Should You Offer Free Shipping on eBay?
Both eBay sellers and buyers will be familiar with this tactic sometimes practiced by sellers hoping to avoid eBay’s Final Value Fees: they charge a very minimal price for the item itself (say, 99 cents for a book) but then offer what seems to be an unusually high shipping and handling fee, e.g., $20 for said book. eBay has cracked down hard on these sellers the last few years, and understandably so, as it hurts not only eBay’s profit margins but also buyers and other sellers.
Some eBay sellers try to go around these restrictions by offering free shipping, and with the holidays just around the corner, you might be wondering if you should offer free shipping on your items as well. After all, you’re probably an online buyer, too, either on eBay or on other e-commerce sites, and have been drawn to many who throw in free shipping with every order or with a low minimum purchase order. Should you do the same?
You can factor the shipping costs into the actual eBay selling price and offer free shipping, but it might make more sense to both you and your buyer to separate the two. A study published in the B.E. Journal of Economic Analysis and Policy in 2006 found that buyers mentally separate an item’s auction price from its shipping and handling fees, and that as long as the S&H fees were reasonable, they were willing to pay them on top of the final bidding price.
Most people are familiar with the idea of “shipping and handling charges,” which have been around since Benjamin Franklin started his catalog bus
iness in the 18th century, and will already be factoring all of that into their purchases. After all, shipping and handling fees aren’t just about postage but also about packing materials and the time and resources you must expend preparing and shipping your packages. Your customers will understand that, especially if you’re transparent in all your transactions and are committed to offering reasonable S&H fees.
Of course, that doesn’t mean that you should never offer free shipping. Try them as occasional promotional offers, as many ecommerce sites do, and extend them as special offers to longtime, returning and/or frequent customers. Remember that the best customers will come to your eBay store not just because of your price but because of your service. Focus on providing attentive service in your eBay store with immediate, courteous response times and prompt, reasonably priced shipping, and don’t worry about gimmicky promotions. Your customers will reward you for it.
We at Easysale charge reasonable shipping and handling charges on all of our items and have successfully maintained a stellar feedback rating. Our online auction consignment service has handled over 70,000 eBay transactions, taking care of both our buyers and sellers. Easysale’s liftgate-equipped Mobile Trading Units and Arlington distribution center can handle items of almost any size or weight. We also maintain relationships with many freight carriers that allow us to palletize and ship items by motor freight from our docks to virtually any destination. If you’d rather have us take care of all the shipping and handling hassles of your eBay sales for you, give us a call at metro 817-640-easy (3279) or request a free pickup anywhere in the Dallas/Fort Worth area.
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