Monday, February 16, 2015

The eBay Free Shipping Dilemma

Years ago on eBay, offering free shipping helped sellers place higher in searches. In other words, eBay rewarded sellers who offered free shipping with a boost in search. That is not the case now.

Free shipping is now a big debate between sellers.

The positives:

1. Buyers respond to listings with free shipping. It is a marketing tool to attract buyers.

2. Free shipping is a guaranteed 5 stars on DSRs. It is somewhat of an insurance policy that helps guarantee 5 stars for shipping cost.

The negative:

If a buyer returns an item that had free shipping on it, the seller is usually out the shipping cost to the buyer because the cost of shipping was included in the sales price.

So which is the best way to go? It depends on what is most important to your unique business. I personally offer free shipping on items that can be shipped first class or in a padded flat rate envelope. (For my own items, not consignment items.) So if the item is returned, the cost of shipping lost is minimal.

What is your opinion on free shipping? Is it more important to get the 5 star DSR rating or not risk losing money if the item is returned?

Related Articles:

Free eBay Shipping Flow Chart

How to Reduce Returns on eBay

What Women Want to Buy on eBay

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