SUGGESTION OR OPINION

[mr.chopsticks]

I see where someone on Ebay is selling   some of the same items I sell.  This person is offering free shipping.  When asked how are they shipping, they said padded envelope.  If the Usps shipping from Usa to Usa is minimum $2.86 to max. of $3.09 and you add the fees for Paypal and Ebay, the cost of the product, the cost of the padded envelope, Can someone please tell me how they can sell this item for $3.00 total ?  I sure would like to know, so I can adjust my auctions.  They are coming out in the negative, unless there is a new way to ship and I work for USPS.

[kataggr-44]

Is the quality the same as yours or a cheaper variety?......  Are they making it up in volume?

[lovefindingtreasures2]

They can't make money, not after fees. Unless they are not using tracking and sending out using postage stamps. A lot of items can be sent with no padded mailer, then they pay straight postage like a letter.

They cannot qualify for top rated seller if they do not use tracking but zillions of sellers do sell without tracking.

I've had envelopes come in where someone has put the item between some padding then put it in an envelope. They are not sent back to the sellers, but they do go through the stamping machine. If the item is breakable, it's hit or miss for the seller. If it is a flat item, collectible stamps, paper ephemera, etc., they do fine. Maybe that's what they mean by a padded mailer, you never know. You could always order one of their $3 items and see what you get 🙂

It's also possible the competing seller is doing loss leaders in an attempt to bring traffic to their store. Selling at a loss to get their metrics up or something.

Many people do not know how very little they actually make after eBay fees, Paypal fees, cost of item, packaging, etc., they really don't.

Could be one of the above. They aren't in China are they? They can send a package for I believe about .40c, it cost me 55c to mail you a one ounce letter.

[mr.chopsticks]

They are in USA.  I ordered one thru a friend to see what I get.  It is the exact identical item.  100% sure they are losing money.  I'm thinking they are throwing it in a letter size envelope like you said.  I am retired post office and I know for sure it can't be done.  I charge the exact shipping on mine and like you said with the paypal fees, ebay fees, envelope, and all  the other little things involved(ink, tape, etc..)  I make little money.  I thought maybe someone came up with something different I didn't know about.  Thanks for input.

[mr.chopsticks]

When it comes in , I can see.

[lightlily_arts]

There are many small items that I won't sell exactly that reason.  By the time you pay the eBay PayPal fees and shipping you're in the red.  Only way around if it's an item you can stick in an envelope with a stamp. But with no tracking you are open to claims that it wasn't received.  I always wonder about the .99 cent sales.

[femmefan1946]

If you are both selling at Auction, he is betting that the selling price will be much higher than his opening price.

If you are both selling at Fixed Price, he is buying at a lower wholesale price (available to long term customers with excellent payment history) including the price of those padded envelopes. If he has a store, he gets an allowance for branded shipping supplied four times a year.

Even buying at commercial rates-- look at the price difference between buying a skid lot (4500 or more)  of envelopes and a case of 250 envelopes .

I can reduce the cost of shipping by using postage stamps purchased at a steep discount from philatelic estates instead of shipping labels from the post office. There are a few drawbacks to this.

Store subscribers also pay lower FVF in some categories. Free Shipping means putting the cost of shipping into the asking price, which in turn can mean paying a lower FVF on that part of his costs.

And of course, the bigger the Store, the lower the cost of each listing.  A seller gets 50 Free Listings per month and then pays 35c for any others.

Which would be $8.75 for 75 listings. Or an average of 11.7c each.

But a Starter Store costs $7,95 for up to 100 listings. Or an average of 8 cents for each of 100 or 10.6cents each for 75.

There are also perks for Top Rated Sellers. Qualifications are different for US and International sellers.

[femmefan1946]

BTW-- on your chopsticks.

Which would be cheaper $1.05 + $3.00 shipping?

Or $4.05 with Free Shipping?

Which would cost you less-- because of your TRS discounts for example.

Do you need to track a $4 item? Does the TRS discount make it worthwhile charging for tracking?

Do buyers feel ripped off when shipping is higher than the selling price?

I understand US sellers get some perks for selling internationally. You don't have to sell everything internationally if you only want to sell specific items.

And for high priced items, there is the Global Shipping Program.

[lja440]

I am a rural mail carrier and you know there are A LOT of things that are shipped incorrectly.

Since chopsticks are ridged they should not be shipped as a letter or flat, only as a parcel. I'm betting they have a lax Post Office that is allowing these to go through.

[mr.chopsticks]

That's what I want to see. I had a postmaster order one thru her Ebay account.

[mr.chopsticks]

I have been selling on Ebay for 18 years and also on 2 other web sites. I am aware of the perks in which I take advantage of. I order wholesale, I make my own sleeves. they either have to be cheating Postal system or just plain losing money. i'll update next week when merchandise comes in. Thanks for your input

[7606dennis]

Perhaps the seller is using the old Sam Walton philosophy of selling at a low price to drive their competition out of business.  I'm not sure how sound a philosophy that is for online selling, but it worked in many small towns for Wally World.

[ifyouloveit]

Most welcome, keep us posted. I suspect they are not using tracking and shipping letter rate. Or they are clueless that they are losing money 🙂

[fuzzface50]

"That's what I want to see. I had a postmaster order one thru her Ebay account. "

Make sure you come back and let us know what you find out. Some of us want to know too, Thanks 

[rixstuff]

A lot of new sellers get pressure to offer low prices AND free shipping but it takes them a while to realize they are losing money.  Also possible (if you are into conspiracies) that losing money is the whole point, he just wants to rack up feedback on super cheap items so he can hit the threshold to start selling bigger ticket items.