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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. June / 16 / 2021

U.S. judge orders resumption in federal drilling auctions in setback for Biden - Reuters
U.S. judge orders resumption in federal drilling auctions in setback for Biden  Reuters

Jeff Bezos’ Blue Origin auctions off seat on first human spaceflight for $28M - TechCrunch
  1. Jeff Bezos’ Blue Origin auctions off seat on first human spaceflight for $28M  TechCrunch
  2. Blue Origin auctions seat on first spaceflight with Jeff Bezos for $28 million  CNBC
  3. Blue Origin auctions New Shepard ride with Jeff Bezos for $28 million  The Verge
  4. Blue Origin auctions off a trip to the edge of space for $28 million  Axios
  5. Blue Origin auctions New Shepard seat for $28 million  SpaceNews
  6. View Full Coverage on Google News

Japan Holds First Premium Watermelon Auctions of the Season - NBC 10 Philadelphia
Japan Holds First Premium Watermelon Auctions of the Season  NBC 10 Philadelphia

Jeff Bezos Blue Origin Space Flight Auctions for $28 Million - The New York Times
Jeff Bezos Blue Origin Space Flight Auctions for $28 Million  The New York Times

Canada launches long-awaited auction of 5G spectrum - Reuters
Canada launches long-awaited auction of 5G spectrum  Reuters

Bid4Assets Celebrates Its 1,000,000th Online Auction - PRNewswire
Bid4Assets Celebrates Its 1,000,000th Online Auction  PRNewswire

World Wide Web code that changed the world up for auction as NFT - Reuters
World Wide Web code that changed the world up for auction as NFT  Reuters

Haiti Benefit Auction moves to new location - observer-review.com - OBSERVER-REVIEW.COM
Haiti Benefit Auction moves to new location - observer-review.com  OBSERVER-REVIEW.COM

US treasury auctions of $24 billion of 20 year notes at a high yield of 2.12% - ForexLive
US treasury auctions of $24 billion of 20 year notes at a high yield of 2.12%  ForexLive

Kurt Cobain's Self-Portrait Sketch from 1992 Sells at Auction for $281,250 - PEOPLE
Kurt Cobain's Self-Portrait Sketch from 1992 Sells at Auction for $281,250  PEOPLE

Blue Origin Auction Ends With a Closing Bid of $28 million - Universe Today
Blue Origin Auction Ends With a Closing Bid of $28 million  Universe Today

Bill Gates' company among bidders in auction of Easterday farms properties - Capital Press
Bill Gates' company among bidders in auction of Easterday farms properties  Capital Press

At Phillips, watch auctions are a fine art - High Horology Journal
At Phillips, watch auctions are a fine art  High Horology Journal

Pokémon TCG Demo Pack Up For Auction At Heritage Auctions - Bleeding Cool News
Pokémon TCG Demo Pack Up For Auction At Heritage Auctions  Bleeding Cool News

Kusama Parachain Auctions - The Next Generation Of Token Offerings is Here - Forbes
Kusama Parachain Auctions - The Next Generation Of Token Offerings is Here  Forbes

Kraken Announces Parachain Slot Auctions for Kusama, a Scalable Network of Specialized Blockchains - Crowdfund Insider
Kraken Announces Parachain Slot Auctions for Kusama, a Scalable Network of Specialized Blockchains  Crowdfund Insider

Another first for Polkadot as Kusama council approves first parachain slot auction - Cointelegraph
Another first for Polkadot as Kusama council approves first parachain slot auction  Cointelegraph

Julien’s Auctions 'Music Icons' lot, featuring Eddie Van Halen and Prince-played guitars, rakes in nearly $5 million in three days - Guitar World
Julien’s Auctions 'Music Icons' lot, featuring Eddie Van Halen and Prince-played guitars, rakes in nearly $5 million in three days  Guitar World

Pokémon TCG 1st Ed. Jungle Booster Box On Auction At Heritage - Bleeding Cool News
Pokémon TCG 1st Ed. Jungle Booster Box On Auction At Heritage  Bleeding Cool News

