How I Handle Shipping & Handling in My Online Auctions By Neil Bartlett AuctionBytes.com
September 07, 2003
"What do you mean I have to pay shipping & handling charges? Isn't that included in the cost of the item?"
Believe it or not, this is an actual question I received from a buyer on one of my auctions. This is just one of many emails I've received questioning my shipping and handling costs - until I rewrote my S&H policy.
Unless they sell online, most buyers are uneducated when it comes to what shipping and handling costs consist of. This leads to one of the most frequent and annoying conflicts between online sellers and buyers.
In order to alleviate this problem, your auctions should include a clearly written Shipping & Handling policy that is easy for the buyer to understand. Of course, understanding it will require that they read it, which a large percentage never does.
I don't advocate calculating the S&H costs after the auction ends, because too often I have had bidders try to negotiate the costs. I don't find it worth the hassle, so I base my S&H fees on what it would cost to ship it anywhere in the U.S.
Of course, this doesn't apply to international shipping. Here I usually state that the shipping charges will be calculated after the auction closes, and that there is an additional charge of $xxx for handling. (Don't forget to find out about any customs charges.)
A good Shipping & Handling policy, which is separate from a payment policy, should include the following:
Where you ship to: US/International
When you ship: Daily, Weekly, etc.
How do you ship: Boxed, bubble wrap, ridged carton, etc.
Mailing services you use: USPS, FedEx, UPS, etc.
Whether you will combine multiple auctions and how close they need to be together, for example within 3 days.
Other information you feel your buyer should know about how you ship.
Remember, the more information you provide, the fewer questions you will receive.
When it comes to positioning the policy in your auction, make sure you don't bury it. I normally put it near the end, but I also have a header in a larger font with a different color that says "Shipping and Handling Instructions."
Lastly, it is my belief that if you, as a seller, charge a flat Shipping & Handling fee that is reasonable and based upon your known costs (packaging, postage, your time and gas to go to the post office and any other related charges), you should not feel embarrassed!
It all boils down to being up-front with all additional charges and spelling out for the buyer what these charges are for.
About the author:
Neil Bartlett is the publisher of The Auction Hot List Newsletter (http://www.auctionhotlist.com). He has been involved in the online auction scene for over 5 years and in the computer industry for more than 20 years. He developed the Auction Hot List Newsletter and companion auction site to help both beginning and advanced auction sellers increase their skills and profits. Neil can be reached at: webmaster @ ebsdiscounts.com
