Four Infographs to Help Undestand the New 2018 TRS+ Discounts

[orangehound]

Previously, it was easy to understand the TRS+ discounts ... 20% in 2016, 10% in 2017 ...  but what is it effectively in 2018  now that Free Return Shipping will be part of the discount eligibility?

It is confusing because the "effective" discount is really dependent upon the return rate, the cost of the item, and the weight of shipping - your return rates will likely increase with Free Return Shipping (in my limited trials, I've noticed the return rate jump from 1-2% to 5%), but there are still discounts to be had with TRS+.

So, to help understand the "effective" TRS+ discount, I'm attaching four graphs that you might find useful to understanding how Free Return Shipping on a TRS+ listing impacts the discount.

Notice that on a lot of the combinations, you will benefit by setting up the listing with Free Return Shipping to get the TRS+ discount.

The discounts are based on what Store Owners would receive.  The discount is slightly higher for non-store owners.

(No need to hate if there are errors ... I'm just trying to be helpful).

[tamaralea]

Can you do a couple of examples, using your chart?  I'm not sure we're understanding it.

For example, a seller with a 4% return rate, who sells 100 items at $30 each.  It looks like you don't have Priority listed, which are most of my shipments.  

[orangehound]

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@tamaralea wrote:

Can you do a couple of examples, using your chart?  I'm not sure we're understanding it.

For example, a seller with a 4% return rate, who sells 100 items at $30 each.

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• If you would have sold these items with TRS+, then your total TRS+ discount would be $30 * 100 * 9.15% * 10% = $27.45
• With a 4% return rate, you will get back 4 of your 100 items.
• If you used your TRS+ discount to cover these returns, then you would have $6.86 per return (27.45 / 4).

Thus, in this case:

• You are better off to have the 10% TRS+ if you are shipping First Class, Flat Rate Envelope, or Legal Flat Rate Envelope.   You will come out financially ahead.
• You will lose a little money with the 10% TRS+  for all other Priority Mail methods ... the cost of the Free Returns is more than the $27.45 benefit.

Of course, all this assumes that your sales levels remain constant.  eBay will tell you that their research (which they never share the data) indicates that your sales will increase with free return shipping.

[tamaralea]

Thanks.  I'm primarily a USPS Priority shipper, so this confirms my decision to drop the TRS+ status.  

[scalemotorcars]

Same here Im dropping the TRS+ but lets be honest, thats exactly what eBay wants.  They took 10% from the best sellers last year and this is their way of taking the other 10%. 

No thanks. 

[ittybitnot]

10% of nothing is still nothing. 

[ripcityresell]

I've been TRS and getting the TRS+ discount (on my other account, not this one) for several years. None of the discount has factored into my business strategy. If my business relied on the discount of a nickel that I may or may not get, then I need to rethink things.