9
Packing, Shipping, and Delivering to Buyers
I have been packing and shipping professionally since at least 1988, and I have come up with best practices for everyday item shipping that considers both speed and cost. I outlined my basic recommended shipping methods in Chapter 6 when covering how to enable shipping options on the eBay listing form (sometimes called the Sell Your Item form or SYI form). Here’s a quick recap for your ready-reference before we take a deeper dive into all things shipping:
▶ Offer local pickup only for heavy or bulky products.
▶ Ship items under one pound by USPS First Class Package.
▶ Ship items that weigh between one and four pounds by USPS Priority Mail.
▶ Items over four pounds should be shipped FedEx Ground or FedEx Home.
▶ Cross-border shipments up to four pounds should be sent First-Class Package International Service.
▶ Cross-border shipments of more than four pounds should be shipped Priority Mail International or Priority Mail Express International.
▶ Contact FreightQuote for items that are too large to be accepted in any of the above situations.
▶ Add insurance to high-value items.
▶ Self-insure low-value items.
In this chapter, I’ll walk you through more details on how to make smart shipping decisions that will get your products safely in the hands of your customers.
You can use any shipping carrier you’d like just as long as you upload the tracking information using the link displayed on the item listing page. If you ship using eBay’s integrated shipping tool, this is handled both automatically and elegantly. To be protected against buyer claims of non-receipt, eBay requires that tracking include:
▶ A delivery status of “delivered”
▶ The date of delivery
▶ The recipient’s address that matches the one shown on the order details page
▶ Signature confirmation if an item has a total cost of $750 or more
Tracking without a signature is good for items of lesser value (that’s $749.99 or less per eBay’s rules), but you still need to retain proof of delivery as long as it is still possible for the buyer to open a case. (In most situations, you can shred the shipping and insurance paperwork after 90 days or sooner if you receive positive feedback.) Tracking can be problematic on international shipments since some overseas postal networks simply don’t talk nice to American postal tracking computers.
For precious and pricey cargo, you can use the high-touch USPS add-on called Registered Mail, which requires each person handling your parcel to log it into a shipping manifest with personal accountability at every step of the way. While this is a good solution for jewelry, gold bricks, and priceless art, it also costs more and is slower due to the additional paperwork and security involved. While FedEx, DHL, and UPS all offer international shipping, I don’t use them for cross-border shipments due to substantially higher rates and fees. Cross-border buyers are price sensitive.
When shipping overseas, you’ll be required to fill out a customs declaration form that faithfully (and honestly) describes the package contents and value. It’s probably not wise to inform the world when shipping an expensive watch. Rather than calling it a watch, perhaps you’d use the word “souvenir.” Terms such as “used clothing,” “grooming item,” or “health and wellness product” all sound less tempting than expensive brand names. Cross-border customers will periodically ask you to underreport the item value so they can save money on import fees and taxes. No matter how persuasive their request may be, you are ultimately responsible for delivery of the product in good condition. Lost, stolen, or crushed packages that are not fully insured will end up as a chargeback when the buyer opens a case, and you’ll be the one stuck holding the bag. Import taxes and duties are based on the type of product. An antique item may be exempt from duty, or an item going back to the country of manufacture may be exempt. Identify the country of origin on the customs paperwork. For example, you should clearly identify a Sevres teapot going to France rather than simply a “teapot.”
If you’re educating the masses, the kind folks at the USPS have such a deal for you. It’s called Media Mail Service. This is a dirt-cheap mailing service that’s much less expensive than regular parcel rates. There are some substantial limitations. Media Mail rates are available only on the following goods:
▶ Books (at least eight pages)
▶ Sound recordings and video recordings, such as Blu-rays, DVDs, and CDs
▶ Play scripts and manuscripts for books, periodicals, and music
▶ Printed music
▶ Computer-readable media containing prerecorded information and guides or scripts prepared solely for use with such media
Beginning in February 2020, eBay started offering a new shipping service called eBay International Standard Delivery. Sellers can enable this option when listing items and save an average of 9 percent when shipping to cross-border customers. It’s less expensive than eBay’s Global Shipping Program (which I don’t use) and is super easy for sellers. Sellers can use this option when printing shipping labels even if it wasn’t added to the listing at the time the item was listed. This option is a Delivered Duties Unpaid (DDU) shipping solution—buyers won’t pay duties and tax at checkout on eBay, but may have to pay the carrier for duties and tax on delivery. I recommend this shipping method because eBay provides $100 in shipping protection automatically and extends seller and shipping protections for these shipments.
