Shipping cost DSR

[fatdane]

While hardly a scientific survey, when I browsed through the DSR's of some stamp sellers, both Canadian and US, I found that the rating could often be in the 4.7 or lower range, despite the level of the shipping charge. I expect to be a bit lower because I charge what I think is a realistic figure, minimum $2.50, for shipping. I am aware that a noted Belleville dealer is close to perfect with free shipping, but I can not see changing my operating model to his. Dealers in the US who do not suffer from border delays for domestic shipments could be in the 4.7 range despite having shipping at $1.00 ( which would not cover the actual cost of mailing a letter with properly protected stamps in it). Perhaps it is time for Ebay to rethink both the shipping time and shipping charges of the DSR's? Have any in non stamp fields compared US dealer DSR's to Canadian dealer DSR's?

[cartoonsinabox]

You should ask Pierre fro advise. He's the stamp expert. Hes canadian and has DSR of 4.9. He has many post in the canadian poweseller boards .

Frederic

[pierrelebel]

Hi Dennis

"a noted Belleville dealer is close to perfect with free shipping"

"noted" ???

You mean "world renowned"! 😉

Seriously, I took some time last month to check American stamp dealers on .com with more than 5,000 feedback rating and most of them show 4.6 to 4.7 on shipping cost DSR.

My North American sales on eBay (and from my website) increased 40% in early 2007 when I started offering "free shipping" for combined purchases exceeding $25.

No magic formula. I learned from Dell Computer who experienced a huge volume increase years ago when they started offering "free shipping" instead of charging $150 to $250 per system.

Of course most buyers are not totally stupid and realize the cost of shipping is somehow included in the price. However, they keep on coming for more. 🙂

Sellers offering "free shipping" are also not totally stupid and most realize they end up paying slightly higher FVF to eBay when shipping cost is included in the selling price. Looking at the big picture, it is no big deal. If I give eBay an extra $200 a year (after PS FVF 20% rebate), it is a bargain since it help generates substantial extra sales, both on eBay and later directly (where no fees are paid).

PayPal fees are not affected.

And customers seem to like it and their perception is reflected in my DSRs. .

[pierrelebel]

I should add an important factor to consider before formulating a shipping policy is gross margin.

Sellers with a comfortable gross margin may find it easier to subsidize shipping costs.

For example, if a seller grosses 50% on sales of $10,000, it is a bit easier to offer free or low shipping than the seller grossing only 25% where there is little room to work with once the eBay/PayPal fees (15% on average) are taken into account. .

[fatdane]

Hi Pierre - without doing a thing different my DSR's are now apparently 5.0, 5.0, 4.9,4.9. Trying to figure out Ebay is a bit like me trying to figure out what my wife is thinking - impossible for mere mortals

[cumos55]

Here is a listings of feedback and DSR in relation to category... Sellerdome


http://blog.sellerdome.com/?p=17

Stamp sellers are number 1..

and then look who is at the bottom

[cumos55]

As time passes both seller and buyer learn the fine points of DSR and DSR will change... and perhaps for the better.

Unfortunately there are those buyers who also know the meaning of 1, 2, and 3

At the end of June I was sitting with 5.0 4.9 5.0 4.9

Only to have one unhappy buyer drop me 0.2 on all four DSR.

And I ship books, art glass, pottery ... not the items usually associated with high DSR...

and my 12 month DSR are slowly going up

------------------
Also

Shipping time is stated as handling time in all listings.

eBay should adjust the wording there.

[pierrelebel]

"Stamp sellers are number 1.."

in feedback rating, NOT in DSRs !

Surprising. .

[pierrelebel]

Sellers of cellphones and PDAs are at the bottom of the list in both feedback percentage and DSRs...

yet...

...the top sellers on eBay are sellers of cellphones and DSRs!

Maybe feedback percentage and DSR rating are NOT that important to buyers when making their purchasing decision as many sellers think they are. Buyers do not seem to really pay attention or care about that stuff, do they?
. .