Distributing selling fees and shipping expenses

Once you have an idea of how you’ll profit from your service, you’ll want to take into account the fees and other costs associated with selling the item. Will your business take on all of these costs or will some of these be passed on to the buyers? It’s not as simple a question as it first seems.

Every cost your business covers is an additional feature to attract clients to your service but also another expense that leeches from your bottom line. You’re already profiting from the sale of their items by the fees or commission you charge—should that cover any additional costs? Which costs seem appropriate to expect the client to pay and when are you just being greedy?

While you could conceivably ask your clients to pay a portion of any of your business expenses, there are a few that are the most common which we’ll cover in future posts.