Amazon Encourages Sellers to Offer Free Shipping

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Amazon Encourages Sellers to Offer Free Shipping

The Power of Free Shipping


Shipping costs have been shown to be one of the biggest barriers to online shopping in nearly all studies of Internet shopping behavior. As online sellers, we should do our best to break this barrier and encourage customers to shop on the Internet with confidence.

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Amazon Encourages Sellers to Offer Free Shipping

Free shipping can be a great extra expense for buyers of multiple low priced small items. An example is stamps which I know you are very familiar with selling.

 

Take someone who sells lots of low priced sets and single stamps. Let's say  for simplicity  the seller is charging $1 per item and needs $1.50 to cover postage and paypal fees. He can build the $1.50 into the price and ask $2.50 each so offer "free shipping". Someone who buys 1 item pays $2.50, no problem. A customer who buys 25 items pays $75. The buyer of 25 with not free shipping could gave paid only $25 plus $1.50 shipping combined for a $26.50 total if the seller was offering to combine the shipping with extra items shipped at no extra cost. This really makes the desired multi-item purchaser pay a lot more. Free shipping is not free.

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Amazon Encourages Sellers to Offer Free Shipping

" Let's say  for simplicity  the seller is charging $1 per item ..."

 

Of course "free shipping" will never work with very low priced items.  But again, eBay may not be the best venue to offer those low value items (say priced under $5 or $10), stamps or anything else for that matter.

 

Back in the "good old days", selling from my website (and other online venues), I offered "free shipping" worldwide for all orders. Many items were low priced (below $1.00 each) but I had a minimum order of $10, later raised to $20.  Unfortunately, eBay's format does not work for that.

 

By the time we factor eBay fees, PayPal fees, acquisition costs, packaging supplies and postage, very few sellers can make money selling these $1 items, more so if one provides some minimum value for time.

 

So I agree with you: as long as you keep selling these low priced items individually on eBay, it is not possible for you to offer "free shipping".  

The next best thing to do is to offer "free shipping" to all additional items when combining all purchases into one payment.  However, it is not good enough to mention it in the description.  A "shipping discount" should be clearly incorporated in "preferences" so that all listings show "free" for additional purchases in the shipping cost tab.  It eliminates having to ask buyers to wait for a combined invoice.

 

For more information: http://pages.ebay.ca/help/pay/shipping-discounts.html

 

Good Luck.

 

Message 4 of 9
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Amazon Encourages Sellers to Offer Free Shipping

The free shipping is not for all.

 

An example:

 

I offer several items priced at 12 dol + 8 dol. shipping.

If a buyer wish to buy 10 of them, the final price will be 120 dol. + 8 dol. = 128 dol.

If I include the shipping in the price, the item would costs 20 dollars.

If a buyer wish to buy 10 of them, the final price will be 200 dollars.

 

128 dol. versus 200 dol.

 

The free shipping is rather a psychological issue. I did try it, too. I remember I got feedbacks like "Wow! Shipping was free", even if the buyer paid as usual (20 instead of 12+8).

 

For some reason I also feel better doing shopping at Bestbuy, Future Shop, or Walmart, knowing that the shipping is free. 

Message 5 of 9
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Amazon Encourages Sellers to Offer Free Shipping

"I also feel better doing shopping at Bestbuy, Future Shop, or Walmart, knowing that the shipping is free. "

 

Most buyers react the same way; more so in the USA where "free shipping" is gaining ground.

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Amazon Encourages Sellers to Offer Free Shipping

  A "shipping discount" should be clearly incorporated in "preferences" so that all listings show "free" for additional purchases in the shipping cost tab.  It eliminates having to ask buyers to wait for a combined invoice.

 

The thing is that does not work well either if you are selling other more bulky items  in addition to the smaller ones that you combine for free. As an example in addition to the small stamp sets you sell the odd album or some clothing for example.

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Amazon Encourages Sellers to Offer Free Shipping

I suddenly had this vision of Pierre starting his own life of "Pierre Wear".
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Message 8 of 9
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Amazon Encourages Sellers to Offer Free Shipping

" ...some clothing"

 

So you use a different shipping policy for those items or incorporate the added shipping into the  price for the odd item.

 

Let's face it: it is a lot easier to make it work than to find objections why it would not.

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