Shipping 101


How often do you frequent your local post office? When was the last time you visited a UPS shipping center? Do you even know where your local FedEx branch is located?

If these questions make you nervous, you're not alone. For many users, the scariest part of the entire auction process is shipping the item. Not packing, not labeling, but actually taking the box to the shipping center and sending it on its way.

That's because when it comes to shipping, there are so many choices involved. Which carrier do you use? Which specific service offered by a carrier should you choosethe fastest one or the cheapest one? And what about all those extras, such as insurance and delivery confirmation? With all those choices, how do you avoid making the wrong decisions?

If shipping is somewhat foreign to you, don't worry. It isn't quite as difficult as it seems, and it will become old hat after just a few trips to the shipping center.

Examining the Major Shipping Services

You have several choices when it comes to shipping your package. You can use the various services offered by the U.S. Postal Service (regular mail, Priority Mail, Express Mail, Media Mail, and so on) or any of the services offered by competing carriers, such as UPS or Federal Express. You can deal directly with any shipping service or use a local shipping store to handle the shipping (and even the packing)but at a cost.

As you've no doubt gathered, there are some significant differences in shipping costs from one shipping service to another. The cost differential is typically based on a combination of weight and distance; the heavier an item is and the farther it has to go (and the faster you need to get it to where it's going), the more it costs. As an example, the costs of shipping a two-pound box from New York to Los Angeles run from less than two bucks to more than $30. For this reason, it's a good idea to "shop" the major shipping services for the best shipping rates for the types of items you normally sell on eBay.

"Mike Sez"

Which shipping services do I use? For small items, I default to USPS Priority Mail; it's inexpensive and relatively fast, plus I get free packing materials from my local post office. For books, I use USPS Media Mail, which is cheaper and almost as fast. For really big items (over 10 pounds or so), I go with UPS. But I find that, nine times out of ten, Priority Mail or Media Mail does the job for me.


Of course, cost isn't the only factor you want to consider. You also want to compare how long it takes the package to arrive, what kind of track record the shipping service has, and how convenient it is for you to use. If you have to drive 20 miles to get to a UPS office, and you have a post office just down the street, that might offset a slightly higher cost for Priority Mail.

All that said, which shipping service should you use? That's a good question, but not always an easy one to answer. Ultimately, you have to strike a compromise between cost, convenience, and speed.

Using the U.S. Postal Service

The USPS offers several shipping options:

  • Priority Mail. This is the preferred shipping method for many experienced auction sellers, if only for its relative convenience. Although Priority Mail used to be predictably low-cost (with flat fees based on weight, not distance), recent price increases have left the service less competitive than before. (You also have to factor distance into the pricing equation, for packages over one pound.) There's also the advantage of getting a flat rate on small packages shipped in one of their flat-rate envelopesjust $4.05 to go anywhere in the U.S. Service is typically in the one-to-threeday range, and the postal service has lots of free Priority Mail boxes you can use. And you can print out Priority Mail shipping labels and postage on your own PC, direct from eBay/PayPal, as we discussed previously.

  • Express Mail. This is the USPS's fastest service, offering guaranteed next-day delivery 365 days a year, including weekends and holidays. Merchandise is automatically insured up to $100. Express Mail is considerably more expensive than Priority Mail.

  • First Class Mail. This is an option if your item fits into an envelope or small package. It also provides the benefit of shipping directly from your mailbox, without necessitating a trip to the post officeassuming that you can figure out the correct postage. Delivery is similar to Priority Mail, typically three days or less.

  • Parcel Post. This used to be known as the "slow" USPS service for larger packages, but it has gotten faster of lateand it's priced lower than Priority Mail. Still, shipping something Parcel Post from coast to coast might take seven to nine days, as opposed to Priority Mail's two (or three) days.

