Members Login | Help | Contact Us

SaleHoo

Shipping Your Item

Friday 20 November 2009
by SaleHoo.com

Success Story

I've been a member of SaleHoo for about 3 months . The things I've found in the websites are cheap , some have the services for international shipping and some have got dropshipping service . It's very easy to order from these sites and you can get the big profit when reselling them. Anyway Thanks you SaleHoo.

Want to be the next SaleHoo success story?


Click here to join SaleHoo today!

Hi there!

We've been through a lot of the sales process so far, but one thing we haven't looked at is shipping. And it's much, much more important than you probably realize.

Who should you ship with? What will it cost? Find out the answers to these and more in this week's newsletter!

Why is shipping so important?

Imagine that you have just purchased something you really, really want on eBay. You email the seller asking for a quote and the total price that returns is a bit higher than you expected.

Mildly surprised, you pay anyway - assuming that the higher cost will mean quick delivery. Nine days later you are still waiting...finally, 2 weeks after you purchase it the item arrives. The grubby, dented box covered in old flapping tape doesn't exactly look appealing. When you open it, you discover that while it hasn't been broken, your prized item has a slight dent and scratch from a rough shipping trip.

Your excitement vanishes. You feel ripped off. When you email the seller, he replies saying that the damage and delay during shipping isn't his fault. He refuses to communicate further on the matter.

Frustrated, you fume for a few hours before leaving scathing feedback.

Guess what? This scenario isn't uncommon. In fact, shipping delays, or other problems caused by shipping, are the most common cause of negative feedback on eBay.

How you deal with every aspect of shipping - from listing details online to how quickly the buyer receives their final package - is a huge part of your job as a seller on eBay.

But shipping considerations feature at the start of the process too. Shipping feasibility should be in the back of your mind while you are weighing up what to sell on a large-scale on eBay.

The time involved in shipping is also going to be a major part of your eBay business. You should set aside time each morning to package up items to be shipped that day. If you can get friends and family to help you out, then all the better!

First things first: listing shipping details

When setting up your auction, you will need to specify to where you are willing to ship your item. Is your item viable to ship around the world? Or only within America? Will you need insurance? These are all important questions to consider before you make your choice.

In the 'Ship-to Locations' field of the 'Shipping and Payment Terms' section of the form, either leave it as the default option of 'Will ship to the United States and the following', or select 'Will ship worldwide' (for maximum audience), custom select from 9 countries, or alternatively, 'Will not ship - local pickup only'.

Ship to Locations

To quote or not to quote your shipping charge?

While setting up your listing, you can also choose whether or not to include a shipping and handling quote. The majority of sellers do not quote shipping. Rather, once the item has been purchased, the buyer must email the seller asking for a quote based on where they live.

Shipping and Sales Tax

Personally, I think it is far better to quote the shipping price in the auction. Mostly importantly, you give the buyer certainty. Additionally, you save yourself and your buyer time, receive fewer emails, and get paid faster! Everyone benefits all round!

eBay has also announced that they will soon show shipping costs for listings on all search results pages in the future. This is yet another reason why you sould quote a price - although, initially this will only be available for U.S. buyers.

**Top Tip**

Statistics show that listings with shipping costs specified are more likely to end with a sale.

Problems can arise however, if you only charge for shipping, and the shipping cost is clearly shown as being less that your charge. To avoid leaving the buyer feeling ripped off, it's a much better idea to include a handling charge in the total amount (this is a relevant charge as your time is involved in packaging and posting the item).

Some buyers choose to mark their item as able to be shipped worldwide, and then provide a shipping and handling cost for the US. A purchaser from outside the US must email for a price, but certainty is still provided for customers in the US.

How do I work out how much to charge for shipping?

Shipping costs can vary widely, depending on the following:

If you're shipping internationally, usually it's the buyer who pays for shipping and any additional costs that are incurred, such as insurance, duties, taxes and customs clearance fees.

In some instances, an 'extended area surcharge' may apply to your buyers depending on their international locations.

To find out shipping costs:

If you have a ZIP code, Ebay's shipping calculator helps to calculate the costs involved in shipping a parcel.

http://payments.ebay.com/ws/eBayISAPI.dll?..

Some shippers have a shipping calculator on their website.

Or do it at home the old-fashioned way with a postal scale and chart.

Time in Transit

One of your biggest considerations is how quickly the customer wants to receive the parcel.

Within your home country, most people would wish to receive their item within a week of paying, ideally within a few days. Outside of your country, it is acceptable for an item to take 1-2 weeks to arrive.

Of course, it goes without saying that the sooner the parcel arrives, the more positive the response is likely to be from the buyer!

Some buyers may request a quicker delivery time - for example, overnight mail within the United States, or airmail if it is an international customer.

As your aim is to provide exceptional customer service, you must consider the cost to you of these shipping options for your item - particularly if you are sending worldwide.

Insurance

Some carriers automatically protect your package from loss or damage up to $100 of your item's value. Others do not. If your item is worth more than $100, you would be very foolish not to purchase additional insurance.

