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Free Shipping: Worth It?

So, I am a small store but have been on eBay for 11 years. I've decided I need to really do some research about best practices and techniques or else I won't grow, and just keep breaking even.

 

eBay indicates that free shipping leads to more conversions, and I will certainly look at the numbers on my account to reflect this, but it doesn't seem like that's true at all. It seems like it's eating into my profits. 

 

I also offered Fast 'N Free but of course that became impossible to ship within the required time frame, as it's only me here and I don't have a car. So I stopped that because I was causing too many defects with late shipment.

 

What has been your experience? 

 

Thanks, I look forward to hearing from you!

Message 1 of 17
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16 REPLIES 16

Re: Free Shipping: Worth It?

I use Free Shipping for almost all my listings and it works well for me.

I have another account  ,run by an employee who handles all the work, selling similar material that has a $1-$2 shipping charge, and has  much lower sales than those that use Free Shipping.

 

I can afford to advertise Free Shipping because:

  • I include the cost of shipping in the asking price
  • I use letterpost for most shipments and that varies only by weight not destination
  • I buy in Canadian dollars and sell in US dollars - a form of arbitrage
  • I use mint never hinged postage stamps, which I can buy at a substantial discount, rather than shipping labels.
  • I can qualify for Top Rated Seller /Global without tracking shipments.

Not all of these would be possible for others.

 

I also use Cookie Jar Insurance to cover occasional problems rather than expensive third party insurance or tracking.

 

I use Calculated Shipping for heavy shipments (over 500 grams) and those are tracked, because most Canada Post parcel rates include tracking.

 

I should mention that Free Shipping does not necessarily mean the lowest cost/slowest service. If I am shipping a $200 stamp, it will be tracked but the cost of a tracked service will be part of my asking price.

 

The seller never pays for shipping.

The buyer pays for shipping-- even for 'free' shipping.

Message 16 of 17
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Re: Free Shipping: Worth It?

 

The seller never pays for shipping.

The buyer pays for shipping-- even for 'free' shipping.

 

^^^^^^^  This

 

If the seller is paying for shipping, there is something wrong with the "business model"

Message 17 of 17
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