Friday, June 22, 2012

Michael Krumme of Los Angeles wants to test you on shipping costs.

Hi Alan,

I heartily agree with Alison Robb. Most people who do not ship things themselves on a regular basis have no idea what it REALLY costs to ship and insure things. eBay is trying to make themselves competitive with other online businesses, and pressures sellers to offer free shipping. That, and now every eBay seller now pays eBay their percentage on the total dollar amount of the PayPal payment that the buyer makes. So if I sell an item for $85 and charge $15 for shipping, eBay gets their percentage on $100, not on the $85 sales price. In other words, I am paying a commission on a hard cost. I often under-quote what actual shipping turns out to be, and have to “eat” the difference.

Back to shipping costs: I recently shipped a large (14 inch tall by 8 inch wide) blown vase from Los Angeles to the east coast. Due to its high value (over $5,000), I double-boxed it, and sent it via UPS, fully insured, in a box that was 24 x 24 x 30. It was not a heavy parcel at all.

Now let’s play a little guessing game. What do you think the cost, with insurance, was? Think awhile, then scroll down.

Okay, are you ready?

Cost was $153 and change.

Fortunately, this was not an eBay sale. It was me shipping the vase to a consignee. So the shipping cost was borne by me personally, not a bidder/buyer.

But ask yourself, if you were buying a large fragile piece for $5,000, would you balk at paying that for the shipping and insurance cost, if the seller quoted that number? Would you think that is a lot? Would you immediately call it a case of “gouging” by a seller? Or would you recognize that a professional who cares about the piece is at work here?

By the way, the consignee advised me that the vase arrived at its destination intact.

Michael

More on eBay from Jo Ann Godawa of Bellevue, Nebraska

Hi Alan,

According to the new eBay Rules, as of January of 2011, the seller is NOT allowed to charge the buyer for the insurance!

eBay’s thinking is that it is the responsibility of the seller to get the item to the buyer in the same condition as represented on the auction.

They suggest that sellers factor the insurance cost into the shipping fee by using either a flat rate or calling it a handling fee.

Best regards,
Jo Ann

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