  • Media Mail. This is what USPS used to call "book rate"; it can be used to ship books, DVDs, videotapes, compact discs, and other printed and prerecorded "media." The rates are much cheaper than those for Priority Mail, although delivery is typically in the Parcel Post rangeseven to nine days. Still, this is a good, low-cost way to ship many popular items; the cost for shipping a typical hardcover across the country is less than two bucks, compared to $4.05 for Priority Mail.

Caution

Media Mail is reserved for publications without advertisingso you can't use it to ship magazines, newspapers, or comic books.


You can find out more about USPS shipping at the USPS website, located at www.usps.gov. This site includes a postage calculator (postcalc.usps.gov) for all levels of service.

Using UPS

UPS is a good option for shipping larger or heavier packages but can be a little costly for smaller items. UPS offers various shipping options, including standard UPS Ground, Next Day Air, Next Day Air Saver, and 2nd Day Air.

You can find out more about UPS shippingand access a rate calculatorat the UPS website, located at www.ups.com.

Using FedEx

FedEx is probably the fastest shipping service, but it can also be the most costly. FedEx tends to target the business market (which can afford its higher rates), so it isn't widely used for auction or retail shippingwith one significant exception: FedEx Ground.

Tip

USPS, UPS, and FedEx are the three most popular shipping services in the U.S., but they're not the only services available. Two other services you can use to ship your eBay merchandise are DHL (www.dhl.com) and Purolator Courier (www.purolator.com).


FedEx Ground is a terrific choice when you're shipping out larger items. It's designed for bigger and/or heavier packages, and its rates are well below similar services offered by the Postal Service and UPS. I use FedEx Ground to ship DVD players and various audio equipment, and it's extremely cost effective. For example, FedEx charges almost $5 less than Priority Mail to ship a five-pound item from coast to coast. That's a big savings!

FedEx is also a convenient choice for many sellers, especially since you can now ship from any FedEx Kinkos location. You can find out more about FedEx shipping at its website, located at www.fedex.com, and can access the company's rate finder directly at www.fedex.com/us/rates/.

Using a Professional Packing and Shipping Service

If you're new to this packing and shipping thing, you might want to do your packing and shipping through a professional shipping store. These storessuch as The UPS Store (www.theupsstore.com) or FedEx Kinkos (www.fedexkinkos.com)will handle the entire process for you. Just bring them the item you want to ship, and they'll find the right-sized box, pack it up for you, and fill out all the shipping paperwork.

Of course, all this work comes at a cost. Make sure you find out how much you'll have to pay for this service, and add that cost to your shipping/handling charges in your auction item listing.

How to Reduce Shipping WeightAnd Shipping Costs

Because weight is an important part of the shipping equation, here are a few tips for bringing down the weight of the items you ship:

  • Use peanuts instead of paper for cushioning; peanuts are much lighterand don't leave ink stains on the merchandise.

  • Even better, use air instead of peanutsin the form of those air-filled bags that Amazon.com uses to cushion their packagesalso available from some packing materials retailers.

  • Use less heavy-duty boxes, if you can. (This is generally an option only when you're shipping light objects.) You'd be surprised at the difference in weight between similarly sized boxes, based on the thickness of the cardboard.

  • Don't use oversized boxes. If the box is too large, either trim down the unused portion of the flaps or move to a smaller box.

Finally, be sure to include the weight of the box and the cushioning material when you weigh your item for shipment. A big box with lots of crumpled paper can easily add a half-pound or more to your item's weightexcess weight you'll have to pay for.

Shipping Large or Heavy Items

Some items are just too big to ship via conventional means. Suppose you just sold an old pinball machine, or a roll-top desk, or a waterbed. How do you deal with items that big?

Assuming that the item is too big even for UPS, you have to turn to traditional trucking services. Some of these services will pack or crate the item for you (for a fee); others require you to do all the crating. In addition, some of these firms require you to deliver the item to their shipping terminal, and for the buyer to pick it up from their dock. (Other firms offer door-to-door serviceagain, sometimes for a higher fee.) In any case, it helps to make a few calls and ask for specifics before you decide on a shipper.

