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Shipping Guide: Thrill Customers Without Losing Profits

by: bepampered( 7489Feedback score is 5,000 to 9,999) Top 1000 Reviewer
564 out of 612 people found this guide helpful.
Guide viewed: 6100 times Tags: Selling | Shipping | Store | Business | Auction


Have you noticed the new feature for auctions that allows you to see the shipping price of an item before you click on it?  Well, recent additions like this are helping to uncover a widespread shipping game among eBay sellers.  And you'd be shocked to find out who's playing...

Most eBay sellers truly want to do good business and make customers happy.  Still, many believe they must inflate service fees and charge extra shipping in order to make a profit.  This guide is for sellers who want to excell in sales without compromising their integrity.

Sellers:  How to Thrill Your Customers Without Losing Profits

How can I state the exact shipping price when I list an item?

This little trick is incredibly easy to solve.  Buy a home office scale!  Four years ago I bought a 5 lbs. scale at Wal-Mart for $14.99 and I still use it daily.  This one little tool will greatly increase traffic to your listings.  Why?  Because no eBayer likes to be told they won't know the exact shipping cost until the auction ends.  If they can't see the price upfront, they will usually move right on to another seller.

To get the exact shipping cost of an item when you list it, just set the following things on your scale at the same time:  The box or envelope; a few sheets of paper (to act as the weight of packing materials) and the item.  This will give you the approx. weight of the final package.  Then all you do is go to usps.com and enter the weight and zip code to get a quote.  Find great scales for cheap prices on eBay.

How can I do all my shipping from home?

Once you purchase a scale, taking care of your shipping details at home is fast and convenient.  If you are registered with Paypal, you can print postage from there.  Paypal is by far the safest and most effective way to accept payments and print postage.  Once you have an active account with Paypal you can log onto your eBay Summary page and print labels for sold items.  Postage can also be printed through usps.com.

What shipping companies should I consider?

United States Postal Service:

Priority Mail:  This is the most commonly used shipping service on eBay.  The delivery time is quick (2-3 days) and the prices are very reasonable.  AND- Priority Mail boxes are free!  In the long run this saves a frequent seller a lot of money.  Delivery Confirmation is also free when you print a Priority Mail label online.  This comes in handy when a seller tries to argue that they didn't receive their package.

The Biggest Advantage of Priority Mail:

Priority Mail offers a large flat-rate box that will ship anything packed inside for $8.10 regardless of weight.  I am shocked more sellers are not jumping on this amazing opportunity!  The moment we found out about this box we told our customers that we would discount the price to $7.29 for anyone who could fill up the box.  Our bulk orders went through the roof and haven't stopped since!

Parcel Post:  Rates very by zip code and weight of package.  Oddly enough, Parcel Post is often more expensive than Priority Mail.  And it takes several more days to arrive.  Go figure.

Media Mail:  This is the most cost effective method for shipping books, CDs, videos, etc.  Visit the media mail section of usps.com to find exactly what you can ship with this service and how much it costs.  Remember, media mail is cheap is because it can take up to a week to arrive.

Where can I get cheap packing materials?

Many sellers raise shipping fees because they don't know how else to pay for packing materials (tape, peanuts, bubble wrap, etc.).  Instead of dropping all your money at Office Depot, order packing materials in bulk!  Google lists great suppliers including Associated Bag Company & Uline.  Also check out the eBay Shipping Center.  eBay hosts thousands of auctions and stores that sell shipping materials in bulk at great prices.

Should I add a fee for handling?

Savvy sellers will cover 'handling charges' in their cost of goods instead of raising the shipping price.  For example:  Say you have a $10 item up for sale.  The box you are shipping it in was free (priority mail), so all you need to cover is the cost of packing materials and, possibly, the amount of time it took you to pack it.  Some sellers raise the shipping price to cover those costs.  But here is why that may not be wise:  Research shows that a buyer may still bid on an item even if the price is a little higher than they would like.  But an inflated shipping cost can rapidly drive bidders away, especially if they feel it is a rip-off.

Do I need to provide insurance?

Insurance can be pricey.  So it's not usually wise to state "Insurance Required".  BUT- Never choose "Insurance Not Offered", that is, unless you really want to shoot yourself in the foot.  Heaven forbid a package is lost in the mail, the buyer would say, "The seller refused to offer insurance" and expect a full refund.  Then you are left with eating the costs or risking some serious negative feedback.  Paypal and USPS make it easy to add insurance when you print a label.  So the smartest choice is "Insurance Otional".  Insurance starts at $1.35 for up to a $50 purchase.

Should I offer international shipping?

Many sellers don't offer this service because it's a hassle.  However, it's worth it to some sellers.  Do a little research to see if the items you are selling are popular overseas.  Then experiment a couple times by offering international shipping.  If it takes too much time and it is not worth the effort, well, now you know.  But it might be just what you need to expand your sales to a whole new market.  There are lots and lots of international eBayers willing to drop a high price for an item they can't get where they live.

Always state how fast you will ship items:

If someone purchases an item from you, you owe them an estimated time of delivery.  Our listings say we ship within 48 hours.  So we get quite a bit of business from eBayers needing their item immediately.  So if you can offer fast shipping, do it.  BUT- If you need a little more time to ship your items...do not advertise fast shipping!  Come up with a system that states something like, "We ship on Tuesdays and Fridays."  Whatever you decide, you must be honest and clear with your buyers.  The easiest way to keep customers in the loop is to enter their e-mail address when you print the label off Paypal or USPS.  Then the buyer immediately gets an e-mail with a tracking number for their package.

What if I ship a package later than I promised?

Sometimes delays come up that are the seller's fault; Other times its no one's fault.  Sickness, computer problems, etc.  Whatever the reason, a good seller will ALWAYS make it up to the buyer.  If a package is late and its my fault, I always refund the buyer's shipping charge.  Even if a package is late because of something out of my hands, I always refund the buyer's shipping charge.  Yes, it may not have been my fault, but try explaining that to a customer who ordered a birthday gift that is now late.

Here's the bottom line:  I rarely have to refund shipping costs because I know that if I ship a package late, I will lose money.  And I do not want to lose money.  So I always make fast shipping my top priority.  As a result, we have glowing feedback from customers who were thrilled to get their item quickly.  It is more important to keep a loyal customer than trying to gain a new customer.  Shipping one day later than you promised is not a huge deal.  But DO NOT make a habit out of it or you'll surely be sorry.  If you are late, e-mail the buyer with honesty and explain how you will make this up to them because you want them to be happy with their purchase.

The number one reason to give reasonable shipping costs...

Everytime a buyer wins an item and opens the package to find they were most likely ripped-off in shipping costs, they immediately add that seller to their Most Hated Sellers list.  As if that isn't reason enough for a seller to be fair, most of these disgruntled buyers proceed to leave neutral or negative feedback, both to express their aggravation to the seller and to warn potential future bidders.  And 99% of the time you will not have a shot at getting this feedback removed.  Reactions like this are not worth the extra few cents you might save when you overcharge on shipping.

How can I oppose the shipping scam game?

The only way to discourage these scams is for sellers to not only apply integrity to their own sales, but do the homework necessary to know how to cut costs without losing profits or quality.  For buyers, the only reason dishonest sellers are still in business is because buyers keep falling for these scams!

Visit our eBay store to see how we do our shipping.

Something else you would like to see detailed here?

Just send us a note through eBay's message system.


Guide ID: 10000000000066763Guide created: 11/19/05 (updated 07/20/08)

 
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