topic Re: The Great 'Free Postage' Rip Off in Selling

The Great 'Free Postage' Rip Off

cmcoins2000 — Sat, 09 Aug 2014 04:35:21 GMT

What a Hoot for Australia Post charges. To comply for eBay's precious little seller icons one is 'advised' to offer 'Free Postage' among other things. The only way to comply is to offer 'Free Postage' but include the cost of Posting in the Sale Price. This is not only deceitful it is illegal. I tried it - but - what a Rip Off for my buyers. Eg. 1 item @ $9.99 - yea - 'Free Postage'. 1 item @ $8.99 + $1.10 Postage. I combine postage - each extra item 30 cents (packaging materials & handling etc). A buyer purchases 2 items @ $9.99 - yea - 'Free Postage' = $19.98 A buyer purchases 2 items @ $8.99 + $1.10 + 30 cents = $19.38 I have actually been thanked for 'Free Postage'. eBay 'Free Postage' - SHAME. But it does mean more for their overflowing coffers.

Re: The Great 'Free Postage' Rip Off

j*oono — Sat, 09 Aug 2014 04:51:36 GMT

Many sellers have used free postage long before ebay started pushing it.

As you said they can add a small charge to cover postage and then when they get a buyer wanting multiples or more than one item they come out ahead anyway. It works but most buyers can do the maths and work out which is better for them.

Re: The Great 'Free Postage' Rip Off

phorum_junkie* — Sat, 09 Aug 2014 11:28:00 GMT

No way do you have to offer free postage, I sell on three ids, one of them is a store and that has free postage and has done for many years, certainly long before free postage was pushed by ebay. For my other 2 ids I prefer to continue to quote postage and I have found no difference at all between the two formats regarding DSRs or position in searches.

Re: The Great 'Free Postage' Rip Off

i-love-my-sheep — Sat, 09 Aug 2014 13:13:48 GMT

I list small items that go in a small padded bag as free postage as it's usually only $1.40 to post (or sometimes only 70c if it's really thin). Bulkier items I charge postage. I am happy to wear the $1.40, but am not going to wear $7.20 on a $10 item! I find I sell both free postage and paid postage items. Sometimes I sell more free postage, other times I sell more paid postage. I guess it depends on who wants what this week.

Re: The Great 'Free Postage' Rip Off

*amandajane* — Sun, 10 Aug 2014 16:21:16 GMT

Its all about the bottom line. I remember in days gone by ebay used to pay great homage to saying that you shouldnt rip off buyers when it comes to postage costs and now they take their final value fee on it as well as the item itself. So this move doesnt help buyers as you point out (no such thing as a Free Meal) and hence we sellers are forced to add the cost of shipping to the item to boost our ratings and lo and behold ebay take 7% of that as well (not to mention paypal who have always taken their fee on the whole transaction amount).

And heres the other catch .. if you as an honest seller want to refund the overpaid postage where a seller has paid for more than one item you can do so by Paypal refund but guess what .. ya dont get the ebay fee back on the refund .. so you are caught whatever way you swim in the ebay sea!

Re: The Great 'Free Postage' Rip Off

honest.johns.phones — Sun, 10 Aug 2014 16:55:03 GMT

Conversely, if you sell 2, then eBay is profit sharing with you.

Re: The Great 'Free Postage' Rip Off

cmcoins2000 — Sun, 10 Aug 2014 22:22:22 GMT

Good morning.

Very true.

But the whole idea of paying fees on postage was to send a message to those totally overcharging.

'Free Postage' - is in Australia - 'Postage Included' - has to be - Aust Post is not China.

This service has to be offered for those silly little icons eBay judge sellers by.

By offering this there is no longer 'combined postage' so the buyer is paying double anyway.

So - what has the whole idea solved with the postage overcharge.

Re: The Great 'Free Postage' Rip Off

jensmanchester-australia — Sun, 10 Aug 2014 23:16:56 GMT

Helen – the Free Post (or Postage Included) business model has been around well before ebay decided to give sellers a special icon if they offer it.

It is a business model which can work successfully for many sellers and is equally liked by many buyers. It certainly doesn’t suit everyone.

It doesn’t mean that the buyer is paying double postage if they purchase two items – often it is more expensive to send two items together than it is to send them separately. It also depends on how much the seller has inbuilt into the selling price to cover their postage expenses.

There are many different types of buyers on ebay and there are buyers who prefer the postage included price – these are generally what are considered the retail buyer. This type of buyer regards time as money – they want to buy, pay and have their parcel sent of ASAP. They don’t want to wait around for invoices as they have other things to do with their life. They like the idea of a totally inclusive price as it makes online shopping quick and easy.

