I have been selling items on Ebay a few years now. I have noticed that I get a tremendous response when I offer free shipping on an item. Here are some tips I have used to help me sell an item faster.  I have seen many sellers JACK UP shipping cost to cover low balling auction items. 
Example:  Need a 3 foot USB cable? It?s on EBAY for $3.00... BUT, Shipping is $9.95
This seems to be a sad way to get a fair price for an item, but it is done.
I however, have seen more activity on my items when I offer FREE shipping and ask a reasonably fair starting price.

Here are some notes on how and when to use free shipping.

1. WHEN SHIPPING IS MINIMAL
I offer items up with FREE shipping when I know the shipping will be fairly minimal.
Like when selling a smaller item where the shipping may be around  $3.00 or less to send it via flat rate or media mail.

Example:  let?s say I post a BOOK, or DVD or PC software?. I could post it for $9.00 and ask $2.00 Shipping.  BUT?asking a still reasonable price, Say $10.00 and offering FREE Shipping seems to get more people to notice the item.  If I get the asking price of $10.00 and my cost to ship is around $2.00, my final take is around $8.00. I still got good price for the Item and the buyer gets a good deal as well.

This is not a jacked up price to cover the shipping, this seems to be a fair swap for Items I want to sell, and items they want to buy. It?s almost an even split on the shipping cost. There is no need to hyper jack the price for shipping cost to make a profit. Be fair with the price and the shipping costs and people will buy.

2. BONUS FREE SHIPPING
I have sold many Items for much more than I anticipated. Sometimes as a customer relations tool, after an auction has ended, I will remove the shipping from the winning bidder and offer to ship it FREE. This is a pleasant surprise for the buyer and makes for good relations.

Example: If I post a Toaster Oven for $20.00 with shipping of $7.50, and after 3 days on auction I see the Item has a winning bid of $50.00?. Heck yea I will give the Winner FREE Shipping. I got a lot more than my asking price and the buyer deserves a good deal as well.

FOOTNOTE: some sellers will also offer free shipping on purchases of $50.00 or more, or $100.00 or more. This is also a good way to offer free shipping, and encourages buying. But add up the cost and see if they have jacked the price to cover shipping. Most sellers do not do this, but some will. Just be aware.

3. CAVET CARTER  Returning items and shipping cost.
Offering returns vary from seller to seller. Be aware that if you offer a return policy for damage then the BUYER must pay the return shipping if you refund the full price.  State this plainly and fairly in your auction text as to avoid confusion.
FOOTNOTE: When I offer free shipping I still offer shipping insurance if the buyer wants it. It is a minimal cost and if the buyer wants to insure the item then that is a bonus for them. Offering the insurance also let s the buyers buy with confidence.  

4. FREE SHIPPING DOESN?T ALWAYS APPLY
Offer free shipping is a good selling tool and helps build customer relations, and works best for the casual seller, but it may not always apply. If you have an online business, or are an Ebay Power-seller Free Shipping may not be an option. Sometimes offering next day or UPS is the way to go when the buyer wants to get it fast and is willing to pay the shipping cost to get it fast. It also may not apply when put an item on BUY IT NOW. If you ask a fair price, then the shipping must be added on. This is a cost of doing Ebay selling and buying and is a crucial part of this business.

International shipping: I rarely offer free shipping to an international buyer due to the cost. this may limit your buyers to your own country. Be sure to state that in you auction. Being clear about the shipping cost for international is very important.

Summation:
Many buyers main beef with sellers seems to be jacked up shipping cost. I certainly understand the concern when shipping seems to be outrageous. Thats why I offered FREE shipping on certain items and noticed an incredible response.  The main idea of free shipping is to get more people to look at your items. There are other ways to attract a buyer to your item, offering free shipping is just one of many.
 

By Shane

Radioactive