eBay Says That New Sellers Must Specify S&H Costs

Yesterday Kristina Klausen from eBay’s Shipping Team announced that starting this week eBay will begin requiring all new sellers who are listing for the first time to specify their shipping costs using the Shipping Details section. By the time eBay Live arrives specified shipping costs will be required in most listings on eBay. Click here to read the full announcement.

What does this mean for me as a seller?

If you use USPS or UPS then you can take advantage of the eBay Shipping Calculator, if you prefer FedEx or DHL then you will have to enter a flat rate when listing.

Flat rate shipping doesn’t have to be as bad as it sounds. You do not have to charge shipping to zone 8 for all orders no matter how close they are. What you want to do is determine what shipping amount will cover most of your shipments. The best way to arrive at this number is to pull a list of all your orders from the previous month, quarter or even the last year. The more data the better.

With this data you should be able to determine what your average shipping cost was as well as other interesting metrics like what percentage of your orders are only traveling a short distance and which ones are traveling further. Your goal should be to at least cover shipping on all orders and maybe have a little profit built in should the rates or surcharges increase.

Probably the best benefit of Flat Rate S&H that I can think of is while all the other sellers are scrambling to change their S&H on thousands of listings, your S&H doesn’t have to be changed. We experienced this back in 2006 when the USPS changed their rates. While many sellers were frantically changing the S&H in their listings, we continued to list and sell additional product.

As a seller I believe it creates a good buying experience if we provide the potential buyer with a shipping quote upfront and in the actual search if possible. This change will not affect our business because we already do this. However, I am concerned for other sellers because the eBay shipping calculator can be buggy at times and doesn’t support all the carriers. It would be easier for everyone to swallow if eBay would have added the functionality for all major carriers to the shipping calculator.

Chuck

Comments

  1. Patrice says

    Sigh …. I don’t mind providing S/H costs for all my items on eBay. In fact, I would LOVE to do so, and agree that the buyer should have all the S/H information available when making a purchasing decision. HOWEVER, trying to set First Class Mail rates when using the shipping calculator is a nightmare. For example, I had a multiple quantity store listing, where each item weighed about 8 oz. If the buyer wanted one – fine, no problem. The eBay calculator showed a charge of $3 and change via USPS First Class Mail. When if the buyer wanted 30, the shipping calculator showed almost $100 in S/H via First Class Mail! Rather than compute the total weight, THEN determine the shipping costs based on total weight, the calculator just took the cost for 1 item and multiplied it by the number purchased! Surely, eBay can get their calculator to …… um …. CALCULATE properly?

  2. Me488 says

    Be prepared for a percentage of international bidders to leave negative feedback and lower your DSR stars if your actual shipping (printed on their package) is lower than your flat-rate amount. Some do not understand how flat-rate shipping works. (You lose money on some shipments, make money on others, just to break even.) You will be berated as a gouger, especially when the new feedback policy is in place.

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