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Mon Jan 1 2024 09:36:02

Online Sellers Must Pass Rising Shipping Costs on to Buyers

By: Reader

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Dear Ina, 

Re: 'eBay Called Me Yesterday' - Are Shipping Costs Too High? (AuctionBytes Blog)

At the end of the day, no matter whether it's free shipping or what have you, the consumer will always end up paying for it in the end. Sellers can't do it any other way. 

USPS, FedEx, UPS rates going up this year. It all goes back into the final cost of the product. 

You've heard from us before but we are a relatively small seller with less than $3 million of revenue annually, and we don't have the resources like big companies to absorb shipping cost like that.
B.

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Readers Comments

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This user has validated their user name. by: iheartjacksparrow

Mon Jan 1 11:35:57 2024

@B. (the OP): $3M in revenue annually is not what I would call a small seller.

Most of my items ship as 4 ounce or 8 ounce packages, and I will have to increase my Ground Advantage prices by 25 cents and 20 cents, respectively.

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by: GetAGrip This user has validated their user name.

Mon Jan 1 11:50:57 2024

3M in revenue and your crying about a few pennies in shipping costs. Now thats what I call funnier than a barrel of monkeys.

We raise out shipping costs according to what the shippers charge, combine multiple orders and if someone whinings we cancel, block and tell them to go somewhere else. Just not into catering to fools that have no clue on shipping.

SHIPPING ISN'T FREE, NEVER HAS BEEN, NEVER WILL BE. Free shipping is a figment of the imagination of the fools in san jose. Just because fleecebay says it is so doesn't make it so.

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by: terry55 This user has validated their user name.

Mon Jan 1 17:06:33 2024

Yep, raising mine up, I skip raising rates last Jan. hoping to give me an advantage. Nope still have to drop prices on my items.  

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by: Snapped This user has validated their user name.

Mon Jan 1 19:13:54 2024

Small.  Large.  Those are subjective labels, and comparisons are relative.  3M$ is just a revenue number.  Y’all have no idea what that seller’s per unit margin is.  That’s the real benchmark.  Those “pennies” add up fast.  

And it’s not just the raw shipping cost impacted.  Materials, labor, overhead - all of that is rising too.

And they didn’t even mention eBay’s automatic increase in the take indexed to every carrier rate raise.  

Still laughing?

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by: GetAGrip This user has validated their user name.

Mon Jan 1 19:20:35 2024

@Snapped.

Yep still laughing. The OP was just blowing hot air to make everyone feel their pain. The bragging about what it makes will get blow back. Most people making that kind of money don't brag about it ANYWHERE. Yep still laughing. ha ha ha ha

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by: Fruitylovesyou This user has validated their user name.

Mon Jan 1 19:26:25 2024

Hey a few pennies add up. as if you all haven't been nickeled before

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by: Snapped This user has validated their user name.

Mon Jan 1 23:27:49 2024

I see.  So where (or what) IS the ‘threshold’ that makes the concern expressed less ‘amusing’?  

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This user has validated their user name. by: Rexford

Tue Jan 2 07:03:08 2024

GetAGrip laughs? Who knew. I hope he/she didn't break something.

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by: my2cents This user has validated their user name.

Wed Jan 3 04:14:10 2024

Sellers much smaller than the OP do not eat the cost of shipping either.  We have to raise our prices, there is simply no way around it.  Buyer don't like it, why should they, but they get use to it and we all march on.  Happens every year with USPS in January and unfortunately it will happen again in early Summer.  And again at the Holidays season.

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by: Casmige This user has validated their user name.

Thu Jan 4 01:40:59 2024

We offer & exclusively resist listing anywhere other than on eBay a proprietary trademarked, patented, & copyrighted USA made & manufactured Auto accessory (Subsequently knocked off & counterfeit-copied by the Chinese in 2010).

Yeah, “you can sue them” ammmmerrriiiitttte?.

It sells for $39.00USD & eBay gets about $5.00/USD, we get about $5.00/USD, the government gets their Sales-taxes & USPS gets about 8.00/USD.

Our sales have gone from a comfortable Mid-6 figures a decade ago with 8 other team members (& their individual seller/re-branded product accounts on eBay) To presently? A paltry gross (in more than one sense of the word) of $16,000 for 2023 - 1/2 of which eBay seller dashboard says is going to sales tax, eBay fees, & the monthly store subscription cost.