Caution

Most of the standard shipping services I mentioned earlier in this chapter, such as the U.S. Postal Service, won't handle packages that weigh more than 70 pounds, or have a combined length and girth of more than 130 inches.


For shipping oversized items, here are some of the trucking services that other eBay sellers have used. Check with each firm for information on fees and shipping policies.

  • AAA Cooper Transportation (www.aaacooper.com)

  • Forward Air (www.forwardair.com)

  • Vintage Transport Services (www.vintagetransport.com)

  • Yellow Freight (www.yellowfreight.com)

In addition, eBay itself offers a Freight Resource Center (ebay.freightquote.com) for shipping large items; you can obtain freight quotes and initiate shipping directly from this page. You can also contact Freightquote.com via phone, at 888-875-7822.

How to Price Shipping and Handling for Your Item Listings

Let's think back to the start of the auction process. You probably remember that I recommended you include your shipping and handling charges up front so that bidders know what to expect.

But how do you figure shipping costs before you know where the item is going?

Working with Flat Fees

The solution is easy if you're shipping something that weighs (packaging included) less than a pound. For these lightweight items, you can use USPS Priority Mail, which ships one-pound packages anywhere in the U.S. for a single price ($4.05 at the time of writing). Because you can also use free boxes (provided by the postal service), you know that your cost to package and ship a one-pound item will be $4.05. Easy.

Tip

Another option is to use of the post office's flat-fee boxes or envelopes, which let you ship items of any weight anywhere in the U.S. for a single flat fee.


If you're shipping books, CDs, or videos, you also have it easyif you choose to ship via USPS Media Mail. These rates are so cheap that you can do some creative rounding of numbers and say that any item weighing two pounds or less can ship anywhere in the U.S. for $2.00. The actual Media Mail rate might be $1.56 or $1.84 or whatever, but $2.00 makes a convenient number to state up front; the gap between actual and projected shipping can go toward the purchase of an appropriate box or envelope.

Tip

When you're shipping light items, such as a single CD, check with your post office for the best rate. Sometimes First Class can be cheaper than Media Mail!


Working with Variable Fees

When you're shipping items that weigh more than a pound, the calculation gets much more complex. The fact is that if you're selling an item that weighs, let's say, four pounds, the actual shipping costs (via Priority Mail) can range from $5.60 to $10.90, depending on where you are and where the buyer is. That's because Priority Mail ratesmost shipping rates, actuallyvary by distance. So there's no way to quote an exact shipping cost until the auction is over and you get the buyer's ZIP code.

That said, there are three ways you can deal with this situation in your auction listings.

First, you can calculate an average shipping cost for your item, figuring a cost halfway between the minimum and the maximum possible costs. Using our four-pound example, the minimum cost for Priority Mail shipping is $5.60 and the maximum is $10.90, so you would charge the buyer the average of these two numbers, or $8.25. (Or maybe you would round up to $9.00.) The theory here is that you lose money on some shipments and make it back on others, so over the long term it's a wash. Of course, nearby buyers might complain that they're paying too much (which they are, because they're in fact subsidizing sellers who live farther away). You'll have to decide whether you can live with the occasional complaintor refund the difference if it's too large.

Next, you can simply state that buyers will pay actual shipping cost based on location, which will be calculated at the conclusion of the auction, and not include a flat shipping and handling charge in your listing. If you take this approach, you have to request the buyer's ZIP code at the end of the auction, refer to various rate charts to figure the shipping cost, and then relay that cost to your buyer. It's a bit of work, but it gets the job done. (It's also made easier by the fact that eBay is now including the buyer's ZIP codewhen availablein its end-of-auction notification emails.)

Using eBay's Shipping Calculator

Finally, and this is my new preferred method, you can choose to include eBay's Shipping Calculator in your item listings. The Shipping Calculator, shown in Figure 23.3, is a great tool; it lets buyers enter their ZIP code on the auction listing page, and then calculates the actual shipping cost, based on the shipping service you selected. (You can also choose to have the Shipping Calculator add a predetermined handling charge for each shipment, which we'll discuss in a minute.) When buyers use eBay Checkout at the end of an auction, or choose to pay via PayPal, they can also use the Shipping Calculator to automatically add shipping and handling fees to their total.

