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As a serious seller on eBay you're familiar with their fee circumventing rules. If not, visit: http://pages.eBay/help/policies/listing-circumventing.html.
In a nutshell their rule is that you are not allowed to put an item up for bid for a penny and charge $100 for shipping and handling (S&H) in an attempt to avoid the transaction fee. Since we are not trying to avoid fees we all follow the rules - right? To a certain extent yes, but many sellers are still stretching the bubble by over charging for S&H in an attempt to maximize their profits and losing bidders in the process - the end result is the opposite of what they hoped for. Ultimately they reduce their sales and although these efforts fit within eBay's policies, when extreme, they are considered an unfair practice by many buyers.
I'll give you an example. I play in a Texas-No-Hold-Em poker game once a month - just a bunch of friends who get together, play a little poker, talk about their lives and have some fun. I thought it would be nice if we had some 'professional-style' poker chips so went to eBay to buy some. I like to think of myself as an intelligent eBay shopper so I watched the auctions for a few days and noticed that the final price averaged $60 for the chips I wanted (retail is about twice that at a local store). The market was determining the price, or was it?
As I watched these auctions I noticed an interesting problem, the shipping charges varied greatly. For the sake of this example let's say one seller was offering S&H at $20, another at $30 and one $50. We'll call them Seller A, Seller B and Seller C. As a buyer, if I was willing to accept the price determined by the market - in this case $60, then the final cost of the item from each of these sellers would be:
Seller A: $60 + $20 = $80
Seller B: $60 + $30 = $90
Seller C: $60 + $50 = $110
I did some additional homework and discovered the package would weigh 17 pounds, the size would not increase shipping costs and the sellers were all in my state. I went to the UPS and Fed-X web sites and plugged in the needed information for shipping cost estimates. The results were $11 and $17. All things being equal the total cost of the chips should be around $71-$78. So which seller's auction did I bid on? Only one - Seller A - and I got the chips for $52, plus S&H ($72). If I hadn't won that auction I may have bid on Seller B's but probably would have lowered my total bid amount by $10. Seller C's auction closed without a singe bid.
Seller A got my business, Seller B may have, and as far as I was concerned, and apparently other bidders, Seller C can go pound sand. The outcome of this example should be pretty clear and it should be obvious by now that you don't want to be Seller C. Although you may get an occasional windfall with less savvy bidders, in the long term your sales will be much less than that of other sellers of similar items.
That's not to say you shouldn't recoup your shipping and handling costs in the process. We're not in business to lose money, but make sure you are not trying to pad your 'profit' at the expense of loosing bidders and ultimately sales. Take the time to do similar research on your own items and market niche and find out where you stand with your shipping and handling charges. If you're fair to your customers they will think better of you for it and in the long run your sales will be better.
© Copyright 2005 Steven Woodward - All Rights Reserved
About the Author:
Steven Woodward is the owner, editor and publisher of the Auction Sellers Network (ASN); a web site for individuals and companies who are serious about utilizing the online auction marketplace for their business. In addition to topical articles, ASN provides an extensive resource center, news feeds, member forums and classified ads. For more information or to become a member please visit http://www.AuctionSellersNetwork.com.
No permission is needed to reproduce an unedited copy of this article as long the About the Author tag is left intact and included. We do request that we be informed where it is posted and reciprocal links will be considered.
BANGOR, Maine (AP) — Two Maine malls have now gone up for auction.
Arizona's collection of classic car auctions sold $251 million worth of cars during the past week, a total up about 1.2 percent increase from the previous year.
Ford auctioned off its first GT Heritage Edition supercar on Friday at the 48th annual Barrett-Jackson Collector Car Auction in Scottsdale, where the vehicle ...
The Spenger maritime collection went to auction this past weekend, but the rarest items, including a 34.29-carat diamond and a rare Japanese vase from the ...
Heritage Auctions' early January numismatic sales topped $71 million for the fourth consecutive year, the company announced Jan. 18.
WOODLAND — There's a lot to admire in The Columbian's offices.