▶ 16-millimeter or narrower width films
▶ Printed objective test materials and their accessories
▶ Printed educational reference charts
▶ Loose-leaf pages and their binders consisting of medical information for distribution to doctors, hospitals, medical schools, and medical students
When you list a qualified product on eBay, add Media Mail as the main shipping option (with the below exception). Add a faster shipping method as your second option, such as Priority Mail. Media Mail is a tad bit slower, but it has tracking and insurance available.
If what you’re shipping is 4 ounces or less, it’s faster and just as cheap to send it First Class Mail. For these featherweight items, such as Blu-rays, DVDs, and CDs, use First Class Mail for faster delivery.
Media Mail is a very special discount service, and there’s a catch—it may not contain advertising. Magazines and comic books are two examples of products that don’t qualify for this deal. Don’t try to fudge because these packages will be X-ray inspected or, in rare cases, opened for inspection, and if you’re caught bending the rules, the package will either be delivered with postage due or returned. It happens both ways depending on the whim of the USPS employee. Oh boy, that would not be a happy customer.
An actuary is a business professional who deals with the measurement and management of risk and uncertainty. I’d like you to think like an actuary. Why part with hundreds (or thousands) of dollars in profits to pay for shipping insurance when shipping is very reliable? eBay allows you to add reasonable shipping and handling costs to your listings. The policy allows the handling cost fee to cover the cost of packaging materials and insurance costs. Merchants blindly buy insurance “just because,” and in most cases, it’s not required.
Less than one in 500 shipments are lost or damaged. I add a very small handling fee that covers all refunds for these issues. Priority Mail has $50 in automatic coverage. UPS and FedEx cover $100 in losses on every parcel. Great news for Top Rated sellers who ship at least 300 boxes a month—Priority Mail is insured for $100 when you print labels from your eBay account.
We all eventually suffer a broken Baccarat or a mashed Fender Stratocaster. It happens. Protect yourself from unnecessary heartache. Damaged and lost parcels is a reality of business. Even the best pack job can fall victim to mishandling by the shipping carrier. My goal is to help you get it there with the smallest chance of an incident. Packing is a process that requires knowledge and experience. Safe delivery means happy customers and a fistful of dollars. Here are some critical key points:
▶ Wrap items separately, especially if they scratch easily. Friction within the parcel during shipment may cause unforeseen damage.
▶ Use enough packing and cushioning materials. Not too much, however. Big boxes cost more to send. All carriers have size limits, and some charge what’s called dimensional weight (aka volumetric weight or DIM weight), which means you get billed for the size of the box (as explained in Chapter 6).
▶ Double-box the fragile stuff. A relic will become wrecked if you don’t keep it well-spaced inside the carton. The nested box should be padded with packing peanuts or bubble wrap.
▶ Use strong boxes. Recycled, used cartons are fine for the less fragile things, but for a porcelain princess statue, you’ll need a new carton to keep her safe along the journey. The flaps of the boxes you are using should be intact. Never reuse boxes that have creases or have lost their rigidity.
▶ Cover or cross off all previous labels on recycled cartons.
▶ Buy quality shipping tape. Flimsy film tapes will come undone in the warmest summer or wettest winter. Don’t risk it over a few pennies saved. The clear packing tape I use is super thick (3.2 mil).
▶ Sellers of valuable items include a packing slip or duplicate shipping label inside their boxes. When the outside label is torn or damaged—or worse, falls off—the package can be delivered safely to its proper owner by simply opening it to locate the paperwork inside.
When you follow all of these tips, you will have greater peace of mind, and hopefully less damaged items as well. As a general rule, simply remember to give proper care to your merchandise. Imagine yourself in the shoes of the buyer, and then prepare your package in the same fashion you would expect if you had purchased it yourself.
