Do you charge for shipping?
bsshog40
Posts: 3,923 ✭✭✭✭✭
I've been noticing more sellers charging shipping charges. I have a few hobbies and have noticed it more and more in my searches on ebay. I presume with the rising usps charges, this may be the reason behind it. Do you offer free shipping or has anyone had to resort to adding shipping charges?
Just curious.
Bobby
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My Original Song Written to my late wife-"Plus other original music by me"
https://youtube.com/playlist?list=PL8A11CC8CC6093D80
https://n1m.com/bobbysmith1
My Original Song Written to my late wife-"Plus other original music by me"
https://youtube.com/playlist?list=PL8A11CC8CC6093D80
https://n1m.com/bobbysmith1
1
Comments
I would think that nearly for everything I buy online the shipping is baked in, one way or another.
Depends on the profit margins. If it's a low margin item I'll charge, but if it's a higher margin item sometimes I'll eat the cost.
https://www.the4thcoin.com
https://www.ebay.com/str/thefourthcoin
I offer "free shipping" but it's not really free. The shipping cost is included in the item price. USPS retail for a 1 oz. bubble envelope is over $5, not many sellers can afford to eat that.
I do charge $6 per order. It covers most of the shipping cost, not all with signature confirmation. Does not cover the cost of shipping materials either. Too many people returned items that had good pics, so this puts some “skin in the game” for them as the shipping does not get refunded, and I don’t cover cost of return shipping.
No - I offer free shipping.
I simply tack on a transaction fee that covers shipping costs.
I factor it in when I quote my prices.
Didn’t for a long time, but shipping and insurance costs have soared.
Does charging for shipping really matter in the end or do sellers actually find that some buyers don’t factor in shipping into their all in bid price?
I charge for shipping, but if it is an item that is on the more expensive side then I will cover part of the shipping myself. Most charge for shipping, just a matter if the cost is hidden and factored into the price or if the shipping charge is visible to the buyer.
It depends. On eBay I do for two reasons:
-Just about everything I sell is on consignment, so I don’t have an easy way to collect for shipping when buyers routinely get multiple items that come from multiple consignors.
-If someone returns an item the honest way (not opening a snad to force a free return) I can keep the shipping charge as long as I charged it.
If I sell on the BST, I’ll sometimes have a separate shipping cost (if I have multiple items for sale), but if I list just one coin, it likely contains the shipping cost in the price. I still charge shipping, it’s just in the final price.
For what it’s worth, I spend five figures on postage every year… truly ignoring shipping in a way where I can’t recoup the costs would never work for my business model.
I have a small charge for shipping on eBay that is less than my cost of shipping.
Shipping on my website or Instagram is FREE.
I always factor in shipping along with my bid. I'm a low budget collector, so factoring in shipping is a must for the overall money I will bid. I also factor in taxes if applicable.
My Original Song Written to my late wife-"Plus other original music by me"
https://youtube.com/playlist?list=PL8A11CC8CC6093D80
https://n1m.com/bobbysmith1
So those that just factor in fees to cover shipping, I presume these are for BIN items? What about auctions?
My Original Song Written to my late wife-"Plus other original music by me"
https://youtube.com/playlist?list=PL8A11CC8CC6093D80
https://n1m.com/bobbysmith1
No difference.
It is easier to sell an item for $25 with free shipping than it is to sell a $20 item with $3.50 shipping.
Not only that, the $25 buyer is happy because he didn't have to pay for shipping while the $23.50 buyer often wants to know why shipping is so much for a $20 item.
Plain and simple...yes.
Jim
When a man who is honestly mistaken hears the truth, he will either quit being mistaken or cease to be honest....Abraham Lincoln
Patriotism is supporting your country all the time, and your government when it deserves it.....Mark Twain
Yup.
Psychology is a weird and wonderful thing.
You're also better off pricing something at $25 with 20% off than $20.
I charge shipping on auctions as I start the majority of items at cost or under; Buy It Now items always include free shipping.
Free shipping is addressed part way down in this quick article on "Free Stuff": https://thehustle.co/why-free-stuff-makes-us-irrational/?utm_source=activation30d&utm_medium=email
The weirdest thing I have trouble dealing with as a buyer is a very cool unique coin with a low BIN price and also a best offer option.
I typically figure the price and add 10%-20% before listing. Everybody loves a discount.
Interesting question. 20 years ago, free shipping was a differentiator. And often an overvalued differentiator by buyers. I’ve managed Distribution Centers for many years with unlimited access to shipping supplies so free shipping was my standard MO.
Now I find many, if not most sellers offer free shipping on upper end coins so I feel it’s no longer a competitive advantage.