'Special' kelpie sells for staggering $27,000 at working dog auction - CNN
'Special' kelpie sells for staggering $27,000 at working dog auction  CNN

Auction for closed brewery equipment set to close this week - Eureka Times-Standard
Auction for closed brewery equipment set to close this week  Eureka Times-Standard

Own A Piece Of Rathskeller History Through Planned Auction - Onward State
Own A Piece Of Rathskeller History Through Planned Auction  Onward State

Mecum Auctions makes big debut in Tulsa with 200 more cars than originally expected - KTUL
Mecum Auctions makes big debut in Tulsa with 200 more cars than originally expected  KTUL

Heritage Auctions' Rare Books Event Hits a Record-Setting $2.7 Million | Fine Books & Collections - Fine Books & Collections Magazine
Heritage Auctions' Rare Books Event Hits a Record-Setting $2.7 Million | Fine Books & Collections  Fine Books & Collections Magazine

Napa’s extravagant wine auction ends after 40 years, changing to be less ‘elitist’ - San Francisco Chronicle
Napa’s extravagant wine auction ends after 40 years, changing to be less ‘elitist’  San Francisco Chronicle

Auction Napa Valley will be replaced with yearlong fundraising campaign when it resumes - Santa Rosa Press Democrat
Auction Napa Valley will be replaced with yearlong fundraising campaign when it resumes  Santa Rosa Press Democrat

RoofClaim.com CEO Hosts Live & Online Automobilia Auction - Business Wire
RoofClaim.com CEO Hosts Live & Online Automobilia Auction  Business Wire

Inside The TV And Movie Memorabilia Auction Expected To Bring In Over $6.1 Million - Forbes
Inside The TV And Movie Memorabilia Auction Expected To Bring In Over $6.1 Million  Forbes

Motorway’s auction platform for second-hand cars raises $67.7M Series B led by Index Ventures - TechCrunch
Motorway’s auction platform for second-hand cars raises $67.7M Series B led by Index Ventures  TechCrunch

1987 Buick GNX with 8.7 miles on it headed to auction - Motor Authority
1987 Buick GNX with 8.7 miles on it headed to auction  Motor Authority

Want to own some 'Tiger King' memorabilia being auctioned by Joe Exotic? Here's how - Oklahoman.com
Want to own some 'Tiger King' memorabilia being auctioned by Joe Exotic? Here's how  Oklahoman.com

County Real Estate Auction Sees Increased Sales - Public Radio Tulsa
County Real Estate Auction Sees Increased Sales  Public Radio Tulsa

Former state-owned hospital goes to auction - PennLive
Former state-owned hospital goes to auction  PennLive

Polkadot’s Kusama Network to Start Parachain Auctions Next Week - CoinDesk - CoinDesk
Polkadot’s Kusama Network to Start Parachain Auctions Next Week - CoinDesk  CoinDesk

Connecticut Lighthouse Going Up For Auction - NBC Connecticut
Connecticut Lighthouse Going Up For Auction  NBC Connecticut

Exceptional online auction of solar cell production lines - PV-Tech
Exceptional online auction of solar cell production lines  PV-Tech

City of Eagle auctions off former 35-acre Floating Feather park site - boisedev.com
City of Eagle auctions off former 35-acre Floating Feather park site  boisedev.com

VAMs and Dimple Morgan Dollars Reflected in Month-Long Auction - CoinWeek
VAMs and Dimple Morgan Dollars Reflected in Month-Long Auction  CoinWeek

1995 McLaren F1 with only 242 miles going to auction - Autoblog
1995 McLaren F1 with only 242 miles going to auction  Autoblog

Online auction raising money for new Boyertown museum - 69News WFMZ-TV
Online auction raising money for new Boyertown museum  69News WFMZ-TV

