Log in or Sign up
Coin Talk
Home
Forums
>
Coin Forums
>
Coin Chat
>
eBay shipping costs
>
Reply to Thread
Message:
<p>[QUOTE="NPCoin, post: 267919, member: 5629"]A few things you are forgetting, however, is this is not a brick and mortar establishment. In fact, you did not even buy the item via what is traditionally considered a "retail establishment". The closest you can consider analogical to eBay auctions is a mail order service. In considering "shipping" for an item, you do not consider simply the postage. When the charge is simply the "actual postage" paid, the term "postage" and not "shipping" is quite frequently used. Shipping includes the entirety of the actual postage plus costs of materials, ie. envelope, padding/filling, tape, and other packaging materials. "Insurance" is normally a separate consideration (thus the terms of "S/H/I" or "SH&I") but is sometimes included in the "shipping" or "handling". A "handling" fee is what is normally considered the processing fee.</p><p><br /></p><p>This is where many people become upset and disillusioned regarding "mail/online order". Like was previously stated:</p><p><br /></p><p><br /></p><p><br /></p><p>In a "brick-and-mortar" situation, there is no "handling" fee because there is no extra handling of the object (unless you want gift wrap in which many places do charge fees for the handling and packaging of the item). In a "mail-order" situation (like eBay auctions), there is special handling required, ie. employee time to transport packages to/from the post office or shipping center, the gasoline involved in such transportation, processing of the request in the form of customs paperwork, tracking and confirmation filings, etc, as well as the employee time of processing and tracking the delivery.</p><p><br /></p><p>This extra work of handling the item does not exist in the "brick-and-mortar" scenario, for the most part. And if the customer does walk in and request such services, do you really believe that they will do it all for free? Of course not. There will be the extra handling charges involved as well as actual postage. This cost won't be included in the price of the <u>item</u> itself. These are costs <u>above and beyond</u> the actual selling price of the item.</p><p><br /></p><p>The "overhead" of "running" an "eBay business" are in the <u>listing fees</u> as well as the <u>final value fees</u> (which are only charged <b>IF</b> the item sells). Most retail pricing mark-up will only be around 30% of the cost of product. When selling a low cost item on eBay, the overall percentage of the cost of item in terms of fees (overhead) can <b>easily</b> exceed 10% of the <b>cost</b> of the item.</p><p><br /></p><p>Now, being that eBay auctions do not work on a traditional "mark-up" pricing scheme, but rather a "market driven" pricing scheme, there is not an absolute price to set to determine your "proper mark-up" to make an acceptable "retail" profit. You are <b>NOT</b> purchasing items retail when using eBay auctions.</p><p><br /></p><p>Even a traditional "mail order" company runs their business retail in the fact that there are set and seller controllable prices involved in their sales. Yet, even they still charge for the handling of the product from their distribution to the customer. The handling is there because the seller takes the item to the buyer rather than the buyer going to the seller for the item.</p><p><br /></p><p>And there is where the misconception lies. The belief that the seller should absorb the cost of the item being delivered by a third party to the buyer. Would you rather pay the airfare and rental car charges to get to the seller and pick the item up in person? Of course not. That is why you are paying the handling fee to the seller. So that he will take the responsibility of making sure the item makes it to the buyer.</p><p><br /></p><p><br /></p><p>Now, with all that said:</p><p><br /></p><p><br /></p><p><br /></p><p>You must understand that prices and <b>regulations</b> are set by the shipping outfit. The price of shipping with the USPS has skyrocketed since 1997. Each year, the costs go up. To send an item via a <b>flat rate</b> Priority Mail envelope with the proper Delivery Confirmation (to ensure delivery as it is the legal obligation of the seller), and Insurance costs a <b>minimum</b> of $6.90 to ship within the United States. Now is this the fault of the seller? Should the seller then be required to absorb the $5 so that the S/H/I is "reasonable" for a small set of 5 or 6 coins?</p><p><br /></p><p>The argument would be "then just send it First Class". Okay, this works well for anything under 14 ounces. But once you hit more than 13 ounces, you are required to pay Priority Mail rates. Then, take a look at what is <b>legally</b> required of you for first class mail as a seller under a legal contract with the buyer.</p><p><br /></p><p>If you think that you can just mail your items to buyers <b>without</b> confirmation of mailing, you are dead wrong. Using eBay auctions binds you legally as a seller (and buyer) to ensure that the "advertised" product is received by the buyer. eBay auctions are legal contracts. If you do not perform, and be able to <b>prove</b> you performed, your legal obligations under the contract, you open yourself up to not only an action of tort, but quite possibly criminal action for mail fraud and the intent to defraud if the USPS is mentioned anywhere in the contract.