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Losing Sales By Overcharging For Shipping And Handling


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.


TODAYS NEWS BY OFFICEJAX FREE ADVERTISING AND AD EXCHANGE SOLUTIONSMORE RESOURCES updated Wed. August / 12 / 2020

Storage Auction to be Thursday, | Auctions | idahostatejournal.com - Idaho State Journal
Storage Auction to be Thursday, | Auctions | idahostatejournal.com  Idaho State Journal

Brunk Auctions to Offer William N. Banks’s Historic Collection - Barron's
Brunk Auctions to Offer William N. Banks’s Historic Collection  Barron's

HiBid.com Auctions Topped $33.6 Million In Record-Breaking Week; Rare Coins, Jewelry, Home Goods & More Up For Sale - Norfolk Daily News
HiBid.com Auctions Topped $33.6 Million In Record-Breaking Week; Rare Coins, Jewelry, Home Goods & More Up For Sale  Norfolk Daily News

Halliburton Surplus Real Estate Auctions Set for Oct - PRNewswire
Halliburton Surplus Real Estate Auctions Set for Oct  PRNewswire

Clemente rookie card, 1900 Wagner team photo up for auction - TribLIVE
Clemente rookie card, 1900 Wagner team photo up for auction  TribLIVE

L.A. Rockler Fur Company begins auctions of remaining garments - Southernminn.com
L.A. Rockler Fur Company begins auctions of remaining garments  Southernminn.com

Quarantines cause Saratoga to lose another horse auction - Albany Business Review
Quarantines cause Saratoga to lose another horse auction  Albany Business Review

Kurt Cobain-Signed Home Insurance Policy From Death House Hits Auction - TMZ
Kurt Cobain-Signed Home Insurance Policy From Death House Hits Auction  TMZ

NamesCon Auction Now Live on GoDaddy Auctions - DomainInvesting.com
NamesCon Auction Now Live on GoDaddy Auctions  DomainInvesting.com

Virtual Cattaraugus County 4-H animal auction raises almost $50000 - Olean Times Herald
Virtual Cattaraugus County 4-H animal auction raises almost $50000  Olean Times Herald

‘Willamette: The Pinot Noir Auction’ Goes Online For The First Time In 2020 - Forbes
‘Willamette: The Pinot Noir Auction’ Goes Online For The First Time In 2020  Forbes

Missing the EVE Auction | News, Sports, Jobs - Marietta Times
Missing the EVE Auction | News, Sports, Jobs  Marietta Times

Turkish Treasury borrows nearly $566 mln through auctions - Hurriyet Daily News
Turkish Treasury borrows nearly $566 mln through auctions  Hurriyet Daily News

Hospitality "Hope Survives" Luncheon, Auction Goes Virtual - Go Blue Ridge
Hospitality "Hope Survives" Luncheon, Auction Goes Virtual  Go Blue Ridge

Hinson leaves mark on auctions, county - The Stanly News & Press - Stanly News & Press
Hinson leaves mark on auctions, county - The Stanly News & Press  Stanly News & Press

PRG's Annual Equipment Auction to be Held Online - PRNewswire
PRG's Annual Equipment Auction to be Held Online  PRNewswire

Halliburton to auction off 13 properties - Houston Business Journal
Halliburton to auction off 13 properties  Houston Business Journal

Faraday Future FF 91 Pikes Peak Prototype up for Auction - Motor Trend
Faraday Future FF 91 Pikes Peak Prototype up for Auction  Motor Trend

'Hope Survives' online auction to benefit Hospitality House of NW N.C. - ashepostandtimes.com
'Hope Survives' online auction to benefit Hospitality House of NW N.C.  ashepostandtimes.com

Jimi Hendrix’s Early Sixties Guitar Sells for $216,000 at Auction - Rolling Stone
Jimi Hendrix’s Early Sixties Guitar Sells for $216,000 at Auction  Rolling Stone

With $2.7B in proceeds, CBRS auction showing 'unusual' activity - Light Reading
With $2.7B in proceeds, CBRS auction showing 'unusual' activity  Light Reading

Auction Firm MaestroSoft Acquired By Arreva - The NonProfit Times
Auction Firm MaestroSoft Acquired By Arreva  The NonProfit Times

Trump administration announces major midband spectrum auction for 5G - TechCrunch
Trump administration announces major midband spectrum auction for 5G  TechCrunch

Brazil mulls reverse auctions, subsidies to expand connectivity in the Amazon - BNamericas English
Brazil mulls reverse auctions, subsidies to expand connectivity in the Amazon  BNamericas English

Palettes of Keuka Art Tour is gearing up for annual auction - WETM - MyTwinTiers.com
Palettes of Keuka Art Tour is gearing up for annual auction  WETM - MyTwinTiers.com

