08-05-2014 02:59 PM
From today's Toronto Star:
When Walmart Canada introduced free shipping on all online purchases last year, it was a clear message to its rivals that it was gearing up for a fight.
Craig Patterson, an analyst who runs the online news magazine Retail Insider, said the move by one of the world’s largest retailers was bold, setting a new standard in going the extra mile for consumer dollars.
“This means war. It’s a declaration of war, no question,” he said from Vancouver.
For the last few years, a battle has been waging among retailers trying to set themselves apart, as entrants such as U.S. giants Target and Nordstrom arrive to compete for the same customers.
“What this comes down to is building trust with the customer,” said Patterson. “Walmart knows that if they offer free shipping, they are coming out punching. When someone like Walmart does it, there is going to be scramble from other retailers to see how they can compete either by adding extra value, better customer service.”
While a behemoth retailer like Walmart may be able to absorb the costs of shipping, it would be a challenging task for smaller retailers to offer the same without raising prices, he said.
08-05-2014 03:35 PM
08-05-2014 03:36 PM
08-05-2014 04:59 PM
I order all my Jam jars from Walmart. They are shipped from Ontario to Saskatchewan Free, through a courier.They arrive within 7 days and are over 2.00 a case cheaper than a wholesaler. I order 30-50 cases at a time. Love it!!!
08-05-2014 05:32 PM
"I heard it. I heard it five years ago."
So have I and my listings have offered "free shipping" ever since!
08-05-2014 06:01 PM
It costs a lot to have a brick and mortar store. The cost of shipping with volume discounted rates is likely less than the cost of building more stores to increase sales. Many of the shipped sales are ones that would not have happened otherwise.
08-05-2014 06:01 PM
08-05-2014 07:16 PM - edited 08-05-2014 07:18 PM
I only started selling for a living on eBay 18 months ago & have had FREE USA & Canada shipping from the start. I Know when I shop on-line I'm very conscious of the "Landed" price
@mr.elmwood wrote:
I read that article earlier. It is, obviously, not free shipping. It is the ability to absorb shipping into the cost of doing business.
Soon, very soon, it will be that the price a customer sees, is the price they pay. eBay saw this coming five YEARS ago. They warned everyone. I would wager that 90% never heard the message.
I heard it. I heard it five years ago.
08-05-2014 07:57 PM
For any seller that is dealing with inventory that has any significant size or weight it is not feasible to "absorb" shipping prices.
Sure, you can add the cost of shipping into your selling price but I have experimented with this and saw absolutely no benefit in sales by including the shipping price in the sale price.
Given Canada Post's outlandish prices and their yearly rate increases the situation keeps getting worse. Prior to the last Canada Post increase I could ship a collectible coffee mug (just an example of a relatively inexpensive and not overly large item) to California for between $11-$12. That same mug now costs me $17.40 to ship.That is outrageous that Canada post is allowed to get away with increases like that.The definition of a bully monopoly for sure!
In the category of items that I sell, the cost of inventory is going up as well. Believe it or not, all of the "Picker" shows on tv are driving prices up at auction, thrift shops etc, and on top of that, everyone and their brother are now "Pickers" so people like me that have been doing it over 20 years are now having to battle all of these yahoos who have been convinced by tv shows that they are going to get rich picking. There are people who sit all day in my local thrift shops just waiting to pounce on anything that comes out. it's incredible.I have tried to shift the majority of my supply chain to other sources like auctions and contents sales for example,both of which I have always sourced from but as new sources open up the amount of time before they become well known and the hoards are all over them is rapidly shrinking.
Before health reasons put me into early retirement this was less of a job than a hobby but now it's my major source of income and it is not looking good for future prosperity let me tell you. Ebay is a very small part of my selling but I had hoped for it to be a bigger player but I don't see that happening any more based on how things are going. It seems that with every new rule or policy change Ebay is making it harder and harder to sell and make money, at least in the areas of items that I sell, which is all I am qualified to comment on i guess.Interest from buyers seems to be waning and I don't see Ebay doing Jack Squat to bring in new buyers or to instill excitement in current buyers.Ebay continues to take as much or more in fees etc but they do nothing to assist in the making of a viable future for sellers like myself.
I'm honestly at my wits end with this place. The only tactic that seems to have any effect on sales these days is basically dropping prices until you are giving things away. I won't do that as long term that just makes things worse, not to mention I still sell much more in other venues away from Ebay and do not want to damage margins in other areas, especially with people who check Ebay as their barometer for prices.
It really won't take much more for me to pack up and leave Ebay. Sales can't get much worse before they are nothing at all and the amount of work required just won't be worth it.
That's about it I guess.
08-05-2014 08:20 PM - edited 08-05-2014 08:25 PM
I have to agree with treasure hunter. I am around $15.00 for Canada and 18 plus to send to the states. Most of my items are over $100. I am not shipping without tracking.
One of the bigger problems is that there are to many sellers selling the same thing and more are coming. This will certainly cause competition in the market place. The only solution is lower prices. Then to add free shipping! Thats a tough one.
