Free shipping question

[jewelgirl22000]

Is offering free shipping still the best way to go?  I can’t keep up with the postage changes and am having difficulty pricing my items. Plus, sometimes it makes the item seem too expensive. I thought the eBay fees would be more expensive if I did not offer free shipping. 

[stainlessenginecovers]

Working backwards- the 'ebay' fee is EXACTLY the same as it is on the TOTAL, regardless.

Free Shipping really depends on WHAT DOES YOUR COMPETITION do? If most do it, you should. If most don't, then don't. 

[albertabrightalberta]

For me, I have a reasonable shipping charge and do not do "free shipping." 

If a seller is smart, whether they have "free shipping" or if they charge separately for shipping, the buyer's cost will be identical (except in cases where the buyer is in a state that doesn't collect sales tax on shipping). And a smart buyer bases his buying decision on the total price the item will cost him.

But my reason for charging separately for shipping is that with my return policy (30 days, buyer pays return shipping), remorse return refunds can be for the item price only. I don't have to refund the original shipping unless I want to do so.

[nobody*s_perfect]

If you have trouble keeping up with postage changes, then your best strategy would probably be to charge for shipping, setting up the eBay shipping calculator in your listings. The shipping calculator will automatically show the exact postage cost from your ZIP Code to the ZIP Code of any buyer who looks at your listing. It updates immediately any time the USPS changes their rates.

Final value fees are based on the total amount that the buyer pays.  So the fee is the same on $20 with free shipping, or on $15 with $5 shipping, or on $2 with $18 shipping.  The only little variation would depend on the sales tax rate in the buyer's state, and whether their state charges sales tax on shipping, but those are out of your control.

[chapeau-noir]

I use capped flat rate shipping.

[12345jamesstamps]

I do free domestic shipping but not International shipping. My clients are of the older generation and shipping charges can be confusing when they purchase more than one item. Plus, I rather have domestic buyers vs. International Buyers....And I don't have to deal with all the emails from domestic buyers on shipping. I still get emails from domestic buyers asking how much the shipping is....so funny....its free.

But I want to make International Buyers also able to purchase my items...and that gets complicated with a multiple purchases and shipping.

[chariot_badges]

If you have trouble keeping up with postage changes, then your best strategy would probably be to charge for shipping, setting up the eBay shipping calculator in your listings. The shipping calculator will automatically show the exact postage cost from your ZIP Code to the ZIP Code of any buyer

The problem with that is that it confuses and blurs the line between postage cost and shipping cost.  Postage is just one component (the largest, granted) of shipping.  I just spent over $100 on shipping supplies: envelopes, packing, tape, etc.  

Every once in a while I get a buyer who complains: "How can you charge $6.95 for shipping when postage is less than $5?"  And, I have to explain that I also charge for the envelope, tape, packing AND fulfillment expense. 

[nobody*s_perfect]

The eBay shipping calculator (yes, it's technically a postage calculator) defaults to show the retail price, but of course eBay shipping labels get a significant Commercial discount (except for Media Mail). So you can honestly say in your listing, "The shipping cost shown in the listing is the actual USPS postage cost calculated from my ZIP Code to yours" without revealing that you get a discount which usually covers the final value fee with some left over for supplies.

[tobaccocardyahoo]

I also display flat rate shipping for all US locations.

My goal is to breakeven on all shipping charges and costs. I do every month.

This is even the case when I consider older listings which used my previous flat rate charge.

Were I to offer free shipping, I would calculate it by adding my current flat rate charge, but I will not.

Many of my competitors who offer free shipping do not make an adequate profit per item to make the item worth my having a customer.

[dbfolks166mt]

     About 75% of the listings offer free shipping but in reality there is no such thing as free shipping, somebody pays. For me it's a mix. I use free shipping when I know there is only one best way to ship an item regardless of the buyers location. Usually this is for larger or heavier items where I use USPS flat rate envelopes or boxes both of which have a 70 pound weight limit and it's amazing what you can pack into those. As a result I know those shipping costs as well as the fees so I build that into the price of the item. As an example I currently have an active listing for 40+ pounds of casting lead where I know the cheapest shipping method regardless of the buyers location is in a medium flat rate box. 

