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My ebay Shipping and Handling Fees Explained – 2013 Update

January 29, 2013

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The turn of the calendar at the beginning of January brought with it the inevitable increase in shipping rates from Canada Post.

As an eBay seller it is important for me to monitor these rate increases and determine how they will impact the shipping and handling fees that I charge to my fellow collectors.

The last time I updated my shipping and handling charges was back in June of 2011.  In 2012 I got a bit more creative with how I sourced my shipping materials (i.e. bubble envelopes, top loaders/plastic sleeves, team bags, etc.) and was able to find ways to mitigate the postal rate increases, leading to no adjustments being necessary for the year.

This year was a different story as adjustments were necessary, but I was able to find more efficiencies that have allowed me to keep those adjustments in check.

As a collector first and an ebay seller second, I know the frustrations of overpriced shipping fees all too well.  For that reason, I do my absolute best to keep things as above-board as I possibly can when I am on the selling side of the equation.

The most important thing that I ask customers to remember is that the cost of shipping an item goes far beyond the stamp on the front of the envelope (I went into detail about why I felt it was necessary to be up remind ebay buyers of that back in June of 2011).

With that in mind, I developed my shipping fees for 2013 as follows:

 

Canada

USA

International

Postage

$0.70

$1.25

$2.10

Packaging

$0.50

$0.50

$0.50

“Handling”

$1.05

$1.25

$1.65

TOTAL

$2.25

$3.00

$4.25

Additional Cards

$0.50 each

Most important to note about all of this is that I do not profit from my shipping fees.  The fee structure outlined above is based on the average sale price of a single item in my store and the prices you see are the actual costs I incur when selling a card, rounded down or up to the nearest nickel.

What you see summarized in the table breaks down as follows:

Postage – this is the cost of the stamp(s), taxes included, required to ship items to buyers.

Packaging – this includes the bubble envelope, team bag(s), top loader(s), penny sleeve(s), and anything else used to ensure the package arrives safely.

“Handling” – this refers to all of the other fees and charges I incur from ebay and Paypal that directly relate to the sale and shipment of an item.  Monthly item listing fees and my ebay store subscription costs are not included in this number as they are taken into consideration in the pricing strategy I use for the items themselves.

The base shipping rate for each of the three destinations is lower than what I had been previously charging.  This is due to the fact that I was able to find a supplier of #000 envelopes that allow me to use a smaller denomination stamp to get a card to its new owner.

Unfortunately, between the weight restrictions that Canada Post has on standard letter mail and the need to move from #000 sized bubble mailers to the more-expensive-to-mail #0 sized envelopes after just a handful of cards, a bump in the “Additional Cards” charge from 30 cents to 50 cents had to occur.  The price of postage simply rises to drastically and rapidly once I move in to the higher sized envelopes and weight classifications to leave the charge any lower than that 50 cent mark.

Just as was the case with my first iteration of this article more than a year and a half ago, the math required to establish a sound shipping fee structure is not all that complicated.

A relatively small amount of work has allowed me to establish a system that allows me to provide proof to my fellow collectors that I am offering them a fair shipping price while also protecting my reputation on ebay.

I simply affix a sticker to each package that I mail out that directs buyers to this very article and they are then able to provide me with Detailed Seller Ratings that are based on fact instead of an opinion about what they feel shipping rates should be.  It certainly doesn’t offer complete protection against potential problem-buyers, but it is a proactive method of ensuring that I’m doing all I can to protect my 100% feedback rating.

If you are interested in getting more information from me about how I calculate my shipping rates, simply leave a comment below, shoot me an e-mail at bb_bros@hotmail.com, or connect on Facebook or Twitter.

Until next time, all the best in your collecting pursuits!

Ryan

Email Me | Twitter | Facebook | my ebay store | My Want List | RSS Feed

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