HiBid Auctions Feature Everything from Repo Vehicles to Fine Jewelry, with Over $40 Million Sold Last Week - PRNewswire
HiBid Auctions Feature Everything from Repo Vehicles to Fine Jewelry, with Over $40 Million Sold Last Week  PRNewswire

Mona Lisa up for auction? Not quite - Reuters
Mona Lisa up for auction? Not quite  Reuters

10 Standout Auction Lots on Artsy This Week - Artsy
10 Standout Auction Lots on Artsy This Week  Artsy

German wind auction reaches 1GW for first time since 2017 - Windpower Monthly
German wind auction reaches 1GW for first time since 2017  Windpower Monthly

Princess Margaret's 1954 Rolls-Royce Phantom Is on the Auction Block - PEOPLE
Princess Margaret's 1954 Rolls-Royce Phantom Is on the Auction Block  PEOPLE

Huntsville Crime Stoppers Charity Auction happening now - WAFF
Huntsville Crime Stoppers Charity Auction happening now  WAFF

The Top 5 Biggest Lots Sold Through Artnet Auctions This Year, From a Frank Stella Masterwork to an Andy Warhol Icon - artnet News
The Top 5 Biggest Lots Sold Through Artnet Auctions This Year, From a Frank Stella Masterwork to an Andy Warhol Icon  artnet News

Auction items for radio-telethon - Hillsboro Times Gazette
Auction items for radio-telethon  Hillsboro Times Gazette

Oasis Family Resource Center Hosts Online Survivors Auction - 9 & 10 News - 9&10 News
Oasis Family Resource Center Hosts Online Survivors Auction - 9 & 10 News  9&10 News

Annual Tulsa County Real Estate Auction Continues - News On 6
Annual Tulsa County Real Estate Auction Continues  News On 6

HiBid Records $44 Million in Auction Sales Last Week, with Returned and Seized Items Now Up for Bidding - PRNewswire
HiBid Records $44 Million in Auction Sales Last Week, with Returned and Seized Items Now Up for Bidding  PRNewswire

Auction of Washington Wines Hosts Karen Macneil Virtual Wine Tastings, June 30-Aug. 4, 2021 - wineindustryadvisor.com
Auction of Washington Wines Hosts Karen Macneil Virtual Wine Tastings, June 30-Aug. 4, 2021  wineindustryadvisor.com

A 110-year-old bottle of Champagne is about to go on the block in an auction that could fetch millions - CNBC
A 110-year-old bottle of Champagne is about to go on the block in an auction that could fetch millions  CNBC

Current HiBid Auctions Include Speedboats, Jet Skis, Sports Cars, Motorcycles, and More, Following $30.7 Million Week - PRNewswire
Current HiBid Auctions Include Speedboats, Jet Skis, Sports Cars, Motorcycles, and More, Following $30.7 Million Week  PRNewswire

One of the Most Notorious Issues of Crime Does Not Pay, Up for Auction - Bleeding Cool News
One of the Most Notorious Issues of Crime Does Not Pay, Up for Auction  Bleeding Cool News

Kurt Cobain Self-Portrait, Alex Van Halen Drums Sell Big at Auction - wmmr.com
Kurt Cobain Self-Portrait, Alex Van Halen Drums Sell Big at Auction  wmmr.com

Upcoming Heritage memorabilia auction to feature dozens of Star Trek matte paintings and other items - Daily Star Trek News
Upcoming Heritage memorabilia auction to feature dozens of Star Trek matte paintings and other items  Daily Star Trek News

Behind Blue Origin bids: RR Auction vets viers for New Shepard seat - collectSPACE.com
Behind Blue Origin bids: RR Auction vets viers for New Shepard seat  collectSPACE.com

Online Originals: Monthly auction gives back to Craven County community - WNCT
Online Originals: Monthly auction gives back to Craven County community  WNCT

Arizona land auction postponed again after no one bids - ABC15 Arizona
Arizona land auction postponed again after no one bids  ABC15 Arizona

