I've always wondered, how do people sell stuff for less than postage costs

[maxamatosis]

So every time I look at postage on a courier website, AusPost or eBay the lowest price for shipping anything that isn't a letter is $7.85

So how the heck do people sell single like, a single DVD to HDMI dongle, shipping from Australia for $2.50 with free postage.  Aren't they like $5 in the hole for every sale?

[*sparklz*]

A lot of sellers have account with AP and if they post over a certain amount each month they get discounts.

Also some sellers will sell some items cheap or at a loss to attract buyers into their store or to buy more at higher prices while there.

And then there is some that have no idea what they are doing.

[performance_parts_clearance_centre]

We've got an Aust Post account, and the rates aren't all that much cheaper - I charge $8.50 postage (small parcel); minus GST, we effectively get $7.73. Then there's the cost of the padded bag on top of that. We don't make anything at all on post, probably even lose here and there.

If someone's selling a sub-$20 item that ships via Australia Post as a "small parcel", it's got me beat how they can offer free postage.

[davewil1964]

Possibly because a single DVD or HDMI dongle, if less than 2cm thick, can be posted as a letter.