Sunday, May 18, 2014

Free Shipping One Size Does Not Fit All

As Ebay sellers we have all been encouraged to offer free shipping on our merchandise.  It is very tempting to fall into line and do what the masses are doing on the site.  We want to be good little soldiers and do what our buyers want, right?


However we all know that there is no such thing as a free lunch in our logical minds.  So there is really no such thing as "free shipping".  The concept means shipping is included in the price and you do not have to add the two amounts in your head to figure up what shipping would cost you as a buyer.

Sellers normally add a certain amount to their merchandise total so they can safely ship the item to the customer and still make a profit on said merchandise. The amount varies from seller to seller. It may depend on the sellers geographical location. It is less expensive for some sellers to ship if they are located in the middle of the country for example to any area than if they are located on one coast or the other.   The seller still has to make enough profit on the item however after shipping costs for it to be worth their while.

This can be good and bad for sellers.  Sellers who are on one coast may have to add enough shipping in to cover the costs to the other coast.  This may increase the price so that a buyer who is geographically close to them is not happy because pricing is more than they want to pay.   This can decrease the buyer pool for a lot of sellers who use this practice. 

The positive part is that some buyers don't want to have to add shipping and handling costs to their purchase. They want a simple and easy transaction. They are the ones that seek out free shipping.

My experience with free shipping is that it can work on some items.  Small items that do not weigh a lot are good candidates for free shipping in my book.  Items under 13 ounces are good candidates as well unless they are items that people tend to purchase multiples of.

People who want to buy multiple items tend to want shipping discounts.  A lot of them do not like the free shipping concept as they know they are paying for it after all is said and done.  They would rather deal with paying shipping and get a discount for multiple purchases.

So free shipping is not a one size fits all concept in my humble opinion.  Sellers need to figure out what works for them in their business. 

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