     I am on the east coast and because of the zone shipping USPS uses shipping costs on most items can vary widely based on the buyers location. For most of my items I utilize calculated shipping and have ground advantage, since it now comes with insurance, as the default shipping method. Since the buyer pays the retail shipping cost and the actual shipping is less the difference is usually enough to cover the fees and the packing materials. Most of my sales are on the east coast or in the mid-west simply because my shipping cost to the west coast puts my items out of the market place range in a lot of cases. 

[gloryglorygifts]

I think it depends on the item. My less expensive items I charge shipping for and the pricier or bigger ones I give free shipping on.  I think that customers like to see that free shipping or even volume pricing or coupons. Who doesn't want a bargain nowadays?  

[lacemaker3]

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@jewelgirl22000 wrote:

Is offering free shipping still the best way to go?  I can’t keep up with the postage changes and am having difficulty pricing my items. Plus, sometimes it makes the item seem too expensive. I thought the eBay fees would be more expensive if I did not offer free shipping. 

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Personally, I have to say no.

My state no longer charges sales tax on shipping, so if the shipping is charged separately, I don't have to pay sales tax on it ... if the item has free shipping then i have to pay sales tax on the shipping because it is part of the item purchase price.

I don't want to pay sales tax on shipping. I'm happy to pay sales tax on my purchases, but no, not on the shipping.

[dbfolks166mt]

@jewelgirl22000 wrote:

Is offering free shipping still the best way to go?  I can’t keep up with the postage changes and am having difficulty pricing my items. Plus, sometimes it makes the item seem too expensive. I thought the eBay fees would be more expensive if I did not offer free shipping. 

Personally, I have to say no.

My state no longer charges sales tax on shipping, so if the shipping is charged separately, I don't have to pay sales tax on it ... if the item has free shipping then i have to pay sales tax on the shipping because it is part of the item purchase price.

I don't want to pay sales tax on shipping. I'm happy to pay sales tax on my purchases, but no, not on the shipping.

     As a seller you generally do not pay sales tax, the buyer does, but this ID shows you in Canada so you may have different laws. I know when you purchase a label from USPS it is exempt from sales tax. I am not sure about labels bought through UPS or FedEx. 

[lacemaker3]

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@dbfolks166mt wrote:

@jewelgirl22000 wrote:

Is offering free shipping still the best way to go?  I can’t keep up with the postage changes and am having difficulty pricing my items. Plus, sometimes it makes the item seem too expensive. I thought the eBay fees would be more expensive if I did not offer free shipping. 

Personally, I have to say no.

My state no longer charges sales tax on shipping, so if the shipping is charged separately, I don't have to pay sales tax on it ... if the item has free shipping then i have to pay sales tax on the shipping because it is part of the item purchase price.

I don't want to pay sales tax on shipping. I'm happy to pay sales tax on my purchases, but no, not on the shipping.

     As a seller you generally do not pay sales tax, the buyer does, but this ID shows you in Canada so you may have different laws. I know when you purchase a label from USPS it is exempt from sales tax. I am not sure about labels bought through UPS or FedEx. 

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I'm not a seller on eBay anymore.

I am just a buyer, and as I said, my state no longer charges sales tax on shipping, so I would rather not pay "free shipping" because that is a lie, the cost of shipping is just included in the cost of the item; and in that case, I have to pay sales tax on the cost of the shipping.

[chariot_badges]

Many of my competitors who offer free shipping do not make an adequate profit per item to make the item worth my having a customer.

Yes, and there's the crux of the whole matter, right there.   I've done a LOT of appraisal work.  Real estate and personal property used in business (computers, machinery, etc)  The appraisal that most do here is looking at what their competition is asking ... that's not 'value'.  That's an echo chamber of sellers all agreeing on what it should sell for; not even asking the buyer their opinion of value.

We make our money when we BUY, not when we sell.  If you pay too much for your inventory you're screwed.  I am constantly testing price resistance levels.  But, the bottom line is ... if I can not acquire product at a price that I can profitably sell it - then I'm out of business.  Simple.  

When I see competition selling the same thing I have for $3 with 'free' shipping ... I smile.   I just know I'll see them here complaining about eBay charging too much fees so they can't make money.  I am sure not going to join them in the name of 'competition'.  And, I'm not going to tell them the obvious: raise your prices (everyone else is ... have you noticed?)

Let 'em starve out - Capitalism works.  

The herd will be culled.

.