We have several customers that sell a large percentage of their products on Ebay. Ebay can be a great way to sell products quickly and efficiently. Ebay offers different incentives to sellers for offering free shipping. Understanding this and using this if possible as a seller can help in many ways. We understand that some products (like most materials and machines we sell) can not include free shipping due to weight and size, but if possible it is a good Idea. We are going to highlight some ways to increase the bottom line when offering free shipping and reduce shipping costs on products that can not be offered with free shipping.
Why Ship For Free?
No seller wants to pay for shipping that will eat into profit margins. Some small light weight objects are not very expensive to ship so offering free shipping does not hurt margins too bad, on some larger objects shipping can be expensive. Below are some reasons to consider offering free shipping when selling on Ebay.
1. Sellers offering free shipping will automatically receive a 5-star rating on shipping and handling charges.
2. Product listings will be prominently displayed with the words “Free Shipping” next to the listing.
3. Free shipping is one less reason for buyers to leave negative feedback due to high shipping charges.
4. The word “Free” is an excellent call-to-action word. It invites buyers to view your listing.
5. Many people search using the “Free Shipping” option to sort through results.
A great Ebay thread that explains the benefits of freee shipping can be found here. Now that we have looked at the benefits of offering free shipping we want to explain how to save money and add to the bottom line when packaging and shipping products sold on Ebay.
All of the suggestions below are great ways to reduce shipping costs when offering free shipping or paid shipping. Using the suggestions below should help increase revenue by offering free shipping or save customers money when paying for shipping.
Keep Shipping Options Open – Having an account with all three major shippers (USPS, UPS, Fed Ex) enables sellers to shop for the best rate. Shipping rates can vary dramatically depending on the final destination and product size. It is important to price shop on shipping rates. Shipping rates from carrier-to-carrier can vary from a few cents to several dollars per package. Over hundreds or thousands of packages per year this one suggestion could add thousands of dollars to the bottom line.
Ship Flat Rate if Possible – Shipping in a flat rate box can be a great option for Ebay shippers to save on shipping costs. Flat rate boxes are an excellent way to save money on heavy products that would cost much more to ship regular ground shipping. Recently Fed Ex began offering flat rate shipping as well. We recommend comparing Fed Ex flat rate to USPS flat rate boxes to find the better option for shipping products.
Another great way to save when shipping with flat rate boxes is to use the free box provided by Fed Ex or UPS as the external packaging to protect your products. Corrugated boxes are expensive, take advantage of the free flat rate boxes. We have several clients that make products, shrink wrap the products and use a professionally printed sticker to label the product. Heat shrink wrapping is much more cost effective than corrugated packaging. Using shrink wrap or polyethylene bags as the primary packaging and the flat rate box as the secondary external packaging saves money each shipment.
Bundle and Save – If shipping multiple product together to one location we recommend using strapping to bundle. Strapping two corrugated boxes together shipping regular ground UPS is much cheaper than shipping two individual boxes. Sellers can buy an all-in-one strapping kit for under $40 dollars to strap products together. View our video below to see the strapping kit in action.
By using the suggestions mentioned above, companies can save thousands of dollars on shipping costs. Reducing shipping costs helps to make products more attractive to buyers and increases bottom line profits. If you need any packaging supplies or materials visit our online store at www.uspackagingandwrapping.com.