The bargain type buyers are the buyers who seem to prefer postage listed as a separate component as they want to spend as little as possible. They will often try to “fill a satchel” to make sure they get what they consider value for money as far as the postage goes.

We see these types of buyers in our shop all the time – the retail buyer comes in and, as long as the price is reasonable, they will purchase everything they need at once. They often make comments such as – now that is done I have the rest of the day free. They aren’t necessarily looking for the cheapest price but for a quick and easy shopping experience.

The bargain hunters come in, check out the price, but then have to spend the next 3 days and a full tank of petrol checking out every other shop in the area just in case they can save a couple of dollars somewhere else. They don’t take into consideration the time and petrol costs as they only see the item price as being important.

Re: The Great 'Free Postage' Rip Off

letscleanupmycupboards — Mon, 11 Aug 2014 03:25:58 GMT

How does it solve any problems with overchargers? They still overcharge, just now they add it all into the price, call it free postage, can tack on an extra 10% to cover fees and get away with it no questions asked. Does it really make a difference to the buyer if it is $10 free post or $5 and $5 postage. Are buyers really that swayed by the thought its free? Just means a lot of sellers are forced to add a few $ to the starting price of an item, the end to 99c sales!

Re: The Great 'Free Postage' Rip Off

cherry*135 — Mon, 11 Aug 2014 09:28:21 GMT

Prior to 6 May 2014

Seller wants to sell a small item for $18 and a reasonable shipping charge is $4.00 (large envelope + .50c handling)

They list the item cost as $2 and postage as $20.

They only pay FVF on the $2.

Now with FVF on postage as well, if they did the the same they would be paying FVF on $22.

Re: The Great 'Free Postage' Rip Off

cq_tech — Mon, 11 Aug 2014 14:06:03 GMT

So clearly eBay condone postage piracy just as long as they get their cut. Nice one. 😞

Re: The Great 'Free Postage' Rip Off

px_ws — Mon, 11 Aug 2014 22:01:30 GMT

Free postage-

The reson ebay does it is

1. So they make more money!

2. Less complaints to them about expensive freight charges

The reson sellers do it,

1. it gives more confidence to the customer as they know there is not going to be any hidden fees or costs.

2. If buyers buy multiples you make extra money as you make more $ on included freight

3. You apparently get further up the list of listings,

4. You get a fancy premium seller badge (further increasing buyers confidence)

Including freight into your item is not illegal btw, they actually encourage it as it is not misleading you know what you are paying for.

http://www.accc.gov.au/business/pricing/setting-prices

Re: The Great 'Free Postage' Rip Off

cmcoins2000 — Mon, 11 Aug 2014 22:09:53 GMT

@jensmanchester wrote:
Helen – the Free Post (or Postage Included) business model has been around well before ebay decided to give sellers a special icon if they offer it.

It is a business model which can work successfully for many sellers and is equally liked by many buyers. It certainly doesn’t suit everyone.

It doesn’t mean that the buyer is paying double postage if they purchase two items – often it is more expensive to send two items together than it is to send them separately. It also depends on how much the seller has inbuilt into the selling price to cover their postage expenses.

There you go - a business model.

Which, having been in business for in excess of 40 years I do not fail to understand.

A business incorporates all 'overheads' for turnover & profit.

Like many other sellers here I am not a business - this is enjoyment (was) a practical hobby instead of 'ajaxing' the bath daily.

I am not able to print postage labels my items are too small - large letter size - into which I can fit up to 5 depending on weight.

When offering 'free postage' - with the understanding - all overheads considered - my buyers are paying too much for postage.

Especially so now fees on that service have to be considered.

Yes, I do understand offering 'free postage' boosts my so called 'status' as a seller but it does absolutely nothing for my moral sense of right & wrong.

Re: The Great 'Free Postage' Rip Off

cmcoins2000 — Mon, 11 Aug 2014 22:39:06 GMT

@px_ws wrote:
Free postage-

The reson ebay does it is

1. So they make more money!

2. Less complaints to them about expensive freight charges

The reson sellers do it,

1. it gives more confidence to the customer as they know there is not going to be any hidden fees or costs.

2. If buyers buy multiples you make extra money as you make more $ on included freight

3. You apparently get further up the list of listings,

4. You get a fancy premium seller badge (further increasing buyers confidence)

Including freight into your item is not illegal btw, they actually encourage it as it is not misleading you know what you are paying for.
http://www.accc.gov.au/business/pricing/setting-prices

@px_ws wrote:
Free postage-

Including freight into your item is not illegal btw, they actually encourage it as it is not misleading you know what you are paying for.
http://www.accc.gov.au/business/pricing/setting-prices

Avoid misleading or deceptive claims or conduct

Two fundamental rules of advertising and selling are that:

you must not engage in conduct that is likely to mislead or deceive
you must not make false or misleading claims or statements.

