eBay shipping fees surely impact customers’ shopping experience and partly determine customer loyalty to one brand. Surveys have pointed out that 36% of market-based customers on top online marketplaces abandon their shopping carts due to high delivery fees. So why not break down this matter of eBay shipping costs and discuss the ways to reduce them?
In the upcoming sections, we will be explaining several ideas, including:
- How eBay shipping works
- A detailed breakdown of eBay shipping fees
- 10 practical strategies to reduce eBay shipping prices
Let’s wait no more and get the ball rolling!
How eBay Shipping Works?
eBay shipping process is not that complex to conduct, even for inexperienced sellers. If you are new to eCommerce and start your journey by selling on eBay, here is how eBay shipping works.
The takeaway keywords are shipping options, shipping dates, local pickups, and package handling. Should your deliveries be determined as lightweight (coins, stamps, and trading cards), use the eBay standard envelopes. In case you are still in the dark, find more in this detailed how to ship on eBay guide.
How to determine shipping costs on eBay?
One of the most useful benefits of eBay store is that the marketplace made it almost effortless for e-sellers to calculate shipping charges using a postage calculator. When you need to determine your shipping cost for each order, do as follows:
- Find Calculate and choose Cost varies by buyer’s location in the Shipping section.
- Click on Calculate Shipping next to Services.
- Enter your package’s dimensions and weight
- Fill in your ZIP code and handling fees, if available, in the Your Details section.
- Add destination or choose Global Shipping Program (based on the order).
- Choose Calculate shipping, then select the shipping service you want and offer.
- Complete your eBay order.
eBay policy on shipping
Before discussing further eBay shipping fees, we will address these specific terms of the Dos and Don’ts from the marketplace. It is indeed as vital as calculating the shipping charges. These regulations of eBay rule makers are simply to ensure the shipping process goes smoothly, protecting both parties of sellers and buyers.
eBay policy on shipping – Dos
- Sellers must review the speed and cost thoroughly before offering any shipping service.
- Specifying the shipping date of their package is essential.
- E-sellers must ship their items within the handling time specified in advance.
- Shipping charges include actual incurred and shipping-relevant costs of the delivered package only. They can refer to extra services or handling fees, such as material packaging and insurance.
eBay policy on shipping – Don’ts
- Sellers must not take a slower shipping service than the one chosen by their buyers.
- Offering additional fees on shipping when sellers have accepted the free shipping is a large Don’t on eBay.
- Sellers cannot delay shipping once the payment notification has arrived.
The Dos and Don’ts apply to most cases, except for real estate ads, classified ads, motor vehicle categories, and specialty services. If you don’t follow the practices, you might have your eBay account suspended or put on hold.
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The Breakdown of eBay Shipping Fees
Being one of the most crucial parts of eBay selling fees, the eBay shipping fees may still be vague to many inexperienced e-sellers. Continuing our topic of eBay shipping charges, the followings are our discussions over shipping options on eBay and the eBay final value fee on shipping.
#1. Managing shipping yourself
For small-scale businesses, managing shipping on your own is not a bad idea, due to the increasing eBay fees on shipping. eBay shipping management still gets involved in picking, packaging, and scheduling time for every item delivered.
However, the workflow can be much more overwhelming for starters, and it certainly does not relate to just picking and packing. E-sellers will then decide how their items are shipped, which couriers to use, and what the related costs are.
When managing your shipping, you have to save yourself some space and time for system completion and shipping procedures. However, always keep in mind that you should work smarter, not harder.
Once you have completed your shipping management, as a small to medium online business, you may cut down a lot on current eBay shipping fees and those charged by the third party involved. This is wonderful news for any business owner.
Furthermore, the self-shipping choice on eBay has more advantages than simply lower costs.
- It gives the e-seller ultimate control over every aspect of shipping matters.
- The self-shipping processes are less complex than others because fewer individuals participate.
#2. Third-party fulfillment and dropshipping
The second choice for shipping with eBay is eBay dropshipping – an outsourcing model. Putting it in other words, eBay sellers will then partner with a third-party supplier, who is responsible for fulfilling product orders.
Dropshipping is beneficial in several ways:
- No issues arise from order fulfillment since it is already done.
- Dropshipping allows you to focus on selling without concern about raising remarkable capital for inventory.
Nonetheless, you need to pay close attention to the profit margins you have been making. The dropshipping options on eBay can cut down on your final profit. The key in this situation is the volume you can sell. Therefore, just keep in mind to sell lucrative items in large quantities.
#3. eBay global shipping program
The third shipping option before discussing strategies on eBay shipping fees is the eBay global shipping program.
If you are an international seller, this term must have been familiar to you. The global shipping program provided by eBay is available in 107 countries, at the moment. As a result, shipping your items from anywhere in the world will not take much work.
Notably, you will get a great sense of support from eBay once you have joined the program, which is an upper seller rating, and eBay money-back guarantee. Check for more details on their official announcements for the Global Shipping Program.
#4. eBay final value fee on shipping
Let’s now discuss how to determine shipping costs on eBay. Whenever one goes on eBay and sells items, he will be charged a certain amount, and the eBay shipping fees have something related.
As a newbie on eBay, you will get certain free listings, but you have to pay fees to sell on the marketplace. When you have an order ready to ship, you will pay other costs making one final value fee on shipping. They have included shipping costs, percentages on your products, and additional subscription charges. Depending on your business sector, your eBay shipping estimate fees may vary (2 – 12%).
