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eBay Refunded My Calculated Shipping Fee


elementalsobe

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I did not see a previous post about this so if this is double Im sorry!

 

Anyway so I called eBay today to question them about why there is a fee on calculated shipping fee. The Customer Support Agent told me that it was included in my final value fee, which I then gave him my item number and he saw that there was final value fee on both the item and the shipping. 

 

He credited my account for the shipping fee and told me if I wanted to avoid the shipping fee, build the shipping into my sale price and give free shipping which is not impossible but could make for a harder sale sometimes, especially if you are shipping a heavy item via USPS where price varies by zone.

 

Long story short Im not sure if I got a rookie CS Agent who just wanted to make me happy or if eBay will actually refund anyone who calls about this.

Also I know 10% on shipping is much but hey, less money on fees = more profit  :money:

 

Hope this helps!!

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Guest betsy805

I did not see a previous post about this so if this is double Im sorry!

 

Anyway so I called eBay today to question them about why there is a fee on calculated shipping fee. The Customer Support Agent told me that it was included in my final value fee, which I then gave him my item number and he saw that there was final value fee on both the item and the shipping. 

 

He credited my account for the shipping fee and told me if I wanted to avoid the shipping fee, build the shipping into my sale price and give free shipping which is not impossible but could make for a harder sale sometimes, especially if you are shipping a heavy item via USPS where price varies by zone.

 

Long story short Im not sure if I got a rookie CS Agent who just wanted to make me happy or if eBay will actually refund anyone who calls about this.

Also I know 10% on shipping is much but hey, less money on fees = more profit  :money:

 

Hope this helps!!

I'm impressed you actually got a hold of them!  But yes, I get charged the fee on both shipping and the item separately, but if you sell international, they charge you the fee for the first shipping destination listed (which is usually domestic)....I worried about that when sending off a small item for a $35 shipping charge!

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I suspect they thought you were a rookie and it was a one time thing.

 

We build shipping into everything...it is not that complicated and it does not make for a harder sale.

 

That is a little short sited for some. I live on the coast - it is not uncommon for me to have to ship something 2500 miles. And what about shipping internationally? I can't do that without calculated shipping.

 

It definitely makes it more complicated - With so many Lego sets on Ebay, there is a lot of competition and a lot of times a dollar more means you aren't selling it.

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That is a little short sited for some. I live on the coast - it is not uncommon for me to have to ship something 2500 miles. And what about shipping internationally? I can't do that without calculated shipping.

 

It definitely makes it more complicated - With so many Lego sets on Ebay, there is a lot of competition and a lot of times a dollar more means you aren't selling it.

 

Emmm isnt there option to set 2 different shipping costs?

 

When i put my stuff on Ebay I have option to set Shipping costs to US and then another bracket where I set shipping to Worldwide.

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That is a little short sited for some. I live on the coast - it is not uncommon for me to have to ship something 2500 miles. And what about shipping internationally? I can't do that without calculated shipping.

 

It definitely makes it more complicated - With so many Lego sets on Ebay, there is a lot of competition and a lot of times a dollar more means you aren't selling it.

 

DNIM, I was somewhat polite with you in my comments on this article that you posted: http://community.brickpicker.com/blog/4/entry-283-a-guide-to-shipping-carriers-its-a-drag-but-you-gotta-do-it/?st=20#commentsStart

 

Let me say it this way, you're not looking at the full picture. I really think you need to revisit what you're doing/talking about, especially when you post an article that people who don't know better read as definitive. 

 

What we do with shipping is build in the highest domestic shipping cost (for which ever service we offer, we usually just say "economy" or "standard") into the price of the item, as well as the cost of packing material, boxes, and labels. I've compared doing this to offering domestic shipping as calculated, and there's little to no difference in sales. Something like this matters to us because we ship and sell a lot of things...trust me, if building in shipping into the cost of the item resulted in significantly fewer sales, we wouldn't do it. As I've said in many others posts here, we always list international shipping as calculated.

 

The reason for this is the final value fees on domestic items are discounted for top rated sellers (we pay 7.2% final value fees with an eBay store for LEGO items). However, the final value fees on shipping for domestic items are not discounted. With international shipping, as Betsy mentioned, your final value fees are calculated on your least expensive shipping option, meaning if your first shipping option was domestic free then you're not charged a final value fee on international shipping. 

