why free shipping??
Summary: pokemoncookie initiated a discussion about the benefits of offering free shipping on eBay and raised concerns about potentially losing money. ypdc_dennis responded by suggesting that including shipping costs in the item's price for a "free" shipping offer can work for flat-rate shipping, and emphasized the benefits of eBay's discounted shipping labels. reallynicestamps highlighted that free shipping is an advertising strategy and explained that it often simply means incorporating shipping costs into the item's price. lotzofuniquegoodies pointed out that with the 'Best Offer' feature, any discount affects the shipping margin, recommending calculated shipping to offer buyers more options. mrdutch1001 added that sellers choose shipping strategies based on their preferences and business model. The discussion elaborates on the pros and cons of free versus calculated shipping for new sellers.
Hi everyone,
I am a new ebay seller. Before I start selling, I have questions about free shipping.
I read about offering buyers free shipping. The following is a quote from ebay under Shipping rates for sellers.
"When a buyer's deciding whether to purchase one of your items, the cost of shipping can make a big difference. Offering free shipping, or reducing delivery charges as much as possible, can help you win over undecided buyers, and grow your business.
How to set competitive shipping costs
Here are some tips for when you're setting up your shipping charges:
- Have a look to see what other sellers are charging to ship similar items
- To attract more buyers, consider offering free shipping on your items......"
(ex) My example: Let's say that you sold an item for $5. After the final value fee % and the per order fee, the difference would be about $5 - $1 = $4. If you offered free shipping, it doesn't mean that you wouldn't have to pay a single penny for shipping your package. The carrier might charge you as little as $5. That means, you would have a negative margin of $1. If they charged you more, your negative margin would be greater.
My questions:
(1) What are the benefits of offering free shipping for sellers besides attracting more buyers? You might end up losing money as shown in the above example.
(2) I noticed that a lot of US sellers charge high shipping fees and they still get sales.
Will you really drive customers away if you charge them the full shipping fees?
Thank you for your feedback.
reallynicestamps
·1 year agoFree Shipping is an advertising ploy.
It really means your cost for shipping and packaging is included in the asking price.
Which is cheaper ?
A $90 item with $10 Shipping?
Or a $100 item with Free Shipping?
Buyers love it and eBay gives us perks for using it.
Free Shipping is a version of Flat Rate Shipping.
The rate being $0.00.
I use Free Shipping on most of my (small light) items, including those being sent Tracked Packet USA.
But heavy bulky items and anything going overseas is listed on dotCA* and uses Calculated Shipping.
*Most of my listings are on dotCOM where we must use Flat Rate Shipping.
lotzofuniquegoodies
·1 year ago@pokemoncookie
Very important to remember as a seller if you choose to accept best offer with buy it now items, any minus you offer to a potential buyers gets used gets taken from your "free shipping". Why it is usually better to use calculated discounted shipping. More critical when shipping cost can vary location to location, service to service.
-Lotzofuniquegoodies
mrdutch1001
·1 year agonot all sellers use Best Offer so not all sellers are subject to needing "calculated shipping"...
I have never used "calculated shipping", just as I have never used "best Offer" and I don't use "free" shipping...
These choices applicable as per seller's preferences...
lotzofuniquegoodies
·1 year ago@mrdutch1001
Only intended as a by the way for new sellers who are not familiar with all the in's and out's of eBay shipping. Because of the variety I sell, flat rate does not work always for the majority of items I list. My reasoning for providing choice to my buyers for shipping using calculated shipping. So the buyer can choose what works best for them vs this way or the highway. If you are selling CD's, DVD's or patterns it may work fine.
Flat rate may work fine for someone in central Canada (On/Mb) but not so well for someone on the left or right coast. 13.00 for a customer of mine in AB vs 25.00 to Atlantic Canada is too much variance for me to chance.
ypdc_dennis
·1 year agoDepends a bit on what you sell. If your shipping cost is flat (same cost anywhere in Canada -- such as oversize lettermail or flat rate boxes) you could include that shipping cost into your asking price and have "free" shipping for Canada and not lose money.
Or you can buy labels through eBay and have calculated shipping with the ebay discount shown on your listing. Best discounts are for Canada Post Expedited Lite (up to 200g) for Canada and Tracked Packet USA (up to 2kg) for the United States. Does require you to have some way to print the labels, since the ebay discount is not available for labels bought at the post office.
Are you looking at US seller prices for shipping to USA (often free) or shipping to Canada (often expensive) ?
Smart buyers know how to do basic math to figure out the cost (item+shipping), but there are many buyers who prefer one inclusive price to make it easy for them to decide. So "free" has a small selling advantage.
-;-
pokemoncookie
OP1 year agoI will follow your advice. I really appreciate your clear and detailed explanation.