If you’re looking to buy or sell on eBay, chances are you’ve considered the free shipping option. Especially in the “buy it now” market, free shipping might be the element that sets one product apart from another. But is there ever really a free ride? Remember this: No one is selling anything on eBay to lose money. Whether a seller is looking to unload some unwanted clutter or is running a full-scale retail operation, no one is peddling a product for free. That means no one is listing an item to sell with the anticipation of losing money. Rather, what you’ll find with free shipping is that shipping costs are built into the price. The buyer that opts for free shipping might actually be paying more for an item that is available elsewhere for less.
Sounds deceptive, but the seller who adds shipping costs onto the price of the product actually loses money on eBay. Here’s how eBay works: Sellers, whether average Joes or retailers, are charged a final fee based on the merchandise’s selling price, not on shipping charges. That’s why you’ll see some less-than-reputable hucksters selling products inexpensively but charging a bundle for shipping; cash is cash. It’s a way to pad profits without giving eBay its cut. Naturally, the practice violates eBay’s policy. But buyers generally aren’t so concerned about a seller violating an eBay policy; they’re interested in price. Seldom do they realize that the cost is built in; buyers should use the shipping bid comparison to determine what is really the best deal.
For the more advanced seller, free shipping is at least worth more than a passing glance. Snag the merchandise from a wholesaler at a low cost and tacking the shipping onto the markup would not be hard or even noticeable. As a result, you might move more product and increase your bottom line.
Just be sure to justify the shipping markup when factoring in eBay’s cut. A savvy move could ensure that you maintain your profitability, and as a result, your online endeavor will flourish.
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