We sell goods that we ship to customers, and obviously the shipping has a cost, so how do we cover that?
There are a few approaches - some companies factor the cost of shipping in the price of the goods. That can work for some goods in some markets or if the volumes are high enough for it all to average out, but does not always work.The approach we normally take is to charge for postage. As a general principle we try to do this at cost - not making a profit on postage, but it turns out not quite as simple as you may expect.
For the goods we ship on our main web site, like routers, VoIP phones, or even SIM cards, it is not too hard. E.g. for a SIM card we know it is small and fits in an envelope so offer options like 2nd class, 1st class, recorded, or tracked 24. The prices are based on the price we pay Royal Mail.
For larger items, we will weigh, and check Royal Mail or a courier, and quote the postage exactly as part of a quote.
Of course even that is not totally simple as RM charge VAT on some things and not on others, but we have to charge VAT regardless. Also, we have rates for account postage which do not match exactly the rates you may pay for a stamp. We also have a fixed rate for tracked 24, which is based on volume and sizes each year, so again not necessarily what people would expect if they compared to going to a post office themselves. Also, RM charge some sort of extra "fuel surcharge", just to add to the fun, and quite a lot for collection from our offices. With all of this I suspect we make a small loss on the postage we charge most of the time. We also don't usually factor in the envelope or packaging or staff time. These other bits being generally factored in to the price, in effect.
Fortunately, at least for now, we generally only ship to UK for such things.
Tindie sales
Selling on Tindie is way more complex when it comes to packaging and shipping costs. This is largely because we ship all over the world. This is mainly my small development boards.
For a start, Tindie have some simple shipping pricing options - we can set per country, and per product, and for first and subsequent items, but not for options on products, for example. And we cannot really work out the actual postage - I try to set the "subsequent item" price at a level such that it first with how many I can fit in different size envelopes.
In practice the postage and packaging costs depend on a rather complicated way on the combination of products purchased. E.g. I can fit 2 Faikout with cables and cases in and A6 envelope shipped as "large envelope" and pay one price for postage, though I think even that has a difference when it goes over 100g. This is the same as one Faikout. But I can also fit as many as 4 Faikout in that if no cable and case. Tindie will quote and charge shipping for initial plus extras, so for those examples 1+1, and 1+3, very different prices. I try and make sure this covers the postage we pay. It is shipping and handling I think, so the price can reasonably cover my time, the packaging, and what we pay royal mail, but some combinations add up to more than it costs, so yes, in some cases shipping and handling is making some profit (depending on how I cost my, or my staff's, time).
I did try and set up some options to address this, for some items allowing an option for buying two or three of the items as one item because I know that many fit in the same envelope. This just caused customers confusion even when labelled as "save postage". So I gave up on that.
It is also complicated by changing exchange rates - Tindie is in US dollars, so I have to adjust postage prices (and item prices) occasionally to be based on the UK pound price I pay.
Also, RM started charging for collection, which was previously free on click'n'drop.
If someone feels postage is too high, they are welcome to message, and I'll review it. Indeed on a couple of occasions someone has done so, for a UK purchase, and we arranged to bypass Tindie (which I am probably not supposed to do) and sell direct with a lower postage. Sadly another thing Tindie do not make easy is a specific partial refund, if I wanted to do via Tindie but charge less postage.
However, at the end of the day, the price charged is the price quoted (by Tindie), and is what the customer agreed. It is a take it or leave it - customer's choice, just like the price of the product itself.
US sales
It then got more, err, fun... US import tariffs charged by Royal Mail, so I pay postage and tariff, and an admin fee on top.
So the shipping and handling for US shipping on Tindie now includes an amount to cover US tariffs. This is impossible to match exactly - it is a shame Tindie do not have a shipping option to add a specified percentage of the sale price. They do not. So I created US shipping rates to cover "up to $5 tariff" and "up to $10 tariff" by adding $5 and $10 to the rates I normally quote.
Again, the shipping price is what is quoted and agreed by the customer.
Illegal tariffs
Now we really get in to the fun... US supreme court decides Trump's tariffs are illegal. So obviously I have asked Royal Mail how we get a refund of them. Do we get a refund of the admin fee too? It will be interesting to see what they say. I bet it will be "tough".
Of course, I have no idea if Tindie could cope with hundreds of "please refund this customer $3.50" or some such. As I say, they have no web site based refund option for me. I may simply have no practical way to send the tariffs back to my US customers, assuming I can get it back from RM (LOL). I may be able to create voucher / discount codes on Tindie, I'll have to check, that may be an approach to discount future purchases - but not ideal.
I guess another option if I got a tariff refund would be to find a suitable US based charity to send it to.
Direct refund?
Of course, as someone else pointed out - it may be a matter that the importer is the one that was liable to pay it, and they paid it by paying me, who paid RM, who paid US customs, but ultimately it is the importer that should directly get refunded for the illegal tariff directly: US customs to them. Which is fair enough.
But this idea does rather fall down in the face of Trump's repeated comments insisting that the sending country pays the tariff. It seems to me that RM have a lot of quotes of him saying that as justification for a refund of the tariffs that they did in fact pay as sending country.
I have no clue.