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 

[nobody*s_perfect]

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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. 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 

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As others have noted, the final value fee is based on the buyer's total payment (item price, shipping, and sales tax if any).

One small difference which hasn't been noted is that some states charge sales tax on the buyer's total payment including shipping, but others do not tax the shipping.  So if your buyer is in a state which does not charge sales tax on shipping, the sales tax that the buyer pays, and thus the FVF which you pay, would be slightly lower for the item that charges for shipping. If the state's sales tax rate is 8%, then on the item for $500 with with free shipping the buyer would pay sales tax of $40, but if it's $400 plus $100 shipping they'd pay $32. And then you'd pay FVF based on $40 or $32.

[sextons-sweet-deals]

This sounds like a heavy item if you are thinking of the high end of $100 shipping. 

Many scenarios can be thought of. Since we don't know the item or size I would entertain as pick up only / pay then or include the shipping cost in the listing with wight and dims and shipping cost to be calculated based on destination. Might even think about signature required if the item is a high target for scammers and / or your buyers profile looks questionable. 

[itsjustasprain]

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@sextons-sweet-deals wrote:

Might even think about signature required if the item is a high target for scammers and / or your buyers profile looks questionable.

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Signature Confirmation is not required by Ebay for sales below $750 and gets you nothing more than what Delivery Confirmation gives you for free. Plus it can be a major inconvenience for the buyer who has to have someone at home to sign for it if you did not state in the listing that SC would be required. You cannot charge the buyer after the sale for it. It will cost $3.50 on-line or $4.15 over the counter.

Anything requiring $100 in shipping sounds like it could be a beast to ship safely. @yooner-ama I would do only local pickup. What is it anyway?

[brightlightbookseller]

There are a few types of items that buyers might be turned off by paid shipping on, where it's common to offer free shipping for that particular market, but yeah, I agree, usually you want to do buyer paid shipping.  We do on almost everything except older items we're just trying to move, but we have the advantage of using Media Mail for most shipments, which is the same rate to a buyer here in Florida or in Hawaii.

[sextons-sweet-deals]

I have shipped to questionable buyers based on their profile and Google map location and using that little fee around $3.50 and guess what happens? The package gets returned. 

Why? Probably because they are a scammer using various tools to get an item for free. Remember that eBay allows guest buyers with no verification like PayPal did. 

I'm looking out for myself. Not eBay policies.  

[reallynicestamps]

Plus it can be a major inconvenience for the buyer who has to have someone at home to sign for it if you did not state in the listing that SC would be required.

For a $400 sale I want confirmation that the buyer received the shipment and that it wasn't scooped up by some porch pirate.

The carrier should be able to leave a notice giving time and place for pickup  or arranging alternate delivery time.

I agree that the requirement for SC should be in the Description.

"For your protection, this shipment will include Signature Confirmation of delivery at no extra charge."

You have to sell it as a benefit to the customer.

Even if the benefit is equally yours.

[nobody*s_perfect]

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@reallynicestamps wrote: ...  I want confirmation that the buyer received the shipment and that it wasn't scooped up by some porch pirate.....

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Why?

[mam98031]

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@sextons-sweet-deals wrote:

I have shipped to questionable buyers based on their profile and Google map location and using that little fee around $3.50 and guess what happens? The package gets returned. 

Why? Probably because they are a scammer using various tools to get an item for free. Remember that eBay allows guest buyers with no verification like PayPal did. 

I'm looking out for myself. Not eBay policies.  

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Ebay does not "verify" buyers.  What is it that you think they do?

Google maps is not in Real time.  By their own admission, internet maps are usually about 3-4 years behind.

[dbfolks166mt]

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"?

     A gimmick it is, NOTHING in life is free. To answer your question if you live in a state that does not charge sales tax on shipping, which is about 1/2 of them, then the $400 item with $100 shipping is cheaper. For the states that apply sales tax to shipping then both of your examples are the same. 

[onefootflipper1]

You shouldn't even ever considering offering free shipping on an item that could cost $100 to ship. 

Free shipping is a terrible mistake for most sellers. The heavier the item the bigger of a mistake you are making by using it.

Free shipping is an expert tool best suited for those who sell brand new items or those who only sell items under 1 pound or who otherwise have nearly 100 percent predictable shipping costs that vary little by location.

[theteamsetguy]

@sextons-sweet-deals ,

As a buyer I absolutely detest when a seller adds signature required when the package is under $750.00.  I don't have time to drive the post office and stand in a line to get my package.

I make a note of sellers who add signature required when it is not required so I make sure they don't get any more orders from me. 

[reallynicestamps]

@nobody*s_perfect

Because I don't want to be accused of not shipping and have to go to the bother of confirming delivery by putting the tracking in the Claim. If the buyer is honest, their Claim can still be appealed to Paypal (if they used it) or as a chargeback  to their credit card. And the buyer is unhappy.
If the buyer were dishonest, less likely but possible, the note puts them on notice that they will not win.

More to the point making something that is a benefit to me, also appear to be a benefit to the buyer is in my opinion a win/win.

I understand that USPS offices are open six days a week.

[sextons-sweet-deals]

I know eBay does not verify buyers. They allow guest buyers which it totally ridiculous, but they sure want sellers' personal information and blood sample (j/k) in order to sell.

PayPal verifies everyone and they would even tell an eBay seller not to ship until they say it is okay. 

Google map gives some information. That information is better than nothing. Using the satellite view will give the most current up-to-date image. 

How many times do we read posts on here of a new fresh seller that now has issues with a buyer after they finally look up the address and see it is warehouse / freight forwarder? 

[sextons-sweet-deals]

Surely, you're not that busy that you can't stand in line for 5 minutes to get an expensive item you bought safely and securely. Only during Christmas time, you may have to wait longer. 

Anyway. Say I bought your 2020 BOWMAN DRAFT 1ST EDITION BASEBALL HOBBY BOX. I just cane onto eBay say in the past few days with no feedback history. 

What will you do?

ship it with tracking only?

will you look up my address?

Remember eBay does not verify buyers like they do sellers. 

You ship to me (the new eBay buyer with no feedback history).

I open a case that package was not received.

eBay says it was per tracking. Good for the seller.

Now I play the did not recognize transaction or whatever other excuse with my payment service. 

I end up winning and keep the item!

[yooner-ama]

Good point! Its a large painting on wood.

Luckily no glass