What really is FREE POSTAGE ?

[polly.the.cat]

I have been reading the many comments given in the light of ebay's delve, into the "cost" Sellers charge to post a said item. Without bringing up all that has already been mentioned, l am a bit confused now.  What l have been watching was a Video Card for a PC, Seller had it for BIN @ $7.95 with Postage added of $5.95    Same Seller now has same item BIN @ $16.95 FREE POSTAGE.

So looking at that example, l fail to see any FREE POSTAGE there at all.   Is is better to still show the actual cost of postage, along with the actual cost of the said item ?  Do ebay still "profit" no matter what out of the cost of postage to the said Buyer , which the Buyer is paying for.

I myself feel that it is not right to have a Seller claim you are getting FREE POSTAGE, when in reality, that is NOT THE CASE.

Just my thoughts though. Thank you.

[curraone]

There are plenty of sellers who know how you feel - unfortunately this new policy has been forced on us by new ebay policy.

Sellers now have to pay final fees to ebay on the total cost of the item, including postage - so there is no longer any advantage to the seller to list the postage separately.

Further, ebay advises that the search programs will give priority to items with free postage, so you see sellers are under pressure to make their items "free postage" if they can - what it really means, and we have lobbyed for a name change, is "postage included".

[fixnwear]

attic, there is no free postage in Australia - or anywhere else.

The only time it would be free to us (buyers) is if the sellers paid for it out of their profits.

No seller would do that  unless they sell items that are hugely marked up.

But that asside, every time I see free postage I know the postage price was built in  - and yes, you are right, weather it's split or all in one makes no difference - the end result is the same - we pay postage.

Can't see how it's the wrong thing to display free postage - they can do what they like - as long as that's eveident in the final invoice, no postage amount.

And so we should pay postage, included or shown seprately, it's being posted to us, using the third party that has a fee for their service - while we don't have to leave the house and use our time and petrol to go around the shops. 

I would pay anyone double just for that convenience alone!

[polly.the.cat]

Thank you fixnwear, No, you are correct. Think maybe things got a bit mixed here. Yes, ALL SELLERS should pass on the actual cost of the postage, infact l would even pay a bit extra to assist with the packaging. The point you bring up is more than fair, a Buyer has the right to know the cost of p&h, plus the cost of said item. Only fair.

Maybe yes have Seller say item is $35.00 includes Postage.  On the invoice qoute item xxx $25.00  Postage $10.00

Would this help ????

[digital*ghost]

What is free postage? 

A party-pack sized can of worms sitting in the middle of a minefield. 

Free postage is one of those things is variable according to individual sellers. At the outset, all business costs need to be covered in order for a seller to make a profit, so - ultimately - the buyer is paying for it in one way or another, presuming the seller is still making profit after all is said and done. 

Whether or not that always means the seller has decided on an item price and tacked postage costs onto that to get an eBay "free post" Buy It Now" price is debatable, and at the very least not always the case. 

Some sellers will do that, others will add on a percetage of postage costs because the majority of their buyers purchase multiple items (though free post doesn't provide any financial incentive to do so), others will take their normal prices and offset free postage offers with reduced overheads (if any), some will remove postage costs, keeping the item price the same, as a promotional offer (I've done that myself). 

But... the main issue about advertising something as free postage doesn't come from the fact that we all know someone has to pay to get an item from point A to point B, it comes from the understanding that advertising an item as "free postage" to a buyer is meant to mean the buyer has not paid that cost.  

So, more options to promote "no more to pay" would go down a treat here, I think, particularly amongst those who want to be transparent with their costs etc. I suggested a while back something like total cost displayed, with a breakdown (if applicable) of costs involved, eg:

Awesome Widget - $18.00 delivered ($10 + $8 P&H)

Regarding eBay's profit, their percentage is on the total paid by the buyer, so whether a seller lists as $18 free post or $10 + $8.00, the FVF will be exactly the same. That also means pricing structures which help minimise what the buyer pays in turn minimise the FVF eBay gets. This really only comes into play with multiple purchases where postage can be discounted, and - now - single payments for all items, so that the invoiced amount is the lowest combined amount possible before the buyer pays. 

[cmcoins2000]

Sellers have been 'up in arms' with the idea of 'Free Postage' for months.

eBay in their collective wisdom have given China free reign.

The gov of China offers 'Free Postage' to encourage international trade.

Given - Aust Post - Australian Sellers cannot offer the same.

On numerous occasions eBay has been inundated with sellers asking for the more 'honest' option of 'Postage Included' which is what you are seeing.

eBay say quote ' more buyers will return if they see 'Free Postage'.

Absolute Rubbish.

In this country it is illegal to offer 'Free Postage' when the postage costs are recouped within the sale.

Do eBay care - obviously not - they do not have the seller in mind - and - in this important issue they certainly do not have the buyer in mind.

Seemingly they would prefer us - as sellers to lie - please note in my descriptions I have 'NO EXTRA CHARGE' the only way to deal honestly with my buyers.

[harley_babes_hoard]

You should email your concerns to eBay themselves. They say it's what buyers want. We have to go along with their nonsense to remain visible in searches

[cmcoins2000]

I would really like to know what Australia Post charge China (the home of 'Free Postage) to deliver the miriad of cheap goods sent here.

Obviously have a deal - Australia Post - just suffered a staggering loss - perhaps it is delivering all that 'rubbish' free of charge from China.

[digital*ghost]

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@cmcoins2000 wrote:

I would really like to know what Australia Post charge China (the home of 'Free Postage) to deliver the miriad of cheap goods sent here.

Obviously have a deal - Australia Post - just suffered a staggering loss - perhaps it is delivering all that 'rubbish' free of charge from China.

---

They don't charge anything, they are signed on with the Universal Postal Union, which means each country keeps the amount charged for international mail, and the destination country's postal service delivers it at no extra charge.

What Australia Post do get are terminal dues, it doesn't cover the full cost of delivering international mail, but it's worked out as a percentage of incoming / outgoing mail between two countries. That means if there was an equal amount of mail sent and received between Aus and China, there would be no terminal dues paid to either. I think it's a given that there is significantly more mail coming in from China than is being sent there, so Aus Post would receive an amount based on the difference. 

[cmcoins2000]

Thank you.

Seems in that case it ain't enough.

Should reduce the 4 million the head honcho gets for adding 'gift lines' to Post Offices.