Shipping suggestions
I charge shipping for items that are less than $20. When is it reasonable to charge for shipping for free shipping?
22 comments
I charge shipping for items that are less than $20. When is it reasonable to charge for shipping for free shipping?
mam98031
·3 years agoOffering Free Shipping also presents a problem when carrier rates increase too as you would have to edit listing by listing to increase the price of the product. That for me became way too time consuming which is just another reason why I prefer stated shipping.
femmefan1946
·3 years agoWhen you have to ship parcel rates and the rate includes not only weight and dimensions, but also destination.
Anytime you are shipping overseas.
soh.maryl
·3 years agoOK, when is it NOT reasonable to build the shipping price into the item cost if you offer free shipping, regardless of how low priced the item is?
ebeths_eclectic_collectibles
·3 years agoWhen factoring free shipping into the total price skews the price too high. I live on the west coast if I have a 7 lb package the cost to ship is going to very different if the buyer is on the west coast or across the country. Do I raise the price to accommodate the east coast customer or lower the price to make everyone happy and take a hit on shipping. Even if you can ship everything for a flat rate your more local buyers take the hit
mam98031
·3 years ago@fivestarparts1
I think you misunderstand what Free Shipping is.
No one actually gets free shipping. All carriers charge everyone a fee to ship something. When a seller lists something with Free Shipping, the seller rolls the cost of shipping, shipping supplies and FVFs into the price of the product.
Free Shipping is just rolling all costs and your profit into one price.
fashunu4eeuh
·3 years agoWhen i was a new seller, i used calculated shipping to help me get through the learning curve on how best to ship. Once i had some experience dealing with domestic and eventually international shipping, i began to offer free shipping with Immediate Payment Required (and no Best Offer). I like FS because the buyer is spared the angst over the inflated cost of shipping these days.
albertabrightalberta
·3 years agoThe buyer isn't spared anything since the smart seller added the shipping cost into the item price.
I never do "free" shipping because I accept returns (buyer pays return shipping) and by charging separately for shipping, I'm allowed to issue a refund for the item price only. I don't eat the original shipping.
So to use @inhawaii 's as an example from above, although the buyer pays $125 total either way, for me as the seller, I refund $100 instead of $125 that I'd have to send back if I did "free" shipping.
Although it hasn't been mentioned, as a buyer, I prefer to pay separately because my state doesn't collect sales tax on shipping so my taxable amount is $100 instead of $125.
ebeths_eclectic_collectibles
·3 years agoYou can do free shipping at many price points as long as you are aware of the costs associated. Obviously, if you are selling something under $20 and wish to offer free shipping it should probably be light weight and affordable to ship. Of course on the heavier items the calculus is going to be different. Shipping costs could vary widely based on your geographic location and the weight of your shipment. If you are in the US and on a coast free shipping could have some real pitfalls. Gotta do the math
a_c_green
·3 years agoTotally up to you. I offer Free Shipping based on package weight, not value, on the theory that people pretty much know that lightweight stuff doesn't cost a ton of money to ship, so anything weighing less than a pound when shipped is offered with Free Shipping.
Back before the USPS Shipping categories got glommed together as Ground Advantage, I offered First Class Package as Free Shipping up to 15.999 ounces. Anything above that went as Priority, buyer pays. I now reference the Free Shipping as Ground Advantage instead of First Class Package, but otherwise that's pretty much what I am continuing with to this day.
simply-the-best-for-you
·3 years agoI don't ever do FS.
fivestarparts1
OP3 years agoFor me, I feel like free shipping gives the buyer an edge to purchase the item. Who wouldn't want to love free shipping?
inhawaii
·3 years ago$100 item + $25 shipping.
$125 item with free shipping.
Which is a better deal?
soh.maryl
·3 years agoWouldn't any buyer with any brains realize that there is really no such thing as free shipping, since any seller with any brains will have built the shipping cost into the price that he's charging for the item?
ebeths_eclectic_collectibles
·3 years agoNO! That is what merchandising and marketing are all about. Everyone know $9.99 is just one penny shy of $10 but The psychology of it still makes it an effective pricing strategy. You might want to check out this old Planet Money episode - The Power of Free https://www.npr.org/sections/money/2015/09/23/442921757/episode-386-the-power-of-free
slippinjimmy
·3 years agoJust because you have a brain doesn't mean that you know how to use it effectively, all day every day people are swayed by meaningless puffery and marketing tricks. These techniques persist because they work!
femmefan1946
·3 years agoWouldn't any buyer with any brains realize that there is really no such thing as free shipping, since any seller with any brains will have built the shipping cost into the price that he's charging for the item?
@soh.maryl
Yes.
But this is not a rational response.
It is an emotional one.
Like BOGO sales.
Or "We pay the sales tax " sales.
The actual discount is lower than what the shop would have had to discount to move deadstock, but the buyer looooooves getting something "free" or "not paying taxes".
monroe67
·3 years ago"For me, I feel like free shipping gives the buyer an edge to purchase the item. Who wouldn't want to love free shipping?"
I posted a day or so ago, in another thread, that in my opinion "free shipping" is a psychological trick.
It can make some buyers think they're getting something for nothing.
Successful eBay sellers (even new ones) realize that the US Postal Service (USPS) and/or FedEx and/or UPS will never ever deliver anything without being paid to do so. If you still mail your utilities or car insurance or credit card payments through the mail, you have to pay the USPS -- by putting a postage stamp on the envelope.
To the OP: only you can decide on when to offer "free shipping" on any of your eBay listings.
When you do offer "free shipping," make sure you have added the cost of postage to the price of the item. Otherwise, you will have to dig into your own pocket for the postage or other shipping cost. AND then your profit will be less.
Actually, on items that you place a high price on, say $500.00 or more, "free shipping" may make more sense.
The "logic" is that, heck, the price is so high, the seller shouldn't ask me to pay a few dollars more for postage.
ebeths_eclectic_collectibles
·3 years agoFree shipping is great! Of course that 8 lb package (unless you charge flat rate) is going to have a drastically different shipping cost if you ship 100 miles or 2000 miles away. Sometimes incorporating free shipping into your item and calculating a fair price makes the item very expensive if you are shipping close to your location
mam98031
·3 years agoClearly you don't understand how this works. NO ONE actually gets Free Shipping. The seller when they go to ship the item they sold as having Free Shipping WILL pay a shipping fee to the carrier they use. Without exception.
Free Shipping actually means Shipping Included.
It’s only reasonable when you incorporate the cost of shipping and fees into the price of the item.
femmefan1946
·3 years agoYou do know that Free Shipping is not free?
That it means you have put your costs for shipping into your asking price?
I list here with Free Shipping to Canada (my location) and to the USA.
The 92c to$11.57 postage cost for LetterMail under 2cm and 500 gr, is the same for any destination.
For domestic (Canada) shipping 92c covers up to 30gr. A postcard or a small vintage calendar.
For $11.57 I can ship anywhere in the USA up to that 500gr maximum. That covers most paperbacks.
So to be profitable, a $20 item with Free Shipping would have to cost me a dollar or less.
fivestarparts1
OP3 years agoWould it be a good idea to apply shipping to items that are like $250