If you are an eBay buyer or seller, you have seen the listings with excessive shipping charges.
Some examples include $15 for a CD, $18 for a lip balm, or $12 for an infant's sleeper.
The excessive shipping fee tactic may help sellers make some money fast in the short run, but this strategy is not practical for a long-term policy.
It will eventually backfire.
First of all, this is against eBay policy.
Excessive shipping fees are a way for sellers to avoid paying Final Value Fees, since those fees are calculated on the sales price, not the shipping fee.
eBay calls this "circumventing fees.
" eBay community members can report sellers for charging these excessive fees, and those listings will be pulled.
The seller may also be suspended, lose Power Seller Status, or be terminated if too many of his listings have excessive shipping fees.
Sure, the seller may have a fantastic return policy on the 1-cent item he sold the customer.
But, if the customer wants to return the item for a refund, all he will receive is the 1-cent price for the item, and not the $25 shipping fee.
This is a bold, unscrupulous tactic used by many sellers as a way to avoid issuing refunds.
This tactic is often used by newer sellers who think they have figured out a way to beat the system.
Oh, how wrong they are! Finally, with eBay's 4-star detailed seller rating system, buyers can rate sellers' shipping fees.
If a seller's fees are unreasonable, the stars, and the seller's DSR will tell the story.
Furthermore, the lower a seller's DSR, the further down that seller's items will appear in searches.
If a seller is charging excessive shipping fees, over a period of time, his reputation and ranking will suffer, and he will lose customers and visibility.
Bottom line: Keep your shipping fees fair and competitive.
Use a scale, weigh the item, check the rate on-line, add a small handling fee for your time, and charge the customer a fair shipping rate.
The rewards will come to you in the long run with a higher seller ranking, more visibility, and more return customers.