$5.5 Free postage item , sent by eparcel?

Hi guys, I bought a car mount, only $5.5 , seller sent as eparcel with tracking number.  I actually receiced by eParcel, and tracking nubmer works. Item sent from NSW. 

I noticed that they have a lot of sales so far , they are not doing it as loss leader. They are actually overseas seller. Seller used Third-party logistic

 

 The item link is here.      http://www.ebay.com.au/itm/272429639529

 

Are they making anything from this deal? Can anyone give us some glue how they survived?

 

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Re: $5.5 Free postage item , sent by eparcel?

Sellers from China and Hong Kong are subsidised by their government, that's why they can ship for next to nothing.

 

BUT, read this before using that mount...................

 

http://www.digitaltrends.com/mobile/how-magnets-really-affect-phones-hard-drives/

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"Start me up I'll never stop......"
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Re: $5.5 Free postage item , sent by eparcel?

Most volume sellers like that don't work out pricing with postage on a per-item basis, but rather as a total (annual) business expense. If they are using a third party logistics company, it's very likely that third party caters to many businesses, and enjoys very good volume discounts on postage themselves, and rather than charge X per package, they might charge X per thousand (or 10,000) articles - so for the retailer, it wouldn't matter if the item price is $5 or $500, the postage cost (to them) is the same, and by using that company to send lower value items, they can access better postage rates on larger / heavier items, which means in the long run they actually save money rather than lose it on a few $5.50 free post items.

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Re: $5.5 Free postage item , sent by eparcel?

lyndal1838
Honored Contributor

A large number of overseas sellers use StarTrack as their logistics company.

StarTrack is owned by Australia Post so unless the items are delivered by StarTrack they would automatically go into the AP system as an e-parcel.

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