Now that we’ve talked about the procedural aspect of shipping, let’s discuss shipping from the perspective of your buyers.
Buyers always consider the total cost of an online purchase. When you list an item, eBay won’t be telling you the shipping fee to ferry it to Fiji. The selling form will ask you for the box dimensions and the shipping weight. You’ll be adding at least one shipping service to your listing. Buyers enter their zip code or country, and eBay displays the shipping cost based on the methods of shipping you enabled at the time you listed. Their location is “sticky,” which means that they only need to enter it once, and every time they browse items, they will see the shipping fees on the search results pages as well as the item listing page. Test this out yourself. Conduct an eBay search, and then look at some item pages. Check the shipping information. Change the location to another country and see what happens. It’s important to experience this just as your customer would.
Buyers are addicted to free shipping. Some even shop exclusively within the Fast ‘N Free listings. Interestingly, a buyer will select an item with free shipping over one that has a shipping charge even if the total cost is the same. Curious! eBay charges their final value fees on both the item value and the shipping and handling costs. Seem unfair? eBay shipping labels are discounted (thanks to negotiated rates with the carriers), and that makes up for it.
Offering free shipping isn’t as simple as it sounds. If you elect free shipping on your Sharp Blu-ray player to Sri Lanka, you’ll find the freight frightening. Sellers of stamps may be tempted to ship by dropping a bit of philately into an envelope and slapping a regular stamp on it—a cheap way to attract the free shipping shoppers, but don’t mail a mint 1933 Century of Progress Graf Zeppelin 50 cent stamp this way. A package that valuable without stiff cardboard protection and tracking is like driving a car without a seatbelt, with malfunctioning airbags, and a missing windshield.
Free shipping will earn you an automatic five-star DSR for shipping cost and will boost your fixed price listings in the search results. More buyers will take an interest too. Conduct a lab to test out the actual profits when offering a free shipping item. Consider the total cost to you of the item, packing materials, and freight. Add it all up. See how much you’re earning and adjust a little here and there along the way to ensure you’re taking home the profits needed to support your online adventure.
Sourcing Your Shipping Supplies
Being stingy isn’t an evil thing. When you walk into a packing store, you’ll pay a lot for a shipping carton. You can go online and obtain free Priority Mail and Express Mail shipping boxes and envelopes of various sizes from the USPS—including free shipping of these supplies to your home or office. Yes … free shipping supplies. These can be used for both domestic and international shipments. Don’t try and use them for any other class of mail, or the package will be coming back to you. When your business grows, always check around for wholesale deals on boxes.
Here’s another little known trick: Check out the USPS flat-rate mailing program. You can score substantial savings on shipments of up to 70 pounds. What you ship must fit in the flat rate envelope or box, and there is no weighing required. While it may be easier to use flat rate packaging, it’s not always the best choice for your customers. Shipping across town using weight-based shipping is very affordable and will probably cost more using a flat rate. Delivery distance plays a significant role in the cost of shipping. A flat rate box going from Florida to Alaska filled with 60 pounds of pennies will set you back only a fraction of what you’d pay if you shipped by the pound. In fact, I calculated that it costs 6½ times more to ship without flat rate. FedEx and UPS offer free packing materials too. You’ll find most of these complimentary shipping materials are for expedited services, not the lower-cost ground freight.
When you work for another company, worrying about the cost of everything the company purchases is probably someone else’s job duty. You own your own business and you will have to analyze every purchase to ensure you’re getting the best possible price. Do you enjoy saving just to see if you can? Being frugal can be lots of fun.
In our society, temptations to dive into more debt are everywhere. Pay cash whenever possible, and finance only when it makes good business sense (e.g., if the financing company includes free service with the contract). Here are some tips for you to stay fit and trim financially when you are making decisions about shipping methods and supplies:
▶ Before making any purchase, ask the question, “How much will this investment return for me in actual dollars?” or, “Is this purchase absolutely necessary for the successful operation of my company?” Do I need a fancy electronic scale, or will this paid for old faithful remain accurate?