 

Another reason is that with shipping built into the item price, you get an automatic 5 Stars on the shipping and handling charge DSR. It's one less thing that the buyer can rate you on, which ultimately affects things like top rated and powerseller status.

 

eBay rewards sellers who offer low cost shipping options. The other thing they do is pretty clearly explain all of this on their website.

 

I'll also point out that your own recent thread is a really good example of why from eBay's perspective they charge a final value fee on shipping:  http://community.brickpicker.com/topic/5205-example-of-why-there-should-be-shipping-limits-on-ebay/?hl=10179#entry150462  It's to discourage people from making those types of listings.

 

Frog, please add some useful comments.

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DNIM, I was somewhat polite with you in my comments on this article that you posted: http://community.brickpicker.com/blog/4/entry-283-a-guide-to-shipping-carriers-its-a-drag-but-you-gotta-do-it/?st=20#commentsStart

 

Let me say it this way, you're not looking at the full picture. I really think you need to revisit what you're doing/talking about, especially when you post an article that people who don't know better read as definitive. 

 

What we do with shipping is build in the highest domestic shipping cost (for which ever service we offer, we usually just say "economy" or "standard") into the price of the item, as well as the cost of packing material, boxes, and labels. I've compared doing this to offering domestic shipping as calculated, and there's little to no difference in sales. Something like this matters to us because we ship and sell a lot of things...trust me, if building in shipping into the cost of the item resulted in significantly fewer sales, we wouldn't do it. As I've said in many others posts here, we always list international shipping as calculated.

 

The reason for this is the final value fees on domestic items are discounted for top rated sellers (we pay 7.2% final value fees with an eBay store for LEGO items). However, the final value fees on shipping for domestic items are not discounted. With international shipping, as Betsy mentioned, your final value fees are calculated on your least expensive shipping option, meaning if your first shipping option was domestic free then you're not charged a final value fee on international shipping. 

 

Another reason is that with shipping built into the item price, you get an automatic 5 Stars on the shipping and handling charge DSR. It's one less thing that the buyer can rate you on, which ultimately affects things like top rated and powerseller status.

 

eBay rewards sellers who offer low cost shipping options. The other thing they do is pretty clearly explain all of this on their website.

 

I'll also point out that your own recent thread is a really good example of why from eBay's perspective they charge a final value fee on shipping:  http://community.brickpicker.com/topic/5205-example-of-why-there-should-be-shipping-limits-on-ebay/?hl=10179#entry150462  It's to discourage people from making those types of listings.

 

Frog, please add some useful comments.

 

I am not really sure what you are talking about when you say "what I am doing and talking about". I wrote the article as just a short view into shipping and how it worked. I believe i covered all of the basics with the article, but I didn't go into a bunch of different types and situations. I just showed people the cheapest way to ship items with different carriers and commented on my experience with each.

 

I know you are always talking about all this stuff you sell and how much you sell and everything else, but a lot of people don't do this for a living. For you to come ina  thread and immediately tell someone "its not that complicated and it doesn't make for a harder sale" is not helpful at all. That is why I refuted it - especially on smaller items where there is an extremely small amount of error.

 

Example, selling something that weighs 2 pounds and is worth $15. To ship this 2500 miles, it is going to cost 5-6. So lets say I bought this set for $10 and the average sales for them are 15. If I average in the highest shipping plus fees, to break even I have to sell it for $18. At $18, it aint going anywhere.

 

Alternatively, I sell it for $14 plus shipping which keeps away the coast people and I easily sell it more locally and don't have to worry about the shipping.

 

Emes, I appreciate your opinions, but you only think about the mega sales, selling expensive items over and over, etc. Some things like this are not practical for smaller investors. I sell some things with free shipping, some without, and I change it up completely dependent on the item. Just coming in and answering a question for someone just starting by saying "its not complicated" doesn't help.

 

Neither does questioning my values on a Blog article when I covered the points you were making and also made it clear this was just an overview, not law. Again, I value your opinion - just sometimes you sound as if you are trying to talk down to people and act like they should be able to just figure this stuff out.

