topic Re: how do sellers make profit and offer free postage in Selling

how do sellers make profit and offer free postage

ronaldinho9612 — Sat, 25 Jan 2014 01:35:26 GMT

Hi,

Im just wondering how sellers on eBay are providing items so cheap and offering free postage?

example..an iphone charger for $6 including free postage.

A normal postage cost for a parcel under 500g is about 6.60

How would you get cheap postage rates or even make a profit on items that are <$6? regardless of dropshipping

Re: how do sellers make profit and offer free postage

*crikey*mate* — Sat, 25 Jan 2014 02:01:05 GMT

a few scenarios

loss leaders to attract people to other th8ings they are selling

if international, subsidized postage, or the items cost SFA to actually make in the first place.

is it a genuine article? is it a fake?

maybe no product even exists, they have no intention of shipping it to you, but are instead interested in obtaining your details for either future marketing, to onsell your information or some kind oif scam.

Re: how do sellers make profit and offer free postage

*sparklz* — Sat, 25 Jan 2014 02:06:44 GMT

If they post a certain amount through Aust Post a month and have an account they get discounts on postage costs so it will cost less than what others pay..

Re: how do sellers make profit and offer free postage

crowsman53 — Sat, 25 Jan 2014 05:35:07 GMT

Umm you can all laugh at me on this one I stuffed up Big Time I listed 3 Pieces of Bendigo Pottery starting at $12.50 Items sold as there was only 1 bidder. What I didn't know at the time of listing was I used the Template of another Item which was Free Posting Via Turbo Lister. Any why the Items sold for $12.50 and Postage was $11.70 So i made a whooping 80 cents. Not to worry I just finished packing it and I put it down to S*** Happens My Loss Their Gain but at least a customer will be happy and will post it Tuesday.

Re: how do sellers make profit and offer free postage

ronaldinho9612 — Sat, 25 Jan 2014 06:27:12 GMT

well i was considering opening a store on ebay, and obviously as a begginer i wont be able sell large amounts of electronics (most likley) so if i sell a cable for example for $5 and delivery will cost at least $6-7 so by the time my store gets bigger abd bigger i would had lost a hell lots of money ??

Re: how do sellers make profit and offer free postage

*crikey*mate* — Sat, 25 Jan 2014 07:21:19 GMT

so don't offer free postage, or sell the cable for $12 with free postage.

or, don't sell the cable.

Re: how do sellers make profit and offer free postage

digital*ghost — Sat, 25 Jan 2014 07:42:03 GMT

@ronaldinho9612 wrote:

How would you get cheap postage rates or even make a profit on items that are <$6? regardless of dropshipping

Dropshippers usually do not pay any domestic postage once an item reaches Australia - they purchase the items from a supplier as the orders come in, and have them sent directly to the buyer in Australia. Some of them pay very cheap unit prices, and shipping from other countries (like China) can also be incredibly cheap and/or their profit margin is nominal.

Selling cheap or cheaper items is not the only way to compete with other sellers selling cheap items. Some buyers favour speedy delivery, safety, quality, personalised service, simpler and more cost effective returns if necessary, etc etc, over cheap items, and are willing to pay higher prices for those things.

Also, depending on the size of the cable, it's possible to post one domestically as a large letter, which is $1.20, $1.80 or $3.00 depending on weight.

Re: how do sellers make profit and offer free postage

ronaldinho9612 — Sat, 25 Jan 2014 08:05:26 GMT

well why would anyone buy from me when there is much cheaper ones

Re: how do sellers make profit and offer free postage

*crikey*mate* — Sat, 25 Jan 2014 08:43:58 GMT

@ronaldinho9612 wrote:
well why would anyone buy from me when there is much cheaper ones

unless they were committed to buying from Australian seller, they probably wouldn't. so this is where simple economic principles come into play.

1) If you are unable to compete in a certain market, don't.

2) Find a market in which you can compete. i'e source another prioduct which either allows you to acheive the profit margins that you desire or at least makes it worthwhile for you to trade.

Re: how do sellers make profit and offer free postage

springyzone — Sat, 25 Jan 2014 20:54:06 GMT

It depends on what you are selling.

Okay, I know nothing about cables.

But last year I bought 2 separate lots of diamante buckles (for invitations etc), one lot from Australia & one lot from China.

The aussie ones were $40 for 50, the Chinese ones were roughly $14 for 40 (I forget exact figures, but a lot cheaper, anyhow).

So why did I buy from the aussie supplier? (Given the buckles she sold would have been made in China anyway)

Two reasons.

1. Her ad made it clear these were A grade, higher quality ones than some others on sale on ebay. The ad wording then, was important.

2. The seller's location wasn't far away so i knew I would get the items that week, whereas it could be a month till the Chinese ones turned up and I was a bit unsure of what the quality of the chinese ones would be like (the aussie ad having made me a little worried).

