Comments on: "Free post" increases price and sell through rate http://tamebay.com/2008/12/free-post-increases-price-and-sell-through-rate.html eBay & ecommerce made easy Thu, 24 May 2012 23:52:10 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: LordBevan http://tamebay.com/2008/12/free-post-increases-price-and-sell-through-rate.html#comment-15546 LordBevan Thu, 08 Jan 2009 12:16:36 +0000 http://www.tamebay.com/?p=5626#comment-15546 Your Analysis is dumb at its best for 2 good reasons 1)Sellers with free post are getting higher sales from those who do not offer free post? If so, once everyone is offering free post, the advantage is clearly gone. Its the same reasoning with undercutting your opponent, you get more sales, but once your competitors do the same, you realise that you have screwed yourself. 2)Your say that the FVF is higher for DVD of free postage, but you conveniently did not add shipping price. Sellers without free postage could have a higher profit margin for all you know. Suppose your analysis was right even after adding postage, it will have prove that the majority of buyers on Ebay are retarded. Why pay more to have free postage? Your Analysis is dumb at its best for 2 good reasons

1)Sellers with free post are getting higher sales from those who do not offer free post? If so, once everyone is offering free post, the advantage is clearly gone. Its the same reasoning with undercutting your opponent, you get more sales, but once your competitors do the same, you realise that you have screwed yourself.

2)Your say that the FVF is higher for DVD of free postage, but you conveniently did not add shipping price. Sellers without free postage could have a higher profit margin for all you know. Suppose your analysis was right even after adding postage, it will have prove that the majority of buyers on Ebay are retarded. Why pay more to have free postage?

]]> By: John http://tamebay.com/2008/12/free-post-increases-price-and-sell-through-rate.html#comment-15545 John Mon, 05 Jan 2009 07:59:42 +0000 http://www.tamebay.com/?p=5626#comment-15545 My tested experience is that offering free postage was a big mistake. Google Base doesn't like it. Listings of previous good selling products slid down the search results fast as the best match doesnt seem to favour free post and sorting by lowest cost incl postage certainly does not give an accurate result. We had around 100 products with free postage and sales resumed the day I re added postage. Don't do it until you have to. John Bamford Trading My tested experience is that offering free postage was a big mistake. Google Base doesn’t like it. Listings of previous good selling products slid down the search results fast as the best match doesnt seem to favour free post and sorting by lowest cost incl postage certainly does not give an accurate result.

We had around 100 products with free postage and sales resumed the day I re added postage.

Don’t do it until you have to.
John
Bamford Trading

]]> By: Glenn http://tamebay.com/2008/12/free-post-increases-price-and-sell-through-rate.html#comment-15544 Glenn Tue, 30 Dec 2008 21:16:57 +0000 http://www.tamebay.com/?p=5626#comment-15544 # 8 Add a PIP box or jiffy, a invoice / address label and you can add 10 to 20 pence to this cost. And unless your postie collects personally, there is the time / travel factor in posting items. It all adds up. Sell 10 x dvds a day and you looking at £10 per day. This has got to be accounted for somewhere - no such thing as Free # 8 Add a PIP box or jiffy, a invoice / address label and you can add 10 to 20 pence to this cost. And unless your postie collects personally, there is the time / travel factor in posting items.

It all adds up. Sell 10 x dvds a day and you looking at £10 per day.

This has got to be accounted for somewhere – no such thing as Free

]]> By: toby http://tamebay.com/2008/12/free-post-increases-price-and-sell-through-rate.html#comment-15543 toby Mon, 29 Dec 2008 17:54:10 +0000 http://www.tamebay.com/?p=5626#comment-15543 Also for countries with low import thresholds before tax/duty/brokerage fees kick in, the buyers who understand how it works tend to like lower price/higher shipping. Eg, if I bought something like a DVD from an American at $15+$10 S&H I would never pay anything. If I bought the same thing at $25, and the American marked the form at $25(as most would), I'd be subject to paying $8.25 when I received my item. Also for countries with low import thresholds before tax/duty/brokerage fees kick in, the buyers who understand how it works tend to like lower price/higher shipping.

Eg, if I bought something like a DVD from an American at $15+$10 S&H I would never pay anything. If I bought the same thing at $25, and the American marked the form at $25(as most would), I’d be subject to paying $8.25 when I received my item.

