Why is eBay adamant about preferential treatment for FREE shipping?

[prettywoman-2012]

O.K., so I looked at my Active listings in Seller Hub and selected 85 items that I thought I can edit with price reduction. That went well, but as I was about to click on the O.K., button, I saw that eBay banner at the top of the page, telling me that 85 items "need to be revised, in order to increase the likelihood of selling them fast." 

Note that my small items ship First Class USPS and the shipping is really low. I cannot and will not offer FREE shipping as a small family business, and it is really not conducive to my business at all, as shown in the first two months of this year, my items are selling just fine, buyers do not mind paying for the shipping. It is quite annoying to see this constant push for FREE shipping and the preferential treatment sellers are supposedly getting (but in fact, many sellers offering FREE shipping sold less than I have, during the same time period). 

Should I use a different program next time, for putting some of my items on sale? If so, can it be done in bulk, and where is it located in Seller Hub? And would I still be seeing the pesky message from eBay to offer FREE shipping, atop of the already initiated price reduction, by using that tool?

Thanks

PW🐿

[corvettestainless]

Free shipping has always been a 'thing' here as to the average consumer, that is what they are looking for. Ebay wants you to sell so they can get their fees, so  you offering free shipping makes your items more likely to sell. It's not only what they say, but it is a fact. Just include shipping in your selling price and offer it free, you will more likely sell as there is a box that buyers can click off to the left to show 'only items that ship for free'. Most of us all know that the price is built in, but buyers have been brainwashed for years that 'free shipping' is a benefit to them. 

[orangehound]

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@prettywoman-2012 wrote:

... and the preferential treatment sellers are supposedly getting

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I don't think eBay gives preferential treatment to items that have free shipping ... that is, I don't think eBay gives the items greater visibility. 

However, there have been a lot of reports that free shipping can boost your sales, but that's assuming prices are competitive in the first place.

[cadbury0007]

I always figured that one of the reasons why they push you to add the shipping into your total price is that it helps to push up the sales figures they report each quarter.  I could be wrong, but I don't think shipping amounts count in the sales numbers they report.  Plus, it does lure certain buyers with a promise that is too good to be true, but they buy anyway.   My two cents (and no charge for shipping!).

[iart]

Buyers do not like shipping costs. Probably because many sellers didn't list an actual cost and then gouged them in the invoice. They learned.

If your shipping costs are so cheap, why not offer free shipping and simply boost the price to cover it? That's what we do and I'll bet that's what most other sellers do as well.

[jayjaspersgarage]

As many answers indicate "Free" shipping is an age-old mail order and now on-line pricing game. You can say what you wish regarding your sales and how you charge shipping, yet you have no idea how many platforms people sell on besides ebay. I sell over 20,000 items per year but not here on ebay where they force you to pay taxes if you exceed 20K including shipping and now sales tax. Several estate sale flippers I know sell thousands per year on different venues than ebay or other on-line sites.

I also use separate shipping here on ebay and probably would sell more if I played the free shipping game. I include tracking with everything I sell and have only had ONE return in ten years of selling. If and when I retire from my regular profession once the pandemic is hopefully behind us I may change to an all-out free shipping seller. Until then I will continue to offer flat rate shipping with tracking up to a certain amount when free shipping does kick in upon request.

I don't have much to say about the ebay tools because they change often pr are discontinued which is something I won't tolerate.

[picknparley]

But putting the shipping cost into the price of the item will put it over the suggested price policy. 

And I believe that 'saying' you're building the shipping price into the item price is a no-no. 

I stopped offering free shipping a long time ago. There is no such thing. No matter what Amazon or ebay says.

Especially if you have a bogus return there's at least a shipping rate provided for the return. Free shipping leaves that wide open. 

[mcdougle4248]

If offering free shipping does not work for you and your items, just ignore the suggestion 😉

Offering free shipping does not work for me and my items.  What does work wonderfully for me is combined shipping discounts.  Best of luck to you.

[corvettestainless]

Ebay doesn't force you to pay taxes on sales over $20k; Paypal sends a 1099 when you exceed $20k or 200 transactions, for your end of year income tax records. If you do $10k, you still need to claim that amount on your income tax. If you are not, it's tax evasion. Just sayin....

