers are what .50c to .75c. Then there's the postage which is getting worse and worse. Personally, if I really want a coin, unless the shipping is ridiculous, I DO NOT factor it in to my bid. If it's super cheap then good for me, but it doesn't drive me away. I can't even fathom the idea of going less than $5 flat rate insured. No way.

 

Believe me, I know shipping isn't cheap. For a usual sized batch of auctions I run (50-75 slabs), I'll easily spend $100+ on postage alone. And that was before the rate hike. I'm actively looking to reduce this.

 

For my last set of auctions, I mailed out single slabs that are lower value in smaller bubble mailers. This has knocked me down below an ounce threshold which saves me 24c. I want to do a few test batches to make sure they hold up well enough. More expensive coins will still go out in larger sized padded mailers.

 

I buy padded/bubble mailers in bulk boxes of usually 50-500. They cost between 8c-30c each this was + shipping. If you buy several boxes and have them shipped by UPS ground, the shipping is manageable. If you don't need this many, you can get some smaller boxes of them from Office Depot and the shipping is free if you spend over $50.

 

My insurance is provided thru an private insurance carrier and their rates are cheaper than the Post Office.

 

Hopefully, all of this will allow me to continue to be well below the $5 mark.

[EZ_E]

I won a Ford Motor Co. So Called Dollar on e-bay for six bucks (good price) and the charged five bucks for shipping. On general principles, I would never buy from that person again. Just t's me off.