Predators celebrate 615 Day with party, silent auction at Ford Ice Center to benefit Boys & Girls Clubs of Middle Tennessee - NewsChannel5.com
Predators celebrate 615 Day with party, silent auction at Ford Ice Center to benefit Boys & Girls Clubs of Middle Tennessee  NewsChannel5.com

Government auctions vehicles with open recalls in Phoenix - AZFamily
Government auctions vehicles with open recalls in Phoenix  AZFamily

'It's like a live auction': Housing market sees price increase, more cash offers - ActionNewsJax.com
'It's like a live auction': Housing market sees price increase, more cash offers  ActionNewsJax.com

Crucial 5G Auction Could Pave Way for New Canadian Wireless Player - Bloomberg
Crucial 5G Auction Could Pave Way for New Canadian Wireless Player  Bloomberg

How Unity used a modified auction to go public - IR Magazine
How Unity used a modified auction to go public  IR Magazine

PHPA Captains' Club Jersey Auction is underway - ECHL.com
PHPA Captains' Club Jersey Auction is underway  ECHL.com

FCC sets October start date for 3.45 GHz auction - FierceWireless
FCC sets October start date for 3.45 GHz auction  FierceWireless

'Covid Alien' CryptoPunk NFT sells for over $11.7 million to billionaire buyer in Sotheby's auction - CNBC
'Covid Alien' CryptoPunk NFT sells for over $11.7 million to billionaire buyer in Sotheby's auction  CNBC

Two Kentucky Real Estate Professionals Indicted for Rigging Farmland Auction - Department of Justice
Two Kentucky Real Estate Professionals Indicted for Rigging Farmland Auction  Department of Justice

Fort Seward barracks storage auction draws crowd both for a chance to look inside, and to discover old items | KHNS Radio - KHNS Radio
Fort Seward barracks storage auction draws crowd both for a chance to look inside, and to discover old items | KHNS Radio  KHNS Radio

St. Louis County land auction nets $900,000 - Duluth News Tribune
St. Louis County land auction nets $900,000  Duluth News Tribune

Rice/St. Cloud Area Auction • Saturday, June 5 | Auctions - ECM Publishers
Rice/St. Cloud Area Auction • Saturday, June 5 | Auctions  ECM Publishers

A Man Who Died Of COVID Left His Family A Cache Of Baseball Cards Worth Millions - NPR
A Man Who Died Of COVID Left His Family A Cache Of Baseball Cards Worth Millions  NPR

Kevin Hart’s Gorgeous Custom 1977 Ford Bronco Is Heading to Auction This Week - Robb Report
Kevin Hart’s Gorgeous Custom 1977 Ford Bronco Is Heading to Auction This Week  Robb Report

Latest News in Black Art: Julie Mehretu Benefit Auction Sets New Record, Vanessa German Joins Kasmin, Gordon Parks Documentary, Jean-Michel Basquiat & More - Culture Type
Latest News in Black Art: Julie Mehretu Benefit Auction Sets New Record, Vanessa German Joins Kasmin, Gordon Parks Documentary, Jean-Michel Basquiat & More  Culture Type

County to auction off hundreds of properties with unpaid taxes - Tulsa World
County to auction off hundreds of properties with unpaid taxes  Tulsa World

The Most Expensive Picassos to Sell at Auction - ARTnews
The Most Expensive Picassos to Sell at Auction  ARTnews

One Giant Sale for Mankind: Armstrong’s Moon Mission Companions Auctioned - The Aviationist
One Giant Sale for Mankind: Armstrong’s Moon Mission Companions Auctioned  The Aviationist

Nuclear capacity increases by 4.5 GW in long-delayed 'MOPRed' PJM auction, coal loses 8 GW - Utility Dive
Nuclear capacity increases by 4.5 GW in long-delayed 'MOPRed' PJM auction, coal loses 8 GW  Utility Dive

Art Thefts Rock Italian Broadcaster, David Bowie Work to Auction, and More: Morning Links from June 14, 2021 - ARTnews
Art Thefts Rock Italian Broadcaster, David Bowie Work to Auction, and More: Morning Links from June 14, 2021  ARTnews