[corvettestainless]

It's absolutely NOT a no-no- it's how business is done. Free shipping is never free for the seller, no matter who it is and how much you ship. All the 'big' websites that you can buy from that give 'free' shipping if you buy $XX or free shipping during Xmas etc. those selling companies are still paying for the shipping, so that amount comes from the sale of the item, out of their profit- so it is 'built in' to their price. 

[spakey]

THANK YOU! Someone needed to say that about taxes! Income - over $20K or under and no matter how it is made needs to be reported! It's amazing how many sellers are surprised by this!

[prettywoman-2012]

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@mcdougle4248 wrote:

If offering free shipping does not work for you and your items, just ignore the suggestion 😉

Offering free shipping does not work for me and my items.  What does work wonderfully for me is combined shipping discounts.  Best of luck to you.

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Thanks, @mcdougle4248 and @jayjaspersgarage. Both of you just reinforced my already pretty firm decision to continue with offering separate, low flat rate shipping. The only thing I would be somewhat reluctant but willing to deviate from this decision would be, if the item visibility would be much (MUCH) higher with FREE shipping, but several people commented that this is not at all the case. 

My jewelry items are light weight enough where most fit into my custom-ordered bubbled envelope - with the wrapping and the jewelry box (which also cost money), for at around 4 bucks. For the time-saving simplicity, this model (of flat rate shipping) works for me the best, and YES, I also offer combined shipping discounts when buyers use the ADD TO CART option. Plus, as others pointed it out, if there ever is a complete nonsense of an INAD return, eBay forces sellers to issue a free shipping label - and then I would lose shipping both ways. While I thankfully, very rarely have a return case, I had one where the buyer claimed the item was not 1 inch in size, thus forcing me to issue a label for FREE return by the customer. This, despite the buyer having uploaded a picture which showed exactly 1 inch in size. eBay CS was completely useless, they have issued a canned response and did not even look at the picture the buyer uploaded, so alone for these complete nonsense type returns I will not offer FREE shipping. In this case, at least the original shipping did not need to be refunded to the buyer, too. 

I guess I was not clear enough with the question in my original post; I was referring to Mark-down Manager. Is this available in Seller Hub, and if so, where can it be found? 

Thanks

PW🐿

[mcdougle4248]

@prettywoman-2012 

Promotions (AKA Markdown Manager) is found under Marketing in Seller Hub.  The catch is this in only available to store subscribers.

https://www.ebay.com/help/selling/selling-tools/promotions-manager?id=4094&st=12&pos=1&query=Promoti... 

IIRC, you will still see that pesky message regarding free shipping.

[prettywoman-2012]

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@cadbury0007 wrote:

I always figured that one of the reasons why they push you to add the shipping into your total price is that it helps to push up the sales figures they report each quarter.  I could be wrong, but I don't think shipping amounts count in the sales numbers they report.  Plus, it does lure certain buyers with a promise that is too good to be true, but they buy anyway.   My two cents (and no charge for shipping!).

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Thanks - and also for your sense of humor (re: no charge for shipping your piece of advice). It is possible that you are correct and that the "added in" shipping cost pushes up eBay's total revenue reporting numbers.

However, I just learned that the FTC has guidelines and regulations  on this. One of those regulates what the term FREE may or may not include. If I understand their stance, they strictly prohibit the offering a service for FREE when it is actually not free but embedded into the price.

If that is correct, the eBay, Etsy and others trying to convince the sellers to do just this by offering FREE shipping then raise the price to cover the shipping cost make sellers who comply with the push all complicit in committing fraud. To that I say, "No, thanks, I will not offer FREE shipping even IF it may increase my visibility in search - so I take that back from my previous post.

Stay safe

PW👀🐿

[prettywoman-2012]

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@mcdougle4248 wrote:

@prettywoman-2012 

Promotions (AKA Markdown Manager) is found under Marketing in Seller Hub.  The catch is this in only available to store subscribers.

https://www.ebay.com/help/selling/selling-tools/promotions-manager?id=4094&st=12&pos=1&query=Promoti... 

IIRC, you will still see that pesky message regarding free shipping.

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Oh - I see. Thank you - at this moment, it would then be useless for me, as I do not subscribe to a store on eBay. 

Have a nice evening

PW🐿