Ballard Food Bank's 'Helpings for Hope' auction goes virtual - My Ballard
Ballard Food Bank's 'Helpings for Hope' auction goes virtual  My Ballard

Brooks Brothers Heads Toward Sale Auction – WWD - WWD
Brooks Brothers Heads Toward Sale Auction – WWD  WWD

The Strategist’s First-Ever Celebrity Auction - New York Magazine
The Strategist’s First-Ever Celebrity Auction  New York Magazine

Digital Exclusive: Chuck’s Auction Service has success with online bidding - PAHomePage.com
Digital Exclusive: Chuck’s Auction Service has success with online bidding  PAHomePage.com

A drive-thru gala? Welcome to the new world of nonprofit fundraisers - The Mercury News
A drive-thru gala? Welcome to the new world of nonprofit fundraisers  The Mercury News

Treasury ramps up auctions as borrowing, virus surges - Finance and Commerce
Treasury ramps up auctions as borrowing, virus surges  Finance and Commerce

PRG To Host Two-Day, Online Auction of Professional Entertainment Production Equipment - Sports Video Group
PRG To Host Two-Day, Online Auction of Professional Entertainment Production Equipment  Sports Video Group

'Holy Grail of All Dollars' Could Fetch $10M at Auction - Newser
'Holy Grail of All Dollars' Could Fetch $10M at Auction  Newser

Dillon's playhouse auction to benefit essential housing programs - Summit Daily News
Dillon's playhouse auction to benefit essential housing programs  Summit Daily News

$10M 'Flowing Hair' 1794 US dollar set for auction in Las Vegas - FOX5 Las Vegas
$10M 'Flowing Hair' 1794 US dollar set for auction in Las Vegas  FOX5 Las Vegas

Fair canceled; livestock auction goes virtual - Dominion Post - The Dominion Post
Fair canceled; livestock auction goes virtual - Dominion Post  The Dominion Post

PALs auction: $3 billion and counting - RCR Wireless News
PALs auction: $3 billion and counting  RCR Wireless News

White Star Auction is up for sale - Sturgis Journal
White Star Auction is up for sale  Sturgis Journal

Dow Futures Rebound On Recovery, Stimulus Bets; Treasury Yields Jump Ahead of Record $38 Billion Auction - TheStreet
Dow Futures Rebound On Recovery, Stimulus Bets; Treasury Yields Jump Ahead of Record $38 Billion Auction  TheStreet

Albuquerque’s only water park auctioned for $54,000 - KRQE News 13
Albuquerque’s only water park auctioned for $54,000  KRQE News 13

Three-Year Note Auction Attracts Average Demand - Nasdaq
Three-Year Note Auction Attracts Average Demand  Nasdaq

Clark County hosting government surplus vehicle, airport lost and found online auctions this week - KLAS - 8 News Now
Clark County hosting government surplus vehicle, airport lost and found online auctions this week  KLAS - 8 News Now

Storage Auction | Legal Announcements | starexponent.com - starexponent.com
Storage Auction | Legal Announcements | starexponent.com  starexponent.com

Bottle Of Whiskey From Sunken Cargo Ship Is Up For Auction - NPR
Bottle Of Whiskey From Sunken Cargo Ship Is Up For Auction  NPR

Rotary-Chamber auction slated for Aug. 27-30 - Claxton Enterprise
Rotary-Chamber auction slated for Aug. 27-30  Claxton Enterprise

Auction Report: Bonhams Announces An All-Seiko Online-Only Auction - HODINKEE
Auction Report: Bonhams Announces An All-Seiko Online-Only Auction  HODINKEE

SARC raising funds with “maskerade” contest and auction - KBTX
SARC raising funds with “maskerade” contest and auction  KBTX

25th Annual Anne S. Thacik Auction Web site Launches - GANT News
25th Annual Anne S. Thacik Auction Web site Launches  GANT News

Breaking News: Bonhams' Seiko-Only Auction Disappears In The Wake Of Collector Scrutiny - HODINKEE
Breaking News: Bonhams' Seiko-Only Auction Disappears In The Wake Of Collector Scrutiny  HODINKEE

Bonds' record 762nd home run ball up for auction again - NBC Sports Bay Area
Bonds' record 762nd home run ball up for auction again  NBC Sports Bay Area

North Texas Rehab Center TV Auction right around the corner - KFDX - Texomashomepage.com
North Texas Rehab Center TV Auction right around the corner  KFDX - Texomashomepage.com

Government Surplus Auction Closes Thursday - loudounnow.com
Government Surplus Auction Closes Thursday  loudounnow.com

Michael Jordan Bulls jersey up for auction - Chicago Sun-Times
Michael Jordan Bulls jersey up for auction  Chicago Sun-Times