In practice there is overlap between the two rules. A particular statement could breach both.

The application of these two rules is explored in this section.

It should be noted that this law applies equally to any statements or claims made about products or services in the online environment. Businesses that sell or promote online should ensure that their use of online vehicles does not create any misleading impressions or include false claims.

The information in this guide covers online-specific issues including the use of social media, product reviews and online group buying.

*'Free Postage' is not 'Free' if the cost has been recouped in the sale price

Re: The Great 'Free Postage' Rip Off

cmcoins2000 — Mon, 11 Aug 2014 22:39:59 GMT

Avoid misleading or deceptive claims or conduct

Two fundamental rules of advertising and selling are that:

you must not engage in conduct that is likely to mislead or deceive
you must not make false or misleading claims or statements.

In practice there is overlap between the two rules. A particular statement could breach both.

The application of these two rules is explored in this section.

The information in this guide covers online-specific issues including the use of social media, product reviews and online group buying.

Re: The Great 'Free Postage' Rip Off

digital*ghost — Tue, 12 Aug 2014 00:11:09 GMT

@jensmanchester wrote:
Helen – the Free Post (or Postage Included) business model has been around well before ebay decided to give sellers a special icon if they offer it.

It is a business model which can work successfully for many sellers and is equally liked by many buyers. It certainly doesn’t suit everyone.

It doesn’t mean that the buyer is paying double postage if they purchase two items – often it is more expensive to send two items together than it is to send them separately. It also depends on how much the seller has inbuilt into the selling price to cover their postage expenses.

There are many different types of buyers on ebay and there are buyers who prefer the postage included price – these are generally what are considered the retail buyer. This type of buyer regards time as money – they want to buy, pay and have their parcel sent of ASAP. They don’t want to wait around for invoices as they have other things to do with their life. They like the idea of a totally inclusive price as it makes online shopping quick and easy.

The bargain type buyers are the buyers who seem to prefer postage listed as a separate component as they want to spend as little as possible. They will often try to “fill a satchel” to make sure they get what they consider value for money as far as the postage goes.

We see these types of buyers in our shop all the time – the retail buyer comes in and, as long as the price is reasonable, they will purchase everything they need at once. They often make comments such as – now that is done I have the rest of the day free. They aren’t necessarily looking for the cheapest price but for a quick and easy shopping experience.

The bargain hunters come in, check out the price, but then have to spend the next 3 days and a full tank of petrol checking out every other shop in the area just in case they can save a couple of dollars somewhere else. They don’t take into consideration the time and petrol costs as they only see the item price as being important.

I agree with all this, but there are more than two types of buyers, and more than two types of business models.

Flat rate postage costs (as in eg $10 P&H no matter how many items a person buys) appeals to both the retail shopper and bargain hunter, with fixed costs up front that allows total expenditure to be minimised.

I don't think most people have a problem with free postage in as much as they have a problem with eBay encouraging it over other models that work far better for many sellers.

eBay's whole thing about buyers caring about postage costs is wholly undermined by the fact that a low DSR for postage costs isn't even going to be a defect, because - according to eBay themselves - even if / when buyers are a bit ticked over how much they were charged, it doesn't affect their eBay spending.

Re: The Great 'Free Postage' Rip Off

lousbloomingarden — Tue, 12 Aug 2014 01:48:36 GMT

I worked it out if I went free postage on bulk buys of 10 plants ( I send them for $28 EXPRESS now..ANY WHERE ) my customers would be paying $125 for postage . What a rort as ebay are the only ones rubbing their fat little hands $$$$

Out of my 2 stores I have no listings that qualify for ebays top rated seller BENEFITS....UMMM....am I in the wrong country?

Re: The Great 'Free Postage' Rip Off

cmcoins2000 — Tue, 12 Aug 2014 22:39:47 GMT

Same here. I cannot list to qualify for a shiney little icon. eBay has become a 'warehouse' instead of the interesting 'market place' of days gone by.

Re: The Great 'Free Postage' Rip Off

pinegroveplants — Wed, 13 Aug 2014 00:20:19 GMT

ebay is taking fees on shipping costs, it is cheaper for sellers to free post but have to include it in the price, take it up with ebay.

Re: The Great 'Free Postage' Rip Off

cmcoins2000 — Wed, 13 Aug 2014 00:32:20 GMT

Oxymoron. 'Free Post' - but have to include it in the sale price.