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Free Shipping or not?


rmachado

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I like to offer free shipping. People like to think they are getting something throw in, even though nothing is free. I figure the cost of the farest ship. Cross country for me and with eBay global shipping is closer, to decide how much to add. Plus no one should complain I charge too much to ship.

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I've had buyers complain about shipping costs many times (I use calculated shipping so it's not like I make anything on it), when I offer free shipping with a BIN they don't complain, at least not about shipping costs. Just makes things simpler on my end to offer it. As a buyer, I don't mind free shipping because it makes it easier to see my total cost and I don't have to worry about a low price with extraordinary shipping costs. Then again I don't buy much on eBay.

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From a buyers point of view: When I look for something I sort by total price anyway - so free shipping doesn't make a difference there. And, as already stated, when you sell multiple things free shipping might be not as good. On the other hand, selling multiple things to one buyer when you had free shipping gives you a bonus, as you probably calculated the shipping cost into each of the items, and this way you as seller get the savings. No one can complain, as shipping was free anyway. No questions about combining shipping either.

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On larger items I typically don't offer free shipping since the prices can vary substantially from a buyer in the Midwest (I'm in Ohio) to a buyer in California.  If you can offer free shipping at the same total price as what you would charge for the item plus shipping, there is actually a very small savings.  That is if you are a top rated seller who qualifies for the final value fee discount.  Ebay will apply the 20% discount to the final value only, not the fee they charge you for what the buyer pays in shipping.  So if you sell with free shipping for the same total price, you are actually saving a little on the fees.

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Guest TabbyBoy

I charge paid shipping and only what it actually costs me and I send the buyer the postage receipt.  Packing costs nothing as I recycle old boxes and Jiffy bags.  Of course, I pay an extra 10% on top due to eBay's ridiculous FVF on postage... this drives me up the wall and is my No.1 complaint about eBay.  As soon as a good competitor knocks eBay of it's greedy perch the better.  I sell most sets now privately and through free national classifieds.

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As a buyer from Canada, I hate free shipping... since it never applies internationally except from those dudes in China and Korea selling knockoffs. :)

 

For example, seller lists BIN for $99.99 w/free shipping within the US assuming it'll cost them $10 to ship. They mark item also available to international bidders. Let's say for me that shipping is $20, so it'll cost me $119.99 to buy and ship. Seller just made an extra $10 ... good for them, not so good for me!

 

The US is such a big market it's probably no big deal, but it does reduce the number of people who will look at your item.

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When is the 20% taken off? Right away or when they send you the monthly bill? I should be receiving the discount but I don't see it reflected anywhere.

That is if you are a top rated seller who qualifies for the final value fee discount. Ebay will apply the 20% discount to the final value only, not the fee they charge you for what the buyer pays in shipping. So if you sell with free shipping for the same total price, you are actually saving a little on the fees.

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As a buyer and (limited) seller I love free shipping. An example is an item I sold that I added $15+fees to the listing for expected shipping cost.

It turns out that with creative packaging to keep it light the actual cost was $8.30, including tracking and insurance. The buyer is happy because they get free shipping and I am happy because I have an extra $7 in my pocket (or 5% more in gross sales in this case).

Some people run searches looking for free shipping options and this is one thing to consider when listing your item.

=====

I also have a calculator; it is in my head and it never fails even when I am hammered! (:

It is very helpful when price matching discounts or calculating tips or foreign exchange overseas or for general drunkenness.

Edited by the grammar police in my left side of the brain.

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Everything I've been selling lately on eBay has been with BIN and free shipping.  When I'm doing my research on pricing, it sure makes it easier to compare prices when I don't have to mentally add shipping plus cost.

 

I recently had someone complaining about my price (by doing a "best offer").  I reminded them that my price was pretty competitive, after you figured in the free shipping.  Person bought from my less than 5 minutes later.

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I don't sell too much, but I still charge flat-rate shipping. (I sell in the U.S. only.) I calculate how much it costs to ship to a couple different places in the U.S., and I take the average price. I round that to the nearest dollar. I might lose some money on a few shipments, but most of the time the flat-rate charge is within $0.30 cents of the actual shipping cost. I think the fair pricing of my shipping doesn't cause people to avoid me just because I don't offer free shipping. 

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