I have a question about shipping costs on etsy - I bought a bread bag, which the seller charged $3.75 to ship. Well, it came today and the postage on it equaled 84 cents, and it came in one of those plastic-y type envelopes that I assume are pretty cheap.
Would it be tacky of me to leave the seller a neutral or negative rating based on the fact that she way overcharges for shipping? I kind of want her to refund part of my shipping costs - I looked at her other listings for the same item, and she raised the price of the item, but lowered shipping costs by $1.25 for the same item.
TIA!
-- Edited by wetbandit42 on Monday 26th of April 2010 05:10:29 PM
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Sorry, but before you purchased the iten the shipping costs were listed in the listing, by purchasing you agree to them. As a seller, I include the cost of packaging my items, and while I also wrap and try to create a nice presentation, I don't feel leaving neutral or negative feedback is the proper way to handle this. Perhaps you could try contacting the seller to let her know of your disappointment?
Thanks iapt - you're right. The shipping costs were listed, and I should have realized they sounded high before purchasing. I am going to leave the seller positive feedback because I liked the item, but I am going to mention it in my comments section that I feel the s&h was a little high.
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Know first, who you are; and then adorn yourself accordingly. - Epictetus
Okay, here's my take on this (and I sell on Etsy and elsewhere). The seller doesn't need to refund your shipping charges, but I always do this if I overcharge on shipping.
And here's why- I build the cost of my shipping supplies, plus the time it takes to go to the post office and all that fun stuff into the cost of my merchandise because that's what it is. Supplies, time, etc. are all part of my overhead when I'm running a business. And overhead costs go into the cost of my merchandise. To me and for my business, shipping costs are shipping costs. Nothing more, imo. There's a huge debate on Etsy about this and it's quite a fiery topic.
But, the bottom line is a seller can charge whatever they want for shipping, but that the over-payment on shipping beyond the actual postage (or the charge for a shipping service, if one is used) is called "shipping revenue" and needs to be added to net sales when you are managing your business' finances. (And really, it's just easier to put it in the cost of your merchandise for tax reporting purposes- it eliminates the step of adding shipping revenue to your net sales.) Here's the definition of shipping revenue: "Shipping revenue is the amount of money an ecommerce site charges its customers for shipping the order minus the cost the ecommerce site pays for the shipping service. Many ecommerce companies often charge more for this service than they actually pay. The difference is added to net sales as shipping revenue and is another way for an ecommerce site to make money in addition to the product it sells on the site."
That said, I woudn't leave negative feedback (which I see you've decided not to do anyway). It's just some of the nuances of shopping on Etsy with small business owners who don't necessarily have an MBA or formal business training, and are either selling for a hobby or just trying to get started. I generally cut them some slack (but the IRS might not). And technically, as long as the seller reports that difference in shipping as shipping revenue and adds it her net sales, she's not doing anything wrong at all.
-- Edited by kenzie on Tuesday 27th of April 2010 10:29:20 AM
Honestly I just assume that everyone pads their shipping. eBay and etsy for sure (although it seems like etsy sellers are better about that) but even regular retail sites can charge way more than is necessary. You might buy a ring from F21 for $3 but to ship it, it will cost you another $8 or whatever (and you know it doesn't cost them $8 to ship).
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Fashion is art you live your life in. - Devil Wears Prada | formerly ttara123
Honestly I just assume that everyone pads their shipping. eBay and etsy for sure (although it seems like etsy sellers are better about that) but even regular retail sites can charge way more than is necessary. You might buy a ring from F21 for $3 but to ship it, it will cost you another $8 or whatever (and you know it doesn't cost them $8 to ship).
Another reason is just simply for convenience of offering flat rate shipping. You simply pick the highest possible rate (the longest distance between you and your potential customer) for your shipping method and use that for flat rate. Everything else that ships for less than that turns into extra profit in the form of shipping revenue. Plus many customers like the idea of flat rate shipping and think they're getting a deal (which may or may not be the case).
I figure getting reamed on shipping is part of shopping online. I agree that charging more than 4x the actual shipping is high. Her lowering her shipping in other auctions shows that she acknowledges it was high, so it's not worth making an issue of it at this point.