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Clarification on Shipping Credits
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JohnnyMax



Joined: 26 Mar 2010
Posts: 146

Posted: Sat Jan 07, 2012 4:29 pm    Post subject: Clarification on Shipping Credits  

Hi,

Been selling on eBay for a while, as you know shipping charges are now included in determining final value fees. I see that Amazon gives some kind of shipping credit, but when I contact them, they seem to know less than I do. Hopefully someone who sells there can clarify things for me.

Here are 2 examples, how would they work on Amazon?

I sell a lot of skin care products, these are lightweight and ship USPS first class mail, usually weigh less then 6 oz, and cost me about $2 to ship. How would this work through Amazon.

At the extreme I sell stuff that adds up to several pounds, usually ship it USPS flat rate at a cost of $10, how would this work out with credits.

Any explanation would really help me out, thanks!
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Schistosomiasis



Joined: 19 Jan 2010
Posts: 202

Posted: Sat Jan 07, 2012 5:10 pm    Post subject: Re: Clarification on Shipping Credits  

Hi JM,
Amazon's shipping credits are mostly determined by weight. If you are listing a product which already has a catalog page, you will add your item to the existing page. The product weight and shipping credit will have already been determined, and that's what you get. Amazon takes its commission from the entire buyer payment, including the shipping credit, so be aware of that when you set your price.
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If you are listing an item which is not already in amazon's catalog, you will need a Pro-Merchant account (~$40/month). In that case you set the shipping weight and therefore the price. Anyone else listing the same product will have to use your values.
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Note: in either case, different prices are set for different shipping services such as international, expedited, etc.
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Good luck! I sell on Amazon and enjoy their huge customer base.
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JohnnyMax



Joined: 26 Mar 2010
Posts: 146

Posted: Sat Jan 07, 2012 7:31 pm    Post subject: Re: Clarification on Shipping Credits  

Still confused, why is it called a credit if they are charging me a fee on it?
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Schistosomiasis



Joined: 19 Jan 2010
Posts: 202

Posted: Sat Jan 07, 2012 7:47 pm    Post subject: Re: Clarification on Shipping Credits  

That's Amazon-speak. Example, for books, they credit you 3.99 for shipping regardless of the weight of the book, then (depending on what type of account you have) take back 1.35 as part of the commission.
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My advice is to be aware of how much they will give you and how much they will take in commission. New sellers, especially those from Ebay, sometimes lose money on the transaction because shipping costs more than they are credited.
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