Gift Wrap or Gift Box? Shipping Charges?
by Caron Lambert.
(Syracuse, New York, USA)
Hi everyone.
I am in the process of taking my jewelry and accessory business to the next level and setting up a web page. I am curious to know what you all think about offering gift boxes with purchases. Should they be included in the price of the item or should I charge for them? Should they be listed as an option in case everyone does not want one?
My plan is to offer copper colored gift boxes with a chocolate satin stretch ribbon as an option for bracelet and necklace purchases. For earrings, I will be offering a moss green organza bag. I have not decided yet whether or not to charge for this. The gift packaging for accessory items is still in process.
With regard to shipping, should shipping be charged extra or offered as free? If you offer free shipping, aren’t you really just rolling the shipping into the cost of the item? None of us can afford to give away free shipping. How should shipping costs be set? Actual costs or a basic amount and you absorb any additional?
Any help anyone can offer with these questions is much appreciated.
Caron Lambert
Comments:
Shipping Questions
by: Patricia C Vener
This is something I am in the process of considering as well. But here’s something you should know: if you charge for shipping then in some states you don’t have to charge sales tax though in others you do. If you don’t charge for shipping, it becomes a valid Schedule C deduction when you do your taxes. If you do charge shipping then in many cases you must collect sales tax and it no longer is a deduction on your schedule C.
So the question is; charge for shipping or include it as overhead in the cost of doing business?
charges
by: pat barden
icharge separately for the shipping–$2.50–for the first item in an order–zroe for the rest of the order–it almost covers the cost–ibuy scotch brand recycled material padded envelopes–they are actually cheaper than the ones athe post office.
the box, bag, envelope, and tag idont charge separately–but ive tacked on 75 cents to the item cost–thats about what it costs me for the recycled material box and pvc free nylon organza bag from nashville wraps and the handmade envelope and tag.
i used to not charge separately for the shipping, nor did i tack any amount onthe item–till irealized 10 single item orders cost me 25 bucks.
as for listing the pretty packaging separately–its a nice idea–a lot of people have no use for it–and many dont like the waste–but ive found more people like the idea–oh, a box and pretty bag.
My 2 cents
by: Ann Nolen
Hi
I am an Accountant and sell jewelry online. Bottom line on taxes is that your business should set up good policies for the business, and not let the IRS influence your decision. They are not your customer 😉
So I offer free USA shipping and include it as part of my overhead costs. I put everything in a pretty organza bag, which my surveyed customers clearly preferred. It also is cheaper to ship. I do shows and have priced my items to cover the cost of booth fees. The cost of postage is a much smaller percentage of the sale than a show booth, so I think it all works out well.
When I first started I found pricing to be the most difficult thing to figure out. This website helped me so much… So you are in the right place to get answers!
Ann Nolen
AnimalCoin.com
More Concers to Ponder
by: Patricia C Vener
In my etsy shop I ship in the USA for free but given the necessity of a registration fee (about 10 dollars or so) for International First Class, I can’t ship internationally for free.
I have not yet changed my website’s shopping cart to reflect this free domestic shipping yet, but, it is on my list of things to do.
BTW, I use satin or velvet gift bags (with the item wrapped in tissue first).
Thanks So Much!
by: Caron Lambert
Thank you to everyone who has responded. You’ve given me a lot to think about. I so appreciate your feedback and great answers to my questions.
Have a marvelous day!
Caron
IMHO
by: Sheila Davis
I charge for shipping in my Etsy, I think people expect to pay a shipping charge and if it’s free it’s usually tacked on to the item. I cover the actual shipping, padded envelope, business card, thank you note and packaging materials. Papermart.com is great for shipping and packaging supplies. I don’t think it will make them go elsewhere if they see something they really like.
For packaging, my jewelry goes in a chocolate brown pillow box, larger items in a flat square box with organza ribbon. My lampwork beads are just securely wrapped in bubble wrap and a padded envelope with thank you and business card.
