eBay and Free Shipping

  • Share on Tumblr

I have been getting a lot of questions lately about shipping with eBay, in particular Free shipping.  Lately in the eBay blogs, a lot of people are complaining eBay is forcing sellers to offer free shipping however although this is true, it is the buyers on eBay who want and demand free shipping.

We have tested many times selling an item with and without free shipping and customers on average will pay MORE for free shipping.  Let me explain…

Let’s say you are selling an item for $50 and it costs you $20.  Shipping costs let’s say $10

On average, if you list the item for $60, you will sell more than if you list the item for $50 + $10 for shipping.

Why?  If you listen to people sitting around with friends chatting about something they purchased over the internet, very often you will see someone’s face light up as they say “and I got free shipping!”

Yep, people love to “think” they got for something for free (even if deep down they know “nothing in life is for free” and somehow they paid for the “free shipping”)

As an added bonus for an eBay seller offering free shipping,  the eBay search engine will bump up their listing in the search results if they offer free shipping.

Different countries offer different challenges for free shipping. Australia for example is a big country and can cost a lot of money to ship from one side to the other and eBay Australia now allows the country to be broken up into 15 different zones so 1 or more zones can free while everybody else has to pay for shipping.

One huge place to save on shipping is to post items as “letters”, not “parcels” whenever possible.  Whichever country you are in, find out how “thick” an envelope/satchel can be and still be classed as an envelope.  As an example, in Australia, you can post a large envelope up to 2cm thick and up to 500 grams.  Posting something classed as a “ large envelope” is much cheaper than posting a “parcel”.  Often we will remove packaging just to make an item fit into an envelope / satchel .

Please let me know thoughts and comments below.

Next week I will talk about strategies to ship products from China.

Best Regards,
Neil Waterhouse

  • Share on Tumblr
This entry was posted in eBay Business, eBay Tips / Strategy. Bookmark the permalink.

7 Responses to eBay and Free Shipping

  1. thelateniteowl says:

    Unfortunately I am losing money on DVDs that I put up for auction with free shipping offered. We’re not talking a lot of $$,, but it is still frustrating.

    • With eBay, you make your money when you purchase the product, not when you sell it.

      If any items does not make at least 50% profit and sell at least 15 times per month, I suggest you do not purchase them.

      We do not sell any items using auctions, only GTC.

      Best regards,


  2. Gary says:

    Hi Neil,
    I am in the same boat as thelateniteowl. I have lots of cd’s that I have had for years and I am trying to sell to build up a starting balance. I offer free shipping (factor into price) and still lucky to make a couple of dollars after packaging and postage. Its a slow process. PS love all your articles and the book I am reading for the 2nd time in a week.


  3. John & Claire says:

    We learned a long time ago that listing an item for auction is very risky! If doing so, at least start the auction at a price that you would be happy with if thats all it makes!
    Spot on Neil with the letter v small parcel ….. as little as $2 v $7.65
    Have fun!!

  4. charles allen says:

    As for free shipping, that’s fine if it is small enough for a 5kg fixed price satchel. But I am a bit tired of ebay telling me to offer free shipping on an item size adjusted weight of 18kg. Either you are competing for local buyers (in state) with a huge disadvantage on price or you get slammed when someone from Broome makes an order.

    • Hi Charles, if it is a heavy item, only offer free shipping locally. Set the listing up so only local customers get the free shipping and everybody else has to pay for shipping based on their location.

  5. K says:

    Very confusing in here, so Neil’s suggestion is listed as duplicate template with different prices depend on postage fee?
    i.e $10 to Brisbane but $20 to Darwin, then we need to set up two different selling prices to offer “Free Shipping”.
    I’ve been selling products on South Korea with many open-markets, including ebay. These open-markets are have functions to add different postage fees and even can set different fees each town.
    What about ebay Aus? I’ve started selling products as dropshipper, but I can’t see any options to put different fees to different towns, ebay has only one function about STATE selection. So what I do now, I add all of fees including surcharges, maximum postage fee and supplier’s price plus profits that is my final selling price on ebay. Big problem is for Tasmania, it’s so expensive postage fee and I can’t add this fee on my selling listed items due to ridiculous price.
    If Neil’s formula is still matched to this items then should be o.k to sell as highest price. We call optimisation, is only one way to sell those items?