Our sales are so low we don’t even generate a 1099K any longer.

A scant 8 years ago? OUR $39.00USD 1.25Lbs 9”x6”x3” boxed product? Shipped internationally for $11 USPS tracking & everything. Under $4.00USD Domestic shipping.

Now?, It cost $28/USD Each international & almost 8.00USD/Each domestic (USPS Flat-Rate Priority Envelope).

Our listing sales price remains $39 USD with “Free shipping” gimmick & a flat shipping rate of $15.00USD For international orders (meaning we subsidize half of the shipping costs & actually lose money on every international sale).

eBay keeps shooting itself in the foot with all these wonderfully dressed MBAs & CEO’s with the corner air-conditioned offices while at the same time shooting the eBay sellers in their heads.

No international buyer in their right mind is going to pay $28-$30.00 For shipping on a product it sells for $39.

What makes it worse? Is that my wife works with a very well-known Major International airline that conveys freight for FedEx & as a result they have a wonderful 80% off regular international shipping rates employee discount …. but I even think that this is now a 3-card monte thimble-rig because I went into FedEx recently this past week to Price the same product at the same weight that it’s always been that I used to be able to ship for around $18 using FedEx to Australia & the agent at FedEx?, while looking me straight in my eyes, telling me that it was going to be close to $100 shipping cost WITH the employee discount!!!. I left & told the agent that it’s pretty clear that they don’t want to ship anything for anyone internationally anymore if it’s going to be $100 to ship a 1 pound item in a very small box to Australia.
🤦‍♂️
Don’t know how eBay does it for $30 but that’s what it ended up costing me with the other choice being USPS international 1st. class at $35?, with no reliable tracking? I wasn’t going to take a chance.

Here’s the thing:

eBay simply doesn’t want sellers to sell anything, anywhere or at anytime & make a marginal profit doing so.

eBay throttles sellers & shadow-bans them in the name of “Fairness” & supposed “equity”….Dare I say it? they probably algorithmically discriminate against Caucasian Sellers especially.

I can’t wait till eBay starts charging us a value added fee for doing a direct deposit on disbursements of our earnings….Or for collecting sales taxes on our behalf & re-submitting them to the various States.

Remember Wayfair interstate sales tax ruling (in place for over 50 years ) was kiboshed & the ruling handed down while never fear Trump is here was in the presidency.

We’ve been on eBay for 22 years, we answer every eMail straight away & immediately, we have “free shipping“ gimmick as eBay wants us to do, we have 30 day free returns as eBay wants us to do , we maintain top rated plus status, we maintain 100% positive feedback, we do everything right, fill out every key word & every descriptive on an eBay listing & even though we’re doing everything right?,  we’re losing year over year over a year over year.

Oh my wife is Taiwanese Chinese, I had her check with an eBay seller of Rx eyeglasses & sunglasses that she knows in Hong Kong.

Because USPS subsidizes the Chinese market? What do you think it cost them to send a 1 pound similarly packaged product (like ours) to anywhere in the world with tracking & insurance & everything?.

$5.00/USD, nope not a misprint: FIVE US DOLLARS.

I thought eBay was all about creating a level selling playing field for all sellers & not picking (or subsidizing for that matter) favourites.

Clearly that’s not the case & it phüucking sucks except that I’m in my 60s now & I guess although I never thought I would be saying this or doing so?, I’m going to apply for my Social Security this year….Before that’s gone, I guess as well.

The funny thing is? Is that fascism is Corporatism in league with Government in order to throttle and control the people.

Tell me that’s not the case here in the USSA & I’ll call you on your dumbassery & a self-deluded liar.

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by: smallstuff This user has validated their user name.

Thu Jan 4 03:32:51 2024

@Casmige - I don't understand why you don't find an economy forwarder like Pirate Ship for your international shipments?  Your 1.25Lbs 9”x6”x3” boxed product will cost $15.49 to Canada, $19.99 to most other countries (and includes tracking).  It's not a huge savings but you can ship to Australia or New Zealand for that.  
Your point is well taken.  The cost of everything including postage is going up.  It doesn't matter whether you sell direct or sell via eBay.  I tell my customers that I offer economy shipping.  If they want it and are buying on eBay, just wait for the invoice.  The rate quoted above will only work if the package qualifies for first class postage (up to $400 value and up to 4 pounds).

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by: Chicago48 This user has validated their user name.

