How can ebay sellers sell item for $3.00 and pay $2.61 for 1 oz to USA buyers?

[old_ladies_estate_sale]

Hi, I am having touble understanding how I can compete with sellers who sell like items for $3.00 a listing for similar item with free shipping ?  I sold some of mine for $3.00 right? then found out the shipping is for first class postage for 1 oz or even 2 oz is $2.61...my fees are 10% on $3.00 making that $.30 and Paypal fees is $.34 for payment...so how is this possible?  I want to be competitive with others sellers and offer a product that is quality and as cheaply as possible for shipping...just not sure I understand how they sell 100s of these items which by the way are hand made....and make no porfit and sometimes actually cost them more than money sent to them for the product.  I used to sell these same items for $.8.00 for same items and only made a minimal profit then...so what are they doing that I cannot readily see?  It is frustrating to say the least.  Any insites?  Please be kind to me...:)

[old_ladies_estate_sale]

The $2.61 was an envelope..a 6x9 like a card envelope.  and I made it as flat as possible..only 1-2 oz in weight. 

[old_ladies_estate_sale]

🙂

[old_ladies_estate_sale]

Thanks for the info...

[old_ladies_estate_sale]

I looked for that option and clicked on Letter but with tracking it was $2.61 for 1-2 oz. 

[robot-hands]

Why do you want to compete with people that give stuff away essentially for free or make no money?

What would one get out of being the best no money maker?

[muttlymob]

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@old_ladies_estate_sale wrote:

The $2.61 was an envelope..a 6x9 like a card envelope.  and I made it as flat as possible..only 1-2 oz in weight. 

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It sounds like what you are mailing is actually a letter.  If so it does not qualify for tracking so you may see an adjustment in your PayPal account if the letters are upgraded to Priority Mail, the next class for that mailpiece type that allows tracking.

First Class Mail is separated into 3 physical classes - Letters, Flats (Large Envelopes) and Parcels.  Only Parcels can have tracking.  Putting a Parcel label on a Letter or Flat does not turn it into a Parcel.

To address some of your other concerns, some of those sellers may be losing money and not know it.  Maybe they are not considering all the fees and just see bunches of $3 sales.

Some of those sellers may be doing as already suggested - making money off of multiple sales to the same buyers.

Some of those sellers may be knowingly losing money, using these sales as loss leaders to get people to look at and buy other higher priced items.

Ultimately each seller has to decide for himself what his selling strategy is and what to sell to reach his goals.  Some items just aren't worth selling if you are trying to make a profit, whether or not you have undercutting competition.