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“The Sell Sider” is a column written by the sell side of the digital media community. Today's column is written by Sara Badler, senior vice president of ...
Jackie Robinson's contract with the Brooklyn Dodgers -- one of the most important documents of all time -- is hitting the auction block and it's expected to fetch ...
View detailed pictures that accompany our The 11 most expensive lots at the 2019 Barrett-Jackson Scottsdale Auction article with close-up photos of exterior ...
PASADENA, Texas - The city of Pasadena will host a public vehicle auction Saturday. The vehicle auction will be held at the Pasadena Maintenance Services ...
FUN and NYINC U.S. & World Coin & Currency auctions register countless price records, 97% sell-through rate. Heritage Auctions announced Friday its early ...
In recent years, buyers have flocked to private marketplaces to avoid the fraud, hidden fees and low-quality ads they saw in the open marketplace. Agencies ...
The commercial and industrial property market enters 2019 on the back of a strong finish to 2018, with a total of 38 properties around the North Island selling for ...
HOUSTON, Texas -- Gallery Auctions, Inc., is pleased to announce a grand auction open to the public on Saturday, February 16, 2019, showcasing the lifetime ...
Harrisburg – The Pennsylvania Liquor Control Board (PLCB) today issued an invitation for bids to award 25 expired restaurant licenses in the eighth license ...
2Pac's pornographic drawings and hand-written love letter to his girlfriend have been sold for over $21000 at auction.
Peter Lynch, one of Forbes Greatest Business Minds, adds $2 million worth of furniture to the upcoming auction for his Scottsdale house.
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Treasure hunters in Evansville search for a diamond in the rough. Gems they seek are locked behind metal doors, and the highest bidder wins whatever is ...
FUN and NYINC U.S. & World Coin & Currency auctions register price records, 97% sell-through rate Heritage Auctions has announced that its.
The charity auction of the first 2020 Toyota Supra this past weekend shocked many when it netted US$2.1 million at Barrett-Jackson's annual event in Scottsdale ...
The 28GHz spectrum auction, dubbed Auction 101, continues to limp toward completion with a paltry $700 million in total bids. That's nothing compared with the ...
Wild Bird Society of Tainan director Pan Chih-yuan (潘致遠) on Saturday held an online auction to raise funds the group needs to continue its wild bird rescue ...
A rare penny that a Pittsfield teenager found in his lunch money more than 70 years ago was auctioned off for more than $200,000 on Thursday to a Concord ...
After 40 years of business in Boston's Back Bay, the recently shuttered L'Espalier auctioned off everything Wednesday — from its industrial dishwasher to its ...
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Several Arizona multimillion-dollar mansions, including one owned by Randy Johnson, could soon go to the highest bidder in a live Scottsdale auction.
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Arizona Cardinals receiver Larry Fitzgerald auctioned off three of his cars at Barrett-Jackson in Scottsdale Saturday.
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The owners are selling homes in Florida, Pennsylvania, New Mexico and Colorado that were previously individually listed for a combined $46 million.
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There were plenty of amazing cars for sale at the 2019 Scottsdale auctions, but there were a few surprise cars that didn't find new homes.
Meanwhile, works by female and African American artists continue to gain recognition.
Get a peek at some of the collector cars that will be auctioned at Barrett-Jackson in Scottsdale on Sunday.
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The most garish symbol of a convicted former Venezuelan national treasurer's greed — 14 Palm Beach County show-jumping horses seized by the feds — will ...
India plans 350 GW solar, 140 GW wind power capacity operational by 2030, with share of renewable energy in overall power generation targeted at 40%.
Miami Dolphins running back Kenyan Drake sprints for the end zone as time runs out in an NFL game against the New England Patriots on Dec. 9, 2018, at Hard ...
Two dozen horses in poor condition were rescued from a local auction, and almost half had to be put down.
Jeff Gordon is auctioning off a 2016 Corvette C7.R with supercharged 6.2-liter LT4 V8 engine to raise money for cancer research at Barrett-Jackson.
