Curious about free shipping

[yooner-ama]

Im a bit confused about free shipping. I plan on listing an item BIN for $400 w free shipping. Lets say the high end shipping could run $100. Will my ebay fees be taken from the total of $400? Would it be cheaper to list item for $300 and buyer pays shipping? Then my fees would a percent of $300 ? 

Or are the fees taken from total including shipping fees buyer pays. I read the tos but it has my head spinning. Thanks for any help 

[1786davycrockett]

@yooner-ama 

The final value fees are based upon the selling price of the item, plus the shipping charges, plus the state sales tax (if any) from the state in which the buyer lives.

[slati_2013]

Whatever it costs to ship the item should be what you should charge for shipping. You pay for shipping. Some people seem to think free shipping means eBay pays for it. No, by free shipping you agree to pay for the shipping for the item no matter what it costs out of your pocket. I do not offer free shipping. Most buyers will gladly pay a fair shipping price. Fees are taken out of the total the buyer pays you, so if you sell for $300 plus $100 shipping, the fees will come out of the total, $400 plus any other fees or taxes.. 

[caldreamer]

EBAY selling fees based on (purchase price + shipping + sales tax) plus 30 cent handling fee.   Personally, I prefer $300 + $100 option (for reason mentioned below).

If you opens claim "buyer's remorse/changed their mind" (you only refund $300 purchase price) better to show $300+$100.

If customer file claim...EBAY 30-Day Money Back Guarantee (supersedes "no returns") stating "not as described, counterfeit, defective" you are forced to refund (purchase price + shipping BOTH ways).   In this case, it would not matter if you charge $400 or $300+$100 because you have refund entire amount.

[yooner-ama]

Ok thanks. Since shipping costs fluctuate depending on location its prob better not to use free shipping then 

I think I understand now 👍🏼

[1786davycrockett]

@caldreamer 

@yooner-ama 

Sorry -- forgot about the 30 cent handling fee!

But didn't that jump to 40 cents just recently?

[caldreamer]

I think 30 or 40 cent depending on value of item.

[slippinjimmy]

Total under $10 = 30 cent fixed fee

Total over $10 = 40 cent fixed fee

[johnrj1226]

Fees are deducted based on the total amount the buyer  pays.  If you offer "free" shipping" you bet somebody always pays for it  by including  your shipping & handling costs in the selling price.  When I sold never offered "free shipping" - no such thing - just marketing jargon.  In selling you need to  recover  ALL of your costs of selling plus your expected profit margin from the buyer - how you slice and dice it is up to you.

[sapphire_studio]

Make sure you put accurate dimensions of your box because eBay uses usps cubic rates now that can save you or your customer a lot of money. Fit it in the smallest box you can (that still offers adequate protection).

[a_c_green]

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@yooner-ama wrote:

Im a bit confused about free shipping. I plan on listing an item BIN for $400 w free shipping. Lets say the high end shipping could run $100. 

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@yooner-ama : A little off-topic, I know, but what is the item that could cost $100 to ship? If it's something very large or heavy, you might want to list it for Local Pickup Only. Otherwise, if the buyer claims that it arrived with damage, you could be on the hook for a full refund, and more if you want to pay to have it returned to you first before refunding.

[reallynicestamps]

Free Shipping is an advertising gimmick.

The actual cost of shipping is included in the asking price for the item.

Which is cheaper?

A $400 item with $100 shipping?Or a $500 item with Free Shipping?

Which will sell faster?

Which will attract the most bids?

Which will give the buyer the warm pink fuzzies because they got something "free"?

One note.

Never use Free Shipping when you set shipping costs for overseas.

Only use Calculated Shipping for those.

[johnrj1226]

Cubic  rates have been around for a while.  Once upon a time they were applied  zone 8/9 only shipmet when I started selling in 2008.  Some time later they applied for shipments to all zone  for  packages  greater than 1  cubic foot (1728" cu. in.).  You have measure by USPS terms not your own way.  Go to USPS.com and find out how to do it.

[nobody*s_perfect]

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@johnrj1226 wrote:

Cubic  rates have been around for a while.  Once upon a time they were applied  zone 8/9 only shipmet when I started selling in 2008.  Some time later they applied for shipments to all zone  for  packages  greater than 1  cubic foot (1728" cu. in.).  ...

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That rate that is applied to packages over 1 cubic foot is called "dimensional" weight.  When introduced in 2015, it affected only Zones 5 - 8 (Zone 9 hadn't been invented yet) and the divisor was 194; since 2019 it affects all Zones and the divisor is 166.

Cubic rates are applied to packages up to 1 cubic foot for Ground Advantage, and up to .5 cubic foot for Priority mail.  Prices are per .1 cubic foot (i.e., rate is lower for a package .3 cu ft than for .4 cu ft) and savings can be significant.

[mam98031]

I'm glad you came here to ask so you didn't get an unwanted SURPRISE.  Those are not fun at all.

How long has it been since you visited the Seller Fees policy page?  That is something you should be extremely familiar with so you can price your items correctly.  This is all explained in the policy too.

https://www.ebay.com/help/selling/fees-credits-invoices/selling-fees?id=4822

Ebay seller fees are charged on the TOTAL amount of money the buyer pays.  If they pay $400 for the item and shipping, then you will be charged on the $400.  If they pay you $300 for the item and $100 for the shipping, it is again a total of $400 and that is what your fees are based on.

Ebay selling fees aka FVFs [final value fees] is based on the price of the product the buyer pays, plus shipping and sales tax if any.  The total amount they pay is what your fees are calculated on.

I hope you have wonderful selling experiences.