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Pass our shipping discount on to buyers? I don't think so . . .

Did you get the notice from Ebay? To help sales they suggest the seller pass the shipping discount on to the buyer?  It doesn't affect me as much now that I've switched to Free Shipping on most of my listings, but, really? Any shipping discount given to the seller is one Ebay has worked out with the shipper for the benefit of the SELLER. It's an incentive. Don't give it up. 

Message 1 of 34
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Pass our shipping discount on to buyers? I don't think so . . .

I'll pass on the discount when ebay agrees to forgo their fees.

Message 2 of 34
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Pass our shipping discount on to buyers? I don't think so . . .


/@bill.purvis2012 wrote:

Did you get the notice from Ebay? To help sales they suggest the seller pass the shipping discount on to the buyer?  It doesn't affect me as much now that I've switched to Free Shipping on most of my listings, but, really? Any shipping discount given to the seller is one Ebay has worked out with the shipper for the benefit of the SELLER. It's an incentive. Don't give it up. 


It is a fundamental economic principle that lower prices tend to increase demand, and higher prices tend to decrease demand. 

 

It is also a fundamental economic principle that sellers generally need to make a profit to stay in business. 

 

This suggestion is nothing new - I believe eBay has been offering sellers the ability to do this for years.

 

If it works for you - do it. If it doesn't work for you - don't. 

 

I have been charging shipping below cost for years. A decade ago I found that when my shipping cost started with $3 instead of $2, my sales dropped off. So I always charged $2.95 even if it cost over $3. 

 

These days I have found that when my shipping cost started with $4 instead of $3, my sales dropped off. So I always charged $3.95 even if it cost over $4. 

 

I base my business decisions on the whole transaction amount, not just the shipping charge. 

 

 

Message 3 of 34
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Pass our shipping discount on to buyers? I don't think so . . .

A suggestion is just that, a suggestion. You have a right to ignore it.  I charge a very small handling fee on all my orders to cover the scam of Ebay taking $$ from the ship cost as it is.

Message 4 of 34
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Pass our shipping discount on to buyers? I don't think so . . .

Variable shipping rates is an inherent problem with huge swath's of goods due to distances.  An item sent from New York to California obviously tend cost more than to same parcel to say Pennsylvania.  When a consumer is shopping for say $20 item and its $6 to ship to PA. versus $9.50 to send to CA. minds at work.  Less than 30% product price to ship vs 50% product price to ship respective.

 

There comes a point in thought whereby "Its not worth it" and most Free Shipping as we all know isn't free at all, its price additive more often than not at least at Third Party points of sale.

 

I didn't opt in to eBay's offer to go with the new shipping due to above factors.  I have flat rate $6.50 which depending on item weights and distances generally means make a dollar a two here and loose dollar or two there, average out.  I've always tended go that way as for modest priced items it's always worked better than variable rates.  Thus product is as attractive to someone on the left coast versus the east coast or anything between.

 

Now the question that comes to bare now is this:

IF OPTING OUT of eBay's variable rate structure for shipping will that BOUNCE you in search rankings?  Aka: Is eBay integrating the usage or non-usage of the program into search results?

 

Now if they are, that's a mistake IMHO and not just that of say my personal sales but instead that of the entire swath of merchandise across the site.  It results in a segmenting of geo-location pricing based on source/destinations that A. Sellers cannot adjust to towards competitive national presence and B. If products are not available to a consumer at a closer location to them they are liable to not purchase based on the distance formula of said shipping expense.

 

That said, YES, that is already the case for those who use variable rate shipping BUT for those who do not and offer a better value via flat rate and thus more attractive NATIONALLY if pushed down ranking structure are at disadvantage AS IS THE CONSUMER.

Message 5 of 34
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Pass our shipping discount on to buyers? I don't think so . . .

Ebay, like most Internet marketplaces, sees sales turning to crap and suggests innovative ways to lower prices.

 

 

Message 6 of 34
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Pass our shipping discount on to buyers? I don't think so . . .

     The day eBay stops charging FVF's on shipping, which they are never going to do, I may consider it. At the moment the difference between the retail the buyer pays and the actual cost I obtain the label for covers the eBay fees and some of the packing materials. 

     If eBay did quit applying FVF's to the shipping cost I venture to guess that the number of listings offering free shipping would decrease rapidly. 

Message 7 of 34
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Pass our shipping discount on to buyers? I don't think so . . .


@dbfolks166mt wrote:

     The day eBay stops charging FVF's on shipping, which they are never going to do, I may consider it. At the moment the difference between the retail the buyer pays and the actual cost I obtain the label for covers the eBay fees and some of the packing materials. 

     If eBay did quit applying FVF's to the shipping cost I venture to guess that the number of listings offering free shipping would decrease rapidly. 


Wont happen, first we're talking huge chunk of change in revenues but then folks revert back to low price and high shipping to avoid fee's.  Right now no different than any operation retail or not, when a card is swiped the "Discount Rate" as it's called w/ merchant accounts applies to the entire transaction albeit granted 2.n/3.n% - 5.n%.

