How can someone sell an item for less than it costs to ship? This is IMPOSSIBLE.

[moonbeamsfromthelargerlunacy]

Having just mailed something for $4.53, without considering the value (initial cost) of the item and packing materials, eBay and Paypal fees, I am somewhat perplexed to find someone selling a similar thing for $5.67 and Free economy shipping.  I just don't see how this is possible.  It is a small package.  Has to be a scam?

[nobody*s_perfect]

First Class postage costs less when sellers purchase their shipping labels through eBay.

[moonbeamsfromthelargerlunacy]

Yes a little cheaper, but not a lot.  You cannot sell things for free or at a loss.  It doesn't make sense how they do it.

[iart]

Some larger sellers get a break on postage. Not sure how much or how that works.

Also, I assume the item went first class. First class cost can vary depending on where you are.

But, really, I don't know why either of you would spend time selling such low value items. Even if we could pocket the whole amount it would still be a loss for us since we value the time it takes to list and pack.

[moonbeamsfromthelargerlunacy]

I've been using eBay for a lot of years, but gave up selling anything here, for this and similar reasons.  I see that nothing has improved.  The incentives seem even less to sell anything here.

[thevault316]

At $5.67, if the product is being shipped via e-packet from China, they're making about $.67 per item.  Knock out $.25 or so for cost of goods sold, and they're in the $.40 per item profit range.  Doesn't sound like much, but if they're selling a thousand a week, that's $400 profit - and that's likely just one of their many products.

The only way to compete with that is to compete on shipping speed.  An e-packet takes forever - over a month in some cases.  

[wesk_36]

They mailed "economy" you mailed first class package. That's one difference. Maybe they did not pay for or use tracking or maybe they are a seller paying Chinese postage rates?

[luckythewinner]

This is IMPOSSIBLE

It is not impossible to sell something at a loss.  It may not be wise, and it may not be profitable , but it is absolutely possible. 

In fact, just the other day a seller posted here and said that he was selling an item at a loss just to annoy his competition and try to drive them off.  

Having just mailed something for $4.53

You are making the assumption that other sellers are paying the same shipping rates as you. Here are some other possibilities:

• he is actually in China, and is shipping his item here for a fraction of what you are paying
• he could be fraudulently shipping by media mail for $2.75 
• he works for a large company, and he is sneaking his packages into the company mail 

Again, it might not be fair or ethical, but it is not impossible. 

Lastly, do not forget that half the people in the world have below-average intelligence. He may not even realize he is losing money 🙂

[flyingmvp]

Chinese sellers cost will change once we are out of UPU...

[uncseniorsportsfan]

I can ship some items first class mail in an unpadded envelope for $1.42 purchase at the window of the post office - if I ship the same item in a padded envelope and purchase shipping at the first class package rate with tracking - it may cost me $2.76 or more.  

[mam98031]

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@moonbeamsfromthelargerlunacy wrote:

Yes a little cheaper, but not a lot.  You cannot sell things for free or at a loss.  It doesn't make sense how they do it.

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It is likely to be quite a bit cheaper.  8 Oz Retail is $4.39 and 8 Oz on Ebay is $3.63.  That is a 76 cent savings or around 17% savings on FCP Domestic.

For some sellers [non Asian] they can do the low $$ items because they sell them in volume.  I use to carry a series of patterns for dolls that I would sell for under $2 each, but typically buyers would purchase several different patterns or more at any one time.  My shipping was separately stated on the listings and I've always done combined shipping.  Certainly not something that is going to make anyone a millionaire anytime soon, but it can be worthwhile.

[no_zero369]

@moonbeamsfromthelargerlunacy 

There is another possibility that lucky kinda touched on.  I have seen sellers sell things at a loss in order to 1) Get business and develop a customer base and 2) get a feedback score or remediate a bad one.

There is nothing illegal about selling something under cost. It could be part of a business plan.  Stores have 'loss leaders' all of the time to get you in their door in hopes you will buy something else.   So why wouldn't an online seller do the same thing?

So while it might not make rational sense on the surface, it is not entirely impossible!

[johnwhiplash]

I have bought items from China for less than $1.00 with free shipping. I bought a ring for 15¢ with free shipping. I assume they only pay a few cents to mail  a package to the USA. Probably get lower ebay and paypal fees too.

[lgonzalez28]

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@luckythewinner wrote:

This is IMPOSSIBLE

It is not impossible to sell something at a loss.  It may not be wise, and it may not be profitable , but it is absolutely possible. 

In fact, just the other day a seller posted here and said that he was selling an item at a loss just to annoy his competition and try to drive them off.  

lol, off to find this thread... and grab some popcorn. Sounds interesting:)

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