]]> By: toby http://tamebay.com/2008/12/free-post-increases-price-and-sell-through-rate.html#comment-15542 toby Mon, 29 Dec 2008 17:49:28 +0000 http://www.tamebay.com/?p=5626#comment-15542 Seems the op indicates not having free shipping gets higher prices, once the total received is taken into account. Not to mention the non free shipper paid less FVF, and maybe less insertion fee. In Canada the cost to mail a dvd domestically, no tracking or insurance is C$2.02 (GBP 1.15). But on Jan 12 that DOUBLES, so we can't even mail a DVD across the street for the allowed .com shipping charge. To europe it presently costs C$7.52 (US$6.25), no tracking, no insurance. Were not exactly sure what happens to that one Jan 12 other then its going up, but you can see what kind of fee increase it is to do "free" shipping and pay the FVF on that. Not to mention being near impossible to keep DSRs up when sending outside the country, particularly to the USA.. Seems the op indicates not having free shipping gets higher prices, once the total received is taken into account. Not to mention the non free shipper paid less FVF, and maybe less insertion fee.

In Canada the cost to mail a dvd domestically, no tracking or insurance is C$2.02 (GBP 1.15). But on Jan 12 that DOUBLES, so we can’t even mail a DVD across the street for the allowed .com shipping charge.

To europe it presently costs C$7.52 (US$6.25), no tracking, no insurance. Were not exactly sure what happens to that one Jan 12 other then its going up, but you can see what kind of fee increase it is to do “free” shipping and pay the FVF on that.

Not to mention being near impossible to keep DSRs up when sending outside the country, particularly to the USA..

]]> By: ebuyerfb http://tamebay.com/2008/12/free-post-increases-price-and-sell-through-rate.html#comment-15541 ebuyerfb Sun, 28 Dec 2008 23:24:00 +0000 http://www.tamebay.com/?p=5626#comment-15541 It looks like within the US it would cost about double that for first class with no tracking, delivery confirmation, or insurance. Our first class also means you can expect delivery in about 3 days in most circumstances. It looks like within the US it would cost about double that for first class with no tracking, delivery confirmation, or insurance. Our first class also means you can expect delivery in about 3 days in most circumstances.

]]> By: Kevin_T http://tamebay.com/2008/12/free-post-increases-price-and-sell-through-rate.html#comment-15540 Kevin_T Sun, 28 Dec 2008 19:31:44 +0000 http://www.tamebay.com/?p=5626#comment-15540 Thanks Super Max, That gives some perspective to comparative prices. Kind Regards, Kevin Thanks Super Max,
That gives some perspective to comparative prices.
Kind Regards, Kevin

]]> By: Super Max http://tamebay.com/2008/12/free-post-increases-price-and-sell-through-rate.html#comment-15539 Super Max Sun, 28 Dec 2008 16:44:09 +0000 http://www.tamebay.com/?p=5626#comment-15539 #7 a single DVD in case is £0.78 for 1st class postage. #7 a single DVD in case is £0.78 for 1st class postage.

]]> By: Kevin_T http://tamebay.com/2008/12/free-post-increases-price-and-sell-through-rate.html#comment-15538 Kevin_T Sun, 28 Dec 2008 15:51:52 +0000 http://www.tamebay.com/?p=5626#comment-15538 It's probably a dumb question, but as an "out of towner" I will ask - what does it cost to actually mail a DVD within the UK? Regards, Kevin It’s probably a dumb question, but as an “out of towner” I will ask – what does it cost to actually mail a DVD within the UK?

Regards, Kevin

]]> By: ebuyerfb http://tamebay.com/2008/12/free-post-increases-price-and-sell-through-rate.html#comment-15537 ebuyerfb Sat, 27 Dec 2008 00:33:03 +0000 http://www.tamebay.com/?p=5626#comment-15537 @ # 4 It wasn't necessarily the seller's fault. I hate high shipping too but probably not for the reason you do. When selling on eBay I almost always ended up in a category that was dominated by low prices and ridiculous shipping costs. The only way to sell anything in those categories was to do the same. I actually did a two week long test on one of my products and found shifting the price down $3 and S&H up by $2.50 I went from selling 0.5 / week to 3 / day. I never liked being forced to do that especially since I know customers hate it. It was never about avoiding fees. I was only saving $0.13 in FVF but making over 20x the sales. With capped shipping this practice ends. I've always applauded the capping of shipping rates and suggested this years ago. Now if eBay would just bring it to the categories I sell on .com ... @ # 4

It wasn’t necessarily the seller’s fault. I hate high shipping too but probably not for the reason you do.

When selling on eBay I almost always ended up in a category that was dominated by low prices and ridiculous shipping costs. The only way to sell anything in those categories was to do the same. I actually did a two week long test on one of my products and found shifting the price down $3 and S&H up by $2.50 I went from selling 0.5 / week to 3 / day. I never liked being forced to do that especially since I know customers hate it. It was never about avoiding fees. I was only saving $0.13 in FVF but making over 20x the sales.

With capped shipping this practice ends. I’ve always applauded the capping of shipping rates and suggested this years ago. Now if eBay would just bring it to the categories I sell on .com …

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