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Shipping Cost

How do sellers ship items for free, when the shipping cost is more than the item?  I am trying to educate myself if anyone can help. 

 

Thanks

 

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Shipping Cost

Free shipping isn't free, it's a gimmick.  

 

Item $10 + $5 shipping = $15, with free shipping it $15 for the item.

 

That being said, overseas sellers, especially from China pay a fraction in USPS costs compared to what US Sellers pay to ship the same item.  About $0.87 as compared to around $4.75 for a 15.99 oz item.

Member of the Grumpy Old Man crew
Message 2 of 7
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Shipping Cost

Shipping cost has nothing to do with the value of the item.  I can ship a 4 ounce $10k diamond ring for under $10, or I can ship a $5 anvil for over $100, depending on where it's going.  That said,

  • Some sellers get huge shipping discounts through their preferred carriers because of the volume they do;
  • Chinese sellers ship practically free because they sell garbage, their government subsidizes their business, and they get huge discounts through the UPU because they are a supposedly underprivileged country;
  • Some sellers are using those items as loss leaders to hopefully get buyers to look at and buy some of their other items;
  • Some sellers are totally clueless and unaware that they are losing money.
The easier you are to offend the easier you are to control.


We seem to be getting closer and closer to a situation where nobody is responsible for what they did but we are all responsible for what somebody else did. - Thomas Sowell
Message 3 of 7
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Shipping Cost

volume

Message 4 of 7
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Shipping Cost

The seller is a loss leader, doesn't know the true cost of shipping (i.e. mistakenly lists it with free shipping not realizing what the shipping will actually cost) or gets a good volume discount on shipping.

Message 5 of 7
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Shipping Cost

The seller, a person or persons, may be a leader in losses. But a loss leader is usually an item, a product sold at a loss to attract customers, not a person.

Message 6 of 7
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Shipping Cost


@ja-2149 wrote:

The seller, a person or persons, may be a leader in losses. But a loss leader is usually an item, a product sold at a loss to attract customers, not a person.


It doesn't need to be explained that a person isn't a loss leader. 

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