▶ Never finance anything unless you’re sure that it will generate additional profits. Otherwise, pay in cash or wait until you can afford to do so. I recall leasing an expensive UPS shipping system only to later discover UPS offered cheap rentals directly.
▶ Compare three different vendors’ prices for every item you purchase. When contacting vendors for prices, be sure to let them know that you’re price shopping and that your company’s policy is to buy from the cheapest vendor (given, of course, that the product is the same from vendor to vendor). This applies to supplies and equipment. Bubble wrap purchased on eBay may still come out way cheaper than buying from a local packing supplies distributor. I buy all my bubble wrap on eBay. I purchase my cartons locally.
tip
eBay Store subscribers receive a supply of free eBay-branded shipping supplies (boxes, tape, etc.) based on their store level.
▶ Shop on the internet and pay reasonable shipping costs to save time, allowing more focus on what makes you money—selling, not shopping. Padded mailers are readily available on eBay at superior prices, including the cost of shipping—and are delivered conveniently to your door.
▶ Pay in cash if you can receive a substantial discount.
▶ Buy any items you use frequently in volume to get the best discount possible.
Being frugal does not necessarily mean settling for a generic brand or inferior product. It means finding the best possible wholesale or discounted price for the brands and products you use every day.
At my company, one of our most frequent purchases is shipping boxes. One major office supply superstore, that shall remain nameless, sells 12x12x12-inch cardboard boxes in packs of 25 for $34.68, which comes out to $1.39 per box. Another vendor sells the same box for $0.51 each. I can get free delivery from the first vendor with no minimum purchase, but the second company with a lower price requires a minimum order of $300 for free delivery. Because of my volume, I can always get free delivery and am saving more than 63 percent on this box. I stock up on many low-cost supplies from this discount vendor and order much less frequently—perhaps once a month or less—to meet their delivery minimum and ultimately to get the best prices.
Using Recycled Shipping Supplies
Recycling saves you money and helps the Earth. Clean, reusable shipping cartons can and should be given a second life. If I’m double-boxing an item, these repurposed cartons save me a considerable amount of money.
On 1,000 shipments, each with a reused carton at 50 cents each, I save $500 that I put directly into my pocket (well, bank account, actually). It’s good to reuse bubble wrap, foam peanuts, clean packing paper and anything that looks professional and ensures safe delivery. A document shredder provides an endless supply of free void fill. Since they’re free, I never reuse the complimentary boxes USPS provides.
Sometimes holding yourself in high regard can form a low opinion of you with customers. Things start to fall apart and become tacky when sellers ship with filthy packing peanuts, tape-infested bubble wrap, or boxes that have been through the wringer. Who wants to receive a long-anticipated present that looks like it came from a dystopian future? It’s also a big no-no to use flimsy boxes. Reused cereal cartons won’t cut it. I’ll throw one out there you may not have thought of: I often use construction-quality heavy-duty plastic trash bags to wrap up low-value clothing shipments (never couture clothing). The same thick trash bags are ideal for wrapping and shipping area rugs. They save space, weigh virtually nothing, are waterproof, and resist cuts and tears. They must be contractor-strength to keep the contents safe. And why not? Customers love the cost savings since the average 12x12x12-inch brown box weighs a pound—just for the box itself. The buyer has to pay for that extra pound of shipping weight. Ouch.
First, we had buyers demanding fast delivery. Then, they wanted free next-day delivery. Then, cheap same-day delivery. We now have retailers offering to deliver goods within hours the same day they’re ordered. eBayers love to get things fast. When I sell a diamond ring, I offer free overnight delivery because a proposal might be, well, imminent. When your margin is healthy, offering quick, free delivery is great for business.
tip
When someone clicks the “Make Offer” button on your Fast ‘N Free listing and enters a lower price, counter-offer back that you’ll accept their price if they agree to a slower, less expensive means of delivery (ground vs. expedited shipping).
eBay requires that you indicate your handling time within the listing. This occurs when you fill out the listing form. You’ll be rewarded with an automatic five-star DSR for shipping time when you ship the day you’re paid and upload tracking timely. When you use eBay’s shipping labels, tracking is uploaded automatically.
eBay displays their Fast ‘N Free logo on your listing when these conditions exist:
▶ Both the buyer and the item are within the 48 contiguous U.S. states.
