Anyone use subsidised post?

[lane-ends]

We have had the arguments about free post vs actual post. Just wanting to  hear from those who offer a flat post rate which is less than actual, that way you keep item price down but as your advertised post is always less than actual eg say $5 whether itr goes in a 500gm satchel or 3kg satchel. That way you dont have to estimate shipping cost at listing, nor get into squabbles over listed cost vs actual.?

Many of my items are bordline on satchel rate so it is easy to quote wrong one.

It also leaves scope for discounting on multiples.

[bigbrickshop]

I have looked at it and still haven't made a decision.

There are many of the largest stores that have a flat $9 or $10 shipping fee.

Of course, it relies on the buyers using the cart and making one combined payment for multiple purchases. I wish eBay would get rid of the Buy t Now button so all sales went through the cart.

[digital*ghost]

I use flat rate postage, and find it works great (most of the time) for my items. I charge a low letter rate and sometimes need to use parcels so I can lose a little on occasion (on postage anyway), becaue I don't exactly subsidise postage costs in my item prices, but there are still savings for me if buyers purchase multiples (resources, like packaging and labeling, PayPal fees if one payment was made etc).

If you use the new Sales Maximizer thing and set up postage discounts / promos with it, the banner on listings prompts buyers to use the cart. (I have still had people paying separately, though, apparently it's not visible on apps).

There is one other alternative, and that's a postage cap - that's what I used when I sold clothing. 1 item was normal postage costs, but people couyld buy any number of items and pay a maximum of $12 postage (based on what was then the 5kg express satchel, which was a bit more than that at the time). That way, no one is ever paying more than they need to for a single item, and people who buy multiples have an incentive / reward.

If anyone wants to know more info about how I use a flat rate postage etc, I'll be happy to share a little later tonight (errands to run, birthday shopping to do :D) 

[glenbankloel]

We just use $7.00 flat post for our 500g satchells. We do lose a little bit, but so much easier and we have keep this price just over 3 years. Most of our items are under 500g. Pretty easy to make it up, lose .45c if we use C&S and .20c if we use Ebay labels. The only time we change is when goes over 500g and thus falls into the 3kg range, so the new weight class from AP of 1kg (for June) might work for us.

By fixing the price ages ago we don't have to worry about trying to calc postage. But, as always Horses for Courses.

[lane-ends]

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@glenbankloel wrote:

We just use $7.00 flat post for our 500g satchells. We do lose a little bit, but so much easier and we have keep this price just over 3 years. Most of our items are under 500g. Pretty easy to make it up, lose .45c if we use C&S and .20c if we use Ebay labels. The only time we change is when goes over 500g and thus falls into the 3kg range, so the new weight class from AP of 1kg (for June) might work for us.

By fixing the price ages ago we don't have to worry about trying to calc postage. But, as always Horses for Courses.

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What I was getting at is say using the same below actual rate costs (bit of perceived marketing there too) for all items regardless of actual postage cost. Dont want to work out any postage weights or estimates when making up listing. Everything in the store to be the same cost.

[digital*ghost]

Actually, I do use flat rate (often subsidised) postage elsewhere. On another site, my store and business model is geared towards international buyers, so I have a different pricing structure and postage set-up, because the costs (and risk) is quite a bit different to just posting domestically (which I do on eBay). 

The appeal of flate rate (just IMO) isn't necessarily that it's cheap postage for the buyer (though that is probably one aspect), it's that there are no surprises, the buyer always knows exactly what the postage amount is going to be, so it appeals to the convenience shoppers (upfront pricing, nothing to work out), and it appeals to the bargain hunters (the ones who'll buy more in one go, to make the most out of low P&H). 

On the other site, I (primarily) charge the rate for a <250g international letter ($7.50, actually, so 10c above). My actual postage costs are a bit more than that, because I like to use the rigid mailers for OS mail, plastic document sleeves for labeling (to protect against weather), and good packaging on the inside. The $7.50 is a flat rate, so all additional items are $0 extra for the buyer, even though I sometimes pay up to $27-odd for P&H, when the order vaue is above my risk limit, which happens on about 35% of orders. 

[phorum_junkie*]

On my store account I used to have free postage however I have started to add a less than cost fee of $5 which makes it possible to offer a discount for multiple items.

On my auction accounts I just use flat rate at cost plus a small handling fee.

Seems to work OK up until I closed down in April. Will see if it still works pn reopening in November.

[davewil1964]

I use parcel rates for parcels and 'free' post for letters. My prices are essentially dictated by what other sellers list for (excluding the race-to-the-bottom idiots) so postage, explicit or implict, is not a determining factor.

[saarzi]

I do all of the above.

I use regular postage cost, subsidised postage and well as free post. It depends on the item and my previous experience with similar items with how well they sell and possible loss with returns.

My total price (item plus postage) is almost always the same anyway. So its really just about how I want to market the item.

[heihachi_73]

I use a flat $2.50 for all DVD-sized games. Some items are $1.40, others are $2.10. The buyer pays $1.10 for a bubble mailer when they pay $1.40 postage, otherwise they pay 40c if it was heavier than 125g. As of 1/6/2015, the Officeworks plastic bubble mailers are 85c in bulk, or $1.15 each.