Determining the Shipping Costs
Written by on February 10th, 2009Assuring your buyers what the shipping costs of an item are up front is essential. Buyers count the shipping costs as they decide whether to Buy or bid on an item. And they can tell when the shipping costs are too high. Many sellers pad the shipping costs to earn extra income from a sale, but the extra income gained from padding is lost when you consider how many customers turn down a purchase because they don’t want to pay the extra shipping costs. By stating the shipping costs up front, you make it the buyer’s responsibility to pay these costs. The buyer can’t quarrel with theshipping costs after the purchase.
If the item weighs more than a half-pound, is fragile, or has an unusual shape and requires special care in packing, determining the shipping and packaging costs can be a chore. Here are things to consider as you tabulate the shipping costs of an item:
* The postage costs
* The cost of all packing materials
* The time you spend packaging the item
* The time you spend delivering the item to the post office or other service you use for shipping, if the carrier doesn’t come to your door.
As you consider these costs, remember that postage and packing materials are tax deductible. You recoup some of these costs if you itemize them on your tax return.
Tags: Shipping