 

Edit: I want to add - I am just respectfully giving my opinion here. I have no problem with you. Just try to make sure people can see the whole picture.

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I also offer free shipping and build it into the sale. Since I sell mostly minifigures it is easy as they cost $2.07 for me to ship. International is calculated shipping.

In a way it's kind of what TRU does with their BOGO sale as it really isnt free..I would rather call it "shipping included" but that isn't an option.

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I don't understand how building the shipping into the sale price saves much at all on fees. You still pay the 9 or 10% on the now inflated sales price. All you save is the 20% top rated discount, if you have it.

 

I would prefer having the calculated price so I can offer the best possible price to the buyer. If I lose 20 cents because I don't get the top rated discount on the shipping cost then so be it.

 

Edit: I mail around 160 - 200 items per month and average $1600 in shipping costs. I do free shipping on about a third of what I sell (low cost items or media mail mostly). My DSR for shipping is 4.95 with no 1's or 2's. If you are doing honest calculated shipping then you don't need to build shipping cost in just to get the 5 stars.

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I am not really sure what you are talking about when you say "what I am doing and talking about". I wrote the article as just a short view into shipping and how it worked. I believe i covered all of the basics with the article, but I didn't go into a bunch of different types and situations. I just showed people the cheapest way to ship items with different carriers and commented on my experience with each.

 

My point is, the blog article you posted is full of errors. I pointed out some of those errors clearly and professionally. Rather than updating the article, you'd rather debate it with me. I simply don't see the point in posting articles like this if they're not going to be accurate. I don't mean this to seem rude, but honestly you really don't know what you're talking about regarding shipping.

 

What I'm describing in terms of shipping in this thread is not specific to large or small sellers. It works for both. In fact, eBay doesn't care whether you're large or small. They are encouraging you to figure out how to pass the cost of the transaction to the buyer. There is nothing at all complicated about doing this, and it doesn't make it harder to sell items. 

 

At one point in time my wife and I used to be really concerned about the price we listed something at. What we've found over time is that if the listing price is within a certain range of the lowest price, that it has little impact on sales. What we do now is we run items through our calculator and list the item with the result we come up with (the only exception being cases where we can sell an item for a dramatically higher price than the result our calculator gives us). In other words, I've seen no impact to sales based on building it shipping (other than I get a decent discount from eBay). I think you're over-thinking the "coastal" thing.

 

Also, we do not exclusively sell large expensive items. In fact, most of what we sell is way below $10 in final value and ships domestically via USPS First Class, which means it's less than 13 oz. From a perspective of LEGO we are very "small time". We sell right around 100 LEGO items per month, which I know is not small time for many on this site, but compared to those who move a lot of LEGO it's really nothing. Most of the LEGO stuff we sell is smaller stuff like polybags, the various small sets, and some mid-sized sets. We do buy and resale the larger sets, but at a higher overall ticket price (regardless of shipping), those higher ticket items are at the other end of the bell curve, so they sell less frequently.

 

This thread reminds me of Frog saying that she could tell 1000 people exactly what she does and how she does it, and less than 1 would actually listen and follow her advice.

 

Bottom line, part of what I'm saying here is that no one should be surprised that eBay charges final value fees on shipping, because ultimately eBay is transparent about their fee structure.

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Also keep in mind that calculated shipping won't actually calculate until a buyer is logged in to ebay. Not a huge deal, but it seems ebay mobile logs off every time you leave the site. When i'm browsing i rarely log in first, and i usually just skip over listings with calculated shipping.

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I don't understand how building the shipping into the sale price saves much at all on fees. You still pay the 9 or 10% on the now inflated sales price. All you save is the 20% top rated discount, if you have it.

 

I would prefer having the calculated price so I can offer the best possible price to the buyer. If I lose 20 cents because I don't get the top rated discount on the shipping cost then so be it.

 

Edit: I mail around 160 - 200 items per month and average $1600 in shipping costs. I do free shipping on about a third of what I sell (low cost items or media mail mostly). My DSR for shipping is 4.95 with no 1's or 2's. If you are doing honest calculated shipping then you don't need to build shipping cost in just to get the 5 stars.

 

Um really?

