The genius (or stupidity) of Free Shipping USPS First Class

[kate_lily]

Many of you long-time sellers already know this, but...  since there is no Tips & Tricks guide when we start selling, I am just figuring this out now.

I decided to conduct an experiment on items which I have multiple quantities of.

Sell Item #A for $10 plus $3.50 shipping ($13.50 total) and

Sell that exact same Item #A for $16.00 with free shipping.

Wow, buyers keep buying the more expensive free shipping item.  I'm presuming this is due to buyers filtering for free shipping items only. Genius for sellers.

I have some items in which my competitors all charge shipping, so my free shipping item is the only one that shows up when filtering for free shipping--giving it the appearance of being the only one available on eBay. Again, genius for sellers.

Stupid for buyers. They are missing out on the exact same item at a cheaper price.

[dtexley3]

Shhhh, you're giving away secrets!!!! heheheheh.

[missjen831]

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wrote:

Many of you long-time sellers already know this, but...  since there is no Tips & Tricks guide when we start selling, I am just figuring this out now.

I decided to conduct an experiment on items which I have multiple quantities of.

Sell Item #A for $10 plus $3.50 shipping ($13.50 total) and

Sell that exact same Item #A for $16.00 with free shipping.

Wow, buyers keep buying the more expensive free shipping item.  I'm presuming this is due to buyers filtering for free shipping items only. Genius for sellers.

I have some items in which my competitors all charge shipping, so my free shipping item is the only one that shows up when filtering for free shipping--giving it the appearance of being the only one available on eBay. Again, genius for sellers.

Stupid for buyers. They are missing out on the exact same item at a cheaper price.

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It’s actually not that stupid. The buyer gets a full refund of $16.50 if they return the item due to buyers remorse. Now I’m sure the buyers aren’t even seeing your calculated shipping listing so they aren’t aware that there is a cheaper listing since eBay isn’t showing them the listings with calculated shipping so that’s probably why they are buying the free shipping listing. And yes some are dumb and let the words “free shipping” blind them but it’s kind of a smart move if you have to return the item. If the seller doesn’t charge a restocking fee then they have to refund the entire item price. 

[richard1rst]

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wrote:

Stupid for buyers. They are missing out on the exact same item at a cheaper price.

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I remember, oh so many years ago in my sales and marketing class, that the professor cited an example of a real shoe store that did an experiment.

They took a pair of shoes from the same box. They put one in the front window with a price of $10.00 per pair. They then put the other in the window, a bit spaced away but not too far, and marked it $15/00 per pair.

Between the 2 shoes they put a sign that said in effect, these shoes are identical and the only reason for the price difference is to see what priced you are comfortable with.

Much to their surprise they sold more of the $15.00 shoes than the $10.00. In customer surveys they determined that many people, the sign not withstanding, assumed there must be something wrong with the $10.00 shoes - otherwise they would also be $15.00.

The lesson to be learned is that while people will shop based on price, they are also leery of a price that is “too cheap” as they think there must be “something” wrong with it.

[thallidguy]

eBay Bucks is another reason that people tend to favor "free" shipping even when they know that the cost of shipping and handling is just folded in. It's not enough to make a difference in the OP's example, but it becomes a conditioned reflex after a while.

[thallidguy]

I think Best Match also helps, in that (at least as far as I know) it still tends to favor free shipping listings. But that's an interesting experiment. Math will be your friend, but only if you let it.

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wrote:

I have some items in which my competitors all charge shipping, so my free shipping item is the only one that shows up when filtering for free shipping--giving it the appearance of being the only one available on eBay. Again, genius for sellers.

Stupid for buyers. They are missing out on the exact same item at a cheaper price.

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Could eBay actually be giving us good advice when they push us to offer "free" shipping? This is my shocked face  at the idea of eBay steering sellers right!