Free Shipping?

[booksbytiffany]

What are the benefits of offering free shipping? Is it considered a business expense that can be written off at tax time? Also, is there a better way to ship rather than directly through eBay?

TIA

[kensgiftshop]

You still have to pay the shipping, so yes, you can deduct your shipping cost.

I like free shipping because I don't have to worry about buyers wanting to combine shipping.

[heckofagame]

The advantage of purchasing your shipping label with eBay is that your tracking number automatically uploads, so you don't have to worry about that. 

[booksbytiffany]

Thank you!

[booksbytiffany]

Good point! Thanks!

[luxgoods]

there is no such thing as free shipping. Somebody has to pay for it?

[booksbytiffany]

Correct, I pay upfront but am wondering if I can consider it a business expense at tax time? It has been clarified that yes, it is considered a business expense.

[huntfishdie45]

Yes, it is a tax write off and many people compare the shipping and cost of the item when comparing prices. If I can include the cost of shipping into the item and still be competitive I will.  If I can go expedited shipping over standard shipping that is even better.  When people buy online, they like fast shipping, so it is a good tool to seal the deal.  I like the convenience of eBay shipping because you don't have to upload the tracking and I print my label, packing list and order details all at the same time which saves me time. I have not tried other shipping services because I have had no need to.

[booksbytiffany]

This is great information, thank you!

[susanb1872]

Since you sell books and use Media Mail, free shipping is a good option since there isn't a large swing in price from east coast to west coast. Sellers who use First Class or Priority could see a large difference depending on the weight of the item and where it is being shipped to which can make the free shipping option a little tricky.

[booksbytiffany]

Thank you! Great info!

[rosszonebricks]

"Free Shipping" doesn't work for every selling model though.  For instance, I sell $2-$5 lightweight items.  If I were to charge "Free Shipping" I would have to price that $2 item at $6.   

What if they want to buy 2?  In most cases, even buying 3-4 can still have the weight below 4 ounces, so having to bake in the full shipping charge to each item would certainly disuade buyers from purchasing multiple quantity.

What if they want 10-20 different items from my store?  Having to bake that shipping charge into each item would be a huge problem.

For my store, it works best to set up proper weight and dimensions for each item, and let automatic calculated shipping handle it.

My customers love it.  They get a massive discount on shipping, and it encourages them to 'buy more all at once' from my store, which in the end is more profitable to me.

[booksbytiffany]

Good points! Thank you!

[redlinear · Accepted solution]

Free shipping subliminal thing (fool buyer into thinking they are getting a deal, something for free).
Shipping costs are high. For buyers that don't ship lots of stuff, even actual cost may appear as if you are trying to gouge them and they won't buy from you. 
MOST people, buyers just don't understand shipping costs...so, taking that out of the equation makes it just easier.
ALL related expenses are tax deductible. You are paying for shipping, so that's deductible. 
Most combined orders don't get asked for shipping reduction of items together when shipping is listed as free. Makes it lots easier on you that way. 
A buyer sees that the PRICE is THE PRICE.  There are no shocking surprises at checkout when it's time to pay.  They don't have to calculate the total to make a decision. It's easier on them. Buyers like easy.

[booksbytiffany]

Love this info!! Thank you!