Figure 23.3. Add eBay's Shipping Calculator to your item listings so that buyers can automatically determine shipping and handling fees.


You can activate the Shipping Calculator when you're creating a new item listing on the Describe Your Item page. Just follow these steps:

1.

Work your way through the sell your item process until you reach the Describe Your Item page, then scroll down to the Shipping section.

2.

Pull down the Cost list and select Calculated: Based on Buyer's Address and then click the Apply button. The Shipping section now changes to reflect the calculated shipping option, as shown in Figure 23.4.

Figure 23.4. Activating eBay's Shipping Calculator from the Describe Your Item page.


3.

Pull down the Package Size list and select the type of package you have.

4.

Pull down the Estimated Weight list and select the total weight of the package (including the box and all packing materials).

5.

Pull down the Domestic Shipping Services list and select which shipping service you want to use.

6.

Enter your added handling charge (if any) into the Package & Handling box.

You can now proceed with the rest of the listing creation, as normal.

Because the Shipping Calculator can be added to your item listings free of charge, there's no reason not to use itespecially because it greatly simplifies the task of calculating exact shipping charges to your customers.

Determining the Handling Charge

Aside from the pure shipping costs, you should consider adding a handling charge to the shipping fees your customers pay. After all, you need to be sure that you're compensated for any special materials you have to purchase to package the item. That doesn't mean you charge one buyer for an entire roll of tape, but maybe you add a few pennies to your shipping charge for these sorts of packaging consumables. And if you have to purchase a special box or envelope to ship an item, you should definitely include that cost in your shipping charge. (This argues for planning your shipping before placing your item listingwhich is always a good idea.)

Tip

If you have multiple items for sale, there is every possibility that a single buyer will purchase more than one item. If that happens, you don't need to pack two or more separate boxes for that buyer; you can easily pack all the item purchased in a single box, which will reduce shipping costs. You should pass on that savings to your customer, in the form of a combined shipping and handling fee for all items purchased. If you're inflexible in adjusting your shipping and handling for multiple purchases, you're ripping people offand will lose customers for it.


So you should have no compunction against "padding" your shipping fees with an additional handling charge. In fact, eBay's Shipping Calculator lets you add a separate handling charge to its calculations. It's an accepted part of doing business online.

How to Track Your Shipment

If you think the package might be lost in transit (it's taking too long to arrive), you can always avail yourself of the tracking services provided by UPS, FedEx, and other major carriers. These services typically provide tracking numbers for all packages shipped. In most cases, you can track your package by entering the package's tracking number into the carrier's website.

"Mike Sez"

When I'm supplying quality packaging for a shipment, I find that a handling charge of $1 or $2 (depending on the cost of the item itself) meets with little or no objection from my customers. If I'm using free Priority Mail packaging, I charge less.


The one major shipping service that doesn't offer tracking (by default) is the U.S. Postal Service. What you can get from the postal service (at a cost of from $0.50 to $0.60or free, if you print your own electronic postage labels) is delivery confirmation. USPS confirmation, however, does not confirm that an actual person received the package; it confirms only that the mail carrier delivered it (stuck it in the mailbox, that is).

If you want a signature confirmation on a USPS shipment, you need to send your item with either Signature Confirmation or the certified mail option. Signature Confirmation costs $1.90 ($1.35 if you print electronic postage labels), while certified mail costs $2.40. Both require the recipient to sign on delivery, and are good options if you're shipping something extremely valuable.

When to Recommend Insurance

If you're shipping a moderately expensive item (over $50, let's say), it might be worth the expense to insure it. You can always give the buyer the option of buying insuranceor just do it yourself and include the costs in your normal shipping and handling fee.