▶ eBay can estimate the item will be delivered within four business days.
▶ For the first (or primary) shipping option, you offer a free shipping service.
▶ For the first (or primary) shipping service, you don’t offer local pickup or freight.
▶ The listing isn’t in Classified Ad format.
▶ For eBay Motors, the Fast ’N Free logo is used only for listings in the Parts & Accessories category.
Sending items that use batteries and the batteries are included? Make sure they are fresh and working. I’d replace a watch battery. Then the watch would sell months later and by the time it arrived, the battery ran out. For electronics that are constantly using power, take the batteries out for storage so they’ll be good when you sell the item.
Your listings qualify for the Fast ’N Free logo when it has free expedited shipping and same-day or one-day handling time.
The American addiction to ridiculously free shipping has set stratospheric expectations; however, do not generalize. While most retailers are focusing on reducing the time it takes customers to receive their goodies, not all items have to get there “yesterday.” A smaller company (P.S. that’s you.) has less scale and doesn’t benefit from the huge discounts the big guys enjoy. Savvy eBayers know that free shipping isn’t free at all—you’re adding the freight cost into the price you charge. Some customers don’t want or need things fast. They are looking for a great deal on what they love (e.g., collectibles buyers).
Recovering Incorrect Shipments
Shipping the incorrect item is a bummer for both you and the customer. You’ll be stuck paying to ship three times—the first shipment out, the return, and the shipment out again to send the correct item. Mixing up shipping labels and sending the wrong items to two different customers happens when you’re packing multiple shipments at once (remember my advice about never multitasking?). If you have employees, have two members of your staff inspect every item before it is shipped (you can be one of the “inspectors”).
tip
If you have a commercial UPS or FedEx account, your discounts are based on shipping volume. If you run a retail store that’s not terribly busy, increase your parcel volume by offering packing and shipping services to the public. Then negotiate deeper discounts on freight and shipping supplies. There’s always more power in numbers, and everyone will treat you like a VIP when you spend lots of money with them.
Handling Fragile or Delicate Items
When you’re handling delicate items such as china, crystal, etc., pack immediately and securely for shipping and to avoid accidental damage during storage. A prepacked Haviland plate won’t end up as powder on the floor if it’s accidentally knocked off the shelf. Items with fragile appendages, such as porcelain figurines, are very likely to meet their doom if left unprotected. That beautiful, hand-painted maiden without fingers will not attract as much money or may not interest a buyer at all. I use Ziploc bags for non-breakable items to keep them dust-free. Don’t allow employees to eat or drink while handling the merchandise. It’s not a matter of if, but simply when, coffee or soda will spill and ruin something expensive or rare.
Protecting Yourself from Buyer Disputes
I’m not going to mislead you here. eBay follows the “customer is always right” mantra of business (usually). If a dishonest buyer falsely claims the product was not as described and opens a case, eBay will reimburse you up to $6.00 per return shipping label if you report the buyer. eBay is the judge and jury in deciding these situations, so have proof, such as video or photos to back up your position. eBay will remove negative and neutral feedback, defects, and open cases in your profile metrics when these dishonest people pop up.
And any item used or damaged by your customer that is then returned also requires some backup proof. eBay allows you to deduct up to 50 percent from the refund to cover the lost value of the item before you open a case, or they’ll work directly with the buyer to resolve any issues relating to the return and mend any nasty feedback you’ve suffered when the buyer wronged you.
If you’re in business long enough, someone will scam you (or try to). Dealing with this is part of the cost of doing business. With an internet-only business, you’ll be fortunate not to have to cope with shoplifting as retailers do. Return fraud affects all mail-order businesses. eBay will usually help you when this occurs. The most common shipping-related issue is a claim of non-receipt (which is why you must have tracking unless cost is so low you can simply send another one). From eBay’s view, if you can prove delivery, you will win every non-receipt case. “Did you ask your neighbor if they received it?” I’ll ask when I am messaged about a box that shows delivered but the customer can’t find it. Almost always the parcel shows up, and if not, I encourage my buyer to file a police report for porch piracy.