I started selling my items and was one of the first that was doing what Im doing. I know the best thing to sell on Ebay is something unique. Unfortunately I'm not alone anymore. My area is not a huge market. To have additional sellers to compete with makes selling on Ebay questionable. I cant do free shipping. I just hope that more sellers start showing up. It been a tough summer.
Man, I remember back in 2007-2008, I made so much money. Honestly sales were coming in so fast that many mornings I was hoping that I didnt have any sales to deal . I had days where I couldnt get of f the computer. Just as I thought I was done, Bang another sale. Ever sinse the crash in 2008, it just has never recovered. Pitty!
Just waiting for the good times to roll
08-05-2014 08:39 PM
Bring it on!!
I already massively under cut Walmart
Walmart: $15.58 Free Delivery
http://www.walmart.ca/en/ip/salon-express-nail-art-stamping-kit/6000071700189
Me: $6.93 Free Delivery
http://www.ebay.ca/itm/151274662072?ssPageName=STRK:MESELX:IT&_trksid=p3984.m1555.l2649
08-05-2014 10:22 PM
When Walmart and other businesses list it at $20
and you get it for $20 with free shipping... that is zero cost for shipping.
That is TRUE free shipping.
Walmart can do it because for every item sold with free shipping... that cost for shipping is spread across many items that are sold in the store...... Also it costs less to store inventory in a warehouse as compared to a display in a retail situation... at a store.
--------------------------------------------------------------------------------
eBay promotes free shipping... but has free shipping ever been defined??
Link to ---
http://pages.ebay.ca/help/pay/questions/free-shipping.html
Most sellers state free shipping and include the cost of shipping in the price of an item..
False advertising.........
However if some sellers have a B & M store and advertise free shipping there is no problem here.... Similar to the Walmart situation
In contrast anyone who sells only on eBay and has free shipping... shipping included in all listings ... that is false advertising...
What ... would/could/should ....happen to this last group of sellers that all shipping included in the price as FREE Shipping.
Free shipping as defined and used by many sellers on eBay is not TRUE free shipping.... then why call it free shipping.
Because eBay promotes it... kind of a circle of happenings... that eBay never defines.... but accepts free shipping as defined by each seller...
Should there be a law that defines free shipping?
Maybe there already is such a law...... Most likely not.....
Or is free shipping defined by the two words... free and shipping... meaning no cost for shipping paid by a buyer....
08-05-2014 11:46 PM
This will certainly cause competition in the market place. The only solution is lower prices.
I disagree.
You can also write better titles and copy.
Take better pictures.
Develop a better FB and DSR profile than your competitors.
Have a friendly ToS.
WalMart is widely believed to have the lowest prices around. But actually, they cherrypick certain items (a lot of items) that are heavy sellers and cut those prices beyond the bone. Light bulbs and toilet paper come to mind. But you can often buy other WM offerings at lower prices elsewhere, because they are not on that cherrypicked list.
Target in the USA did pretty well against WM by pushing their better looking and more aspirational look, while keeping prices low. (They really screwed up in Canada, though.)
IKEA has a great reputation for low prices and good design, and few mention that the Brick can meet their prices and often ourdo them on quality, and you don't have to put the stuff together yourself. Unfortunately, the Brick is also design-impaired.
There are also a lot of people who believe that the higher priced item will be higher quality. They are sometimes right and sometimes wrong. But they are also nicer customers than the armed bargain hunters who bottom feed for low prices.
08-06-2014 12:05 AM
Free Shipping is not a panacea. Buyers like to have it, but they also like to brag about the "deal" they got and often they don't mention the $10 in shipping that made it less of deal! For some items it is good, but for a lot of others it is better to keep both the shipping quoted competitive since it keeps the starting price lower.
It is out of balance when even mailing magazines is almost unworkable. I have done well with some specialized tech and craft magazines in the past, but now any that are over 200 grams are $10.30 to the US and $20 international. 200 grams is nothing for a decent magazine. So I narrow my items even more to light mags. 100 grams to the US at $5+ is tough but I can list at $3 shipping and if I can't absorb a couple of bucks it isn't worth listing, thought international sales are dead since 100 grams is $10+.
08-06-2014 12:52 AM
@atvds1210 wrote:Free Shipping is not a panacea. Buyers like to have it, but they also like to brag about the "deal" they got and often they don't mention the $10 in shipping that made it less of deal! For some items it is good, but for a lot of others it is better to keep both the shipping quoted competitive since it keeps the starting price lower.
It is out of balance when even mailing magazines is almost unworkable. I have done well with some specialized tech and craft magazines in the past, but now any that are over 200 grams are $10.30 to the US and $20 international. 200 grams is nothing for a decent magazine. So I narrow my items even more to light mags. 100 grams to the US at $5+ is tough but I can list at $3 shipping and if I can't absorb a couple of bucks it isn't worth listing, thought international sales are dead since 100 grams is $10+.
Sounds like you are using Letterpost USA and International since you mention 100 and 200 grams weight classes.
