Some sellers are adamant on the issue of whether to offer free shipping on their marketplace listings. Others are unsure and urgently seek advice from colleagues on whether they should offer it or not.
Many sellers point out there is no such thing as “free” shipping – which is true. Nevertheless, sellers must decide how to price their items when listing.
On marketplaces like eBay and Etsy, sellers pay a commission on price-plus-shipping, so there’s no advantage to breaking out shipping fees separately – from a fee perspective, that is.
Where it may make a difference is if you sell items frequently bought in multiple quantities. If a shopper buyers 5 widgets from a single seller, and each one has a shipping charge, sellers are often willing to offer combined shipping. But if the seller built the shipping cost into the price, the shopper may be overpaying and look elsewhere.
What sellers really want to know is the impact of free shipping on buyer behavior. Are buyers more likely to hit the buy button if the item says “free shipping,” or do buyers take the time to do the math?
If an item is $12 with free shipping versus $7 with $5 shipping, which would the buyer be more inclined to purchase, all other things being equal?
Does the psychology vary depending on the type of item or price point?
Do economic conditions play a role?
With runaway shipping costs, the issue is more important than ever. Let us know where you stand on the issue – offer free shipping, or build it into the item price?
