Free shipping/higher product cost vs. flat rate shipping/lower product cost

[dr_sebi]

I’m wondering what recipe works better for you to attract and get buyers. I know there’s a free shipping search filter, which is definitely something to be aware of. I never use it when I’m buying though. Is there a study on buyers impulses to make the sale? For instance...

Jello Mold - $10/free shipping

Jello Mold - $7/$3 shipping. 

Ive seen some sellers use both for the same product, and I lean towards the idea that buyers love free shipping therefore you can make it up on the product cost. What do you think?

[sam9876]

I ship everything for free. 

[dr_sebi]

Do you find that buyers are more attracted to that? I get it..it’s the closest thing to Prime

[southern*sweet*tea]

I used to ship everything "free".  When I went to item cost plus shipping my sales went up approx. 30%.

[dr_sebi]

What’s your thoughts on why that happened?

[southern*sweet*tea]

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@dr_sebi wrote:
What’s your thoughts on why that happened?

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I have a decent amount of multiple item sales.  Smart buyers know that having "free" shipping means they are actually overpaying (sometimes substantially) when it comes to shipping. Many (but not all)  sellers will discount shipping when buying multiple items.

[tunicaslot]

I switch things up - some items are free shipping with BO as most buyers when they make a BO include the ship cost in their offer and some items with a lowered cost but buyer pays shipping. That way I get those buyers who want free shipping and the others that want to know what the shipping charge is. Next time listing if they haven't sold - I switch it up again. Lots of work sometimes but I usually have consistent sales.

[dtexley3]

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@southern*sweet*tea wrote:

I used to ship everything "free".  When I went to item cost plus shipping my sales went up approx. 30%.

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I've been switching all my listings back to calculated shipping instead of free.  Sales aren't necessarily up, but a lot of Hallmark ornaments that sat all through the holidays are moving... odd.

In 2017 just before the Holidays I dove in and changed all my listings for items < 1lb to free shipping and sales went up.  Maybe it's the change in the type of shipping that's more important than whether it's free or calculated.

Previous to my dive into Free shipping I used flat rate which kept my items attractive to people in the further zones but unappealing to those close to me.  I wouldn't go back to flat rate on most any items now.

[lex-talon]

 I've noticed much more sales with shipping than with free shipping. If sales drop a bit, then I will switch to free shipping. 

[18704d]

"Jello Mold - $10/free shipping

Jello Mold - $7/$3 shipping.

Ive seen some sellers use both for the same product, and I lean towards the idea that buyers love free shipping therefore you can make it up on the product cost. What do you think?"

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I wouldn't list that item ... exactly.  At those price points.

Not all items are eBay-able nowadays.

This is what I do when I see competing listings that show:

(Small light weight item) - $15/free shipping

(Small light weight item) - $12/$3 shipping.

I do this:

(Small light weight item)  $11.99/free shipping

If I can't do that, I don't list.

Free shipping gives better search visibility.

So does a better sell-through rate.

Lynn

[lintbrush*]

It's about perceived value.  What is the normal selling price for a Jello Mold?  Is $10 high? or is $7 a deal?

I like seeing an honest shipping price if the item itself is low cost, and we do know that lots of buyers out there believe that Free Shipping is really free.  I have several feedback that say "Thanks for the free shipping."

A $140-$150 piece of jewelry?  The amount to cover Free shipping won't have much of an impact to the item price and perceived value to the buyer.

A $5-$7 item that has an additional $4 rolled into it to cover Free Shipping might make your item seem overpriced.  

[inhawaii]

I've been selling on ebay for almost 20 years.

I've experimented alot with higher cost + free shipping vs. lower cost + shipping. For me, the lower cost + shipping seems to have better results.

In my opinion, people seem to focus on the purchase price of the item and discard the shipping.

Example: Doohickey $10 + $5 shipping.

"I bought that on ebay for $10." instead of "I bought that on ebay for $10 plus $5 shipping."

The down side to not offering free shipping is that some people search for items that have free shipping. 

I still feel that charging for shipping is the way to go.   Good luck! 

[mcdougle4248]

I sell inexpensive handmade ornaments.  I used to offer free shipping and because my items are very light weight and thin, most orders could ship First Class Letter (stamped) without tracking.  I would get maybe 6 or so INR each year (avg 4000 transactions) and most of the time cases were never opened, I received a message from the buyer that they did not receive and just shipped out another one.

When the new "Metrics"  came out, I decided to to start charging shipping at a flat rate (First Class Pkg with tracking), with combined discounts.  I did not want to risk having to pay an extra 4% for INR cases.  I was concerned that buyers would not respond well to a $3.00 or $4.00 ornament with $2.75 shipping.  However, sales increased and so did the average order size.

With the upcoming USPS rate increases, I am going to keep my shipping charge the same and raise the price of my ornaments by 15 cents each.

[tsme35]

Also depends on what your selling, I sell fishing lures, if I did free shipping I'd add $3 to handle shipping and packaging into price then all my lures would have the $3 shipping in it, so if you do alot of combine shipping, free shipping would not work. If you don't combine orders then free shipping would work better for you. 

 I have a flat rate and come Sunday with the zone rate for 1st class I have to dropped HI, AK and all territories, rates are too high and with calculated shipping you can't set a rate for extra items, say $.50 per item, it goes by weight. Its not uncommon for me to sell 8-20 items at a time, the buyer would see retail shipping at $10-$18 when it should be $5-8. If I set combine calculated rate at 4 oz, after the 4th item the weight would jump to 2 lb because once you go over 16 oz you have to round up to 2 lb. Its a mess and I have 1400 listings to relist the next 2 days so I keep an eye on boards or figure something out next month to put the blocked states back on.

[moo*cow*corner]

I sell heavy, breakable things. Pottery & Glass.

With free shipping, I was getting hammered by far zone buyers who were getting a relative bargain and knew it. Nearby buyers also knew that shipping should be cheaper for them, and my prices looked too high.

Many of my listings are kind of hybrid...I charge some shipping, but not calculated shipping. I charge a flat rate, with far zone surcharges added if the buyer is in a far zone. My lot sizes and such are determined with my shipping table set-up in mind. Sometimes I'll roll a couple of bucks into a sale price to cover a bit higher shipping.

Two main reasons- I can offer a combined shipping discount for multiple purchases. I can also protect my shipping costs if I run discount promos.

Was a royal pain to set up the shipping tables. But it's been several months now, and I'm judging this scheme to be a roaring success. Many more multiple sales and many more near zone sales. Once in a while I have to eat a buck or two on shipping, but I'm ok with that.