Letterpost USA 100 grams $2.95, Letterpost International 100 grams $5.90
Letterpost USA 200 grams $5.15, Letterpost International 200 grams $10.30
Letterpost USA 500 grams $10.66, Letterpost International 500 grams $20.60
Consider Light Packet for 101-150 and 201-250 grams, Light Packet is cheaper than Letterpost.
LP USA 150 grams is $3.79, LP International 150 grams is $6.51.
LP USA 250 grams is $6.37, LP International 250 grams is $10.46.
If you use discount postage, the cost of postage can be 20 to 35% less.
08-06-2014 01:04 AM
Under 200, or 250 is manageable. I use light packet as well, it really only gives you another 50 grams at reasonable rates to the US, and 150 grams international. That cuts out a lot of items.
08-06-2014 08:18 AM
"It is out of balance when even mailing magazines is almost unworkable."
As the title of this thread suggests, "free shipping" is a challenge for Canadian sellers. Canada Post may not always be the best answer.
And the same challenge applies to sellers or publishers of magazines.
Sometimes successful business must think outside the box.
Mary subscribes to several magazines. One of them is Chatelaine. A few months ago she noticed that the magazine now comes in a plastic envelope with no address on it. How does the mail carrier know where to deliver it?
Mystery!
Last month... same thing. Plastic envelope. Unaddressed.
The mystery continues!
Yesterday morning, as she was working on the flower bed along the driveway, here comes Anthony, our friendly 11 year old local newspaper carrier, delivering the local newspaper (The Intelligencer) and her new edition of Chatelaine!
Mystery solved!
Chatelaine, in an effort to lower distribution costs, has contracted with local newspapers to use their distribution networks to deliver the magazines to their paid subscribers.
That, my friends, is thinking outside the box!
PS - I am not suggesting you contract delivery of your parcels with local newspapers but simply pointing out that, sometimes, there are solutions out there to solve costly problems.
08-06-2014 11:59 AM - edited 08-06-2014 12:04 PM
@jerseywithstats wrote:
"I know the best thing to sell on Ebay is something unique."
__________________________________________________________________________________
This persistent belief may be the crux of the current problem for many of us OOAK sellers (what I call "Boutique" sellers). I think we want to believe it's still true, but the reality is now different. It was true of eBay even 4 or 5 years ago, but is no longer the case. EBay has said so, with their site advertising, their policies, their promotions, and -- not coincidentally I think -- with encouraging free shipping.
I completely sympathize with the comments expressed by you and by 'treasurehunter'. I'm in a very similar boat. Prior to 2009, I could barely keep my items in stock. Things got snapped up sometimes within hours of being listed. Now those same articles tend to sit, sit, sit for weeks or months.
This is despite a tremendous amount of work I've put into doing all the things eBay tells us to do to stand out and make sales, and all the things that 'femmefan' listed above. It's also in spite of the fact that I've been offering free shipping on many items and almost always "subsidizing" my buyers' shipping in other cases. Essentially all I've managed to do with all those efforts and changes is to simply keep my head above water. And each year Canada Post erodes those margins at one end, while the pressure to offer free shipping erodes margins at the other.
I understand what Pierre is saying about thinking outside the box where shipping is concerned, but those sorts of creative solutions are much more available to sellers with larger volumes or items of a consistent size and shape. There are many, many alternatives available for such sellers, especially if they are doing business near or in a major city.
The rest of us -- what have we got? Reduce costs in other areas, try to ramp up sales to compensate for shipping losses, use Paypal labels, reduce weight of items or packaging as much as possible. Using discount postage is fine if you have a source and are willing to spend the time licking stamps. It may not work if an item must go by a more expensive service and you only have a boxful of 2 cent stamps.
I have now experimented with free shipping for about a year - and I really do mean free shipping, i.e. I pay the buyer's shipping, but I don't raise the price. To do anything else (I agree with 'cumos' ) is false advertising and disingenuous -- here, look at the bargain I'm giving you, but don't look too closely. You're pulling the wool over the buyer's eyes and hoping they won't notice.
My experiment with free shipping hasn't been much of a success, or made a significant difference in sales. The most I can say is that additional sales have just covered most of the losses in shipping, i.e. it's been more or less a wash. My conclusion is not that offering free shipping per se is futile, but that other factors -- such as the type and number of buyers eBay is now attracting, and the numerous and frequent "dysfunctions" on this site -- are a large part of the equation.
I'm having the same depressing thoughts about this place as 'treasurehunter', despite my intense efforts to keep up with my competition and exceed my own expectations. For my own part, I've been forced to hedge my bets by selling elsewhere in addition to eBay, and I keep wondering which new policy or new Canada Post increase will be the one that makes me decide to finally fold up my tent and leave here.
Shipping costs in general, and the pressure to offer free shipping in particular, are just another nail in the coffin marked "RIP eBay Boutique Sellers".
08-06-2014 02:00 PM
What do we do when offering free shipping , just isnt enough? I guess eventually Ebay will change as far as who sells on Ebay today. Look where we are today.
lowering prices
free shipping
You know these actions are only a plug in the dam. If events continue as they are, we sellers will be faced with choices. Do we stay or do we go.
Still waiting for the good times to roll. Are we there yet?
08-06-2014 02:07 PM