Prices of most Japanese government bonds were steady on Wednesday, supported by a pause in the stock market, but confined to a narrow range ahead of an ...
The ball is signed by Jay Hook, who pitched the entire five-hitter game against the Pittsburgh Pirates.
Equine Sales Company has released its complete 2019 schedule of sales after previously announcing that the 2-Year-Olds in Training Sale will be held April 2.
That's a lot of money for four cars that aren't street legal.
The last remaining bit of 175-year-old McConnellsville business Harden Furniture is up for sale, with a sealed-bid auction due to end Feb. 1 for the company's ...
RACINE COUNTY, Wis. (CBS 58) -- An Illinois man is facing several charges after allegedly issuing several worthless checks at the Manheim Milwaukee Metro ...
Gooding & Co. will auction off some of the most expensive cars in the Valley on Friday and Saturday. We're talking multimillion dollar.
GLENPOOL, Oklahoma - The first ever medical marijuana auctioned online in Oklahoma sold to a dispensary in Oklahoma City that bid $2,200 for a half-pound.
The FCC's auction of 28 GHz spectrum officially surpassed $700 million after 35 days of bidding activity. The total amount of provisionally winning bids has ...
You have read 1 of 10 articles. Log In or Subscribe. It was one lone golf ball – but if the item was small, it reaffirmed two big things about the Lyle Area Cancer ...
For a 20th straight year, the 'Magic' is about to come alive to help Cedar Valley children and their families. The 20th annual Magical Mix Kids auction is.
The Federation of European Securities Exchanges has warned that more onerous restrictions on periodic auctions could send volumes to less transparent ...
While the late-rapper was serving time in the mid-90's, he drew an explicit drawing for his then-girlfriend, which is now going up for auction.
Walla Walla Community College's Institute for Enology & Viticulture will receive a $15000 grant to help support the program's “Human Capital” fund.
Woodmere estate in Ligonier, once listed for $7.5 million, sold for under $5.2 million at a no reserve auction held in Chicago.
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The Marietta/Cobb Museum of Art, 30 Atlanta Street SE in Marietta, will have Martinis and Music on Feb. 8 from 5:30 to 8:30 p.m..
A legendary Ford Mustang sold for a historic price at the Mecum Auctions event in Kissimmee, Fla., on Friday night when the bidding ended at $2,200,000.
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Calling all fans of Ben Baller and slide sandals: Get your bids ready. StockX, the Detroit-based “Stock Market Of Things,” announced a new IPO ...
Rickey Jensen spent decades finding and collecting motorcycles and other items produced by or related to Indian-brand motorcycles. All of it, found in a locked ...
The five coolest cars up for sale at the Gooding & Company auction in Scottsdale, Arizona.
NAGPUR: In an unprecedented action, income tax department here has auctioned 18 properties, which included jewellery and immovable assets, to recover .
Two foreign mobile operators expressed interest in joining the 700-megahertz (MHz) spectrum auction unless the reserve price is based on the previous licence ...
In 1864, the Civil War raged on, with severe consequences both on the battlefield and in commerce. The greenback could not hold its value and Confederate.
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A woman who has battled NASA for years over an artifact from the Apollo 11 moon mission has filed a new lawsuit accusing the agency of damaging the object ...
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Atonement Lutheran Church in the Heights is holding its Bounty of the Field wild game event on Saturday, Feb. 2.
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French actress Catherine Deneuve shares her YSL items in auction, including the gowns she wore to the Academy Awards in 1993 and 2000.
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A commercial property in the very active Lakeview neighborhood of Birmingham will hit the auction block next month. Local company Granger Thagard will hold ...
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The buyer of the 20-acre property learned about the auction only hours before it was to begin Thursday.
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Gimmicks dominated the art scene but some technological changes have genuine potential.
Civil War archive of Charles A. Hill relating to his *service* in the 1st Regiment Infantry, US Colored Troops. An extensive archive consisting of 112 letters from Hill ...
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Honor the legacy of Martin Luther King Jr., check out an art and wine festival or see what's going on the block at a high-end car auction.
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