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Why is eBay adamant about preferential treatment for FREE shipping?

O.K., so I looked at my Active listings in Seller Hub and selected 85 items that I thought I can edit with price reduction. That went well, but as I was about to click on the O.K., button, I saw that eBay banner at the top of the page, telling me that 85 items "need to be revised, in order to increase the likelihood of selling them fast." 

 

Note that my small items ship First Class USPS and the shipping is really low. I cannot and will not offer FREE shipping as a small family business, and it is really not conducive to my business at all, as shown in the first two months of this year, my items are selling just fine, buyers do not mind paying for the shipping. It is quite annoying to see this constant push for FREE shipping and the preferential treatment sellers are supposedly getting (but in fact, many sellers offering FREE shipping sold less than I have, during the same time period). 

 

Should I use a different program next time, for putting some of my items on sale? If so, can it be done in bulk, and where is it located in Seller Hub? And would I still be seeing the pesky message from eBay to offer FREE shipping, atop of the already initiated price reduction, by using that tool?

 

Thanks

PW🐿

Message 1 of 25
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Re: Why is eBay adamant about preferential treatment for FREE shipping?

I get messages from buyers thinking I charge too much for shipping.  I do charge over the actual amount in most cases and tell them I have Shipping & handling.  I charge lower than most clothing sellers in total costs when I am have my better promotions.  The handling I charge I attribute to the cost of taking that item on to sell.  It is for my own piece of mind and I don't wish to change that.  I have to store it for as much as 2 years and pay listing fees in on and off seasons.  Buyers imagine though that I am over charging them by huge amounts.  I don't know how often anyone actual sends a package of weight through the post office.  The buyer thinks $5 is too much for a $4 shirt.  Usually the price of my item can be comparable to the cost of shipping and I get messages like the cost of the item is more than the shirt you are selling.  Well yes that is true but I can give the same price with free shipping if you like, is what I would like to respond.  The cost of shipping is a real cost no matter if it is deemed worth it.  When selling an easily found item like mine, clothing, I feel shipping must be included to show the service that is entailed in the transaction.  Sure I can buy a new shirt for $10 at the store but you should expect to pay more to not have to move from your couch to receive it.  If I had a million items in storage that I could sit on a price I would do free shipping but if I want to move items I lower prices and have sales often and free shipping would confine that and leave me on the hook, losing money on many items.  Buyers are aware of total price and if a seller sells items he has cases of than free shipping will work, but with one at a time and one of a kind it doesn't seem the way to go.

Message 16 of 25
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Re: Why is eBay adamant about preferential treatment for FREE shipping?

I tried making shipping free and adjusting  prices upwards to cover the shipping costs.  Living on the east coast I took a "middle of the road" approach and marked up my prices to cover shipping cost to middle America.  Suddenly almost all of my sales were to west coast locations and I was losing money.  That was the end of free shipping for me.  I lowered my prices and began to charge shipping at the eBay rates, with $1 added for handling, and believe that is the most fair way to do it.

Message 17 of 25
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Re: Why is eBay adamant about preferential treatment for FREE shipping?

I really don't know why buyers "pine" over shipping cost.  LOOK at the total cost of the item!  That is what I do when I shop.  Free shipping is not free shipping, duh.  The cost is in the price of the item as you stated.

Also, I do add to my shipping costs b/c boxes, tape. packing materials , printer paper, electric and  other supplies and maybe having to take it to the USPS.   I don't want to seem like a purist, but it does cost sellers money to ship items.

If a buyer complains about shipping, I ask them not to buy my item that I don't want an unhappy buyer.   They insulted me by calling me a price gouging seller!  They were a repeat buyer!!

2 seconds before I put them on my blocked list  they bought the item.  It was part of another item they had.  I canceled the transaction and they left me neutral feedback!! I just responded that they insulted me, and I told them not to buy.  I later sold that item a week later to someone else. 

Message 18 of 25
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Re: Why is eBay adamant about preferential treatment for FREE shipping?

