Shipping Rates

[joy249]

I kinda of like the idea of a flat rate cost for shipping.  In the end it should average out.

[christopherj5287]

Your commission on shipping costs is way too high.

[pierrelebel]

?????

The Final Value Fees (FVF) charged by eBay are charged on the total value of the transaction (selling price plus whatever shipping charge is decided by the seller).  This system has been in place for several years, matching eBay's largest competitors (Amazon).

Sellers have a choice.  For example a seller wants to sell an item for $50 and the out-of-pocket shipping cost is $10, a seller could:

Charge $40 and $20 shipping and handling

Charge $45 and $15 shipping and handling

Charge $50 and $10 shipping and handling

Charge $55 and $5 shipping and handling

Charge $60 with "free shipping".

Either was the buyer pays $60

Which pricing structure will attract more buyers?  Lower price with high shipping cost?  Higher price with "free shipping"?  Something in between? Each seller is free to decide whatever works best for them (Personally as a buyer and seller I prefer "free shipping").

The FVF paid by the seller remain the same as they are calculated on the $60 transaction price.

PS - If the seller is Top Rated Seller (TRS) then the fees are a bit lower on the "free shipping" deal as the TRS fee discount (20%) does not apply to the "shipping charge".

Now, sellers can minimize FVF by offering a low (or free) domestic shipping charge since the FVF are calculated on the first "domestic" shipping charge shown in the listing if the actual shipping charge to the buyer's country is also shown.

[sunstone]

Completely agree. FVF on the selling price reflect the use of the eBay site to conduct a transaction with the buyer. Fees on the shipping are not reflecting any action /cost on eBay behalf and are simply a money grab.After over 15 years on ebay most of my listing are now on other sites due to the  difference in fee structures as well as eBay's  poor seller service.

[dn4kme]

I agree. This peter Libel is sticking up for an unknown reason. I found the seller does not have to use this Global shipping. Any buyer should know they have to pay customs and duty but not an extra amount to a third party for  doing WHAT?

[marnotom!]

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@dn4kme wrote:

I agree. This peter Libel is sticking up for an unknown reason. I found the seller does not have to use this Global shipping. Any buyer should know they have to pay customs and duty but not an extra amount to a third party for  doing WHAT?

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Where was the Global Shipping Program mentioned in the opening post to this thread?

[beerad12]

Why would you say you prefer free shipping when the end cost is all the same. Does free shipping make you feel like you got a deal.. I don't understand. BTW , when I use local pickup the free shipping really irks me. The commission on shipping charges maybe a competitive policy ... it sure doesn't make any sense morally as you didn't sell the shipping ..... there is no profit in shipping its a static cost where the seller nor buyer makes money. How can you charge a commission when no one makes money on shipping. it doesn't make sense.

[reallynicestamps]

Does free shipping make you feel like you got a deal..

Yes.

It is a proven sales tactic, used by mail order sellers for many years. Buyers love it. Even those who understand what is really happening.

Just like BOGO sales (Buy One, Get One free) sales work better than a 25% off sale.

Just like a "We Pay The Sales Tax" sale works better than 15% off, even though the sales tax is still going to be charged as part of the price.

For eBay sellers, the other advantage is that if we offer "free" shipping as the first domestic option, which just means the cost of shipping is included in the price of the item, we do not get charged any fee on any shipping, including Air Mail with Delivery Confirmation to Australia. Obviously, we are being charged a shipping FVF on the 63 cents to $15 that we included in the asking price for that "free" domestic shipping.

[dunflyn]

For my American friends.

Some sellers shipping rates for shipping to Canada are outrageous. I have seen small electrical parts with "Free Shipping" in the USA and when changing the shipping meter to "Canada", the cost has been 4 or 5 times the cost of the article that could be placed in a "bubble envelope and shipped USPS for next to nothing.

I saw a T-shirt at $9.99 with a $4.95 shipping rate in the US boosted to (shipping rate only)$29.95 to Canada...perhaps many don't want to deal with Canadians, that is their choice but by using extreme rates, you are losing sales

Now I do realize that shipping rates went up in the US last January but American sellers are losing a ton of sales because of extremely high shipping rates to Canada. 

For everyone....If a seller has something I really want, I will contact the seller and discuss the rates, (yes this all takes time), but in some cases the seller has adjusted the rate. 

Rant over

[007steveb16]

What American friends?

This is the eBay.ca boards.

The only Americans I ever see are the wayward ones who've become lost in between .com and .ca, which are buyers, who post in the answer center.

No American seller is going to see what you wrote.

[dunflyn]

If you can tell me how to delete the posting that seems to really bother you...let me know and I will delete it.

[007steveb16]

Just stating the facts, nothing personal at all.

[dwhall12]

Its plain and simple greed. Sellers were scamming with 99 cent sales and high shipping so ebay wasnt getting their fair share. This was greed on the sellers part...Ebay decided to stick it to all the sellers by charging commission on a sellers costs as well as sales. SIMPLE GREED again.

If you are a Canadian seller there is a way to turn your shipping into a bit of a profit. Look around at what successful sellers are doing with shipping. This does not include stamp and coin sellers though.

[reallynicestamps]

Don't know about coin sellers, who face a different set of problems both with shipping and demographics, but one way stamp dealers save on shipping is by using discount mint postage stamps.

Our customers love getting stamped mail, and yours may too.

For higher value items, we may offer Free Shipping but the cost of tracked mail is included in the price of the item. The upgrade still 'feels' good to customers.

And if we offer Free Shipping domestically, we don't pay FVF on any shipping, even if we ship Priority Post to Australia.

In part because postal insurance on our products is iffy, many stamp dealers either self-insure or use a third party insurer like  or Hugh Wood Insurance, who offer specialty insurance services.

[femmefan1946]

It's fine for USA and international sales. It's fine for Canadian items that can be sent by Letterpost or O/S Letter, which are the same from Halifax to Iqaluit to MooseJaw to Chemainus.

But Canadian parcel rates differ for Regional and National parcels. When I ship a 3cm thick paperback to Ontario or Quebec, it goes for about $6.00. If I send it to Fort McMurray, the same book will cost $12.00.

I understand from sellers of bulky items that there are multiple rates based on dimensions for parcels headed into the USA, too, but I've never needed to learn about that.

[rose-dee]

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@femmefan1946 wrote:

I understand from sellers of bulky items that there are multiple rates based on dimensions for parcels headed into the USA, too, but I've never needed to learn about that.

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Yes indeed, which has occasioned a lot of creative box shaving and snipping on my part and a closet full of odd-sized boxes from which to construct the "ideal" size. 

You'd be shocked and amazed at what a difference even 2cm in size can make on a large parcel going by Expedited or Xpresspost. 

Incidentally, while I'm on the subject, for those sellers who do have to send bulky items, watch out regarding Canada Post's pre-packaged boxes in the "Extra Large" size!  They are a really handy shape, but are actually just over the total combined 90cm limit for some parcel services, and will shoot your costs up if you're using Expedited or Xpresspost. 

I don't know whether this was a deliberate and rather sneaky money-grab on the part of CP, or just stupidity, but if they'd made them a couple of centimetres shallower, they would have been perfect.  I only use them if I'm really stuck.

[christopherj5287]

Hi,

It was mainly a commentary on these ebay commissions.  The ebay International tracking and customs clearing to Canada is a huge profit grab and unnecessary.

I appreciate your response.

Cheers.