 

Ultimately the USPS is going to run up against a wall of their own making.  As they continue to try to run in the green per their plan rates will climb and expenses are unlikely go downward in any significant fashion.  There comes a point where lower tickets goods are simply too unattractive given shipping costs and that plays to the advantage of Amazon, Walmart etc. who have specialized arms towards freighting.

 

What the USPS should be doing and should already have been doing 20 years ago is staggering mail delivery zones out to two days.  But they are a cow along with numerous other cows that range and border civil services.  Since for so many ages they've been able hold hostage the public they've no capabilities to become agile whilst they try keep afloat in economic environment.  Public Schools are another, Water Authorities yet another, Town/Community based Dept's of Public Works yet another.  The younger generations can't recall for example a time when the afore mentioned were not Unionized.  Unions in business were beaten and bruised for ages on end and discouraged by both the businesses and public officials.  Yet now most aspects of Civil Service related jobs are unionized usually with MANY unions not just one.

 

For example, our local schools have an Administrators Union, Teachers Union(s), Support Services Union, Clerical Workers Union on and on all separate so as the employee's can basically hold each others Unions and Boards of Education/Community hostage.  Whilst at the sametime those services ULTRA CRITICAL to community safety are caught in the mix such as Fire Dept's, Police, Prosecutors etc.  An educator in public schools working 8/9 months a year IMHO in no way shape of form should have salary/benefits that Trump Police Officers who put their lives on the line for community safety.  Folks who work at The Water Authority (which is often political based Nepotism as are Dept. Public Works) same deal.

 

Sooner or later it all breaks as folks within communities and the businesses thereof are the sourcing of monies and will be FORCED to battle with Civil Services.  I mean that's crazy!  One exists at the behest of the other, not the other way around.  

Message 8 of 34
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Pass our shipping discount on to buyers? I don't think so . . .


@retro_entertainment_collectibles wrote:


IF OPTING OUT of eBay's variable rate structure for shipping will that BOUNCE you in search rankings?  Aka: Is eBay integrating the usage or non-usage of the program into search results?

 

I think you are asking whether opting not to allow your customers to pay shipping based on your cost will hurt you in the search result rankings. I believe the answer is yes and that it has been since before I started selling here. I understand that eBay's search algorithm factors in the total cost to the customer in ordering the results and the "by price" sort explicitly sorts by price including shipping. So competitors that are offering customers their shipping discounts will be at a competitive advantage in search results, all else being equal. 

Message 9 of 34
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Pass our shipping discount on to buyers? I don't think so . . .

I offer the discounted shipping in my listings. I think that if Ebay is suggesting to give the buyer the discounted shipping rates Ebay should at least reduce the fees on the shipping portion of the sale if you offer the discount on your listings.

 

I think a large percentage of the buyer's just select free shipping  in search and they do not realize mosts listings that do not offer free shipping are actually less than ones that offer free shipping. Some people have a hard time with addition. 

 

Get rid of the dropshippers that do not pay a dime on shipping or invest anything into inventory and have the highest of percentages for canceled sales. Dropshipping creates a unfair advantage for sellers that do not dropship. 

Message 10 of 34
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Pass our shipping discount on to buyers? I don't think so . . .

When you are charged  commission on Shipping. That eats up most of the discount. So the discount the post office gives goes into eBays pocket. I'm Sure all the big internet companies don't pay what the public does for shipping. And the post office cries they are in the hole and need to raise rates. They aren't making enough money. Its a never ending circle that we all end up paying for in the end. Pad shipping into your price as part of your COG and go free shipping and it eliminates the complaints. You also come out ahead when they buy multiples that can be sent together, as free plus free equals free for combined shipping that way.  Supposedly free shipping helps your ranking on search to. 

Message 11 of 34
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Pass our shipping discount on to buyers? I don't think so . . .

I agree. Free shipping, Free Returns Free free free....

Message 12 of 34
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Pass our shipping discount on to buyers? I don't think so . . .

@bill.purvis2012 This has always been an option. Not all sellers are aware of it, so ebay is letting them now they have the option, and is pointing out that doing so might help the seller increase sales, which is true. I choose not to pass it on to the buyer, but I know sellers who do and it works for them. So, not sure why anyone would get upset by a mere suggestion.

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Pass our shipping discount on to buyers? I don't think so . . .


@bill.purvis2012 wrote:

Did you get the notice from Ebay? To help sales they suggest the seller pass the shipping discount on to the buyer?  It doesn't affect me as much now that I've switched to Free Shipping on most of my listings, but, really? 


I offer Free Shipping on all my items whose packed weight is below one pound, on the theory that my buyers know they're buying a lightweight item in the first place.

 

For items whose shipping weight will exceed one pound, I charge the buyer the retail rate (previously it would be Priority, but now I use Ground Advantage since it's got up to $100 insurance), and use the difference between retail and on-line pricing to cover packaging supplies and other expenses.

Message 14 of 34
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Pass our shipping discount on to buyers? I don't think so . . .

Buyers are sellers too.

Pass on the discounts because most can figure out what you pay for shipping. Roll your eBay fees into the item cost. 

 

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