High shipping and handling charges seem to be one of (if not the) most complained about feature of many eBay purchases.

In many cases, the buyer gets "shipping shock" after they have won the bid. This can cause abandoned purchases, complaints and bad attitudes about eBay. And that can occur even when the shipping charges were reasonable (or even discounted).

Most buyers understand - or should understand - that it actually costs money to ship something from Point A to Point B.

Here are 5 tips that sellers can use to help buyers understand and evaluate shipping & handling costs as part of the total cost. First the quick version:

1. State shipping & handling clearly up front (and in the eBay format) whenever possible;
   you can use eBay to state:
• Flat Rate shipping costs
• Calculated shipping costs (based on Size and Weight of the item)
2. Consider including Insurance in the stated cost
3. Consider offering different shipping options
4. Be open to and promptly answer questions about shipping & handling
5. Don't charge excessive shipping fees

And now the details:

1. State shipping & handling clearly up front (and in the eBay format) whenever possible

I consider this to be one of the most important costs when deciding on an item. Not just because it really is sometimes higher than the cost of the item. But it gives me a feel for whether or not I can trust the seller.

Shipping is easy to add in an eBay listing. It is located in the Payment & Shipping area of your listing, and offers 3 options. I will illustrate the 2 that most eBay sellers will use:

Flat:

This, simply enough, allows you to state a flat rate shipping cost. You can even offer up to 3 different shipping options as shown here:

Keep in mind that you are committed to ship at your stated cost. So be careful about using options (such as UPS) where distance plays more of an effect on shipping costs.

Calculated:

This allows you to enter the Weight and Size of your package, and state which shipping options you will allow. And that's all you need to update for most of your listings, as shown here.

If necessary, you can change other defaults (which might apply for different items you are selling):

You can change:

• The ZIP Code you are shipping from
• The Packaging & Handling Fee for this item
• The option of whether insurance is Included (i.e. in the handling fee), Required, Optional or Not offered. 

Based on your input, eBay's calculator then tells the buyer how much shipping will cost them based on their ZIP Code.

Note that eBay has even included both forms of shipping in the list that comes up in a search. So, if I see a reasonable shipping for one version of an item and a "Not specified" for another ... which do you think I will look at first?

2. Consider including Insurance in the stated cost

This is just an extra I would suggest to help be up front with the buyer. If you add the insurance in the total shipping & handling, there's only one number a buyer needs to juggle, and buyers may thank you for that with more frequent (and smoother) purchases.

Now I understand that you don't always know how much an item will sell for, and insurance cost rises with the item price. But here's something to keep in mind: If the item sells for more money, than you get more money! It's as simple as that.

You see, if the item sells for $0.01 to $50, you can get insurance at the Post Office for $1.35. If it is a $50.01 to $100, insurance costs $2.30. And then insurance is $1.05 for each additional $100 of value.

So, if you include a value to cover basic insurance in the shipping costs, then sit back and hope you end up paying more at the Post Office, because that ultimately means more money in your pocket!

3. Consider offering different shipping options

Even with the calculated shipping costs, eBay provides plenty of options. However, you as the seller need to decide which ones you will select.

There are often legitimate reasons for only offering one shipping option. For example, items under 13 ounces going within the U.S. are best shipped First-Class Mail; other choices aren't worth it. And some items you may only want to send Priority Mail (or even Express Mail) because they are perishable or there are other factors.

However, items such as books, software and CDs are eligible for the slower but less expensive Media Mail rate (as a blurb, I have a guide that talks specifically about this rate). If a buyer isn't in a hurry to receive, say, 20 pounds of inexpensive books, offering Media Mail rate as an option will be appreciated.

4. Be open to and promptly answer questions about shipping & handling

As I mentioned earlier, shipping costs are a hot topic for eBay buyers. And, if they think that your shipping is too high, they may question you about it. It is in your best interest to answer their questions clearly and quickly.

Notice that I said answer the question; I did not say that the answer is what the buyer is trying to get from you. For example, I have had a request or two to try and send fragile items more cheaply. I explain to those asking the questions that the items are packaged well to protect them, which adds more weight to the package. Also, as I include insurance in the total shipping cost, that also adds up. Those who have purchased items from me have appreciated the extra care to ensure that they arrive safely.

In the long run, a clear answer will at least inform the buyer. If they choose to go elsewhere, they have that option. But at least they know that there is a reason for the cost.

5. Don't charge excessive shipping fees

This is the last item, and one which many buyers consider first anytime they see higher shipping & handling charges.

I won't go into detail about what constitutes "excessive" fees. I will let eBay do that. Refer to:

eBay's Excessive Shipping Charges Policy

Of note, I will point out that eBay specifically allows reasonable handling fees, as follows:

"Handling Fee: Actual packaging materials costs may be charged. A handling fee in addition to actual shipping cost may be charged if it is not excessive."

They even provide examples of this. However, I believe that most of us know what is and isn't reasonable. As a rule of thumb, ask yourself:

"Is this shipping & handling charge dealing with the costs of shipping the item to the customer, or am trying to make my money from fees?"

If you're trying to make your money from shipping charges, remember that eBay dislikes excessive shipping fees just as much as eBay buyers do.

An example of the bad kind:

I am a seller on eBay, but also a buyer. Let me offer an example where I as a buyer chose a different seller because the "lower cost" provider chose to handle shipping fees differently.

I was looking for an item which was common enough to be offered by several sellers. One jumped out at me as a low-price option, so I checked it out. And that is when I found issues with the seller's shipping & handling.

1. The S&H was buried in the text of the listing. Even though it was a flat fee that could have been easily included in the eBay information, it was hard to find. And, when I saw that it was a bit higher than the competitors, I could understand why the seller may not have wanted it completely visible.
    
2. As I searched deeper, I found that it also stated that insurance was required. Again, this was a flat fee, and definitely higher than regular insurance rates.
    
3. The expensive shipping was the only option offered.
    
4. The listing stated basically that no combined shipping was available for this item. I can understand the sentiment, but the specific wording in this case seemed to say: "I know my shipping is too high, but don't even think of asking."
    
5. Ultimately, I concluded that this was a case of excessive shipping charges. Even though the total was still around the same as some of the others (with higher prices and more reasonable shipping), the excessive fees made it so that I distrusted the seller, and took my business elsewhere.

In Conclusion

Anyway, that is just my view on the shipping situation.

Remember, the purpose of shipping & handling charges is not to provide extra profit. It is to cover reasonable costs so that you don't lose money by the act of delivering the purchase to the customer.

Keep in mind, some people out there will always want something for nothing. There are those will get upset even when you lose money shipping an item to them. And, for those cases, there is little you can do.

But, for the vast majority of cases (of honest eBayer selling to honest eBayer), straightforward communication of reasonable shipping & handling expenses will lead to a good transaction that benefits both the buyer and the seller.

Until next time, happy eBaying!