Monday, April 5, 2010

Free Shipping on eBay isn't Free for Sellers

Offering free shipping on your eBay items may place your listings higher in Best Match, but this comes at a cost. Of course, any business person knows that you aren't shipping the item for free, you are incorporating the shipping fee into the asking price of your item. But, remember that your final value fees are figured on the sale price of the item, so the higher your sale price, the more fees you will pay. Here is an example of how offering free shipping will cost you money.

Let's say you are selling a large or heavy item that costs around $20 to ship. If you offer free shipping and build that $20 cost into your asking price and offer this item on a fixed price listing, it is costing you $2.40 in fees. (Based on 12% final value fees.)If this is a stock item that you sell many times a month, you can see how that fee will add up over time.

So, the free shipping option is really a catch 22. Do you offer free shipping at a cost to appear higher in Best Match? Or do you not offer free shipping to save on fees and settle for appearing lower in Best Match? What do you think?

Related articles:

eBay Shipping Insurance

eBay Shipping Calculator

Get Free Shipping Supplies in Your Community

Happy Selling!

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