Don’t give it away!
http://www.etsy.com/shop/StoneDesignsbySheila?ref=si_shop
Cost calculations
by: Di
I was made aware of this 3rd generation free software for pricing your handmade jewelry. ecoetsy_price_calculator.xls
packaging
by: Di
I always use gift boxes for jewelry in 3 sizes and my website banner is two tone gray/black with turquoise. My boxes are in two different sizes in shiny turquoise with black ribbon. I also have smaller size in gray/black stripe with turquoise ribbon. I Include a gift card made with my logo & web address. If I sell beads or supplies I use bubble wrap and a black or turquoise organza bag in suitable size. www.etsy.com/shop/EEjewelry then select EEjewelry – Etsy
Di
My 2 cents
by: Judith
Every piece of jewelry I sell, whether a $100+ necklace or a $20 pair of sale earrings, goes in a nice gift box with my logo sticker and ribbon.
I also put each piece in a little plastic bag and then into a satin drawstring bag. I think of it as an advertising cost. My customers often comment on how much they like it, especially for gift giving.
As for shipping, I just charge the actual cost. No one seems to mind paying a couple of dollars for shipping and when I look at my total yearly mailing costs, they add up to a substantial amount that I would have had to absorb otherwise.
I mail my boxes in the padded envelopes that my components come in and since I buy small amounts from many different people, I haven’t needed to buy envelopes for years!
Hope this helps. I wish you the best of luck with your business!
shipping
by: Anonymous
I noticed everyone is shipping in padded envelopes. Have you had breakage problems?
Packaging and Shipping options
by: Val
I feel like packaging is an important part of your business, I’ve learned this from my guru Rena and this wonderful website. It’s the first impression your customer will receive before getting to the wonderful gift inside, it’s also an opportunity to show your customer you’ve put thought into everything you do. I’ve also learned (and know this as a consumer as well) that customers like to feel as if they are getting something extra for their money and not having to hassle with it themselves. Of course you will need to add it to your costs but it’s off of them.
Shipping is tricky, customers don’t want to pay $6 to have an $18 item shipped to them, nor do they want that on top of their $100 purchase but we don’t want to pay the $6 to ship the $18 item to them for free. I offerred free shipping as a holiday promo but need to get that off my website and I’m thinking what I might do is compromise, perhaps a free shipping offer on orders over a certain amount and a reduced shipping amount for international (I’m just getting ready to offer that). Bottom line in my opinion is customers want as much as they can get with little or no extra cost for what they want to purchase.
You can see my packaging on my home page at
www.bythebeachdesigns.com
Val
Gift boxes and free shipping
by: Annette
I love gift boxes and probably go overboard but it seems to be appreciated. Tissue with logo sticker, organza bag, box with logo sticker & ribbon and heavy gift bag with logo sticker – in the hope that people will keep the box and reuse the bag and get reinforcement of my name. Low priced items $20 and under is tissue with logo sticker and if its for a gift I may also add an organza bag and a low cost coloured paper bag. I don’t charge for the gift wrap – this comes into my overheads.
I offer free worldwide shipping – however I rarely sell overeseas and when I do, I just cope with that cost. If international sales increase however I will have to look at this further. I account for a small shipping charge domestically in my overheads. Sometimes it costs more on small value orders than I’d like, but a simplified system like this is going to have an effect occasionally.
Shipping cost
by: Anonymous
I charge each customer $1.00 for each item, most will run me $1.80 to ship. That way the customer is paying for shipping and the little I have to pay is in the cost of the item
Sharon
Many Options
by: Sharon Harris
My jewelry business is primarily Internet and I’ve tried many different combinations of mailing options in the last 8 years.
When the economy is very bad, I’ve used free mailing on orders over $100.00; free mailing on orders of three or more items; free domestic shipping; and free domestic shipping during sales. I’ve always charged non-U.S. customers the actual mailing cost of priority mail international.
Sales in general were considerably up in 2011 and continue up in 2012. Based on this trend, I currently charge $1.50 for earrings, $2.00 for bracelets, and $5.00 for necklaces, which are always sent priority mail and insured at the customer’s expense. The shipping costs are stated separately before the actual purchase is made, so there are no surprises.
I haven’t determined this in any scientific manner, but I honestly believe that charging for shipping has made a significant difference in my sales.
Every order receives a pair of gift earrings, no matter how small or large it is. I have three sizes of shiny black boxes and I use a burnt orange ribbon with them and my shop sticker (burnt orange, gold and black) goes on the outside of the two larger boxes. I’m comfortable sending earrings and bracelets in a padded envelope as long as they are in a box. I also pack the jewelry boxes in a padded plastic bag that can be sealed to be waterproof.