Note: It is very important to ensure that your item is properly packed. Damage caused through lack of proper packing may void your insurance claim.

Some sellers insist that the buyer purchase insurance as a condition of the sale. However, if you are selling small items, then you might find that insurance costs are not feasible and chip into your profit margins.

In saying that, it is wise to always insure international shipments if your carrier does not provide automatic coverage.

Customs & Documentation

If you are sending items overseas, then you need to be aware of customs regulations.

Customs is a government agency responsible for regulating shipments entering a country or region. All shipments being sent to and from a country or region must clear customs first.

Different countries have different restrictions on what goods they will and will not allow.

Did you know that you are not allowed to send walkie-talkies to the United Kingdom, used bedding to Australia, or shoes to Italy? Other countries have other eccentric prohibitions that you might not even begin to guess!

With that in mind, it is vital that you do some quick research beforehand.

If you ship with UPS, UPS Worldwide Express PlusSM, UPS Worldwide ExpressSM and UPS Worldwide ExpeditedSM shipments automatically include routine customs clearance.

Accurate documentation such as an invoice is required for shipping anything other than letters and documents. UPS can recommend which documents you need and help you to prepare documents online for UPS shipping.

ALL PACKAGES require an invoice with specific information about the transaction between the seller and the buyer.

Customs declaration forms are available at your locals post office, or online at www.usps.com/global/customs.htm.

Managing Risk

Shipping carries with it a degree of risk: the item could go missing or the buyer may have provided you with a false or incorrect address. To ensure that you don't get false feedback or end up losing money, here's a few steps you can take to manage your risk:

Review the buyer's feedback - take extra precautions if necessary.

Consider the value/nature of the item

If some aspect of the sale seems quite high risk, conduct the transaction via a third party escrow service (if available).

**Top Tip**

Use a delivery confirmation service. This is a cheap way to ensure that your package has arrived at its correct destination.

Who can I ship with?

US postal options

USPS: www.usps.com

Rates Delivery Coverage Insurance Express Delivery Confirmation
Generally the cheapest option. Most addresses, including PO Boxes & military addresses Must pay extra. Coverage up to $500. Go registered mail & get insurance up to $25,000 Next day delivery by noon or by 3pm. $100 insurance included Up to $0.60 for delivery confirmation.

UPS: www.ups.com

Rates Delivery Coverage Insurance Express Delivery Confirmation
Prices a bit higher than UPS because of insurance inclusion. Serves remote areas but only delivers to street addresses $100 insurance included in all shipments National & worldwide guaranteed next day delivery.

$1.25 per package. Signature required $1-2.
FedEx www.fedex.com
Rates Delivery Coverage Insurance Express Delivery Confirmation
Most costly of the three. Accepts packages up to 150 pounds. Only to street addresses $100 coverage for Express and Ground services. Additional insurance required for packages over $100. Most reliable express service of the three. Time definite services to within U.S. and to more than 220 countries worldwide. You can track your packages whereabouts through the website. Or request a delivery letter.

International Postal Options

US Postal Service

The US Postal Service has a large selection of service options and the lowest rates. Global Priority Mail is an excellent option for parcels weighing four pounds or less. Delivery typically takes 4 to 6 days and the service is available to over 51 countries.

Return receipt, recorded delivery, and insurance services are not available with Global Priority Mail.

Global Express Mail is a more expensive option, but it provides faster delivery and more services. Average delivery time is 3 to 5 days to over 175 countries. Shipping fees include $100 insurance, and you buy up to $5000 worth of additional coverage.

www.usps.com/global

UPS

UPS is fast, reasonably priced and delivers to 52 countries. Best of all, eBay provides a lot of links straight through to their site, which often makes it my shipper of choice! Free pickup and three free delivery attempts also make UPS a good alternative.

UPS also builds customs-clearance fees into your shipping price, so extra charge surprises are avoided when you reach your destination.

www.ups.com

FedEx

FedEx Express International Economy is speedy and won't break the bank either. If you're wanting to deliver to an obscure country, then FedEx is the way to go. Express International Economy service is available to more than 210 countries! Delivery takes only 2 to 5 days.

www.fedex.com

**Top Tip**

If you want to sell overseas, have a look at eBay's great resource for international sellers http://pages.ebay.com/globaltrade

Workbook

  1. Can you forsee any difficulties shipping your item? These could include: size or weight of your item, customs issues (e.g. your item is banned from several countries), and so on.

    How could these problems be resolved? Resolutions might include: restricted shipping area, researching shipping companies more thoroughly to look for better rates, making a small change to the nature of your item to make it more acceptable overseas.
  2. Visit the websites of several shipping companies and compare rates for your item. Although time-consuming, research is invaluable to your business if you want to create the best possible profit margins.

Useful Links

Why is plastic an important part of packaging? Make a guess and find out if you were correct in next week's newsletter! We'll be discussing packaging options, sources, and methods. See you then.


Exclusive SaleHoo Offer- Click Here!
Previous Newsletters
01 | 02 | 03 | 04 | 05 | 06 | 07 | 08 | 09 | 10 | 11 | 12 | 13