Here’s a list of buyer behaviors eBay simply won’t stand for:
▶ Demanding something not offered in the original listing
▶ Making false claims, such as falsely stating the product didn’t arrive when it did or claiming it wasn’t as described in order to return the item when the seller isn’t offering free returns
▶ Misusing returns, e.g., sending back a different item, using or damaging then returning the product, or falsely claiming it was not as described
▶ Bidding for any reason other than to buy the product, e.g., bidding up the price to prevent others from bidding and then later retracting bids
▶ Opening up excessive eBay Money Back Guarantee requests or abusing the eBay feedback system to harass a seller
Report naughty buyers by calling eBay at (866) 540–3229. It’s a great idea to call eBay prior to engaging in a vigorous virtual shouting match with the customer. Ask for advice and the customer service agent will explain your options and give recommendations on how to move forward.
Preventing Shipping Errors and Mishaps
When it occurred, you didn’t give it a second thought. You were so excited to sell your mint 1989 Sony Walkman that you didn’t question the buyer asking you to change the shipping address. After all, $1,200 is a lot of cha-chings. You packed so well a Mack truck couldn’t scratch her and you agreed to the signature waiver. “I’m traveling and will be out enjoying my vacation, so could you waive the signature since I’m at my vacation home most of the day?” he said.
Then it happens. The dreaded case is opened. Apparently, the account was taken over by a fraudster who just fleeced you. Had you only followed the rules and shipped to the address on the order confirmation page and required signature delivery (on orders $750 and higher), you would have been covered by eBay’s fantastic seller protections. A very expensive educational mistake.
Do not make these errors. Ship only to the address on the order. If a customer makes an error on the shipping address and it’s a $5 pack of temporary tattoos, then sure, send it out to the new address. Who cares? No biggie. If you can’t suffer the loss, then you need to inform the buyer you’ll cancel the order and relist it so they can buy it again and enter the correct address. If they balk, they very well could be a charlatan, and you should call eBay for an opinion before proceeding further. PayPal also extends seller protection. If you sold something tangible (not digital or downloadable), and you shipped to the address on the PayPal transaction details page (on orders $750 and higher, PayPal also requires the recipient’s signature), you’ll be covered in the event of a dispute. I do not recommend using a shipping service that is arranged by the buyer. In the event of a dispute, you must be able to provide valid proof of shipping and delivery.
Every successfully sold item’s listing page has a link to print one or more shipping labels. If you make a clerical error, void the label to recover the funds you paid for it. Here’s how:
1. Hover over “My eBay” at the top-right-hand corner of most eBay pages
2. Click “Selling”
3. Click the “Orders” tab
4. Click “Shipping labels”
5. Click “More Actions”
6. Click “Void”
7. Use the “Select reason” pull-down menu
8. Click “Send request”
Follow steps 1 through 4, and click “Reprint” if your printer ran out of ink or you need to print the label again.
If you’re shipping during the rainy season (a close friend lives in Washington state where he says that’s all-year-round), tape over the shipping label to avoid it becoming wet and falling off. If you use an inkjet printer, you’ll thank me for this tip as the ink runs when wet. Another bad weather tip: Always wrap the merchandise in a plastic bag before packing. This is not required for glassware or china, but mandatory for a fine silk tie. Imagine the disappointment when a flawless first edition of Little House on the Prairie arrives with water stains because the package sat on the porch in the rain. Oh no!
Packing well and shipping swiftly scores you an eBay Top Rated seller status. Be vigilant and avoid scams such as account takeovers, under-insurance demands, and parcel address redirection. Remember to recycle so long as it’s tasteful and not tacky. The USPS offers free co-branded, recycled cardboard boxes, and you can find them using the QR code in Figure 9–1.
In the next chapter, I’ll uncover the holy grail of sourcing and share my precious tips for highly profitable “treasure” hunting.