My customers tell me how pleased they are when their jewelry arrives as a “gift” for them to unwrap. It’s worth the cost to me to be able to provide them with this little “extra.” I also will wrap purchased jewelry at no charge for special gift giving if the customer requests it.
This is what’s working for me right now. When I make decisions about costs to my customers, I try to factor in issues with the prevailing economic climate.
Shipping and Packaging
by: Patricia C Vener
I hear so often at etsy forums about how people don’t like to pay for shipping. Much more than folks who prefer to have the shipping separate. I am still undecided which way to go with this. Shipping for me can be very costly however since a lot of my work is fairly expensive (my most expensive necklace is “Lace Me Up” retailing at $2,100.00 dollars. Most of my necklaces are in the 200 to 800 dollar range). It’s time consuming art that I create.
That said, when I ship these pieces they go by Priority Mail with insurance and a tracking number. My international sales have been smaller things, though that I can send First Class International. So far my international sales have not been my jewelry but if it was, I would have to purchase Registered First Class International due to restrictions on jewelry by most countries. I’ve heard from a lot of people who say they just write “Fashion Accessory” on the custom form. That’s lying and I won’t do it. If they get caught they can be fined. Or maybe their jewelry is merely a fashion accessory. I could give them the benefit of the doubt. But a 90 dollar pair of earrings is not a “fashion accessory.”
I do not use envelopes of any kind except for beads and supplies. I use unused boxes purchased (I believe) from Uline. My most expensive pieces are wrapped in tissue and tucked into velvet lined velvet gift bags, while pretty much everything else is wrapped in tissue and tucked into a satin bag. Then I wrap well in bubble wrap and place in a box with shipping popcorn (and manifest usually).
To the original question about gift wrap vs gift box: if shipping internationally you have to make sure the customs people can open the box to look inside. I personally prefer gift bags to boxes, though.
Mailers
by: Cat
I also wrap my customers’ purchases in tissue and coordinate it with an organza bag. Then I wrap in bubble wrap and place inside a mailer. I have a great place to get mailers. For $19.95 I received 100 6×10 mailers. I believe they’re out of California. Shipping is free and they came fast! You can’t beat 19 cents a piece, right?
The seller is on eBay and the name is corijennin. The name of their store is UPAKNSHIP. If anyone would like more details, like the link (which I can’t include here), drop me a line: chattycats@rochester.rr.com
They have many more options…you don’t have to go with that size. I find that size to be just about right, though. If someone orders so much that it won’t fit in that mailer, I’d be using a Priority box anyway!
Cat
Chatty Cat’s
delivery confirmation vs ins
by: Janice (Shimmering Mesa Glass)
I am also working on a website and trying to work through the issue of “free shipping”, etc. I am wondering also about delivery confirmation vs insuring a package. For extremely expensive jewelry insuring is a no brainer but what about jewelry in the lower price ranges? My jewelry retails for $12 to $35 currently and it seems that the lower price of delivery confirmation would make more sense but I don’t have any real experience with shipping yet except gifts to friends and family. I would be grateful for the pros and cons of both that any of you have experienced. And thanks for all the great input on shipping and packaging. I have gotten alot of ideas and food for thought.
shipping
by: WhtanotGems
I have learned to always use tracking. I started selling books on line without the tracking I had people say the package did not arrive. With the tracking this is stopped. tracking does add. 20¢ to each package. I am still cautious of shipping in envelopes. So far all my jewelry items have been boxed.
Comprimise
by: JoAnne Green
After going through all possible mixtures of what to charge and when, I decided to add the “Packaging Costs” – gift boxes and bags, bubble wrap, tags, stickers, cards, etc. to the price of each item. The average cost per item has risen until it is now $1.20. I add this as an incidental cost of creating the item.
S&H is actual cost, including tracking. Insurance extra. This allows me to offer specials “Free Shipping” X% discount etc. with a smaller loss of revenue.
I do think that the idea of free shipping for purchasing an upper amount is a good idea.
Have any of you noted the increased frequency of free shipping on ebay, amazon, etc.? This opens the idea of free shipping on selected items. Maybe a way to move an item that has been on the shelf too long??????
Free Shipping No Incentive
by: Patricia C vener
I have not found that the offer of free shipping adds any incentive to purchase anything. Nor do special sales. On the other hand, it may simply be that not enough people are seeing the work.