Leave a Reply

Your email address will not be published.


Absolutely no spam!

Free Download

Get eBay Success Now. Learn how to get automated eBay sales 24/7 365.



30 years in business3pl5 minute rule80-20-pareto-principlealibabaamazon australiaamazon Australia fbaamazon australia gstAmazon Australia openamazon australia warehouseAmazon FBA Australiaamazon prime australiaamazon product testingbackup planBitcoin Explainedbricks and mortar storesbusinessDone is better than perfectdrop shipdrop shippingdrop shipping ebayDrop Shipping For Beginners 2018Drop shipping versus importingDropshipdropship couponsDropship software for eBayDropship supplier inventory checking softwareDropshipping beginnersDropshipping beginners 2018earn money from homeebayebay amazon groups australiaebay appebay australia gstebay australia top selling itemsEBay businessebay competitionebay couponebay coupon 2017ebay coupon codesebay flybuysebay gallery imageebay gstEBay httpebay iphoneebay keyword researchebay mobile appsebay mobile sellingeBay Negative Feedback Removalebay passwordebay payment optionsebay pluseBay Postal Rates Tableebay research toolsebay returnsEBay search engine keywordsebay selling limitsebay shippingebay slowebay slow on chromeebay social proofebay storeebay store tipsebay tipseBay tips - how to find how many times items sell on eBayebay top rated sellereBay Unpaid Item AssistantEbay Versus Amazonebay-scamsegrowentrepreneurshipExponential Growthexport chinaFacebook marketplaceFree cruise holidayFree eBay WorkshopFree eBay WorkshopyFree stock imagesFree stock photosFreedomgimpglobal retailglobal retail 2017google keyword research toolGrowing 10xhabitshow can we make money onlineHow Does Drop Shipping WorkHow safe is drop shippinghow to backupHow To Drop Ship 2019 - Dropshipping 2019How to dropshipHow To Find A Profitable Product To Sell On AmazonHow to Find High Profit Products to Sell on eBayHow to find products to sell on Amazon australiaHow To Grow Your Business By Outsourcing & Hiring Virtual AssistantsHow To Make Money On eBayhow to make money with ebayhow to remove ebay backgroundHow to sell on Amazon AustraliaHow to sell on Amazon Australia 2019How To Sell On eBayhow to sell on ebay complete guideHow To Send A Shipment To Amazon FBAHow to Start a Drop Shipping BusinessHow To Start From Scratch On eBayHow-To-Find-Buyers-Email-Address-and-Phone-Number-on-eBayinternet marketingitems that make money on ebaykeyword research toollessons in businesslong-short-listingsmake money onlinemaking moneyMindset For SuccessMobile ebay appmoney making on ebaymoney making through ebayneil waterhouseno stupid questionsonline gstOptimising eBay / Amazon Listings - Scientificallyour Best Year EverOvernight successpaypal emailprivate labelingprivate labeling australiaprivate labeling fbaqantas frequent flyerregister to sell on Amazon Australiaretail globalretail global 2017salessellsmall businessStarting an eBay Businesssuccess secretstech problemsterapeakTerapeak 2017 Competitor Researchterapeak 2019terapeak competitor researchterapeak tutorialTheThe Time You Have (In JellyBeans)Thistop 10 lessons businessTop 3 Ways to Make Passive Income OnlineTop 5 Passive Income Ideas 2018train virtual assistantsupgrade yourselfwatchcountways to make money on ebaywhat is drop shippingWhat to sell on eBay