Understanding Shipping Costs with Free Shipping on eBay

[techtrendtribe]

Hello Folks,

I’m new to the eBay seller world and trying to understand the shipping costs involved when offering free shipping on products.

Let’s take an example: I’m selling a box of 50 PCS Face Masks. The net weight of the box is 600 grams, and I plan to offer free shipping for domestic deliveries within Australia.

I’m aware of the Flat Rate Packaging options offered by Australia Post, such as Small, Medium, and Large satchels. However, I’m confused about the packaging and shipping process in this case.

Since the product comes in a box, it doesn’t seem feasible to use a satchel, even though the weight is under 5 kg. Instead, I would need to ship it in a box, and parcel post for a box of this size would cost around AUD 11. This seems like a significant shipping cost to incorporate into the overall product price.

Here’s my confusion: I see other sellers offering a 50 PCS box of KN95 Face Masks for AUD 28. If we factor in AUD 11 just for shipping costs, how are they pricing their products so competitively?

Additionally, after deducting the eBay fixed fees (AUD 0.33) and the Final Value Fee of around 11% from the remaining amount, there doesn’t seem to be much margin left for profit.

Are these sellers genuinely paying this much for shipping, or am I missing something? Any guidance on how to manage packaging and shipping costs efficiently would be greatly appreciated.

P.S.: The example quoted is from a legitimate seller and not a scam.

Thank you for your help!

Best regards,
Osama

[gutterpunkz05 · Accepted solution]

The cost of flat rate shipping for satchels and boxes is the same, dependant on the size chosen,  small, medium etc,  the only difference is that AP boxes are more expensive to purchase than  AP satchels and the package costs are not included in postage rates.

If you were to use your own packaging, rather than AP flat rate, the postage cost up to 500g is the same as a small satchel, and from 500g to 1kg is the same as a medium satchel, and in both cases cubic weight is not applied.

As for how others may obtain cheap postage rates, it is not relevant to what rates you may be able to access,  so you can only set your price accordingly.

Note: your FVF is likely to be  13.4%  +  33c

Just to add, it makes no difference if you are offering free postage or not,  you have to cover your costs, and don't forget  FVF also applies to postage

[countessalmirena · Accepted solution]

Check where the seller is registered. (Click onto their feedback percentage, and then onto the “About” tab; you should be able to see country of registration.

If they are registered in China, all is explained. (Heavily subsidised postage, and almost certainly the face masks won’t be of the stated standard. Fake certification, masks not made to filter particulates as stated - a huge health risk and illegal to import, but some buyers will actually believe the listing.)