Tim
Ebay has gone from under $2 for first class to over $4 in less than 10 years. Even express was available back a few years ago for under $13. I'm not selling on ebay for a living, never have, so am glad when an item sells for a reasonable price with free shipping.
20 years ago, a 1 ounce bubble envelope cost 39 cents for postage.
Ah...don't you mean USPS? eBay doesn't set postal rates.
Yeah, USPS. My response was intended to be "Shipping for Ebay sales has gone from..."
I was really aiming more at the original post than yours. Everyone blames eBay for everything. I guarantee that eBay would prefer that shipping be free for everything.
No doubt. They'd be perfectly happy if you gave your stuff away for free, too, as long as they get their fees.
And if people started giving away free stuff, you can be sure listing fees would be adjusted.
As a buyer on Ebay I would like to see and pay the shipping cost. When it is built in the cost and said free, now I am paying sales tax on the shipping. I hate paying tax on something that I should not have to.
I charge shipping because it’s just so expensive I have to cover the expense somehow, otherwise bigger but cheaper items I might as well give away. Anything over the 12 inch size USPS rule adds a surcharge as well, so my days of shipping framed paintings are over.
In many states, if the item is taxable, so is the shipping. So breaking out the shipping cost only matters in those states where there is no tax on shipping.
Slightly OT but what gets me are the ones that do best offer but don't even respond to a 95% offer, or like $10 off a $200+ item. Kind of annoying. If you aren't going to even respond to offers close to ask don't even offer it.
https://www.the4thcoin.com
https://www.ebay.com/str/thefourthcoin
I do both depending on what the item and weight are.
Now on the buying side, I would prefer free shipping BECAUSE with free shipping I don't have to EXTRA taxes on the shipping.
I haven't sold on eBay for years, but I seem to remember hearing that there was a financial incentive to offering best offer, so that would be why people advertise it when they don't really mean it.
Check your state. In NY, for example, shipping and handling is taxable. It seems most states are to prevent the obvious tax dodge.
https://www.avalara.com/blog/en/north-america/2022/02/how-to-handle-sales-tax-on-shipping-a-state-by-state-guide.html#:~:text=Separately stated postage, shipping, and,included in the sale price.
There is no financial incentive, if you are taking about fees. Ebay hypes BO as leading to more sales, as it probably does, but only if you actually accept offers.
I offer free shipping on items that can use the Ebay Standard Envelope shipping (i.e. under $20), but charge actual shipping on items over $20...
mbogoman
https://pcgs.com/setregistry/collectors-showcase/classic-issues-colonials-through-1964/zambezi-collection-trade-dollars/7345Asesabi Lutho
I don't charge for shipping on ebay. I start my auctions at 99 cents and feel the prices will go higher with the free shipping.I had to stop selling for the year before i hit the 600.00 level thanks to uncle sam imposing a tax.
I do not sell much at all... However, when I have sold valuable pieces (i.e. gold coins) and I ship registered, I do charge for shipping. Cheers, RickO
There is no $600 level for imposing tax. Tax is owed on any profit.
If you keep a good record and can show little profit after all expenses (boxes postage tape packing etc), they report after $600 sales. That doesn't mean it will increase your tax rate unless you get enough sales to up your tax bracket you are already in from any other income. If they are sales from personal items and not as a business that's different altogether.
https://www.the4thcoin.com
https://www.ebay.com/str/thefourthcoin
As a seller on ebay it is now a law that anything you sell on ebay past 600.00 you will be sent a tax form that you have to submit on your taxes when you file them. the old limit was 20,000
The form isn't what causes you to owe taxes, earning a profit from sales is. The only thing the form does is make it harder to lie about sales profits when you file your tax return.
Yes, now you get a form. You still owe the same tax on the same profit, just like before.
So I take it you haven't been paying your taxes? Does anyone know if we still get a reward if we turn someone in?
If they hire those extra IRS agents... they might be a looking closer.....!
My sales are all on Trade Me, our local version of eBay. I always add shipping (at cost, essentially) for two reasons: Firstly, shipping costs charged separately are not subject to auction house fees. Secondly, the perception here seems to be “free shipping” equals “excessive margin”.
Smitten with DBLCs.
Who had that perception? The margin is the same if you charge 25 and 0 or 20 + 5.
If anything, people are more prone to think you are padding your margin with shipping charges. [People don't seem to recognize that shipping isn't cheap. ]
I usually charge $3 or $4. Rarely does is cover my costs.
Dave
Speak for your own area. Here in New Zealand people generally expect to pay for shipping. Thus, “free shipping” can seem suspicious.
Smitten with DBLCs.