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<p>[QUOTE="Lehigh96, post: 1805754, member: 15309"]I think you make a very valid point. Everyone needs to customize their selling decisions based on their products and average fee percentages. Here is what I mean.</p><p><br /></p><p>The real reason to offer free shipping to your customers is to obtain "Top Rated" seller status which yields a 20% discount on FVF & better exposure in E-Bay searches. That 20% discount is equal to 1.2% of the item price based on an E-Bay Store fee of 6%. But if your selling model is a lot of low value coins and your average item price is $10, then the base shipping cost of $1.69 represents 16.9% of your total item price. It makes absolutely no sense to offer free shipping to get a 1.2% discount while in the process giving away 16.9%.</p><p><br /></p><p>However, if you have an E-Bay coin store that sells mostly higher priced coins with an average item price of $200, then the 1.2 % discount nets you a savings of $2.40 while the $1.69 shipping only represents 0.845% of your total item cost. Now I know what you guys are going to say, what about insurance and signature confirmation costs? Signature confirmation costs $2.10 for any coin valued over and as a seller you must buy that in order to comply with E-Bay rules in case a seller decides to try to rip you off which happens frequently. So if you want to add those costs into the fold factoring what percentage of your coins sell for more than $250, be my guest. </p><p><br /></p><p>But the biggest ripoff on E-Bay is insuring your coins. The chance that the USPS is going to lose or damage your coin that is packaged securely in a padded mailer with a barcoded label is less than 1%, and I submit that it is far less than 1%, but lets use 1% for arguments sake. I submit that people should self insure (ship w/o insurance) unless the price of the coin represents more than 1% of your yearly sales. The math is complicated, and will vary from seller to seller, but each seller should determine their own threshold for purchasing insurance. But I promise you, if you are purchasing insurance for coins valued less than $100, you are absolutely losing money.</p><p><br /></p><p>I guess the point of this really long post is that there is no easy answer to what you should do as an E-Bay seller. It is very much like the rest of life, it all depends on your circumstances.[/QUOTE]</p><p><br /></p>
[QUOTE="Lehigh96, post: 1805754, member: 15309"]I think you make a very valid point. Everyone needs to customize their selling decisions based on their products and average fee percentages. Here is what I mean. The real reason to offer free shipping to your customers is to obtain "Top Rated" seller status which yields a 20% discount on FVF & better exposure in E-Bay searches. That 20% discount is equal to 1.2% of the item price based on an E-Bay Store fee of 6%. But if your selling model is a lot of low value coins and your average item price is $10, then the base shipping cost of $1.69 represents 16.9% of your total item price. It makes absolutely no sense to offer free shipping to get a 1.2% discount while in the process giving away 16.9%. However, if you have an E-Bay coin store that sells mostly higher priced coins with an average item price of $200, then the 1.2 % discount nets you a savings of $2.40 while the $1.69 shipping only represents 0.845% of your total item cost. Now I know what you guys are going to say, what about insurance and signature confirmation costs? Signature confirmation costs $2.10 for any coin valued over and as a seller you must buy that in order to comply with E-Bay rules in case a seller decides to try to rip you off which happens frequently. So if you want to add those costs into the fold factoring what percentage of your coins sell for more than $250, be my guest. But the biggest ripoff on E-Bay is insuring your coins. The chance that the USPS is going to lose or damage your coin that is packaged securely in a padded mailer with a barcoded label is less than 1%, and I submit that it is far less than 1%, but lets use 1% for arguments sake. I submit that people should self insure (ship w/o insurance) unless the price of the coin represents more than 1% of your yearly sales. The math is complicated, and will vary from seller to seller, but each seller should determine their own threshold for purchasing insurance. But I promise you, if you are purchasing insurance for coins valued less than $100, you are absolutely losing money. I guess the point of this really long post is that there is no easy answer to what you should do as an E-Bay seller. It is very much like the rest of life, it all depends on your circumstances.[/QUOTE]
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