</p><p><br /></p><p>Let's take a 4 ounce package as our example. The seller would need to pay the First Class <b>Package</b> postage which is $1.64 (USPS regulations require Package rates for any item that is <b>rigid</b>, <b>rounded</b>, or otherwise irregular). The packaging required for package rate must be at least 3/4" thick. Thus you need a bubble mailer (any insurance or other liability for the package will be void if a regulated item was sent Letter rate instead of Package rate) of at least 3/4" thickness. This could easily run you another $.30-$.40 for the mailer. Now, you need to have proof of mailing. If you are obtaining insurance for the item, the Insurance form is now proof of mailing and the cost will only be $1.65 minimum. Otherwise, Certificate of Mailing is $1.05 and Delivery Confirmation is only $0.75, so we take the Delivery Confirmation since it is also proof of mailing. Also, if you do both a Delivery Confirmation AND Insurance, then you need a bigger mailer to accommodate the forms.</p><p><br /></p><p>Now, we add all that up and the <b>MINIMUM</b> cost to ship (and absorb things such as processing time, delivery time to the shipping outfit, and gas), minimum insured comes to $3.59 out of pocket, and non-insured is $2.69. Now, as we all know, very few people "do it right". So, in the case where the item came to you in a paper envelope and no security (nor proof of mailing), then I wouldn't blame you too much for getting a <b>little</b> upset.</p><p><br /></p><p>But, then you have to <b>really</b> think this over again too. The seller opened himself up to possible legal action and left himself at <b>your</b> grace and mercy to be <b>honest</b> and even acknowledge that you received the item just so you might save a buck or two on what it <i>should</i> have cost to ship your item to you legally and within regulation.</p><p><br /></p><p>In fact, you never should have received the coin as someone at the USPS somewhere along the trail should have had the item sent back to the seller for insufficient postage. The item was rigid and most likely was not the required 3/4" thick as required by USPS regulations. You should really consider yourself lucky (as I had received a package back for re-mailing last month because it was not thick enough).</p><p><br /></p><p>Personally, my post office here is anal when it comes to regulations. It's only going to be a matter of time before the rest of the country's Post Offices start being the same way.[/QUOTE]</p><p><br /></p>
[QUOTE="NPCoin, post: 267919, member: 5629"]A few things you are forgetting, however, is this is not a brick and mortar establishment. In fact, you did not even buy the item via what is traditionally considered a "retail establishment". The closest you can consider analogical to eBay auctions is a mail order service. In considering "shipping" for an item, you do not consider simply the postage. When the charge is simply the "actual postage" paid, the term "postage" and not "shipping" is quite frequently used. Shipping includes the entirety of the actual postage plus costs of materials, ie. envelope, padding/filling, tape, and other packaging materials. "Insurance" is normally a separate consideration (thus the terms of "S/H/I" or "SH&I") but is sometimes included in the "shipping" or "handling". A "handling" fee is what is normally considered the processing fee. This is where many people become upset and disillusioned regarding "mail/online order". Like was previously stated: In a "brick-and-mortar" situation, there is no "handling" fee because there is no extra handling of the object (unless you want gift wrap in which many places do charge fees for the handling and packaging of the item). In a "mail-order" situation (like eBay auctions), there is special handling required, ie. employee time to transport packages to/from the post office or shipping center, the gasoline involved in such transportation, processing of the request in the form of customs paperwork, tracking and confirmation filings, etc, as well as the employee time of processing and tracking the delivery. This extra work of handling the item does not exist in the "brick-and-mortar" scenario, for the most part. And if the customer does walk in and request such services, do you really believe that they will do it all for free? Of course not. There will be the extra handling charges involved as well as actual postage. This cost won't be included in the price of the [U]item[/U] itself. These are costs [U]above and beyond[/U] the actual selling price of the item. The "overhead" of "running" an "eBay business" are in the [U]listing fees[/U] as well as the [U]final value fees[/U] (which are only charged [B]IF[/B] the item sells). Most retail pricing mark-up will only be around 30% of the cost of product. When selling a low cost item on eBay, the overall percentage of the cost of item in terms of fees (overhead) can [B]easily[/B] exceed 10% of the [B]cost[/B] of the item. Now, being that eBay auctions do not work on a traditional "mark-up" pricing scheme, but rather a "market driven" pricing scheme, there is not an absolute price to set to determine your "proper mark-up" to make an acceptable "retail" profit. You are [B]NOT[/B] purchasing items retail when using eBay auctions. Even a traditional "mail order" company runs their business retail in the fact that there are set and seller controllable prices involved in their