Shipping charges versus costs

[st-shshi-vrxilvd3]

I'm still a newbie here in the eBay land, but I have noticed on a few items we actually lost money in the shipping, using eBay's system.  They know where I am, they know where the customer is, who the shipper will be and can get the rate.  They add on their processing fee - so why can't they charge the customer at least a break-even for the seller, or let the seller make 5-10% on the shipping?  Seems like they want to keep the freight charges low at our expense.  So now everything I list is higher than it would be, just to cover that, and the customers have no idea why the price is "high" or offer/counter offers are tight.  -- Chip

[slippinjimmy]

Are you including the PACKED weight and full dimensions in the listing? If not that is the issue.

If you want to add to the shipping charged to the buyer then add a handling fee when you set up the listing.

[nobody*s_perfect]

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@st-shshi-vrxilvd3 wrote: ...  I have noticed on a few items we actually lost money in the shipping, using eBay's system.  They know where I am, they know where the customer is, who the shipper will be and can get the rate.  They add on their processing fee ...

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eBay does not add a processing fee.  Most of us have found that the shipping calculator for USPS postage is 99.99% accurate; not so sure about UPS or FedEx.

The shipping calculator in eBay listings defaults to show the retail ("in store") price, but in your site preferences you can change that to charge buyers the online rate.  Many sellers choose to leave it set up for retail, so that the online discount provides an automatic proportional built-in handling fee to cover expenses such as packaging and final value fee.

We can probably help better if you provide an example with specific details, including package weight and dimensions, service used (e.g., Priority Mail? Parcel Select Ground?), both ZIP Codes, and both exact prices (i.e., what you paid vs what the buyer paid).

[simply-the-best-for-you]

There is NO processing fee on shipping.  If you use Calculated Shipping, the calculator figures out the EXACT amount.  I've never had it be wrong & I've been using it for decades.  In fact, b/c you get the benefit of Commercial Rates, it's actually cheaper than what you could get at the Post Office.  

Be sure to round your weight UP & enter full dimensions, as there are many new surcharges for larger items. 

[iamalwaysright]

On a related topic, it would be nice if ebay allowed you to add a handling fee or whatever you would call it "markup fee" that you can add onto all of your listings either by percent or set amount. It's not to say you can't do this yourself through other means or workarounds. But having that "markup section" would give us more control in pricing when prices and fees change.

For instance, I would use that field to add 15% of the shipping I charge the buyer to cover for the ebay fees off shipping and any packing supplies. Ebay would then just add that to final shipping price shown in the front end. As my shipping price changes, that price would change automatically. Very helpful especially if you offer multiple shipping services for one listing.

[dhbookds]

with USPS, I've never had shipping be less than accurate...........unless I made a mistake in setting the shipping up in the listing......i.e. wrong weight or dimension......

Can't speak to UPS/Fedex

[johnrj1226]

You can add on a handling fee - see below - I always did since day one of selling until I stopped selling. plus the FVF on selling was some where in my offering price - the buyer always  paid  mys costs and profit margin

"Here's how to use calculated shipping when listing your items:

1. In the Shipping section of your listing, select Calculated: Cost varies by buyer location.
2. Next to Services, select Calculate Shipping.
3. In Package details in the Shipping Calculator, enter your package type, dimensions, and weight. If you're selling an irregularly shaped item, estimate its dimensions by measuring a box you can fit it in.
4. In the Your details section, enter your ZIP code and any handling fees."
5. You can add a destination if you'd like. If you're shipping internationally, we recommend using the Global Shipping Program or eBay International Shipping.
6. Select Calculate shipping.
7. Select the shipping services you want to offer, and drag them into the order you want buyers to see them.
8. Select Offer shipping services.
9. Complete your listing."

[stephenmorgan]

No matter what you are paid for shipping ebay will take their commission out of that amount.  If you charge $10 you will only get about $8.70

[firejake2003]

Always charge more for shipping than the actual shipping amount.  You need to do this to cover the percentage of the transaction fee.  Markup about 5% and that typically covers it.  It also depends on what you're shipping - small packages, medium packages, large/heavyweights?  Assess which carrier is best based on what you are shipping.  For example, if you're shipping a small package that weighs less than 8 ounces, charge around $5.00 for shipping and that would cover the shipping to any part of the US and extra for the percentage of the transaction/commission fees you pay for the shipping part of the total cost.  Make sure you are charging enough for the product itself to make your profit on the product plus cover your selling costs.

[simply-the-best-for-you]

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@iamalwaysright wrote:

On a related topic, it would be nice if ebay allowed you to add a handling fee or whatever you would call it "markup fee" that you can add onto all of your listings either by percent or set amount. It's not to say you can't do this yourself through other means or workarounds. But having that "markup section" would give us more control in pricing when prices and fees change.

For instance, I would use that field to add 15% of the shipping I charge the buyer to cover for the ebay fees off shipping and any packing supplies. Ebay would then just add that to final shipping price shown in the front end. As my shipping price changes, that price would change automatically. Very helpful especially if you offer multiple shipping services for one listing.

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@iamalwaysright  Not sure what you mean.  That already exists, it's Handling Fee.  I use one on all my listings & have for decades.   Unless I'm missing something.   

[coolections]

If you are losing money on shipping, then you are not entering your data correctly on the shipping tab. You need to measure the box and weigh the item and make sure you enter those numbers correctly. Actually if you do it right, you MAKE money on Ebay's shipping. The cost on Ebay is LESS than the cost at the post office, but they charge your buyer the PO price.

[coolections]

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@iamalwaysright wrote:

it would be nice if ebay allowed you to add a handling fee .

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@iamalwaysright   They do. It is on the shipping tab drop down menu.

[nobody*s_perfect]

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@coolections wrote:

If you are losing money on shipping, then you are not entering your data correctly on the shipping tab. You need to measure the box and weigh the item and make sure you enter those numbers correctly. ....

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And then you also have to ship via the service that the buyer chose. More than one new seller has listed with Parcel Select Ground, but then paid for Retail Ground at the Post Office.

[linkofra]

I offer usps, FedEx, ups.  If it’s usps, I don’t lose money.  If it is FedEx, or UPS, they are exact in the cost, so I lose the eBay fee (about 16%).  I don’t know why eBay can’t just mark that up, but they don’t.  It’s ridiculous.

[inhawaii]

I've never used calculated shipping.

I figure out what the shipping will be before I list a item then charge MORE than that amount for shipping.

Example:  If shipping is going to cost $10, I charge $12.

Or as others have suggested, just add a few bucks to the price of the item.