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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.