Free Shipping?
What are the benefits of offering free shipping? Is it considered a business expense that can be written off at tax time? Also, is there a better way to ship rather than directly through eBay?
TIA
24 comments
What are the benefits of offering free shipping? Is it considered a business expense that can be written off at tax time? Also, is there a better way to ship rather than directly through eBay?
TIA
redlinear
·3 years agoHandling cost 😂
dbfolks166mt
·3 years agoSince I am on the east coast shipping cost can vary depending on the buyers location. The exception is when I know because of the size and weight of an item(s) that I can identify one shipping method that is the cheapest regardless of the buyers location or because I want shipping insurance coverate on the package.
Generally this involves using a USPS priority mail envelope or box or using USPS Priority Mail Cubic (which I purchase off of Pirate Ship). As an example I have shipped 50-60 pounds of casting lead in a USPS medium flat rate box at a cost of about $14. I have shipped some heavy tools in both flat rate envelopes and padded flat rate envelopes both of which have a 70 pound weight limit and cost about $8 to ship.
I shipped an expensive pen which could have gone first class due to the weight but for insurance purposes I shipped it in a box inside a flat rate envelope for about $7.60. I shipped some expensive Lego mini-figures using a USPS priority mail small flat rate box when they could have gone first class package but I wanted the insurance coverage.
Others have already mentioned the tax deduction. As for other ways to purchase shipping other than through eBay I utilize Pirate Ship for Priority Mail Cubic, which eBay does not offer, and for anything I ship UPS or FedEx since Pirate Ship offers coverage against any unilateral upcharges that both UPS and FedEx are infamous for when you purchase UPS or FedEx labels through eBay.
hartungcards
·3 years agoOne of the biggest benefits of offering free shipping is that the buyer thinks you're not charging them for shipping.
coolections
·3 years agoThat is a fallacy and untrue. Every buyer in the world knows that the ship cost is added to the total. Ebay has you fooled if you believe it.
monroe67
·3 years agohartungcards' post: "One of the biggest benefits of offering free shipping is that the buyer thinks you're not charging them for shipping."
coolections' response: "That is a fallacy and untrue. Every buyer in the world knows that the ship cost is added to the total. Ebay has you fooled if you believe it."
I disagree that "Every buyer in the world knows that the ship cost is added to the total."
I am pretty sure "hartungcards" is a person who is well aware that "Free Shipping" does include postage/shipping costs.
What he/she was saying is that, when some buyers see Free Shipping, they think they are not being charged for shipping. There will always be some people who think Free Shipping means . . . .
!! *#^ F R E E ^# *!!
. . . . whether they're buying from eBay or QVC or any other online or catalog retailer.
I have read these eBay community boards for years and I have seen posts from buyers who were surprised to receive a postage-due notice on a "free shipping" purchase and also from (new) sellers who were shocked that they actually had to pay the US Postal Service. (Come to think of it, those buyers might have purchased from those new sellers!)
atlasesattic
·3 years agoMost buyers, before searching on ebay, click on the free shipping, so if that happens anything you are charging shipping for, won't come up in there search.
coolections
·3 years agoThere is no benefit to free shipping. Actually you lose out because you cannot charge a small handling charge on your ship cost. I always add 30 cents to pay the processing fee.
redlinear
·3 years agoFree shipping subliminal thing (fool buyer into thinking they are getting a deal, something for free).
Shipping costs are high. For buyers that don't ship lots of stuff, even actual cost may appear as if you are trying to gouge them and they won't buy from you.
MOST people, buyers just don't understand shipping costs...so, taking that out of the equation makes it just easier.
ALL related expenses are tax deductible. You are paying for shipping, so that's deductible.
Most combined orders don't get asked for shipping reduction of items together when shipping is listed as free. Makes it lots easier on you that way.
A buyer sees that the PRICE is THE PRICE. There are no shocking surprises at checkout when it's time to pay. They don't have to calculate the total to make a decision. It's easier on them. Buyers like easy.
booksbytiffany
OP3 years agoLove this info!! Thank you!
rosszonebricks
·3 years ago"Free Shipping" doesn't work for every selling model though. For instance, I sell $2-$5 lightweight items. If I were to charge "Free Shipping" I would have to price that $2 item at $6.
What if they want to buy 2? In most cases, even buying 3-4 can still have the weight below 4 ounces, so having to bake in the full shipping charge to each item would certainly disuade buyers from purchasing multiple quantity.
What if they want 10-20 different items from my store? Having to bake that shipping charge into each item would be a huge problem.
For my store, it works best to set up proper weight and dimensions for each item, and let automatic calculated shipping handle it.
My customers love it. They get a massive discount on shipping, and it encourages them to 'buy more all at once' from my store, which in the end is more profitable to me.
booksbytiffany
OP3 years agoGood points! Thank you!
susanb1872
·3 years agoSince you sell books and use Media Mail, free shipping is a good option since there isn't a large swing in price from east coast to west coast. Sellers who use First Class or Priority could see a large difference depending on the weight of the item and where it is being shipped to which can make the free shipping option a little tricky.
booksbytiffany
OP3 years agoThank you! Great info!
kensgiftshop
·3 years agoThat's why I use the Flat Rate packages from USPS, I know exactly what the shipping is going to be no matter where it goes in the US.
But you're right, it can be a little tricky to balance it out, not knowing where the package will be shipped.
brightlightbookseller
·3 years agoTo clarify, there's actually zero difference in cost based on region for Media Mail, even to Hawaii/Alaska/APOs. Huge benefit for book sellers. That said, we haven't built in free shipping on most items because book buyers don't seem to expect it (except ironically on the cheapest books, which we just don't sell on eBay), so our stuff sells just fine with standard shipping costs and even a built in handling charge. We have tested free shipping vs customer-paid shipping costs a few times and seen negligible changes in sales.
huntfishdie45
·3 years agoYes, it is a tax write off and many people compare the shipping and cost of the item when comparing prices. If I can include the cost of shipping into the item and still be competitive I will. If I can go expedited shipping over standard shipping that is even better. When people buy online, they like fast shipping, so it is a good tool to seal the deal. I like the convenience of eBay shipping because you don't have to upload the tracking and I print my label, packing list and order details all at the same time which saves me time. I have not tried other shipping services because I have had no need to.
booksbytiffany
OP3 years agoThis is great information, thank you!
luxgoods
·3 years agothere is no such thing as free shipping. Somebody has to pay for it?
booksbytiffany
OP3 years agoCorrect, I pay upfront but am wondering if I can consider it a business expense at tax time? It has been clarified that yes, it is considered a business expense.
cardxcraft
·3 years agoTrue, but for the sake of discussion, it's safe to use that phrase.
heckofagame
·3 years agoThe advantage of purchasing your shipping label with eBay is that your tracking number automatically uploads, so you don't have to worry about that.
booksbytiffany
OP3 years agoGood point! Thanks!
kensgiftshop
·3 years agoYou still have to pay the shipping, so yes, you can deduct your shipping cost.
I like free shipping because I don't have to worry about buyers wanting to combine shipping.
booksbytiffany
OP3 years agoThank you!