eBay final value fees

[tonyo]

Originally Posted by D. Bergin

For sellers running true auctions at lower starting bids, it makes zero financial sense.

Assuming the buyer has a set price in mind for a card and they factor in the shipping costs when placing a bid, what are the cons?

If a buyer will pay $100 for a card and no more, they will bid $100 with free shipping or they will bid $95 with $5 shipping.

Either way, the seller collects $100 and pays for the shipping.

[D. Bergin]

Originally Posted by tonyo

Assuming the buyer has a set price in mind for a card and they factor in the shipping costs when placing a bid, what are the cons?

If a buyer will pay $100 for a card and no more, they will bid $100 with free shipping or they will bid $95 with $5 shipping.

Either way, the seller collects $100 and pays for the shipping.

In a perfect world maybe. It doesn't really work that way though. Final bid prices are determined by the competitors involved and who's bidding against each other. Has nothing to do with shipping prices.........Especially with Ebay's low bid increments.

Also..........how about the $9.95 item that gets one bid. Would have gotten one bid whether you charged for shipping or not. That's a lot of thrown away money right there.

I also sell lots of items on consignment, much of it low dollar. Free shipping often means, I just lost money on that item after I pay the consignor, just so I can save 9% on the shipping portion of my Ebay fees.

I just went back and checked my records. I paid shipping services (USPS, UPS, FedEx) over $5000 last year and I'm a small seller compared to many.

I guarantee you, I wouldn't have made that back with "higher bids" throughout the course of the year.

[alanu]

IMHO, a small shipping charge on less expensive items and no shipping on expensive items seems to work best for me.

In any case, I think how much you charge is the biggest factor to bidders.

With a less expensive card, say $15, I hate it when the seller charges $5 shipping for delivery in a flat rate priority box, would rather get it first class in a bubble envelope for $2. Even worse is when you get charged $5 for shipping and it comes first class in a bubble envelope.

-Alan

[tonyo]

Originally Posted by alanu

In any case, I think how much you charge is the biggest factor to bidders.


-Alan

Another good point and I appreciate all the responses from everyone.

[tonyo]

Originally Posted by D. Bergin

Also..........how about the $9.95 item that gets one bid. Would have gotten one bid whether you charged for shipping or not. That's a lot of thrown away money right there.

I'm kinda slow (or dense) sometimes...............that point got thru to me and is probably the example I can most identify with.

Thanks!