Monday, June 30, 2008

An Idea to Improve your S&H DSR on eBay!

Doug Feiring at AuctionInsights has an interesting post on how he was able to improve his S&H DSR and while it might not work for every seller on eBay it may help some of you.

"First, I knew I didn’t want to offer free shipping, because I knew from two published university studies that combining shipping and handling into the cost of the product actually lowers revenue on average for auction sellers. So I decided to offer significantly reduced shipping and handling charges.

I went with $0.99 shipping. I figured this amount would be obvious to the buyer that I was offering shipping and handling below my own costs and they would recognize the value in that."


Please read his entire post

Now before you go slamming the idea because it would still give eBay more money in FVF, why not take 30 minutes today, to see if the Math works for your business? Perhaps $0.99 for S&H won't work for you, but the concept of charging lower S&H then is shown on the package itself might just work. How could a buyer be upset if they actually saw that you spent money on them.

Imagine if it cost you $1.95 to ship something and you only charged $1.50 for S&H, while putting the additional $0.45 in your purchase price. Your item price would still be competitive and your S&H price would certainly be better than others in your category.

In the scenario above eBay would receive an additional 4 cents in FVF (for core items) and if your DSR's went up to 4.7 you would be advantaged in search in addition to qualifying for FVF discounts.

I know I have been suggesting that sellers get off of eBay as fast as possible and I still believe you should, but I'm mostly talking about ending your dependence on eBay. If you can make eBay work for you, then you should stay, but just don't rely on eBay.

Doug's idea should get you all thinking about how this would work for your business.

Just my 12%

12 comments:

David said...

I gathered from that article that he does auctions and not fixed priced.

It's very easy to do that with something like coins or stamps.

Try doing that though on a "fixed price" auction where the S&H Costs you $10

What really sucks about the S&H charges rating is that most buyers have never paid more than 42 cents for postage.

Cliff Aliperti said...

This one may be worth a try.

So simple, yet it hadn't occurred to me!

Thanks for posting, Randy!

Cliff

David said...

I've got a business question for Randy.

If you are selling a niche product where there is very little competition, is it really worth it to get your S&H DSR up?

Randy Smythe said...

David, eBay may one day try and control you but for now if there is little to no competition do what every business will do maximise your profit.

Just make sure you don't have bad experiences that put you on eBay's 5% bad seller radar.

I would suggest being fair thoug, not gouging.

David said...

Randy I don't know how you can stay out of the "bad seller 5% radar" without doing things like free shipping and shipping next day.

The DSR's are completely unfair. They shouldn't nitpick and punish you because a buyer left you a 1. They should be averaging all of the ratings.

They average the DSR's, but the average means absolutely nothing if 1 out of every 50 buyers are leaving you a 1 on something

nadine said...

Powerseller webarker is leaving ebay and is auctioning off his farewell note. See item "Hand Written & Signed Good-By to Ebay Note, NR" Item number: 280240449881

Anonymous said...

Shipping and Handling is a KNOWN variable in the entire buying process. The item might not be exactly as described, the seller might not reply to emails in a timely manner, but the cost of shipping & handling is clearly laid out to the buyer, so HOW CAN ANYONE BE ALLOWED TO GIVE LOW RATINGS WHEN THEY KNEW WHAT IT WAS? This is what kills me about scam-bay, they put in measures to make sure you don't/cant get the promotions they offer on DSRs. Sellers: YOU NEED TO FIND OTHER OUTLETS TO SELL YOUR PRODUCTS, EBAY WILL SQUEEZE YOU TO DEATH

Rich said...

I bought this car the other day.You kinda have to jiggle the key in the ignition to get it to start.

Tracks kinda funny to the right, but I just deflated the tires a bit on the left side so it goes straight.

It makes this weird noise from under the hood, but I learned to turn up the radio volume which drowns out the sound.

Had a bad oil leak but I started using a thicker oil they use in Caterpiller Tractors-that seemed to help a bit.

My wife thinks I ought to return the car to the dealership, but I said "No, I like to fix things."

Randy Smythe said...

Rich, thanks for the sarcasm. :)

While I recommend sellers make plans for life without eBay if your income depends on eBay at this point there are some possible options to help you keep earning.

None of these suggestions should stop you from working on exit plans.

RKS

Anonymous said...

Hey RKS there's a thread on Seller Central about a guy who refunds 21 day holds on Paypal, then accepts money orders after the fact once he's off ebay's radar. Look into it. That guy's a genius!!!

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