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Saturday, July 2, 2011

New Shipping Fees

A couple of months ago, I started offering “Free Shipping” on a few of my items. As anyone with any common sense knows, “Free Shipping” is nothing more than increasing the price of the item to cover the shipping expense. I knew at the time that eBay would benefit by being able to charge Final Value Fees (FVF) on that increase in sales price, but I have found that the sales psychology of offering “Free Shipping” to customers has certainly more than made up for the increase in fees.

So now that eBay will be implementing the new fee policy (FVF will be a percentage of sales price + shipping costs) on July 6, it might be a good time to rethink your own shipping policies.