Free Shipping

[warehousedeals17]

Why should I offer free shipping when it seems that eBay takes 10% whether I offer free shipping or not.  Isn't it better to sell your item for $100.00 and have $20.00 for shipping and get charged $10.00 than to offer free shipping at $120.00 and get charged $12.00?

[nobody*s_perfect]

The final value fee is charged on the buyer's full payment including shipping. In BOTH of your scenarios, the FVF is $12.00.

[southern*sweet*tea]

The fee is on the total amount the buyer pays.

$120 w/free ship = $12 FVF

$100 + $20 shipping = $12 FVF

Six in one, half a dozen in the other.

This, of course applies only in categories with a 10% FVF. Store categories may be lower, but the shipping portion is always 10%. Sellers in lower fee categories would come out ahead rolling the ship cost into the item and using  "free" shipping. Media sellers pay 12% FVF with 10% shipping, so it would behoove them to NOT use free shipping since they would be paying  more.

[nobody*s_perfect]

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@southern*sweet*tea wrote: .... Store categories may be lower, but the shipping portion is always 10%. Sellers in lower fee categories would come out ahead rolling the ship cost into the item and using  "free" shipping. Media sellers pay 12% FVF with 10% shipping ...

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I'm pretty sure that the FVF on shipping is always the same rate as on the purchase price.

[southern*sweet*tea]

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@nobody*s_perfect wrote:

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@southern*sweet*tea wrote: .... Store categories may be lower, but the shipping portion is always 10%. Sellers in lower fee categories would come out ahead rolling the ship cost into the item and using  "free" shipping. Media sellers pay 12% FVF with 10% shipping ...

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I'm pretty sure that the FVF on shipping is always the same rate as on the purchase price.

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hmmm, I thought the FVF was always 10% no matter what...

but you are right. I'm paying 12% shipping for my books.

Well darn

Has it always been that way? I could have sworn shipping FVF was always 10%.

[nobody*s_perfect]

When eBay started charging a final value fee on shipping back in 2011, they just said, "Now we charge FVF on the whole payment."  They didn't say, "Now we charge a FVF of 10% of the buyer's shipping and handling payment."  

One of the main reasons for introducing the FVF on S&H was to thwart the sellers who had been avoiding FVF by inflating their shipping costs and undercharging for the price of the item.  But another reason was to remove a disincentive to offering free shipping: "To reward free and low-cost shipping, Final value Fee rates will be reduced and applied to the total amount of sale—including shipping—starting July 6."

https://community.ebay.com/t5/Announcements/2011-Spring-Seller-Update-Fee-Update-to-Encourage-Low-co...

[southern*sweet*tea]

Yeah...I just wonder where I got the 10% overall figure from. lol who knows what goes on in my head

We all need to start selling guitars - 3.5%

[nobody*s_perfect]

Just be sure to use the regular guitars category, not vintage.

[juststuffisell]

As noted, the FVF you pay is charged on shipping. There is not way to avoid it.

While it has NOT been my experience, it HAS been the experience of other sellers that offering free shipping and free return shipping actually increases your sales and does not significantly increase your return rate … and it is suggested that the increased cost to sell is not significant when factoring the top rated seller discount you are eligible for and the increase in sales.

The only way to know what YOUR results will be for the types of items you sell is to give it a go. If you've not, I will say, that giving it a try is worth doing only because you may see a significant benefit. I just say, before you try it, you make sure your margins in your product price work for you to at least cover your product costs & fees to sell Experimenting and making nothing or losing just a little bit is how we can figure out what works without losing our proverbial bottom 🙂

Cheers

[duncanvr]

Some sellers like me who sell small items offer free shipping it brings in more buyers. But it depends what you sell I wouldn't do free shipping on a piano or bulky heavy items.

[castlemagicmemories]

No, it isn't.  It's 10% on each.

Both of your scenarios end up paying the same FVF.  

$100.00 + $20.00 = $120.00 FVF $12.00

$120.00 + free shipping = $120.00 FVF $12.00