How come an Australian seller can offer free shipping?

[312217084]

How come an Australian seller can offer free shipping even the item located in Australia??

For example, seller post their phone cases and screen protectors for free.

Anyone can figure it out for me?

Thanks

[lane-ends]

Not always added in just not separated out. For example I list things at top end BIN price. say all dresses will start at  $39.95 free post. Now some dresses are worth more than others and some will cost more to post than others. I dont differentiate, I gradually reduce the price until market place decides its price and it sells.

 I have to pay the post regardless, whether its a 3kg satchel or 500gm satchel, or even letter rate it will not affect my list price, or sell price. I want to sell at best price I can, resultant profit will be the best it is. I am not going to get a better price just because it has to go in a 3kg satchel.

What this does is makes me focus more on potential shipping cost when stocking in,.If I think an item is likely to require a 3kg satchel then I thing twice whether it is likely to be a good seller or not. Hence I buy smarter. But difference in actual shipping cost has no effect on buyer. 

Buyers will themselves factor it in when deciding to buy my items or not compared to what they would expect to pay if the charges were seperated

It is marketing, but to me it just simplifies it, If I dont separate it out, then I dont have to estimate it when listing, I just ignore it. I have the item it has to be sold and posted, too late to worry about it then, its an unavoidable cost. I dont weigh an item until I'm actually posting it

If I could post for free then BIN price would still be the same as it would if it cost me $20 to post. 

[thecatspjs]

Ditto ^^^^^^ lanes that is exactly how I view post costs and determining stock purchases.

In relation to determining listing price, my price setting is also impacted by cash flow  and whilst I do decrease price if an item doesn't sell, I also increase prices of items, where there is a lot of interest in item.

[thesoulyearns]

lane-ends, that's an interesting way of looking at things. I do sometimes lose money on postage but then do gain back an extra dollar or two in other cases, unintentionally. I like the saying of how "you have it and it has to be sold" so you just list it at a price that you think it will sell at.

[recordfairs]

The day is coming when eBay may follow other places like Fishpond and free postage will be compulsary

[davewil1964]

Highly unlikely murray. If the could do it, they would have done so by now. My guess is the ACCC won't allow them to charge commission on a service that they don't provide.

[thesoulyearns]

Highly unlikely murray. If the could do it, they would have done so by now. My guess is the ACCC won't allow them to charge commission on a service that they don't provide.

Plenty of legitimate online retailers offer free postage.

[***super_nova***]

Plenty of legitimate online retailers offer free postage.

yes, but eBay is not a retailer.  eBay is an advertising medium that charges for use of their advertising space on basis of "final value".  On "free postage" items they charge FVF on the whole amount including the postage.  I sold one of my items to WA and it cost about $80 to post it while the same item sent within Melbourne would have been $11.80.  So how would that work if I was to offer "free postage" and then had to pay FVF on the whole amount?

free postage is fine on small light items that can be posted anywhere in Australia in a satchel = for the same cost.

[thesoulyearns]

yes, but eBay is not a retailer.  eBay is an advertising medium that charges for use of their advertising space on basis of "final value".  On "free postage" items they charge FVF on the whole amount including the postage.  I sold one of my items to WA and it cost about $80 to post it while the same item sent within Melbourne would have been $11.80.  So how would that work if I was to offer "free postage" and then had to pay FVF on the whole amount?

free postage is fine on small light items that can be posted anywhere in Australia in a satchel = for the same cost.

Having the postage built into the item price is something that sellers do but it's technically not what eBay is saying. By offering free postage, eBay is only charging a commission on the sale price. Any postage (for free post items) is upto the seller but eBay won't be charging for that.

Technically speaking, of course. 🙂

[austeam]

Surely the buyer realises that somewhere someone pays for it.

austeam I would have to say obviously not, otherwise this thread would not exist.

The OP seems to be of the opinion that some sellers are not having to pay Australia Post for delivery of items, what else would be the point of asking this question?

I was of the opinion the OP was asking how can a seller afford to offer free shipping.

Maybe you are right, but that is not how I read it. 

[viewmont1071]

https://docs.google.com/viewer?a=v&q=cache:GsUQyccboQoJ:www.accc.gov.au/content/item.phtml?itemId%3D303213%26nodeId%3D036ca4235ebf82478fa3d969c13d94dd%26fn%3DAdvertising%2520and%2520selling.pdf+consideration+and+informing+customers+terms+and+conditions+Australia&hl=en&gl=au&pid=bl&srcid=ADGEESi4V5kL-9nlqaWoTyuDpKcECqbKT2h9COcQS_1LjNlW76Ad--pfenlN16O84kRs7wa4qNJxrS-FwdDAlEIw_d6PKjqEXZPWKg0ONaplPqYNGUCrh-iHVXiJEpZ27m49Nnh8e_co&sig=AHIEtbSVzZDERIbFLZEOf87VU2YR2vxtDg

PDF file above

page 39 on the left hand menu or page 35 of the actual document (  I dunno why

The ACCC document above states that

"When the costs of a free offer are recouped by means of price rises elsewhere, it is not truly free.

"A business cannot make a free offer and at the same time try and fund it from the pockets of consumers.

To do so is to mislead the consumers, who may not expect (unless they are explicitly told) that "free" does not really mean free"

😐