The Great 'Free Postage' Rip Off

[cmcoins2000]

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.

[cq_tech]

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

[px_ws]

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

[cmcoins2000]

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@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.

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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.

[cmcoins2000]

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@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

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@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

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Avoid misleading or deceptive claims or conduct

Two fundamental rules of advertising and selling are that:

1. you must not engage in conduct that is likely to mislead or deceive
2. 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

[cmcoins2000]

Avoid misleading or deceptive claims or conduct

Two fundamental rules of advertising and selling are that:

1. you must not engage in conduct that is likely to mislead or deceive
2. 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.

[digital*ghost]

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@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.

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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. 

[lousbloomingarden]

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?

[cmcoins2000]

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.

[pinegroveplants]

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.

[cmcoins2000]

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