Opinions wanted.

[flipsidetrippin]

Q:

Is it better to add shipping cost to item and advertise as "Free Shipping" or not?

[femmefan1946]

Depends on the cost of shipping that particular item.

If the shipping+asking price puts the item way over other similar items, then, no.

On the other hand, if your items are one of a kind or ship for very little, Buyers LOOOOOVE Free Shipping. And yes, they are smart enough to know that FS really means 'included in asking price'. It's emotional, not logical.

And, bonus, if you offer Free domestic Shipping, you pay no FVF on shipping to the USA or overseas, even if you have to charge an arm and a leg for that.

There is a certain amount of massaging needed, since you would probably want to reduce your international shipping costs by the domestic shipping rate, but hey, life is not all fun and games.

If you are listing on dotCOM, you can also offer Free Shipping to Canada by giving the Canadian shipping cost as $0.00. And of course vice versa.

mr.elmwood reminds us that with the drop in the Canadian dollar, our listing and shipping costs have dropped if we are selling in US dollars.

[dutchman48]

One problem has been brought up on another board is the following. If you add shipping and someone buys a number of items, they realize they are paying multiple shipping charges even though they make 1 payment and you ship in one parcel. Be prepared with free shipping to get a request for a reduction in the total to compensate, or problems with your feedback or stars.

It becomes a catch 22. If you are selling different items or higher priced items, it may be very beneficial to offer free but if you get a lot of buyers buying multiple items, it could become an issue

[2014sportsterguy]

I can see free shipping as a good carrot to atrack bids,but let's be real here the buyer looks at total costs of each listing.
So really for a buyer it's almost deceptive while they compare listings.

[pierrelebel]

"let's be real here the buyer looks at total costs of each listing."

I wish that were true.  Over sixteen years selling on eBay tells me that most buyers in fact do not read the listing (some do).  Most see an image, they see a price, they bid or buy or hit the back button.

How many actually check the seller's feedback before bidding/buying?

How many check the shipping options/cost?

How many check if taxes are payable?

How many check if they can return the item if not satisfactory?  Or do they assume they can?

There is a big world out there with retailers of all types offering "free shipping" on their online sales. eBay is a tiny fraction of e-commerce. Folks do understand that "free shipping" means the seller absorbs the cost of shipping in the selling price and make their buying decision accordingly. 

[reallynicestamps]

Yes, multiple purchases are tricky.

The seller's best bet is to send a separate refund for the difference between shipping charged and shipping used, with the cost of eBay and Paypal shipping FVFs subtracted.

This works pretty well because most people are delighted to get an unexpected refund and don't look to closely at how it was calculated.

[musicyouneed]

I sell CD's and there was a time that I offered free shipping for about 1 year.  I don't think it increased my sales at all, in fact for me, I think that it hurt my sales.  I now charge what the mailing label states and find that works that best for me.  

I know you have to look at total price, $5 item + $5 shipping = $10 or $10 item free shipping = $10.  I just know myself that I look at the $5 item first and don't look for free shipping because I know that they have increased the item price to make up for the free shipping.  

I personally like to have a breakdown of my costs.  

Those retail stores that say come in and buy they pay the taxes for you.  I stay away from those stores because I feel that they are overpriced in the first place to do that.  It may be just me, but I don't like inflated prices.  

For instance, I offer combined shipping that without jewel cases they can buy 4 CD's for the price of shipping one CD in Canada $2.95, and 3 CD's for the price of shipping one CD for the US $3.79 and International $6.51.  I can count on 1 hand not including my thumb how many people have taken advantage of that.  Most people will buy just one CD with a jewel case and pay the shipping for one.  Go figure.  

[femmefan1946]

Free Shipping is an advertising ploy.

As you say $5+$5 is $10 and $10 + Free Shipping is $10.

Buyers still love it.

Those retail stores that say come in and buy they pay the taxes for you.  I stay away from those stores because I feel that they are overpriced in the first place to do that.  It may be just me, but I don't like inflated prices.

Well, no. The regular price is $10+ 15% sales taxes = $11.50.

The sale price is  $10  in which case you are getting a 15% discount.

Buyers may not get out of bed for a 15% discount, but they looove not paying taxes. (Even though the store is remitting part of what they paid to the revenue)

The stores I avoid are the ones where the clerk tells me that I should wait till next week because the item I'm ready to pay for today will go on sale.

Now there's an instance of not offering the best price to the customer. A case of taking the slow nickel over the fast dime. Not good business.

The customer wants convenience. One price / no fancy arithmetic to get the shipping ? SOLD!

Buy one get one free? SOLD!

Buy two and get a 50% discount on them? Arithmetic again. Pass.