Profitability on eBay

[thepunch1]

Hello, I am relatively new to selling on eBay and just made it to Powerseller - yay! I've been tracking my profitability for the past couple of months and the various eBay, Paypal fees are really taking a bite out of my profit margin - especially on store sales. Does anyone have any suggestions to lower your costs? Is it legal to overcharge on shipping and undercharge the item? Any other way to pay less in fees?

Also, my shipping costs are quite expensive by Canada Post or by Canpar. Is there a way for ebayers to get good rates with any of the courier companies?

Thought I would ask... Hopefully somebody has figured out a solution out there...

[katiusciav]

Is it legal to overcharge on shipping and undercharge the item?

you bet! its called fee avoidance and ebay takes it very seriously. there are others on this board that have had items cancelled by ebay for suspected high shipping rates (according to ebay anyways)...this board probably isn't a good place to think out loud about matters like that!!:-)
use the promotional .5 cent and .10 cent listing days to your fullest advantage to save fees...
i believe you're allowed to charge for handling and materials (if you're not already doing so), but overinflating shipping charges will get you in a bit of a sticky situation-both with buyers and ebay alike. (of course, i'm not talking a few bucks here, but really overblown shipping costs)...
unless you ship high volumes weekly, other companies will be just expensive to ship if not more, but if you ship in good volumes, there's fedex and ups that will give you discounted rates. there's alot written on the boards regarding other shipping companies...
good luck with your new ps status!:-)

[3jcc14]

With some of your smaller items, the best bet I can think of is using Canada Post Prepaid Expresspost Envelopes. If you buy them in multiples of 10, there should be a 5% discount at the post office.

[zarzuella]

eBay has a new deal with UPS - check the Shipping Centre link on the right.
Might be cheaper than your current shipping.
As far as minimizing fees, check out the .com Stores discussion board - lots of threads there with great tips on reducing fees (eg using the 75% FVF referral discount).

Ann

[futuretech_liquidations]

MY first suggestion would be to stop using CANPAR since they are known for being the KINGS of SURCHARGES - $2.50 for residential address, $5.00 for rural deliveries and their most favourite rip-off is to take a 1.4KG package and charge you the 2KG rate -- check your invoices - they are robbing you on every invoice anywhere from 10KG more per month then you are actually shipping.

STAY AWAY FROM CANPAR!

UPS and FEDEX are somewhat better but quite expensive in comparison and their brokerage fees are crazy - averaging $25 plus for items valued over US$200.

My CanadaPOST reps told us recently that their will be some major changes announced for Expedited Parcel Service which will see faster delivery times and a much better/precise online tracking system - the only problem is that the changes will occur sometime late in 2007 and most likely in 2008.

Cheers,

TIM @ FTL

[katiusciav]

My CanadaPOST reps told us recently that their will be some major changes announced for Expedited Parcel Service which will see faster delivery times and a much better/precise online tracking system - the only

really? that would be great. when are they going to start adding tracking numbers to all their services? i know its a crazy thing to ask for, ...you know...wanting tracking numbers...:|

[thepunch1]

Thanks for the replies. I checked out the UPS promo and will see if this works. The flat rates are cheaper than what I'm paying now but I'm a little worried I'll be charged more, if you can't verify prior to shipment. I've been using Canada Post for international shipments and they've have been quite efficient so far. Customers from France get their shipment before those in BC or California - however it costs me $60 to ship int'l. Couldn't find any on store sales to reduce your fees. Will have to keep digging.

[zarzuella]

Store referral info:

http://pages.ebay.com/help/specialtysites/referral-credit-faq.html?ssPageName=CMDV:ICOUT

[recped]

the various eBay, Paypal fees are really taking a bite out of my profit margin - especially on store sales

What percentage are your fees? Your "bite" might not be that far out of line.

In general the easiest way to reduce the rate of fees is to lower your cost of goods (after you eliminate any extra features that are not worthwhile). If you can't reduce your cost of goods you need to work on increasing prices. If competitive pressures won't allow this than perhaps you need to find new product lines.
"What else could I do? I had no trade so I became a peddler" - Lazarus Greenberg 1915
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