Besides, don’t forget to check eBay’s international shipping cost regulations. It is slightly different from domestic ones. That’s why it is advisable to mind all these charges to adjust your pricing better in the marketplace.
Last but not least, about the eBay shipping payment method, you can choose to pay via PayPal, credit card, or bank account.
10 Strategies to Reduce eBay Fees on Shipping
Apparently, e-shoppers stand for free-shipping products or those with significant shipping support. As evidence, numerous researchers have highlighted how people bias free shipping and they may abandon carts for not getting free shipping. The case is not different when an eBay buyer pays shipping fees. However, free shipping is not always available.
So, how to offer free shipping on eBay and still make money? Or at least, how can we reduce eBay shipping fees?
#1. Consider shipping locations
Although logistics has come a long way from where it was a few years ago, a little support can still do the trick. Under several circ*mstances, you can choose the destination near your customers instead of the precise addresses they provided. This work in many cases has helped to reduce time and money on shipping, and your customers still get the packages easily.
#2. Check your weight package carefully
eBay shipping fees would certainly include factors from the item’s weight. Misleading weight information may cause issues during the shipping process on eBay. Among ways to reduce eBay shipping fees, taking your package’s weight carefully is in consideration. Getting precise details is time-saving and guarantees that the item is charged properly.
#3. Compare different shipping costs
Logistic companies can have different pricing for their shipping services. That’s why to check and compare the costs and select the most suitable one. It may take some time to do research but the comparison is worth your time. A bit of reduction in eBay shipping fees can get you further than expected.
#4. Choose the right shipping options
There are three shipping options on eBay for e-sellers. They are free shipping, calculated shipping, and flat rate shipping. Each of these types works for a specific group of sellers. Study your customers’ behavior before choosing a shipping method. Besides, make sure that the shipping method offers support to your conversion rate when selling on eBay.
#5. Use combined shipment
You don’t have to use one shipment for multiple products sold per time since eBay allows users to combine. One of the smart tips for lowering eBay shipping costs advised by the marketplace itself is to charge the highest for the first items, then alter the shipment for the next ones. After that, combine all your shipments in one section.
#6. Apply shipping discounts
Shipping discounts are the best support for both sellers and buyers. There is no reason to say no to shipping discounts that are available either on eBay or from the logistic companies you require services
#7. Make the best of your packaging
Optimizing your package is one option to decrease eBay shipping fees. You can find affordable packing materials or reduce all the unnecessary details. But ensure to keep the piece safe and sound when it arrives. Optimizing packaging does not mean doing it neglect. That could muchly fire back.
#8. Take advantage of the Fast N Free tag
The Fast N Free tag is offered by eBay. Apart from supporting shipping fees, eBay also assists to get your shop greater traffic, conversion rates, and visibility on the top pages. When a seller wants to achieve the Fast N Free tag, he or she has to adapt to the criteria and timeline set by eBay first.
#9. Match up for the eBay Guaranteed Delivery
Similar to the Fast N Free tag, eBay Guaranteed Delivery also supports visibility, conversion rate, and shipping. Sellers can get this by meeting the standards of eBay. The eBay Guaranteed Delivery makes a game changer for sellers on this marketplace because the system knows “customers like it quickly”.
#10. Keep your orders’ values up and lower or offer free shipping
One simple way to reduce eBay shipping fees or offer free shipping is to encourage your customers to meet up with certain order values. For instance, instead of promoting a product costing $49 and charging $10 for shipping, show the customers that they will get free shipping when their order is $59 and above.
Research has pointed out that shoppers are more likely to go with free shipping due to the zero cost effect (which is not entirely zero) and the free shipping trends in the eCommerce world.
eBay Shipping Fees: FAQs
1. How much is shipping on eBay?
It depends on many factors, including your item’s weight, category, and shipping location. To determine the shipping fees on eBay exactly, use the eBay calculator for sellers.
2. Does eBay charge fees on shipping?
eBay does charge fees for shipping. The story begins as many e-sellers avoid paying fees on eBay through some listing tricks. eBay has been charging fees on shipping for years since they cannot find a way to stop fee avoidance from many sellers.
3. Why is eBay shipping so expensive?
5 reasons why eBay shipping is so expensive:
- Misleading estimation: the wrong estimation can happen at any time and exact numbers probably don’t get to both sellers and buyers.
- Overseas shipping: overseas shipping is always more pricey than domestic cases due to its far distance and complex shipping methods.
- Packaging: expensive packaging certainly raises the shipping fees to another level. As mentioned, optimizing your packaging is a great way to reduce eBay shipping fees.
- Low volume: many low-volume orders are much more costly than the vice versa case to ship. This relates to the costs paid for logistic services.
- Price competition: some businesses lower their products’ prices to the lowest, making there is no other choice but to raise shipping fees to earn profit.
4. Does eBay pay for shipping?
eBay does not pay for shipping. The eBay shipping fees are on the buyers. These charges can get affected by the fulfillment methods of the sellers.
Conclusion
That’s everything about eBay shipping fees with 10 strategies to lower your costs. When it gets down to shipping matters, keep in mind that you should never charge too much for it. Instead, use other ways to promote purchasing. Also, remember to check your customers’ shopping behaviors to select the best shipping methods and adjust other factors as well.
We have many more business news and growth hacks on our Retail Blog waiting for you to check out. If you are new to these eCommerce concepts, don’t hesitate to contact us at any time given. Lastly, we are currently building a Facebook community just for e-sellers, and we’re surely looking forward to your participation and new sharing within the field!
