The Wholesale Forums

[BaiLong11]

So, usually on my eBay auctions I try to include free shipping. This is in order to lure customers in who are tired of huge, hidden shipping fees. Now, I realize that I take a huge hit on this because I have to pay extra eBay final value fees since my shipping is basically included in the auction price itself.

So far I have made decent profit, but it has not attracted buyers like I thought it would. So I am trying an experiment...

Half of my auctions will remain at free shipping, while the other half I will lower the Buy it Now price and raise the shipping accordingly. So if I sell an item for $10 for free shipping, I may have the same item somewhere else for $6 w/ $4 shipping. Keep in mind that these auctions will have the same custom template, etc... so they will look the same... Now we will see which brings in more profit...

Tell me if any of you have had experience in this area before. Any help is nice.

Also, for all you eBayers out there, check out this thread called "Forget eBay! How and Where to Sell!!!" by Billy A. Its great and may be just what one of you may need...

[YNWA]

I have had the same problem, but as im selling high value goods the effect of fees is huge. i try to sell with low price and high shipping to cut down the fees , but most buyers are to stupid to realise the total cost, they see free shipping and buy that 1 even tho my ad is cheaper when u correctly work out the total. Although this does work having high shipping , i usually do put in some free ones now and again.

[MustHaveMobiles]

Ebay are rumoured to be cracking down on the over inflation of shipping fees as it is against T&C's and is fee avoidance, from the forums it looks like its one strike and no return.

However, I trialled free shipping with a fixed price listing versus my usual paid for shipping (at cost) and auction format and the paid for/auction format was the winner. Would presume it would be the reverse for fixed price listings??

Sure someone will have some experience of it..

[littlenicky]

They only crack down if its a rediculous amount. $10 bin + $200 shipping for a small electronic. If you look most people charge enough to cover the shipping costs, paypal costs, and ebay fees in their auctions. IE: Look at some digital cameras. The box is only 3 pounds but they charge $25 shipping AND handling. There's no way eBay would crack down on this. Because with you putting handling, you could always say, that is my time and material that you used. There was a study done on this same exact thing a little while back from a university. They posted the same type of auctions, same products. One had regular shipping and the other had inflated shipping. In the end, the one with the inflated shipping made out the most.

[MustHaveMobiles]

What I meant was they are rumoured to be changing the rules, the current situation is being abused and THEY are losing money which is why they are standing up and taking notice.

I do agree however that the 'handling' element is the key factor and will be so ambiguous to manage that it could result in some accounts going for no real reason. You have to ask however if this would worry Ebay, they currently get close to 200,000 new members a day.

Personally the over inflating of postage is a pet hate, but I just move onto another listing and go with that one instead the problems will come when Ebay start to encourage the user to report listings and this is where competitive reporting may come into play....a bit like how easy it is to manipulate the vero program.

[BaiLong11]

Well, I already started this experiment a week ago with one product we all know and love/hate: The PSP value pack. Here is what I discovered....

Psp's with a buy it now of $230 with free shipping sold 80% of the time.

Psp's with a starting price of $1 w/ free shipping sold for an average of about $219.

So I am guessing that the free shipping thing is not a good idea for auctions, but doesn't work half bad for buy it now. I still think I could have squeezed out a few more dollars of profit out of the buy it now auctions if I had started them at say $215 with $18 shipping... I would have also saved a wee bit on eBay fees that way... Well, Se la vie (spelling?)...

[brownlad007]

Im guilty of over charging for del but its only to cover fee's and all. e.g. for a ipod i would charge either 9.99 or 14.99

[BaiLong11]

Another Question for you guys...

What do you think about Dutch Auctions (selling more than one item)? Worth the savings in listing fees or not... Just curious...