posted on September 8, 2003 10:18:35 AM new
There have been many threads commenting on high shipping & handling costs. Well how about this? I bought a collectible coin on Home Shopping Network. The pkg weighed less than 1 lb. The S & H was $9.95. I know theat HSN gets a price break on shipping from UPS so I would guess that the shipping cost would be less than $3.00 which leaves HSN with $6.95 for packing. I charge $2.00 over the cost of shipping, which pays for my materials. I really don't feel ashamed anymore. LOL
posted on September 8, 2003 10:27:09 AM new
I absolutely agree. Companies have been doing it for years. I usually charge $2.50 over my cost and insurance is built in to that $2.50. These companies rarely combine shipping as well. It is usually charged on a per item basis. They are making millions in additional revenue per year. Our hard work goes into the care of packing properly and getting the items out, so I think an extra buck or 2 handling is not an outrageous request.
posted on September 8, 2003 11:26:16 AM new
My impression is that things like collectible coins on HSN also are insured. If so, that would account for some of the high shipping charges, right?
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posted on September 8, 2003 11:33:39 AM new
Hi all,
Gosh, Sanmar, that's OUTRAGEOUS! For a coin??
One company that doesn't overcharge is Amazon. For most things, if the order is over $25.00 shipping is free. My last order was for three items. Each one is being sent separately and they're sending all of them priority mail. (Nice reuseable boxes, too!)
I don't charge anything over the postage for USPS. FedEx items I state a flat fee based on Zone 8, plus the residential surcharge. I round it to the next dollar or so. This covers my packing materials for all the stuff - US mail included.
Works for me!
Lucy
P.S. Sanmar - missed you at the auction yesterday. I bought a few small lots that should do OK on eBay.
posted on September 8, 2003 11:53:11 AM new
Some of the TV selling shows charge a huge premium and some charge a very low s/h price. Being a typical channel surfer during breaks in whatever I'm watching I often check out QVC and the other shopping shows and sometimes I'll see a very low s/h on a heavy item. Of course, sometimes you see an inflated s/h too. I think the coins may have a high percentage of theft and require a high insurance fee.
-------------- sig file ----------- President John F. Kennedy said, "There are three things which are real: God, human folly and laughter. The first two are beyond our comprehension, so we must do what we can with the third."
posted on September 8, 2003 12:04:57 PM new
HSN's shipping policy is a raping. They charge 6.95 for a small 25.00 piece of jewelry, then if you buy 2 they charge exactly twice as much. Then it comes in a single package, via PARCEL POST. For that price it could've been sent Fedex next day air.
posted on September 8, 2003 12:17:41 PM new
A lot of these companies use order fulfillment companies. There are numberous charges involved with these companies. My old company used a fulfillment company so I can give you some insight into fees. (These were the fees 5 years ago, we locked our fees in a a low rate when the company was young and most others were paying twice what we were)
1) Order entry - $1.00
2) First Item Picked - $1.00
3) Each additional item picked - .25
Now add to the - Box, label, packing material, and actual labor. Additionally there are customer service line fees, wherehousing costs, etc that are encompassed into those fees.
Because of the large number of items a catalog company works with, shipping charges are done on averages. You figured out the average weioght of a package whose total cost is X number of dollars and build a formula of shipping per price range. Sometimes you may make a buck, other times you will lose a buck - it all averages out in the end. You just have to remember that these companies have a much higher overhead than a home bsased seller. Just think how big their equivalent of an "ebay room" has to be. (And yes, they have to wherehouse everything - when we were looking at marketing on QVC they had to have all product in house and inspected before they aired).
~~~ • ~~~ • ~~~ • ~~~ • ~~~
Men Are Like Grapes. If You Stomp on Them and Keep Them in the Dark Long Enough, They Might Turn Into Something That You Would Take to Dinner
posted on September 8, 2003 12:24:07 PM new
It's actually industry standard to make money off shipping. FedEx and UPS offer much lower rates depending on volume. Most companies will charge the higher rate plus handling to help defray all those wherehousing costs.
Other companies that you see charging lower shipping are usually just building the extra costs into the price of the item.
posted on September 8, 2003 12:47:52 PM new
I've been buying mail order stuff for 40 years. And I've been ripped off on S/H each and every time. When I started selling on Ebay, I had the opportunity to be on the receiving end of these inflated S/H fee's and I didn't hesitate.
I have run this experiment many times.
Auction 1:
Dutch auction for and item for $10 with FREE S/H (Put the words free s/h in the title)
Auction 2:
Same item, Dutch auction for $5 with $5 S/H in the fine print.
The $5 one get more bids by FAR. Most people just don't pay attention to S/H consequently inflated charges are the norm.
[ edited by dcpent on Sep 8, 2003 12:49 PM ]
posted on September 8, 2003 01:48:37 PM new
The s/h is the first thing I look at as I do not want to waste time reading about an item with high s/h. If the s/h terms are not there then I will generally skip that auction and assume it probably had excessive s/h terms.
-------------- sig file ----------- President John F. Kennedy said, "There are three things which are real: God, human folly and laughter. The first two are beyond our comprehension, so we must do what we can with the third."
posted on September 8, 2003 02:36:50 PM new
Auctionace says "I think the coins may have a high percentage of theft and require a high insurance fee." Tell me Ace how do the thieves know its a coin being shipped to steal?
posted on September 8, 2003 02:40:28 PM new
Ireally don't think that there was any extra insurance on this coin, it was only $19.95 so we aren't talking big bucks. My GF loves to shop on QVC for Diamonique jewelry. I noticed on Sat nite that on a $50.00 piece, the chge was only like 5 bucks. That is reasonable. My charge was just half of the value of the coin, so with sales tax & S&H, my coin cost me over $31.00. I was raped.
posted on September 8, 2003 03:09:19 PM new
You may have been raped but you were raped with your own consent since you knew it was a coin and the s/h was right up there on the screen.
-------------- sig file ----------- President John F. Kennedy said, "There are three things which are real: God, human folly and laughter. The first two are beyond our comprehension, so we must do what we can with the third."
posted on September 8, 2003 05:03:17 PM new
As long as people are willing to pay, the high shipping fees will continue to be charged. We all love the convenience of shopping from our homes, so we pay the price. There are some companys, (Amazon.com for instance), that offers free shipping on some of their items..or if you buy a certain dollar amount.
posted on September 9, 2003 08:55:23 AM new
Thank goodness for high mail order shipping charges! It makes me look good by comparison, because I can inflate shipping and it still will look like a bargain.
