Who Wins in eBay's New Shipping Cost Requirements?

Kristina Klausen announced yesterday that starting immediately eBay (EBAY) will require new sellers to specify S+H costs and then in the 'coming months' will require this from all sellers. I totally get this from the buyer's perspective.

There are so many problems with this from a seller's perspective it's not even funny.

• The eBay Shipping Calculator is a closed system with no access for third parties. There are no APIs.
• The eBay shipping calculator is USPS/UPS only. Many top sellers prefer Fedex or DHL as their shipping carrier.
• Thus sellers that use third parties (yes, like ChannelAdvisor) or don't ship exclusively with USPS/UPS are forced to implement flat-rate shipping.
• For larger items (let's say a golf club), flat-rate shipping is MORE EXPENSIVE for most buyers because the seller has to look at their best case and worst case zone scenarios and price the flat-rate accordingly.

Thus eBay is implementing a policy that is going to reduce buyer flexibility AND seller flexibility while effectively causing higher shipping costs.

Wait, who wins in this?

Comments

[jasphoto:]

I have NOT bid many times because an item had undefined shipping - BAD for me & Bad for eBay. The seller could put - Buyer pays actual shipping cost with the High Flat rate as a Max.

2008 Mar 25 09:43 AM

[User 167790:]

And what about sellers who have to take the time to package, using materials and the item does not sell? Sounds like a Waste of time and packing materials. I thought ebay was a venue not a dictator! I guess they really do want the small sellers OUT!! Not the sellers fault there are 8 Postal shipping zones. If that is what the Buyers Want they will get the Most Expensive shipping costs. Doesn't sound fair, but ebay is not a fair Venue!

2008 Mar 25 10:40 AM

[glades:]

What's not fair is the fellow puts up an item for sale that is "won" in the auction at a $.99 bid, then afterwards he tells you he is in China and the S&H is $255! Then he hints that if you don't pay, there will be a very bad feedback in your future. This scam is rampant, and here-to-fore Ebay didn't police it. That S&H needs to be up front in some fashion. I agree with idea that a Max Flat Rate be listed, or that the handling surcharge be flat, then listed with the name of the carrier and the type of service used (i.e. USPS Priority). That way, the buyer can calculate the rate to his location, plus handling, BEFORE he bids. At the same time, the seller doesn't need to calculate rates to all possible locations, nor does he need to list an overly high flat max cost. The rates for all the major carriers can be calculated online or obtained by a simple phone call. (The seller would also need to list weight and dimensions of the package to make the operation complete.)

2008 Mar 25 12:04 PM

[meanwhile:]

hi scott,

agree with you on this one...

and your q' ''wait, who wins on this one''?

here's some more shipping/pnp nonsense for your thoughts.

(i have posted on another thread then copied and pasted here for your easy ref'...)

In the uk a part of the new measures '' to improve the buyer expierience '' heavy emphasis and promo' is getting behind 'free postage' and 'least expensive postage' listings......
There's recently a 'free postage banner' on the home page driving sellers to listings offering this nonsense.
Nonsense?
Yes, how on earth can it possibly be free, it has to be built into the purchase price instead.
Isn't this all a tad deceptive and disingenuous?
In any event, cheapest isn't always best, especially re' service industries.
Sellers only enjoy paypal coverage if they ship recorded delivery, Whilst ebay encourages buyers towards less expensive options, with no effort to highlight the cheap choice risks...
Towards the same ends, the new search facility offers cheapest postage search...
Well how about a 'safe secure/insured postage' search too?

Meanwhile....

As competitive sellers introduce free p n p, building it into their purchase prices, there is one short term beneficiary - ebay, with a higher purchase price from which to take a fvf %
Hmmmmnnnnnnnnn..... Conflict of interest ?

2008 Mar 25 03:37 PM

[Watching th...:]

Ebay sounds more like a franchise operation than venue

2008 Mar 25 09:12 PM

[Henrietta:]

After you have gone through all the hoops of measuring and weighing and dealing with the dysfunctional shipping calculator which routinely overcharges, eBay will challenge you on the shipping cost with a pop up stating that 'buyers are very sensitive to shipping overcharges and your shipping is very high compared to other similar items."

Shipping charge 5.95 for a #1.5 home dec hardback book Priority. Below cost.

If you persist you will be warned that your item will not be favorably treated in Best Match, and you know what? They ain't just a woofin! Seven days zero views. I couldn't even FIND my own listing searching by the exact title. Hmmm.

2008 Mar 25 11:50 PM

[horsemama:]

jaypee, the simple solution to the China Syndrome is to ASK the seller the shipping cost BEFORE you bid.

If you don't like the answer, or don't get an answer, don't bid.

There is no reason to penalize ALL sellers because some people don't understand how things work here.

The China syndrome problem could be avoided very simply by allowing a buyer to back out after the sale (and block feedback on both sides) if the seller does not state the shipping cost, does not state enough information for the buyer to calculate it himself (item weight, size, and where it's coming from and by what method), or if the seller charges more than was stated or finds there was an error.

That would have solved the whole shipping issue without screwing either buyer or seller.

As usual, eBay does not think things through. But they never do.


BOYCOTT VICTORIOUSLY . . . May 1 and beyond.....

2008 Mar 26 12:20 PM

[Tony P.:]

horsemama, there's an even simpler solution to that China Syndrome. The China items do not belong on the USA site - remove them. If a buyer *wants* to search and buy from a seller in China, then a nice, little checkbox would do the trick.

But, NO! Ebay allows anyone/anywhere to list items on the USA site and don't even bother with indicating that the listing will involve excessive shipping. That just seems to set buyers up for disappointment - totally my opinion, I may be wrong. Whatcha think, JayPee, is that what you meant?

But then again, maybe you're talking about how the UK and Australia items show up *by default* on the USA site. The only indication that something isn't "quite right" with those listings is the price is shown in italics. You have to cut ebay some slack on that tactic; they need those listings to pump up their numbers.

That last example is really one of ebay's True Lies - a real humdinger. If you select the Search option 'Location: US Only' (on left-side box), it still doesn't remove the UK and AU items. They aren't there "by way of inclusion"; they are there *ingrained*, like a tick.


Scot, it all a tactic to eventually impliment shipping cost into the base model of listing, all in the name of Buyer Experience. Who wins then? Why, ebay does with increased FVFs.

2008 Mar 26 01:40 PM

[User 169139:]

I sell and ship Fed Ex ONLY -- 10 lbs overnight. Shipping varies significantly zip code to zip code -- the price of gas!
I state everything you need to know to determine shipping on fed ex's website but there are still issues with idiots. I will not do a flat rate and will NEVER use UPS or USPS for these fragile, heavy items.
This will hurt them as I will use them for a cheap items to direct people to my website. They can lose the biz on my main products.

2008 Mar 27 05:05 PM