3. The communication with the aussie seller was top notch, she was great.

I was happy with both purchases.

Was there a big difference between items?

Probably not, considering what i wanted them for. Were the aussie ones better quality? possibly. They were very even and sparkly, but by the time I got the Chinese ones, the others had been used and posted so i couldn't cmpare.

But for sure, if you have a slightly better quality item and make that clear in your ad, I think you could sell them to aussie buyers, as long as you have really quick repliesto any queries and fairly quick deliveries.

Re: how do sellers make profit and offer free postage

lane-ends — Sun, 26 Jan 2014 03:01:34 GMT

supercheap may mean waiting over a month. si if you are local emphasise speed of delivery

Re: how do sellers make profit and offer free postage

westaussiethrifters — Sun, 20 Apr 2014 23:24:12 GMT

There is no such thing as a true FREE POST in Australia.
As a seller I do not offer a Free Post option on my items as I cannot post for free and it would make my items for sale a disproportionate cost if I was to add the postage cost into the sale price. This would be false and missleading to prospective buyers as the the actual value of the item they are considering purchasing is less.

I use alot of calculated costs for items over 500g so as to give buyers the best postage based on their location.

Combined postage is important to lots of buyers and the new fees being added by ebay to the postage cost is most unfair to those who genuinley charge Australia Posts fee plus nominal packaging amounts for safe postage. (all buyers want to receive their items in one in good condtion).

Australia Post have just increased their postage costs so this fee adds even more pressure onto sellers as further increases are difficult to pass onto the buyer.

Australia Post cannot be too happy about this surely.

Re: how do sellers make profit and offer free postage

deb2935 — Thu, 09 Nov 2017 05:20:26 GMT

Yes and the other thing that happens is the sellers get a deal with a freight company, the deal is very cheap if they take low priority delivery. So the goods take 12 days to reach Perth from Melbourne, when in actual fact it takes 3 or 4 days max with Aust Post from Melb to Perth. The customer pays the price in waiting waiting waiting. Like me at the moment, waiting for a new radiator for my car?! Now up to 10 days of the 12 and it still has not arrived. Not worth it. Should have bought locally and stuff the freight cost at least my car would be going. Ebay can get stuffed.

Re: how do sellers make profit and offer free postage

davewil1964 — Thu, 09 Nov 2017 05:36:16 GMT

@deb2935 wrote:
Yes and the other thing that happens is the sellers get a deal with a freight company, the deal is very cheap if they take low priority delivery. So the goods take 12 days to reach Perth from Melbourne, when in actual fact it takes 3 or 4 days max with Aust Post from Melb to Perth. The customer pays the price in waiting waiting waiting. Like me at the moment, waiting for a new radiator for my car?! Now up to 10 days of the 12 and it still has not arrived. Not worth it. Should have bought locally and stuff the freight cost at least my car would be going. Ebay can get stuffed.

I'm not sure it is the same issue, given the 3 and a half years since this thread was last posted to.

My experience is that 2 weeks is par for the course from East to West, or vice versa. I hardly see how your trying to get something cheap is eBay's fault, given that is what people unrealistically expect.

Re: how do sellers make profit and offer free postage

jordoyos_0 — Wed, 16 May 2018 11:29:41 GMT

I buy a lot of things clothes lights skateboard all very cheap free shipping awesome board only $59 how ?

Re: how do sellers make profit and offer free postage

daydreams_12 — Wed, 16 May 2018 21:27:39 GMT

This thread was started 4 YEARS ago. Why drag up Zombie Threads to tell us what you purchase!!!!!!!!!!!!!!

Re: how do sellers make profit and offer free postage

jordoyos_0 — Thu, 17 May 2018 11:16:11 GMT

Do you think your smart? You just added another comment that has nothing to do with the question.

Re: how do sellers make profit and offer free postage

jordoyos_0 — Thu, 17 May 2018 11:13:26 GMT

I click their page coz that answer was ridiculous and they are saying people have no life on threads when they are the one with no life just letting y'all know. They done it on other posts.

Re: how do sellers make profit and offer free postage

padi*0409 — Thu, 17 May 2018 02:50:54 GMT

You are replying to ronaldinho9612 who hasn't been on the boards for 4 YEARS, so it's very unlikely they'll see your post let alone reply to it.

If you don't like the answers that experienced members give here I suggest you deal solely with eBay's customer service - I'm sure you'll get the correct answer to your problems from them every time.......................not.

Re: how do sellers make profit and offer free postage

Anonymous — Sat, 04 Aug 2018 06:34:13 GMT

Simple

Price included in price or item in CHINA

Chinese Governement provide free postage for small bussineses

that would be great if we have such support here in Australia

Unfortunatelly Australia Postage charges are one of the highest in the World

the only way to offer free postage here, it is to include it in price as you get FEE charged anyway by ebay