Consensus on Services/Shipping and Handling Charges

[lotzofuniquegoodies]

Curious to know the overall opinions on providing several shipping services & flexibility we really have when it comes to adding realistic shipping & handling fees.

I've seen it mentioned numerous times on this board that they don't recommend giving buyers several options for shipping because "Buyers will almost always take the lowest option."  My personal preference, especially for lower-priced items IS to offer several choices. (Higher priced items I offer the higher, more secure options) Not every buyer needs every purchased delivered yesterday and/or may be comfortable with un-tracked/slower services where available. My feeling is if they so choose/pay for those services, it is at their discretion(Should a seller be held 100% responsible if a buyer chooses a slower service on a lower valued item? - I feel I am doing so for the customers benefit) if it ends up taking a little longer than eBay's "Written in Stone" estimates, which to be honest, really don't correctly factor in customs delays properly on inbound OR outbound or advise customers this is a possibility. If we were to include priority services on every item we sold for some sellers it would dramatically reduce their total sales. 

The next thing that comes into play is adding handling fees which sellers are almost FORCED to do to cover eBay/Paypal/Store Fees and packaging expenses. If their handling fees are too excessive they risk the possibility of being charged with low seller ratings by buyers. A buyer can also leave a low rating for this category if they even BELIEVE the shipping is high even though it is the true and honest rate provided by a postal service, based on the package or available services. Your average occasional customer has no idea how expensive it is for a seller to sell. They just need to know that we are trying to give them options to make the best buying decision they can and so that we can cover our expenses and honestly make a buck.

Lastly, buyers seem to more often leave ratings as of late, when something goes wrong. Rarely when things go right. This causes a sellers rating to much more easily go, unfortunately in a downward direction, almost impossible to correct and in turn which can eventually affect a seller's odds at that wonderful 10% discount on fees.

If I've stated anything incorrectly or made any incorrect interpretations, my apologies.

-Lotz

PS. As a by the way, I also find it very interesting for sellers to ship an item domestically for free but they are unable to subsidize that same shipping charge Internationally. In Canada, if you are able to offer Small Packet Air it is cheaper to ship to the USA than I can to the West Coast or the Maritimes with Expedited. Go figure?!?

[tobey_arih]

yup.. couple with paypal and ebay fees without a store is just about the same as Amazon. The buyers don't really appreciate the deals they get, rather ungrateful in some ways. So my service has been downgraded to areas whether I find buyers do not care so why should I bother.

[kawartha-ephemera]

In my opinion there's not any downside to offering a range of services, it doesn't seem to influence buyers though, cannot recall a single instance where the more expensive service was purchased.

Shipping parcels has become so expensive now that the FVF and PayPal fees cannot be ignored, it's gotten to the point I'm really hesitant to list that sort of Item unless there's some sort of fee relief available via an ebay promotion.

[femmefan1946]

I'm one who only offers one service. If my customer wants an upgrade, she can ask , and pay, for it.

I am old and grouchy.

Shipping services should be chosen by the seller to protect the seller. A buyer who wants to downgrade "because I can't afford it"  won't get much sympathy. She can go ask her boss for a raise, or downgrade her expectations.

Very old. Very grouchy.

To say nothing of putting a credit card on her Paypal account and paying off the card when she has the money. I'm not her bank.

In Canada we don't really have the option of adding cheap tracking to a cheap shipping service.

And tracking only protects the seller. It has no benefit for the buyer.

adding handling fees which sellers are almost FORCED to do to cover eBay/Paypal/Store Fees and packaging expenses.

I figure my handling/packaging costs are covered by the discounts I get on some PP labels (although most of my shipping uses discounted mint postage stamps ).

In the same way, most of my procurement costs are covered by buying in loonies (at 75 cents to the Cdn dollar) and selling in US dollars (at $1.25 Cdn to the US dollar).

A buyer can also leave a low rating for this category

True, but eBay doesn't use either FB or DSRs to assess seller accounts

....in turn which can eventually affect a seller's odds at that wonderful 10% discount on fees.

No.

Again. Feedback is not a criterion for TRS status.

And frankly, most buyers don't look further than the number of feedback with the few that do believing that 95% positive is an "A" seller, not someone who is teetering on the brink of NARU.

But what works for me-- with discount postage stamps, rarely tracking, and using lettermail for most shipping-- won't work for someone who prefers labels, sells to a demographic that demands Proof of Delivery*, and has bulky items that require parcel rate shipping

*There are categories that are rife with sketchey buyers, who will take advantage of sellers who don't track.

