Shipping prices

[pelgri]

Hi, I'm new into selling on eBay and I am looking for answers, for some of my questions while I was creating my listing..

Sales tax - Do I charge additional sales tax while selling my product online? Is it optional or what? I'm not quite sure how it works.

handling costs - What does it mean by handling costs? Isn't the shipping cost already charging for it?

Does shipping cost include already package type cost?  Also trying to find answer for that.

[femmefan1946 · Accepted solution]

Sales tax - Do I charge additional sales tax while selling my product online? Is it optional or what? I'm not quite sure how it works.

If you are not registered to remit sales tax , for Ghu's sake don't try to charge it. Revenue Canada gets touchy about that.

handling costs - What does it mean by handling costs? Isn't the shipping cost already charging for it?

The UK site calls these 'packaging costs' which is much clearer. Bubblewrap ain't free.

Most sellers don't charge it, because the costs are lower than the discounts we get buying shipping labels online.

It's generally better to roll those costs into the price of your product.

Which is cheaper:

A $5 item with $5 shipping and $5 handling?

A $10 item with no handling and $5 shipping?

A $15 item with no handling and Free Shipping?

We'll talk about Free Shipping at another time. Don't Panic!

Does shipping cost include already package type cost?  Also trying to find answer for that.

No it covers your envelopes, tissue, bubble wrap, boxes. Canada Post has no idea what you are using and what it cost you.

But see 'discounts' above.

[pelgri]

Much respect! Thank you for solving the problem and giving the advise!

[femmefan1946]

Can I share the Good News about Cookie Jar Insurance?

It's very expensive to track from Canada.

https://www.canadapost.ca/cpotools/apps/far/business/findARate?execution=e1s1

Sign up for a Small Business Solutions card at Canada Post .

(You can also get one at your local Post Office and probably Postal Outlet).

Sign up for Shippo.

Both give you various discounts, not always the same ones either.

ypc_dennis keeps the Boardies updated on these.

So.

Since eBay and PP insist on the seller being able to prove delivery (usually called tracking) in event of a Dispute, some sellers use Cookie Jar Insurance.

Don't worry, Disputes are few and far between and can be handled without loss.

Cookie Jar Insurance means adding a tiny amount to each asking price, usually less than a dime, and tossing those virtual dimes into a virtual Cookie Jar.

If you get into a Dispute you use the dimes in the Jar to pay out whatever is needed.

Can't prove delivery? Full refund from Cookie Jar.

Item Not As Described? Return postage paid from Cookie Jar. If the scammer buyer doesn't use the Return Shipping Label* he loses the dispute and no refund is necessary. If he does return, the refund comes from the Jar and the item is relisted with a better description.

Buyer Remorse? When the buyer returns the item on his own dime, the refund comes from the Jar and the item is relisted.

Item damaged in transit**? The buyer sends a photo of the smashed item and the refund comes from the Jar. You could ask for the item to be returned, but why pay return postage for a box of shards?

Most sellers find they make money on the Cookie Jar, because they have lower shipping rates which buyers like and because as I mentioned, Disputes are few and far between but those dimes are building up with every sale.

Note that most Parcel services do include some tracking.

(Never use Surface shipping.)

** Canada Post won't usually pay out on damage insurance, claiming the sender didn't pack it properly. Or they may admit to doing the damage but only refund the postage.

*We can now buy USPS shipping labels through Shippo, I'm told.

[femmefan1946]

EBay encourages us to use Free Shipping.

I do myself for most of my listings BUT my items are generally cheap, I sell to a very literate customer, and I can use LetterPost/Light Packet rates, which vary only by weight.

I list those items on dotCOM, which is a whole other story.YMMV.

Since I am paying a Flat Rate, I also use Free Shipping.

DON'T PANIC!

The price of shipping has been moved into the asking price.

Which is cheaper?

A $5 item with $5 shipping?

A $10 item with Free Shipping?

Which makes the customer feel happier with her bargain?

BTW - there is also the $5 item with $10 shipping- definitely try to move at least some of that shipping cost into the asking price. Buyers don't like shipping to begin with, and detest paying more for shipping than the object of desire.

Now if your items are inexpensive and no more than 2cm thick** and 500 gr, you can use Light Packet rates-- which are only available at the PO counter or if you use stamps.  No tracking is available. Again Cookie Jar Insurance.

But if you have thicker, heavier items and must use parcel rates, list here on dotCA and use Calculated Shipping.

Get a metric digital scale (Starfrit has a $20 one at Canadian Tire). And use it.

'Course there are other schools of thought.-- Zoe Alleyne Washburne

** Canada Post went metric in 1974. All other measurements will be inaccurate.

[rusu-82]

Thanks for the info. Can you suggest which courier service is the best for 'Light Parcels' under 500 grams?

regards

Raj

[zee-chan-jpn-books]

Use Canada Post. Regular or Expedited parcel if it's shipped within Canada. Small Packet Air or Tracked Packet for USA/International.

Do NOT use courier, especially not for international shipment, unless your buyer specifically requested it themselves. Courier charges expensive handling fees (brokerage fees) to your buyers and they'd be very unhappy with you. I have never ever used courier myself.

[kh-leslie]

Hello Everyone,

Due to the age of the thread, it has been closed to further replies.  Please feel free to start a new thread if you wish to continue to discuss this topic.

Thanks for understanding!