As to cost, the U.S. Postal Service charges $1.35 to insure items up to $50, $2.30 for items between $50 and $100, and $2.30 plus $1.05 for each additional $100 for higher-priced items. UPS includes $100 worth of insurance in its basic rates; additional insurance can be purchased for additional cost.

What to Do When Things Go Wrong

If the package never arrivesor arrives damagedyou have some work to do. If you insured the package, you have to file a claim with the carrier. Information for claim filing appears on most of the shipping services' websites, but you might have to visit your carrier's local office to obtain the proper claim forms.

Tip

You can speed up this process by obtaining the claim form yourself, filling in your part, and then sending the claim form and the original insurance receipt to the buyerand let him deal with the post office through the rest of the process.


Note, however, that the procedure for filing a claim can be long and involved. Take the example of the U.S. Postal Service. The process starts with the buyer, who must take the package (merchandise, box, peanuts, and all) to their local post office to fill in half of a claim form (PS 1000). After this form is processed, the post office sends you (the seller) the half-filled-out form, via the mail. You then fill out the rest of the form and take it (along with your original insurance receipt) to your local post office for processing. When enough time goes by the USPS will (or won't, if you filled in something wrong) send a check for the insured amount directly to the buyer.

Other shipping services work differently, and some even send the insurance check to you instead of to the buyer. However it works, you need to communicate with the buyer while you're waiting for the claim to be paid so that both of you are in the loop about what's going on. If you receive the insurance check, you'll then need to refund the buyer's money; if the buyer receives the check, he should notify you when he's been paid.

Caution

If you didn't insure your packageor if the carrier didn't offer automatic insurancethen you have a situation. eBay protocol has it that the seller is responsible for any losses in shipment, so you might end up refunding the buyer's money out of your own pocket.


Tips for Less-Painful Shipping

To wrap things up, here are some additional tips you can use to take some of the hassle out of shipping your eBay items:

  • When you're using the U.S. Postal Service for shipping, try to time your visits to avoid long lines. That means avoiding lunch hour and the last half hour or so before closing; avoiding Mondays; and avoiding peak shipping periods around major holidays, such as Christmas and Valentine's Day. Early morning and mid-afternoon are typically low-volume times.

  • Don't feel obligated to ship every single day of the week. Save up your shipments and go to the post office just one or two days a week.

  • When you have a lot of packages to ship, don't go to the post office by yourself. Take a helperand, if large shipments are common, invest in a small hand truck to help you cart all those boxes to the counter.

  • If you're a heavy shipper, consider setting up an account with a single shipper and arranging daily pickups from your home. Pickup service will cost you a little more but can be more than worth it in time savings. (Most carriers will also pick up single items if you arrange so in advancebut at a much higher fee.)

  • You may need to factor weather conditions into which type of shipping you choose. If it's summertime and you're shipping something that might melt in extreme heat (like an old vinyl LP), pick the fastest shipping method possible.

The Absolute Minimum

Here are the key points to remember from this chapter:

  • Pack your item so that it doesn't rattle when you shake it.

  • Pack your item so that the package is as light as possible.

  • Calculate shipping costs based on the weight of the item being shipped and the packagingincluding the box and cushioning material.

  • Get free boxes for Priority Mail shipping from the post office, or from the USPS website.

  • Don't be afraid to reuse boxes you receive from other sourcesas long as they're still in serviceable shape and you remove all previous labels.

  • Make sure that your label is neatly printed and includes a full address and ZIP code.

  • You can print U.S. Postal Service labels with pre-paid postage direct from the eBay site, on your own computer and printer.

  • Place a layer of clear tape over the delivery label (but not over any bar codes) so that it doesn't get smeared in transit.

  • For most packages, the U.S. Postal Service is a good shipping option, either via Priority Mail, Media Mail, or Parcel Post.





Absolute Beginner's Guide to eBay
Absolute Beginners Guide to eBay (4th Edition)
ISBN: 078973561X
EAN: 2147483647
Year: 2004
Pages: 204

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