Thu Jan 4 06:22:06 2024

3M in revenue and your crying about a few pennies in shipping costs. Now thats what I call funnier than a barrel of monkeys.
^^
THIS!  How I wish I could sell $3M.
Anywho, the buyer will continue to pay for shipping if:  a) they live in the boondocks nowhere near a WM or Costco or Target.  I get plenty of orders from small town people, not big city people in NYC or Boston, where they have Targets & WMs.
b) if you really want the item you will pay the shipping.  It's a convenience and it saves you from time and gas money.
I am fortunate to live in Chicago near a lot of stores & shopping.  I can go online order and pickup.  That's the way we did it in the old days of catalog.  Call up Sears or JCP, place the order and go pick it up; or send in a check and get it delivered.

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by: ZZ This user has validated their user name.

Thu Jan 4 07:30:09 2024

Try selling cheap clothes and passing the rising cost of shipping on to the buyer. You sales will tumble. Example: 12oz shirt shipped USPS Ground to Boston, 1400 miles away:
$19 item
Total cost to buyer:  $28.43

Shipping plus sales tax is 1/3 of what they pay. Many will see that total and think: I don't really need another shirt; got plenty of 'em already.

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by: pjgriff This user has validated their user name.

Thu Jan 4 07:30:16 2024

You hit the nail on the head, Casmige.  

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by: Stone Cutter This user has validated their user name.

Thu Jan 4 10:34:02 2024

*** Follow the math***

@ Casmige…

I wish I had a dollar for every time a Seller who references that they’ve been in business for over 10 years, therefore they are entitled to great sales..

The realty,…your business model no longer works.

I’m a jeweler on Etsy and my products sell for $300. I only sell to the U.S. …I stopped shipping overseas years ago. And when postage goes up $2.00, I raise my prices by $5.00 and customers continue to buy.

It was clear to me, years ago, that low priced items would not be able to absorb shipping costs, period.

In reference to Ebay…
Ebay is getting into the luxury business with great sales particularly in diamond sales, as small, nearly weightless boxes, are easy and cheap for Sellers to ship. Even Ebay has finally realized that there is no money in selling cheaply priced products…there is no money for the Seller and there is no money for Ebay.

Times have changed. We don’t  live in the 80’s anymore.  

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by: Stone Cutter This user has validated their user name.

Thu Jan 4 11:08:26 2024

*** The Internet increased shipping costs ***

Years ago, I read an article that all that junk mail we use to get helped to subsidize USPS. However, with internet advertisement, much of that junk mail is now gone.

*** My customer from Israel ***

Many years ago, I shipped a ring out to my customer in Israel, however, delivery time was taking forever, so I did some research..

I found out that, like the U.S., that the postal service in Israel was no longer making money from junk mail, therefore their postal service was crashing as Israel had to close down many postal offices, causing huge delays in delivery times.

High postal rates, worldwide, is a problem since advertisers are using the Internet instead of sending advertisements through their post offices. Post offices aren’t making money as they use to from all the junk mail that was delivered on a daily basis.

Times have changed. We don’t live in the 80’s anymore. Pick your business model, wisely.  

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by: NYSteve This user has validated their user name.

Thu Jan 4 11:42:54 2024

i think the OP wants the OK from small sellers to raise their shipping costs
(as BIG sellers DEFINITLEY DO)

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by: ebayout This user has validated their user name.

Thu Jan 4 12:13:07 2024

My 2 cents (no pun intended)...
25 years ago when I started ebay, I could ship a single golf club ANYWHERE in the U.S. for $4.95 via Priority Mail...that was the rate for 0-2 lbs.
NOW...that same shipment takes the 2 lb. rate+a $15 surcharge...basically a $25 total average. USPS is now in my rearview mirror except for smaller items.
Buy stock in UPS.

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by: BurglePork This user has validated their user name.

Thu Jan 4 15:46:27 2024

@Casmige

Have you considered... raising your price? Everything else has gone up, maybe it's time for $39 to become $45 or $49?

And why are you willingly losing money on international sales? Raise your intl shipping cost. If they really want it, they will pay. And if they don't, it sounds like you won't be losing anything. Do you actually need those sales?

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by: Fruitylovesyou This user has validated their user name.

Thu Jan 4 22:08:03 2024

Umm I think the problem is you spent 22 years obeying them. I feel you, I commend you for sticking it out this long. But its believing and trusting these companies that have sucked the livelihoods from so many. Many of you have so much more power than you realize.  



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