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"CLAIM that the shipping is FREE, that is misleading."
I think that is the problem: different perspectives.
When eBay lists an item and displays "free shipping" it does not mean the seller claims shipping is free.
The way I see it, it means that specific listing does not have extra shipping while other listings do have extra shipping. I see it more as a mean to compare many listings in a search result page than claims by individual sellers.
So one listing will show $500 + $50 (domestic) shipping
the next may be $550 free (domestic) shipping
followed by $520 + $30 (domestic) shipping
In that context, "free shipping" is not misleading but informative. It helps compare one listing to others.
I still remember the "good old days" (prior to my retirement) when I charged a flat $2 for shipping on the original transaction (regardless of value) and all additional purchases combined on the same payment were eligible to "free shipping" - meaning no additional shipping charge was involved, I absorbed it.
Now, let us not kid ourselves - this is business - the buyer always paid for shipping one way or the other as the "shipping subsidy" was built into the price (margins adjusted). If my annual shipping subsidy was $6,000 and my annual sales $200,000, then 3% of the gross margin was allocated to shipping subsidy. Many sellers work similarly with self-insurance.
The other reality on eBay is that about 25%/30% of transactions are still on the auction format. When a seller shows "free shipping" on an auction listing, is it?
It is not black and white.
PS - And, as you know, it is cheaper for eBay TRS sellers to offer "free shipping" (shipping costs built in the selling price) than charge extra. Not only do sellers save FVF, eBay also offers them better exposure and the vast majority of buyers prefer "free shipping"; not because they are stupid or misrepresented. They just like it better because more and more online business works that way.
If you can't fight them, join them!
"Hide it in the price."
Translation: incorporate the cost of packaging and shipping into your overall gross margin, just as you do for your eBay fees, your PayPal fees, your insurance, your losses, your time and other selling and marketing expenses.
Words may be different but the result is always the same, on eBay or elsewhere: the buyer pays for your cost of the product, all associated expenses (whether itemized or not) and your profit.
The only real question here is: is it necessary to itemize some of those expenses such as shipping and handling. Do buyers prefer to see those charges separately or not?
Whenever I look at my hydro bill, I go nuts:
Electricity
- Summer on-peak $xx
- Summer mid-peak $xx
- Summer off-peak $xx
Hydro debt retirement $xx
Delivery $xx
Regulatory charges $xx
Ontario Clean Energy Bebefit -$xx
HST $xx
Total Due: $xxx
Personally, I would much prefer to see the same total on only one line since there is nothing I can do about the itemized charges.
@pierrelebel wrote:"Hide it in the price."
Translation: incorporate the cost of packaging and shipping into your overall gross margin, just as you do for your eBay fees, your PayPal fees, your insurance, your losses, your time and other selling and marketing expenses.
Words may be different but the result is always the same, on eBay or elsewhere: the buyer pays for your cost of the product, all associated expenses (whether itemized or not) and your profit.
The only real question here is: is it necessary to itemize some of those expenses such as shipping and handling. Do buyers prefer to see those charges separately or not?
Whenever I look at my hydro bill, I go nuts:
Electricity
- Summer on-peak $xx
- Summer mid-peak $xx
- Summer off-peak $xx
Hydro debt retirement $xx
Delivery $xx
Regulatory charges $xx
Ontario Clean Energy Bebefit -$xx
HST $xx
Total Due: $xxx
Personally, I would much prefer to see the same total on only one line since there is nothing I can do about the itemized charges.
I can certainly relate to your comment regarding the hydro bills, but then I believe there is some sort of statutory or regulatory obligation for hydro utilities to disclose the breakdown. Fortunately that's not yet the case with eBay.
I sympathize with the OP, having struggled with the issue of so-called "free" shipping - whether to either eliminate shipping charges on some items (absorbing it through others), or incorporate some or all of the shipping cost into the price of most items.
My opinion is that the latter strategy is not as effective, particularly for Canadian sellers, unless you have a lot of "elbow room" in your prices - meaning either great margins already, or higher-value items that can stand a few dollars added to their pricing. Sooner or later your prices will have to compete with U.S. sellers in your category, and chances are their prices will be lower even if they include "hidden" shipping charges. I think Canadian sellers really have to think strategically about this issue.
Suggesting that incorporating shipping cost into item cost is somehow illegal, as one poster has said, is erroneous. It may be unethical in some cases, but the buyer (as in "Inuk's" $7 beer story) will ultimately decide whether price + shipping or price per se looks like the better deal.
And, Pierre, hydro bills are never a good deal, so just look at the final line and ignore the rest. Life is too short...
