Tweet

Shipping and handling

Written by: Seth Godin

Article Overview: Here's a product sold by a merchant via Amazon that costs about $2.50. Except that the shipping and handling are more than $8. And the item weighs about two ounces.

Shipping and handling

Here's a product sold by a merchant via Amazon that costs about $2.50. Except that the shipping and handling are more than $8. And the item weighs about two ounces.

Shipping and handling charges have always been deceitful. Storefront merchants rarely charge "for the little hangtags" or add a "mannikin surcharge". When direct mail was new, sellers tried to persuade buyers that the prices were just as good as at the local store--and they segmented S&H as a way of comparing it to the hassle of driving over. When the shipping and handling for an order was $1 or 2, this wasn't such a big deal.

Two things have changed. First, Amazon has taught millions that free shipping is the way the world should work. As a result, anything more than free just feels wrong. Second, other merchants have realized (like the squeeze bottle example above) that you can make 100% of your profit from shipping and handling and do quite well.

For a while.

How many people who get that product are going to buy from the store again?

Online, the economics are clear. Repeat business is what matters, and that happens when you surprise people (for the better). Not when you rip them off.

Related Articles
  Free As In Shipping
  Stop Shopping Cart Abandonment
  Home Based Bookkeeping Business
  Shipping and Fulfilling Food Products
  Shipping Something Next Day Air With FedEx Or UPS? READ THIS FIRST!

Article Tags: amazon, direct mail, hangtags, local store, merchants, shipping and handling, shipping and handling charges, storefront, surcharge



Related Forum Posts
Re: E-Commerce Spending Down? - [quote="Kevin":35jt4q4o]In addition, on eBay, the shipping cost can sometimes be free/lower to attract buyer attention, but then the still cost more than another seller who charges more for shipping.[/quote:35jt4q4o] When I sold manga and Japanese "hanafuda" playing card decks on eBay the competition would often offer a lower product price and jack up the shipping and handling so that the total would be more expensive than my "higher priced" items! Shipping weighty products such as mj sets from Japan by Express Mail Service means free shipping is definitely not an option. This year my turnover has been par for the course, except August and September... August was one of the best months ever, September one of the worst! Now we seem to be chugging along at a regular rate again... despite hiking prices to adjust for the strong yen against the ever-weakening dollar.
Virtual Book Tours - Are the members of the forum familiar with how a virtual book tour works? I've been considering doing a tour or two and I was talking to a friend about handling some promotion for her and handling tours in the future. So, are there any authors here who have tried a virtual book tour? Or, are there any blog owners that would consider hostiing an author who is on tour? Shri
International Shipping Costs Money! - Here's my perspective on high "shipping" costs, as someone who ships high quality mahjong sets across the globe from Japan... "Shipping" costs amounts to more than just the price you see on the shipping label! (That's why we call it shipping AND handling!) For example, if you want one of my top-end mahjong sets it will cost around $65-$95 to have it shipped to you. About $12-17 of that is eaten up by Paypal transaction charges. The rest goes on Express Mail shipping, and NO I don't offer other methods because they do not offer any security for either party. A set weighing 3-5kg when packed will cost around 5000-7000 yen to be shipped to the USA, more to non EU parts of Europe, and more still to South America. And the dollar is only worth 87 yen on Paypal at the moment (down from 120 yen a few years ago...). I haven't mentioned the cost of getting the sets from the supplier to me, or the packaging costs. I regularly find myself "subsidising" the cost of shipping sets to places like Russia - even though Russia is one of Japan's neigbours! The other day someone wanted to buy three high quality sets but hated the "shipping" cost - so the order fell through. No worries. I don't have time to waste on those who think shipping should be free. International shipping is an amazing service - and an expensive operation! Don't take it for granted.
Best Approach - If this was my project, I would hire an editor/coordinator and then work with them to hire the number of writers you need. The editor should be organized, able to effectively delegate and oversee and they should be a qualified and experienced writer. The editor could maintain the consistency that you want. One problem with an agency is that they often have different people work on your project and the person or people handling your account could leave. I think working one on one with the specific person handling your work would be more effective for you. Shri
Everyone has different skillsets - Hi Kevin It totally depends on the persons confidence with handling the technical side of the business such as web hosting. For example I tend to make a profit of $50 - $100 a year for handling one of my clients (business management industry) web hosting requirements. However if I didn't help him out he would most certainly spend more than $50 - $100 of his time during the year trying to figure out FTP settings, name servers, configuration options etc so it's more economical for him to pay a little extra and not have to worry about it. It's also something that differs from person to person and the industry they are working in. If the person is computer literate and are confident in learning new technical skills on the computer I would be confident they could handle their own web hosting etc and I know of entrepreneurs who do this. For me, I would say I am the same when it comes to servicing my vehicle. If I had to do it myself I could save a little extra money but it's not worth the risk that I could do something wrong and have to spend more time fixing the problem I created. I'd rather just pay someone a little extra to do the job efficiently and correctly.


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Mistakes Made by New or Inexperienced Sales Staff

How to Set Sales Goals that Work

Starting A Set of Books

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.