Stunning auction underscores Jordan's legacy | Sports | messenger-inquirer.com - messenger-inquirer
Stunning auction underscores Jordan's legacy | Sports | messenger-inquirer.com  messenger-inquirer

Brandon Lee 'Crow' Costume Sells For $25K at Auction - Hollywood Reporter
Brandon Lee 'Crow' Costume Sells For $25K at Auction  Hollywood Reporter

HiBid.com Auctions Topped $35 Million Last Week; Sports Cars, Gold Bullion, Farm Equipment, & More Up For Sale - PRNewswire
HiBid.com Auctions Topped $35 Million Last Week; Sports Cars, Gold Bullion, Farm Equipment, & More Up For Sale  PRNewswire

Friendship Heights Mall Heading To Foreclosure Auction - Bisnow
Friendship Heights Mall Heading To Foreclosure Auction  Bisnow

Rare 1969 Adams Brothers M-505 Probe 16, like in 'A Clockwork Orange,' up for auction - Autoblog
Rare 1969 Adams Brothers M-505 Probe 16, like in 'A Clockwork Orange,' up for auction  Autoblog

City to auction abandoned bikes - Lewistown News-Argus
City to auction abandoned bikes  Lewistown News-Argus

Buffalo Sabres to auction game-worn 50th season jerseys - Niagara Frontier Publications
Buffalo Sabres to auction game-worn 50th season jerseys  Niagara Frontier Publications

Houghton County Fair canceled; livestock shows, auctions, and drive-through food concessions to take place - WLUC
Houghton County Fair canceled; livestock shows, auctions, and drive-through food concessions to take place  WLUC

Seattle man wins ReStore auction for podcast sign - Huntington Herald Dispatch
Seattle man wins ReStore auction for podcast sign  Huntington Herald Dispatch

Barrett-Jackson Returns To Live Auctions With A Bang - Yahoo! Voices
Barrett-Jackson Returns To Live Auctions With A Bang  Yahoo! Voices

JGB yields rise, curve steepens as traders eye Treasury auction - Reuters
JGB yields rise, curve steepens as traders eye Treasury auction  Reuters

Gooding sets online auction record with $3.08M sale of Ferrari 275 GTB - The ClassicCars.com Journal
Gooding sets online auction record with $3.08M sale of Ferrari 275 GTB  The ClassicCars.com Journal

Government Surplus Auctions to be hosted virtually Aug. 3-11 on TNT auction website - KLAS - 8 News Now
Government Surplus Auctions to be hosted virtually Aug. 3-11 on TNT auction website  KLAS - 8 News Now

CSC Generation, Marquee Brands Top Fortress in Sur La Table Bankruptcy Auction - The Wall Street Journal
CSC Generation, Marquee Brands Top Fortress in Sur La Table Bankruptcy Auction  The Wall Street Journal

Pheasant Run auction bringing back flood of memories - Kane County Chronicle
Pheasant Run auction bringing back flood of memories  Kane County Chronicle

Eastmont Lanes to hold barbecue, yard sale and silent auction on Aug. 22, 23 - wenatcheeworld.com
Eastmont Lanes to hold barbecue, yard sale and silent auction on Aug. 22, 23  wenatcheeworld.com

Auction House Repatriates Sacred Indigenous Items, Possibly a Human Scalp - VICE
Auction House Repatriates Sacred Indigenous Items, Possibly a Human Scalp  VICE

Prop Store Announces Auction Featuring Rare 'Star Wars' Items! - Nerds and Beyond
Prop Store Announces Auction Featuring Rare 'Star Wars' Items!  Nerds and Beyond

'Resiliency and adaptability': Nevada County Fairgrounds to host virtual livestock, agricultural mechanics auction - The Union of Grass Valley
'Resiliency and adaptability': Nevada County Fairgrounds to host virtual livestock, agricultural mechanics auction  The Union of Grass Valley

Auction of Joh and Flo Bjelke-Petersen belongings draws thousands of bids - The Guardian
Auction of Joh and Flo Bjelke-Petersen belongings draws thousands of bids  The Guardian

Lightning Foundation to host online auctions, 50/50 raffles in playoffs - Official site of the Tampa Bay Lightning
Lightning Foundation to host online auctions, 50/50 raffles in playoffs  Official site of the Tampa Bay Lightning

Phillips Auction House Latest to Follow Clients East - East Hampton Star
Phillips Auction House Latest to Follow Clients East  East Hampton Star

Auction of Washington Wines Virtual Pt 2 - AG INFORMATION NETWORK OF THE WEST - AGInfo Ag Information Network Of The West
Auction of Washington Wines Virtual Pt 2 - AG INFORMATION NETWORK OF THE WEST  AGInfo Ag Information Network Of The West