sales. Yet, even they still charge for the handling of the product from their distribution to the customer. The handling is there because the seller takes the item to the buyer rather than the buyer going to the seller for the item. And there is where the misconception lies. The belief that the seller should absorb the cost of the item being delivered by a third party to the buyer. Would you rather pay the airfare and rental car charges to get to the seller and pick the item up in person? Of course not. That is why you are paying the handling fee to the seller. So that he will take the responsibility of making sure the item makes it to the buyer. Now, with all that said: You must understand that prices and [B]regulations[/B] are set by the shipping outfit. The price of shipping with the USPS has skyrocketed since 1997. Each year, the costs go up. To send an item via a [B]flat rate[/B] Priority Mail envelope with the proper Delivery Confirmation (to ensure delivery as it is the legal obligation of the seller), and Insurance costs a [B]minimum[/B] of $6.90 to ship within the United States. Now is this the fault of the seller? Should the seller then be required to absorb the $5 so that the S/H/I is "reasonable" for a small set of 5 or 6 coins? The argument would be "then just send it First Class". Okay, this works well for anything under 14 ounces. But once you hit more than 13 ounces, you are required to pay Priority Mail rates. Then, take a look at what is [B]legally[/B] required of you for first class mail as a seller under a legal contract with the buyer. If you think that you can just mail your items to buyers [B]without[/B] confirmation of mailing, you are dead wrong. Using eBay auctions binds you legally as a seller (and buyer) to ensure that the "advertised" product is received by the buyer. eBay auctions are legal contracts. If you do not perform, and be able to [B]prove[/B] you performed, your legal obligations under the contract, you open yourself up to not only an action of tort, but quite possibly criminal action for mail fraud and the intent to defraud if the USPS is mentioned anywhere in the contract. Let's take a 4 ounce package as our example. The seller would need to pay the First Class [B]Package[/B] postage which is $1.64 (USPS regulations require Package rates for any item that is [B]rigid[/B], [B]rounded[/B], or otherwise irregular). The packaging required for package rate must be at least 3/4" thick. Thus you need a bubble mailer (any insurance or other liability for the package will be void if a regulated item was sent Letter rate instead of Package rate) of at least 3/4" thickness. This could easily run you another $.30-$.40 for the mailer. Now, you need to have proof of mailing. If you are obtaining insurance for the item, the Insurance form is now proof of mailing and the cost will only be $1.65 minimum. Otherwise, Certificate of Mailing is $1.05 and Delivery Confirmation is only $0.75, so we take the Delivery Confirmation since it is also proof of mailing. Also, if you do both a Delivery Confirmation AND Insurance, then you need a bigger mailer to accommodate the forms. Now, we add all that up and the [B]MINIMUM[/B] cost to ship (and absorb things such as processing time, delivery time to the shipping outfit, and gas), minimum insured comes to $3.59 out of pocket, and non-insured is $2.69. Now, as we all know, very few people "do it right". So, in the case where the item came to you in a paper envelope and no security (nor proof of mailing), then I wouldn't blame you too much for getting a [B]little[/B] upset. But, then you have to [B]really[/B] think this over again too. The seller opened himself up to possible legal action and left himself at [B]your[/B] grace and mercy to be [B]honest[/B] and even acknowledge that you received the item just so you might save a buck or two on what it [I]should[/I] have cost to ship your item to you legally and within regulation. In fact, you never should have received the coin as someone at the USPS somewhere along the trail should have had the item sent back to the seller for insufficient postage. The item was rigid and most likely was not the required 3/4" thick as required by USPS regulations. You should really consider yourself lucky (as I had received a package back for re-mailing last month because it was not thick enough). Personally, my post office here is anal when it comes to regulations. It's only going to be a matter of time before the rest of the country's Post Offices start being the same way.[/QUOTE]
Your name or email address:
Do you already have an account?
No, create an account now.
Yes, my password is:
Forgot your password?
Stay logged in
Coin Talk
Home
Forums
>
Coin Forums
>
Coin Chat
>
eBay shipping costs
>
Home
Home
Quick Links
Search Forums
Recent Activity
Recent Posts
Forums
Forums
Quick Links
Search Forums
Recent Posts
Competitions
Competitions
Quick Links
Competition Index
Rules, Terms & Conditions
Gallery
Gallery
Quick Links
Search Media
New Media
Showcase
Showcase
Quick Links
Search Items
Most Active Members
New Items
Directory
Directory
Quick Links
Directory Home
New Listings
Members
Members
Quick Links
Notable Members
Current Visitors
Recent Activity
New Profile Posts
Sponsors
Menu
Search
Search titles only
Posted by Member:
Separate names with a comma.
Newer Than:
Search this thread only
Search this forum only
Display results as threads
Useful Searches
Recent Posts
More...