 

Let's use the lowest fee, with your numbers..$1600 * .09 = $144

 

$1600 * .072 = $115.20

 

+$28.80 for offering free shipping...if my math that I'm doing in my head is right that's a 20% difference, because that's what the discount is.

 

Over the course of a year that's $345.60 extra that you're paying to sell things

 

Nope, clearly no value there.

 

If you're selling 160-200 items per month then you should be top-rated and therefore getting the discount, as well as discounts on shipping, and a lower rate on PayPal transactions.

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I don't understand how building the shipping into the sale price saves much at all on fees. You still pay the 9 or 10% on the now inflated sales price. All you save is the 20% top rated discount, if you have it.

 

I would prefer having the calculated price so I can offer the best possible price to the buyer. If I lose 20 cents because I don't get the top rated discount on the shipping cost then so be it.

 

Edit: I mail around 160 - 200 items per month and average $1600 in shipping costs. I do free shipping on about a third of what I sell (low cost items or media mail mostly). My DSR for shipping is 4.95 with no 1's or 2's. If you are doing honest calculated shipping then you don't need to build shipping cost in just to get the 5 stars.

I agree. There isn't an advantage for me fee wise as I still pay the same in fees to eBay. It's just another way of doing it...each has advantages. Your method sounds better if you are selling heavier things where shipping to WA will cost differently then shipping to FL. For me it's usually the same price regardless of where it's going, so why not just let people know what they can expect to pay total. They know before even clicking on the link that they can buy a certain figure for $15.

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Um really?

 

Let's use the lowest fee, with your numbers..$1600 * .09 = $144

 

$1600 * .072 = $115.20

 

+$28.80 for offering free shipping...if my math that I'm doing in my head is right that's a 20% difference, because that's what the discount is. Over the course of a year that's $345.60 extra that you're paying to sell things.

 

Nope, clearly no value there.

 

If you're selling 160-200 items per month then you should be top-rated and therefore getting the discount, as well as discounts on shipping, and a lower rate on PayPal transactions.

I will trust you on the math. But still I don't think $345.60 is worth building in the shipping cost. Also remember I said I do build in shipping on about one third of what I sell though it is the low dollar stuff.

 

I live in Maine and can't build in shipping to California for everything. It cost (rough numbers) $9.37 to mail 2 lbs to California and only $5.50 to New Jersey. I would lose way more than $345.60 in sales if I built in shipping assuming I was mailing to California every time.

 

My business model is to provide my products as cheap as I can. Charging people from New York $4 more doesn't fit. If I lived in the middle of the country I may agree with you.

 

I am top rated as well as paying 2.5% Paypal instead of the 2.9%. Blanktowels on eBay if you care to check.

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I don't really have a lot useful to add other than what Emes has covered - free shipping gains me a lot more than it loses me. When I went to free shipping a few years ago it had zero negative impact on my eBay sales.

 

Emes did say something very important that I completely agree with: you don't have to have the lowest price to sell things. I am quite often middle or high-middle in price on the items I sell (books and Lego) and still enjoy healthy, steady sales.

 

DNIM wrote: "Example, selling something that weighs 2 pounds and is worth $15. To ship this 2500 miles, it is going to cost 5-6. So lets say I bought this set for $10 and the average sales for them are 15. If I average in the highest shipping plus fees, to break even I have to sell it for $18. At $18, it aint going anywhere."  - in my experience, it will in fact go, and at exactly the same speed or faster than the $15 plus shipping will go.

 

We have over 4,000 items (the vast majority are books) in our eBay store and it's all free shipping. Our average sale on books is $20, our average sale on Lego is running about $18.

 

Finally, in response to the OP, I have no idea why the CS refunded your FvF on shipping, but they shouldn't have and I definitely wouldn't count on it happening again. It's a valid fee that's been in place for years, so you just got lucky with someone who didn't know what they were doing.

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I don't really have a lot useful to add other than what Emes has covered - free shipping gains me a lot more than it loses me. When I went to free shipping a few years ago it had zero negative impact on my eBay sales.

 

Emes did say something very important that I completely agree with: you don't have to have the lowest price to sell things. I am quite often middle or high-middle in price on the items I sell (books and Lego) and still enjoy healthy, steady sales.