Spots remain open in Triple B Invitational; new auction items available - nsudemons.com
Spots remain open in Triple B Invitational; new auction items available  nsudemons.com

HiBid's Toys.HiBid.com Portal Showcases Auctions Featuring Toys, Games & Collectibles for All Ages - PRNewswire
HiBid's Toys.HiBid.com Portal Showcases Auctions Featuring Toys, Games & Collectibles for All Ages  PRNewswire

BLM Cancels Plans to Auction Over 85000 Acres Around Moab Amid Pressure From Climbers - Rock and Ice Magazine
BLM Cancels Plans to Auction Over 85000 Acres Around Moab Amid Pressure From Climbers  Rock and Ice Magazine

Founders of YouTube and Restoration Hardware to auction historic Adirondack camp - newyorkupstate.com
Founders of YouTube and Restoration Hardware to auction historic Adirondack camp  newyorkupstate.com

BMW R26 German Police Bike Goes To Auction - RideApart
BMW R26 German Police Bike Goes To Auction  RideApart

Wine Online: How the Multimillion-Dollar Wine Auction Circuit Is Going Virtual - Robb Report
Wine Online: How the Multimillion-Dollar Wine Auction Circuit Is Going Virtual  Robb Report

Auction for former North Dakota missile site falls short - Bismarck Tribune
Auction for former North Dakota missile site falls short  Bismarck Tribune

Virtual V Foundation auction raises $3.6 million - Napa Valley Register
Virtual V Foundation auction raises $3.6 million  Napa Valley Register

Animals at auction for food, not pets | Local News - Wallowa County Chieftain
Animals at auction for food, not pets | Local News  Wallowa County Chieftain

Barrett-Jackson moves Las Vegas and Palm Beach, Florida car auction to Scottsdale instead this fall - AZCentral
Barrett-Jackson moves Las Vegas and Palm Beach, Florida car auction to Scottsdale instead this fall  AZCentral

Billie Eilish's Ukulele Up for Auction Along With Guitar Signed by Taylor Swift - Up News Info
Billie Eilish's Ukulele Up for Auction Along With Guitar Signed by Taylor Swift  Up News Info

Marine Corps online auction benefits annual Toys for Tots - TheNewsObserver
Marine Corps online auction benefits annual Toys for Tots  TheNewsObserver

People are paying hundreds for Fyre Festival merch - Fortune
People are paying hundreds for Fyre Festival merch  Fortune

HiBid.com Breaks Records in Last Week's Auctions; Fine Jewelry, Rare Coins, Vehicles & More for Sale in Upcoming Auctions - PRNewswire
HiBid.com Breaks Records in Last Week's Auctions; Fine Jewelry, Rare Coins, Vehicles & More for Sale in Upcoming Auctions  PRNewswire

"Disneyland: The First 65 Years" – A Two-Day Auction Starting August 15, 2020 - The DIS
"Disneyland: The First 65 Years" – A Two-Day Auction Starting August 15, 2020  The DIS

Pheasant Run memorabilia will be available in online auction - Chicago Daily Herald
Pheasant Run memorabilia will be available in online auction  Chicago Daily Herald

US Vehicle Auction Market Outlook 2020-2024: Due to COVID-19, Online/Digital Auctions Have Become the New Norm - GlobeNewswire
US Vehicle Auction Market Outlook 2020-2024: Due to COVID-19, Online/Digital Auctions Have Become the New Norm  GlobeNewswire

Kishman Farm near Minerva sold at auction - Canton Repository
Kishman Farm near Minerva sold at auction  Canton Repository

Box of Stained Glass Bought at Auction Solves 80-year Mystery of Church Windows Gone Missing During WWII - Good News Network
Box of Stained Glass Bought at Auction Solves 80-year Mystery of Church Windows Gone Missing During WWII  Good News Network

Threadgill’s memorabilia auction reset for Saturday - KXAN.com
Threadgill’s memorabilia auction reset for Saturday  KXAN.com

Despite an online boost, auction houses saw a 49 percent drop in sales in the first half of 2020. - Artsy
Despite an online boost, auction houses saw a 49 percent drop in sales in the first half of 2020.  Artsy

NY state completes investigation into mock slave auction in Watertown 4th grade class - syracuse.com
NY state completes investigation into mock slave auction in Watertown 4th grade class  syracuse.com

ADESA auto auction says Flint layoffs will be more than expected - MLive.com
ADESA auto auction says Flint layoffs will be more than expected  MLive.com

DeCaro Auctions International To Auction Elegant Santa Barbara, California Estate - PRNewswire
DeCaro Auctions International To Auction Elegant Santa Barbara, California Estate  PRNewswire

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