World's Most Valuable Postage Stamp Falls Short Of Anticipated Auction Record - NPR
World's Most Valuable Postage Stamp Falls Short Of Anticipated Auction Record  NPR

Enel X Awarded Nearly 3,000 MW at PJM Capacity Auction, Accelerating the Transition to a Cleaner Grid - PRNewswire
Enel X Awarded Nearly 3,000 MW at PJM Capacity Auction, Accelerating the Transition to a Cleaner Grid  PRNewswire

How Shop an Auction : Finding a Deal on Furniture at an Auction - HouseBeautiful.com
How Shop an Auction : Finding a Deal on Furniture at an Auction  HouseBeautiful.com

Courthouse commotion — protesters try to disrupt World Class foreclosure auctions - KXAN.com
Courthouse commotion — protesters try to disrupt World Class foreclosure auctions  KXAN.com

Princeton Area Auction • Friday, May 28 | Auctions - ECM Publishers
Princeton Area Auction • Friday, May 28 | Auctions  ECM Publishers

1964 Cleveland Browns items sold at recent auction, including Frank Ryan’s championship ring - cleveland.com
1964 Cleveland Browns items sold at recent auction, including Frank Ryan’s championship ring  cleveland.com

Berks County to Hold First-Ever Online Auction for Delinquent Real Estate Taxes via Bid4Assets.com - PRNewswire
Berks County to Hold First-Ever Online Auction for Delinquent Real Estate Taxes via Bid4Assets.com  PRNewswire

Portion of Torch Lake property sells for nearly $2 million at auction - UpNorthLive.com
Portion of Torch Lake property sells for nearly $2 million at auction  UpNorthLive.com

State will auction off endowment land near Caldwell for future housing - boisedev.com
State will auction off endowment land near Caldwell for future housing  boisedev.com

Orchards Hotel to be sold at auction June 30 - Berkshire Eagle
Orchards Hotel to be sold at auction June 30  Berkshire Eagle

Sale of Museum Paintings Helps Conclude Strong Auction Season - The New York Times
Sale of Museum Paintings Helps Conclude Strong Auction Season  The New York Times

This stolen Corvette was recovered in Rochester. NY sold it at auction. - Democrat & Chronicle
This stolen Corvette was recovered in Rochester. NY sold it at auction.  Democrat & Chronicle

Fate of Illinois nuclear plants in balance after 3 fail to clear PJM auction and subsidy plan stalls - Utility Dive
Fate of Illinois nuclear plants in balance after 3 fail to clear PJM auction and subsidy plan stalls  Utility Dive

Smith County to hold auction of 26 vehicles - KLTV
Smith County to hold auction of 26 vehicles  KLTV

Real Estate Auction Firms - Wichita Business Journal - Wichita Business Journal
Real Estate Auction Firms - Wichita Business Journal  Wichita Business Journal

Corvette at OGS auction sells for $32,300 - WRGB
Corvette at OGS auction sells for $32,300  WRGB

'Charlie Bit Me' Will Remain On YouTube After NFT Auction Switcheroo - NPR
'Charlie Bit Me' Will Remain On YouTube After NFT Auction Switcheroo  NPR

Arizona site auctions postponed again; Austin likely landing spot for Samsung, reports say - Phoenix Business Journal - Phoenix Business Journal
Arizona site auctions postponed again; Austin likely landing spot for Samsung, reports say - Phoenix Business Journal  Phoenix Business Journal

Social Auction App SuperBid Enters The Ring With Logan Paul And Floyd Mayweather In Their Upcoming Fight - PRNewswire
Social Auction App SuperBid Enters The Ring With Logan Paul And Floyd Mayweather In Their Upcoming Fight  PRNewswire

Rookie card of Tampa Bay Buccaneers QB Tom Brady sells for record $3.107 million at auction - ESPN
Rookie card of Tampa Bay Buccaneers QB Tom Brady sells for record $3.107 million at auction  ESPN

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