 

DNIM wrote: "Example, selling something that weighs 2 pounds and is worth $15. To ship this 2500 miles, it is going to cost 5-6. So lets say I bought this set for $10 and the average sales for them are 15. If I average in the highest shipping plus fees, to break even I have to sell it for $18. At $18, it aint going anywhere."  - in my experience, it will in fact go, and at exactly the same speed or faster than the $15 plus shipping will go.

 

We have over 4,000 items (the vast majority are books) in our eBay store and it's all free shipping. Our average sale on books is $20, our average sale on Lego is running about $18.

 

Finally, in response to the OP, I have no idea why the CS refunded your FvF on shipping, but they shouldn't have and I definitely wouldn't count on it happening again. It's a valid fee that's been in place for years, so you just got lucky with someone who didn't know what they were doing.

 

I'll point out that Frog is a "coastal".

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I will trust you on the math. But still I don't think $345.60 is worth building in the shipping cost. Also remember I said I do build in shipping on about one third of what I sell though it is the low dollar stuff.

 

I live in Maine and can't build in shipping to California for everything. It cost (rough numbers) $9.37 to mail 2 lbs to California and only $5.50 to New Jersey. I would lose way more than $345.60 in sales if I built in shipping assuming I was mailing to California every time.

 

My business model is to provide my products as cheap as I can. Charging people from New York $4 more doesn't fit. If I lived in the middle of the country I may agree with you.

 

I am top rated as well as paying 2.5% Paypal instead of the 2.9%. Blanktowels on eBay if you care to check.

 

One thing you might think about is that "providing products as cheap as you can" is not the critical success factor for being a productive seller on eBay. This is a subtle difference, but the real critical success factor is "selling products that people want at a price they are willing to pay". As I mentioned, and Frog supported, you don't have to be at the lowest price to succeed. I doubt that offering free shipping would impact your sales as you think.

 

What seem like small percentages end up making a huge difference on eBay, and in life in general. Using the example above, and you do the same thing for 10 years, that's over $3k extra you spent to sell things. That's a lot of big LEGO sets that you could have bought and sold at a profit in that timeframe, furthering increasing your returns.

 

Also, we end up making significant money when someone buys more than 1 item in a single transaction. Usually in these cases, the items will ship together and we end up making money on the shipping we built into the total item price.

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My point is, the blog article you posted is full of errors. I pointed out some of those errors clearly and professionally. Rather than updating the article, you'd rather debate it with me. I simply don't see the point in posting articles like this if they're not going to be accurate. I don't mean this to seem rude, but honestly you really don't know what you're talking about regarding shipping.

Like it or not, Emes is 100% correct here.

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As a frequent buyer on eBay, I take many things into consideration.  Free shipping is a nice feature that I look for, but it is not the main factor when deciding upon several similar priced items.  I will calculate the total cost of each listing on it's own.  I will also take into consideration the member's feedback and experience.  I will pay more for an item from a reputable seller.  Most of the time, you get what you pay for.  

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My point is, the blog article you posted is full of errors. I pointed out some of those errors clearly and professionally. Rather than updating the article, you'd rather debate it with me. I simply don't see the point in posting articles like this if they're not going to be accurate. I don't mean this to seem rude, but honestly you really don't know what you're talking about regarding shipping.

What I'm describing in terms of shipping in this thread is not specific to large or small sellers. It works for both. In fact, eBay doesn't care whether you're large or small. They are encouraging you to figure out how to pass the cost of the transaction to the buyer. There is nothing at all complicated about doing this, and it doesn't make it harder to sell items.

At one point in time my wife and I used to be really concerned about the price we listed something at. What we've found over time is that if the listing price is within a certain range of the lowest price, that it has little impact on sales. What we do now is we run items through our calculator and list the item with the result we come up with (the only exception being cases where we can sell an item for a dramatically higher price than the result our calculator gives us). In other words, I've seen no impact to sales based on building it shipping (other than I get a decent discount from eBay). I think you're over-thinking the "coastal" thing.