I agree. No free shipping from me. I am doing just fine without it. It is hard to build it into your listing when you really don't know how far it is going to go or cost and then you get really nailed on the shipping and there goes all off your profits.
Message 19 of 25
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Re: Why is eBay adamant about preferential treatment for FREE shipping?

Expect a higher rate of return with free shipping.  I offered free shipping for a year and discovered more returns and higher loss of money as when you build shipping cost into item cost you refund the full item cost hence loss of your shipping cost.  A money loss that I can't sustain in my small business.

Message 20 of 25
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Re: Why is eBay adamant about preferential treatment for FREE shipping?

Free shipping vs "$ for shipping"  has 0.0% effect on the return rate. People don't buy to return things, have you tie up their $ for weeks, have to ' repack the item, print a label, get it returned etc.'. Returns are nothing but a hassle on both sides of the table. Buyers return because of the item, has absolutely nothing to do with shipping. 

Message 21 of 25
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Re: Why is eBay adamant about preferential treatment for FREE shipping?

yes free shipping is just another ebay scam
Message 22 of 25
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Re: Why is eBay adamant about preferential treatment for FREE shipping?

Don't know where you get that idea; 

 

Free shipping has been a 'thing' even well before the internet (catalog orders etc.) as well as every internet selling corner in the world. Most all companies have a website and have either a 'special' going during certain times a year (Xmas) with 'free shipping' or constantly with a 'minimum order', as well as advertise on tv & radio to 'buy on line with us and get free shipping' etc. 

 

I just got done doing my 'grocery shopping' using 'instacart' (as requested in LA to NOT go to grocery stores this week, use delivery service) and when you REACH $100 THEY DO IT FOR FREE! 

Message 23 of 25
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Re: Why is eBay adamant about preferential treatment for FREE shipping?


@corvettestainless wrote:

Don't know where you get that idea; 

 

Free shipping has been a 'thing' even well before the internet (catalog orders etc.) as well as every internet selling corner in the world. Most all companies have a website and have either a 'special' going during certain times a year (Xmas) with 'free shipping' or constantly with a 'minimum order', as well as advertise on tv & radio to 'buy on line with us and get free shipping' etc. 

 

I just got done doing my 'grocery shopping' using 'instacart' (as requested in LA to NOT go to grocery stores this week, use delivery service) and when you REACH $100 THEY DO IT FOR FREE! 


Good for you! I surmise the majority of eBay business accounts are small family operations, though, nowhere near the sales volume of Instacart, Target, Kohl's and other big companies. For a small business, it is a complete money pit, not to mention my posted worries about deceiving the customer, which seems to be a big NO-NO per the FTC. Basically, if I understood it correctly, the FTC is saying that, in order for a service to be designated as FREE, it must be truly FREE and not embedded or disguised as a part of another service or good. Anything else is deceptive.

 

Based on this premise, the huge companies which offer FREE shipping on the internet must be aware of this rule and perhaps they hand out truly free shipping as a perk to buyers, then write it off on their taxes. They can certainly offer this, given their large sales volume.

 

I also had many buyers commend me on being transparent about the shipping part of their invoice, as they appreciate knowing how much they pay for shipping. I think most adults in the U.S.A. are fully aware of the fact that the item they ordered is not going to be delivered overnight by Santa, free of charge, on a sleigh and then dropped down through their chimney. 

Cheers

PW🐿 (not 🎅)

 

https://www.ftc.gov/enforcement/rules/rulemaking-regulatory-reform-proceedings/guide-concerning-use-...

Message 24 of 25
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Re: Why is eBay adamant about preferential treatment for FREE shipping?

Prettywoman,

 

The way to look at free shipping is like this:

It is a tool for sellers to use to drive sales, just like volume discounts, promotions, etc. When shipping is “free,” it becomes a cost of goods sold same as ebay fees. I do not normally offer free shipping but I will when negotiating with a buyer if it makes sense to do so. If you know your costs you should know when it is profitable to offer free shipping and when it is not. 
While I agree there is a lot ebay can do to improve, they are doing a lot right. Stay positive and use everything ebay offers to help you grow your business.

 

Mike

Message 25 of 25
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