Hello - would like your opinion on listing items which include postage (ie FREE POSTAGE)

Is FREE Postage worth it?  I think as a seller we have to pay eBay some 10% on the entire amount - ie a book @ $10 including free postage is going to cost some $8.65 with an eBay postage label which means you pay eBay about $1.10, postage with eBay tracking $8.65 + $1.00 for the envelope, so you pay at total of about $10.75 selling your book.  Am I correct? Obviously more expensive items are different, but should I stop selling  cheap books and just concentrate on higher priced ones?

Please don't call me an idiot because I work hard for my points, but constructive criticism welcomed 🙂

Jenni

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Hello - would like your opinion on listing items which include postage (ie FREE POSTAGE)

I'd say concentrate on the more expensive ones, given the small margins and effort involved per sale for the cheaper ones.
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Hello - would like your opinion on listing items which include postage (ie FREE POSTAGE)

I sell books for $10, but they don't go in parcels. If they are under 2cm packed, they go as letters. I use C5 prepaid. $2.52 each in lots of 50, 500g max weight. I have had a handful go missing in 11 years, so they aren't risky. Maybe book buyers are more honest than the general run of alleged shoplifters alleged to inhabit eBay.

 

Are you trying to be the cheapest? Not a good idea with the UK dropshippers charging what we have to pay for postage.

 

I aim to be about the 3rd cheapest AUSTRALIAN seller. Works for me, and I don't end up selling at a loss.

 

If you are using eBay labels, that means you post in satchels, not envelopes. Small satchels are 15-25c each. You buy them from AP. MyPost Business is also cheaper than eBay labels if you send, on average, at least one parcel per week.

 

You also forgot to factor in Paypal (or Managed Payments) fees. Paypal charge you 56c on a $10 sale.

 

It doesn't matter whether or not you offer 'free' postage. The fees are charged on the total price, regardless of how it is apportioned. You have a store, so the most you will pay on a $10 sale is $1.05.

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Hello - would like your opinion on listing items which include postage (ie FREE POSTAGE)

I can't say what strategy you should use, but fees are generally more than 10%.

Closer to 13.5% once you take either Paypal fees or the new managed payments system (Adyen) into account.

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Hello - would like your opinion on listing items which include postage (ie FREE POSTAGE)

There is no one size fits all business model, including how postage is done. When eBay says "buyers prefer free postage", what they mean is "we have, through undisclosed (and likely biased) data collection, determined a stat that suggests sales may increase by an average of X% for some sellers when they use a free postage business model".

 

Stats and percentages are useless without context, the best they can do is provide minor insight into trends, that in turn may or may not work if adopted by an individual. 

 

This sort of thing also excludes data on alternative business models that can work significantly better for some - eg:

 

Flat rate postage (one single amount for any number of items being purchased)

 

Capped postage (postage accrues until it reaches $X amount, and that is the most that will be paid for a single order)

 

Calculated postage (postage is calculated and charged per individual order, based on the items and postage method required)

 

All of these models can incorporate a free post option, as well, for example if the total order value reaches a certain dollar amount and / or number of items being purchased.

 

Which one suits will depend on the items, how buyers tend to purchase (single or multiple items), the actual postage costs that need to be covered, and in some cases, the prices of your items.

In general, I've found that if incorporating postage costs into the item price (to list as "free post") makes the price look high compared to other similar items, charging it separately will usually work better, regardless of whether it is a low or high priced item, but a little more so on lower value items, as people do still place separate values on item prices and postage costs. 

 

If you'd like to encourage multiple-item purchases, charging postage separately can be one way to do that, if you provide good rates for additional items, so that rather than pay eg $10 + $9 for one book, someone may rather pay $30 + $12 for 3 books. This sort of model is a particularly good strategy when item price and postage costs are of similar amounts (many of my items are under $5, and so is my postage cost, but I use flat rate, which means someone can pay $4 + $3 for one item, or $40 + $3 for ten items, most people will buy at least two items to get better value out of the postage cost). 

 

Of course, with free post across the board, you can still provide discounts and incentives for multi-item orders via promotions manager, eg a percentage off the total order value when X number of items are purchased, so exploring and experiementing with various options that appeal to you, to test how buyers respond, is really the best way to figure out the best model to use with your items. 

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Hello - would like your opinion on listing items which include postage (ie FREE POSTAGE)

My preference is to have a cheaper price and offer combined postage. This can be advantageous for both buyer and seller.

When packing a sale, if there is room for more in a satchel and I have, eg a book by the same author, I email the buyer and suggest if they would like to take advantage of the space available for no extra postage they may like to consider item (s) such as item x y or z. This has been accepted with thanks several times.

(I give a deadline for reply so if no response posting isn't delayed).

As a buyer, if I want to buy several similar items it would rarely be from a seller with free postage.

 

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Hello - would like your opinion on listing items which include postage (ie FREE POSTAGE)

I offer free postage only on items I can send as a large letter and are not too expensive (usually under $10). For example, like Dave, books under 2cm thick I send as letters and usually pay only $2.20 (if under 125g) or $3.30 (if under 250g) in postage. I also post small jewellery items with free post although the padded envelopes I use are more expensive, but this is reflected in the slightly higher overall cost e.g. $12.50 instead of $10.

 

Any item that must go as a parcel I never send with free post. I also add the ebay fee to the cost of the postage so that I charge $10 for a small parcel (either wrapped myself or in a satchel for $10.

 

 

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Hello - would like your opinion on listing items which include postage (ie FREE POSTAGE)

I used to have approximately 25% of my listings as free postage and in all honesty, they were the ones that sold the slowest out of 400+ items.

Now everything has postage tacked on to it and my sales are up more than 120% from this time last year.

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Hello - would like your opinion on listing items which include postage (ie FREE POSTAGE)

There is no such thing as a free lunch and there is no such thing as free postage, either way someone pays. The word 'FREE' is the biggest selling term on earth and simply gains attention.

A more appropriate term would be 'Postage Included' because that is exactly what is happening, the seller is including the postage in their selling price.

Unfortunately that doesn't sound as good as 'FREE' does it ?
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Hello - would like your opinion on listing items which include postage (ie FREE POSTAGE)


@jellybirddesigns wrote:

I used to have approximately 25% of my listings as free postage and in all honesty, they were the ones that sold the slowest out of 400+ items.

Now everything has postage tacked on to it and my sales are up more than 120% from this time last year.


It was the same for me. I think buyers prefer to see how much they're being charged for postage, for transparency, to work out their costs/budget, perhaps to check what the packaging or postage method might be (tracking/no tracking) or the option to combine post. 

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