[lotzofuniquegoodies]

@femmefan1946 

For the majority of your various items, I could see where it would be possible to use letter service and stamps and then call it "free shipping".  Because of the type of items I sell there is no way I can include shipping when my average cost to ship each item is $20.00 +- , so I give my buyers the option to choose. I've had buyers appreciate the fact that I give them the choice.  I work the same way when I make a purchase on eBay, looking for sellers that offer a choice trying to find sellers that meet my budget requirements. Very sadly they are the exception instead of the norm. As you said, it really does depend on the type of items you sell and who your customers are. Anything I am able to make from my small handling fees goes directly to paying fees and then the bills. Cookie Jar insurance is only in my dreams.

-Lotz

[femmefan1946]

It very much depends on the customer demographic whether or not Cookie Jar Insurance will work.

I'm fine with books, postcards, stamps, etc. Those buyers tend to like to read descriptions and follow instructions.

The "criminal demographic" is males between 15-35. I would hate to sell designer sneakers, video games*, sportscards, and to some extent coins.

And then there are the "who'da thunk" groups like Dolls and horse tack.

For all of those I would want to have all the tracking and 3rd party insurance I could find.

And of course, USPS offers such cheap tracking which we Canadians can only sigh over. There are a few Canadian businesses which work as package forwarders, taking eBay purchases from the Canadian seller across the border and shipping via USPS. Even with their very reasonable processing charge, it's still cheaper than Canada Post.

I'm in Victoria BC, and don't have that option, although I can see the USA "from my back porch". Less than 20 km away.

*Although I understand there are more over-45 females playing online games than any other single group, this may include Candy Crush, etc.

[pjcdn2005]

 When you say that your buyers appreciate you giving the a choice, I assume that you mean that you give them a choice of using less expensive shipping?  I think that when many of us say that there isn't much point in offering choices for shipping we are referring to offering more expensive choices. If you are willing to ship lettermail or small packet and offer that service, do you really get buyers that decide to pay more and have you ship it with expedited or tracked packet?   If so, what percentage have ever done that?  The majority of buyers have no idea what options each service has anyway so I suspect that most or all are going to choose the less expensive service..especially because if they don't get their item, they are going to be refunded regardless if there was tracking or not.   

Also, in many cases, such as small and tracked packet USA  the delivery time quoted is basically the same so that isn't going to be a factor in their decision. The delivery time between small and tracked packet international is quite a bit different for some countries right now but unfortunately, the TP eta  for some countries still isn't correct so any customers choosing to pay an extra $20 or so are going to be disappointed when their item is not delivered in the 2-4 business days that was promised.  Other than that problem,  it isn't 'bad' to give choices but I don't think that it is all that useful in most cases.

One last point...I can never figure out why some sellers give an option of both regular parcel and expedited parcel.  The retail price of regular generally costs slightly more and has an eta of a day later so for parcels, why not just have expedited as the only choice. Or,  give the choice of expedited and xpresspost as there is more of a different between those 2 services.

[pjcdn2005]

In one post you mentioned handling charges.  I agree that our shipping is expensive enough without adding in a handling charge so that's why I think that is better to add that cost or at least some of it into the price of the item. 

[lotzofuniquegoodies]

I give both the choice of lower options AND higher options based on the value of an item. Approximately 1/3 of my sales are to businesses. Quite often they are ordering for a specific customer requirement. In a number of those cases, they will pay for the premium service. It doesn't happen all the time, but it does happen. The other reason I show several services (including regular parcel Canada) is so customers can actually see the difference in the various services. I've even had customers email prior to bidding if there was a quicker service that I have not included. I just update the listing prior to their purchase. I have always been extremely customer service oriented and never really believed in "good enough" and a number of my customers have shown that with either their feedback or follow up comments. If I used only premium services for $20.00 items, I would risk potential buyers scanning right and going to the next seller.

-Lotz

[lotzofuniquegoodies]

Remember when It all about choice?

-Lotz

[ricarmic]

The way I've chosen to handle this is I almost always use free shipping (despite the fact I'm a stamp guy this includes lots up to bankers boxes size).

Because I've personally never understood how someone can make a living selling $1 items here, I choose to group my material in a way to make it worthwhile for me (and the buyer). Normally this is a minimum of $9.99 for an lot/item.

For heavier stuff, I group it in a way that I can build the shipping cost* in and still make the total price (with free shipping) attractive to the buyer.

This is of course harder to do for individual stuff that is bulky, that's why normally when I'm selling bulky stuff I group it into larger groups. Of course everyone can't do that.

*shipping cost includes the cost of postage, the envelopes fees etc, ie the handling charge etc is all in that. Free shipping also means the buyer doesn't know how much it is in a given item.