Also, we do not exclusively sell large expensive items. In fact, most of what we sell is way below $10 in final value and ships domestically via USPS First Class, which means it's less than 13 oz. From a perspective of LEGO we are very "small time". We sell right around 100 LEGO items per month, which I know is not small time for many on this site, but compared to those who move a lot of LEGO it's really nothing. Most of the LEGO stuff we sell is smaller stuff like polybags, the various small sets, and some mid-sized sets. We do buy and resale the larger sets, but at a higher overall ticket price (regardless of shipping), those higher ticket items are at the other end of the bell curve, so they sell less frequently.

This thread reminds me of Frog saying that she could tell 1000 people exactly what she does and how she does it, and less than 1 would actually listen and follow her advice.

Bottom line, part of what I'm saying here is that no one should be surprised that eBay charges final value fees on shipping, because ultimately eBay is transparent about their fee structure.

 

 

Wow, you know its funny because you talk this big game like you are this master person, but what I see is just someone who clearly thinks they know everything about everything and doesn't listen to anything.

 

In fact, every single thing in my article was completely correct. I used a high shipping value for a battlepack. Guess what mr. "big time" sometimes you have to ship them in a box so they don't get obliterated by the idiots at USPS. Absolutely nothing in that article is incorrect.

 

If you are this absolute genius as you seem to think you are, I challenge you to write something. You contribute nothing to this site except to tell other people they are stupid and to boast about how successful you are. I come here and actually try to help members.

 

If you were really being polite, you would have PM'd me. Thats why its there. Instead, you publicly post stuff because you are completely full of yourself and want people to see you calling other people out.

 

So I say this - Why don't you actually contribute something to the site rather than just criticizing others. I have written almost 50 articles, and have barely gotten a complaint from anyone else.

 

You are one level above a troll.

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You contribute nothing to this site 

 

That's not fair or correct. Emes has posted many useful things in the time I've been here, including in this thread. I have a lot of experience myself and am not patient enough to be modest about it, but Emes' are amongst the posters I always read because there's a fair chance I might learn something from him, even at my level.

 

And, I went to look up what Emes wrote in response to your shipping article - it seemed quite polite to me, he simply disagreed with some of your conclusions. Also, he specifically mentions shipping first class in a box for some of the battlepacks, not just tossing them in a bubble mailer.

 

It's hard to be criticized - I don't find it all skittles and beer when it happens to me - but it's part of the price of admission when you write anything for public consumption, whether that's articles or forum posts.

 

One small error in your article or your follow-up comments (I can't remember which) that I noticed and didn't see anyone mention - "Everything under a pound" isn't best sent first class package, since that service cuts off at 13 oz. For 13 - 16 oz, another method will need to be used.

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That's not fair or correct. Emes has posted many useful things in the time I've been here, including in this thread. I have a lot of experience myself and am not patient enough to be modest about it, but Emes' are amongst the posters I always read because there's a fair chance I might learn something from him, even at my level.

 

And, I went to look up what Emes wrote in response to your shipping article - it seemed quite polite to me, he simply disagreed with some of your conclusions. Also, he specifically mentions shipping first class in a box for some of the battlepacks, not just tossing them in a bubble mailer.

 

It's hard to be criticized - I don't find it all skittles and beer when it happens to me - but it's part of the price of admission when you write anything for public consumption, whether that's articles or forum posts.

 

One small error in your article or your follow-up comments (I can't remember which) that I noticed and didn't see anyone mention - "Everything under a pound" isn't best sent first class package, since that service cuts off at 13 oz. For 13 - 16 oz, another method will need to be used.

 

 

I don't care about being criticized at all - I care about someone trying to act like they know everything and saying my article was "full of errors". Actually, you are correct - he disagreed. But he also insisted I update my article with what was "correct". You know what that is? A know-it-all.

 

What he wrote was close to polite - I am fine with it. For him to say he was being polite is a different story - if you were going to say something like that, don't you think you would PM someone?

 

I know the error about the pound thing - I wrote it off hand and when I went back to correct it I couldn't.

 

If Emes actually did contribute to the site, he would know that editing a blog once it has been published is also impossible. So I didn't have a choice in the matter in the first place.

 

I am glad you like him. But you are ignoring the post after post he has where he belittles people and this site especially. I seem to remember Ed getting on him at one point for that as well.

 

I don't care. I am just going to put him on ignore and live with it. Thousands of people have found my articles helpful, so one troll isn't going to make me blink twice.

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