Jim 'Griff' Griffith

Learning the Basics of Shipping
by Jim 'Griff' Griffith
eBay Staff Member

Q: I have been trying to find out what is considered a "reasonable fee" or markup for shipping and handling. Is it ~25%, or up to 400%? I cannot seem to find any information.

Emma

A: Hi Emma,

Sellers are allowed to charge a "reasonable" fee for shipping and handling. We only ask that sellers state their shipping and handling costs clearly in their item description, either as set fees or through the handy eBay Shipping Calculator. This is to ensure that a buyer isn't surprised by shipping and handling costs after the listing ends.

eBay intentionally avoids defining "reasonable" for an important reason: there are different rates for different items based on location, weight, services, etc. Sellers know better than eBay what works for them individually. And that's the key. Like so many aspects of the eBay marketplace, shipping and handling costs are somewhat self-regulating. As long as seller clearly state their after-sale costs, such as shipping and handling, buyers can shop for the seller with the best, most reasonable shipping and handling rates.

Regards,
Griff

Q: Hey Griff,

I've only just started listening to your radio program and I think it's great!

I'm from Perth in Western Australia and I'm at a crossroads as to what to do with my shipping costs. I usually find it costs a tad more than I'm comfortable asking from my buyers and I don't want to scare them away. I'm currently using bubble wrap but I don't know if packing peanuts are lighter.

What should I do? Absorb the shipping costs, or up the cost of the item slightly? Does anyone else know of a handy tactic to make it seem like less of a shock to the buyer?

Glen

A: Hi Glen,

If you clearly indicate that you are located in Australia and if you find the most inexpensive options for shipping, you will find it much easier to compete with U.S.-based sellers. If you want to give your listings an even sharper competitive edge, consider increasing the perceived value of your items by adding extras or a bonus for at least some, if not all of your listings.

Finally, outdo your competition. Make sure your listing description layouts are the best in their category (it pays to strive for the most professional looking listings as much as possible). Provide the most reasonable and attractive return and refund policy.

Answer customer emails as quickly as possible. You will find that by making the shopping and buying experience pleasant and productive, you will easily compete with other sellers who are perhaps not quite as adept at providing excellent customer service.

Regards,
Griff