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Shipping And Handling Fees
Author : Sinontuk Mukzmo
Submitted : 2011-11-09 Word Count : 870 Popularity: Not Rated
Tags: Shipping and handling fees
This occurs with more and more frequency in the new mompreneur world of small eBay sellers. Some sellers make their profit not on the items they sell but on the handling fees they assess when they ship the products. If you charge $5-6 US Dollars (USD) for shipping and handling fees of a relatively small item, and you sell a lot of small items, you may make a considerable profit on your handling fees. While people who sell something do need to be compensated for the time it takes them to package and ship products, this may be considered by some an unfair rate and too great of an expense.
You'll also note many products of the infomercial type that are sold and have free extra products. Even if these are free you may have to pay shipping and handling fees to get them. It's a pretty safe bet to assume that the seller makes a small profit on these "free" items by charging more in handling fees.Other companies, which have huge online businesses, like Amazon? may offer free shipping and handling as an incentive to get you to spend more money, if you purchase $25-50 USD of "qualifying" merchandise. You have to look at the limitations on these offers, but they may occasionally provide extra savings. These offers are frequently attractive and increase sales, thereby increasing profits and making shipping and handling fees unnecessary.
Shipping and handling fees are a combination of the fees needed to pay for shipping something and the labor involved in "handling" shipped items. The handling portion is that which exhibits the most variance in price, while shipping items tends to be about the same price for similar size weight items. You'll pay about the same price for shipping whether you ship from the post office, or from companies like the United Postal Service (UPS) or Federal Express.
When you order something, especially from home shopping channels, from infomercials, or on the Internet, you are often assessed shipping and handling fees. It may be hard to tell exactly how much you are being charged by someone or some company to "handle" a package. Occasionally you can tell when you receive something by looking at the shipping label, which may state the shipping cost. From time to time, the handling cost is disproportionate.
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