Thursday, August 20, 2009

NO MORE FREE SHIPPING! and Other ways to save Fees

THEY THINK THEY'VE GOT YOU. Ebay offers preferred ranking if you offer free shipping. Why is that?
Because they know you will make up for it in your pricing. THE MORE YOU CHARGE, THE MORE YOU PAY IN FEES.

Do you offer a discount on your Etsy account if the buyer enters a code? NOOOOOOO!!!! When your buyer buys AT YOUR LISTED PRICE, that is what your fees are based on. There is a reason that Artfire offers a "sale on entire shop option" and Etsy doesn't. Etsy can offer it too, but their income is individual sale fee based, while Artfire is monthly fee based.

PLEASE CONSIDER THIS when making discounts on any site that is item fee based. If you're offering a refund of 50% (or 2 for one) you're paying the fee for what you are giving away too. You've lost 50% of your sales, you're giving your seller site 3% (or more) which is a total of 53%. That leaves you with 47% of your selling price. Subtract Paypal fees and what do you have left? Maybe your cost of materials? YOU ARE WORKING FOR NOTHING.

Even if you're not a math whiz you can see that there can be little advantage to a refund or re-invoice discount.

THERE IS A WAY TO DO CODE DISCOUNT! Have the buyer contact you with the item they want, go to the item and change it to a custom with the sale price and change the price of that item for the buyer. That way your seller site will get only the percentage of the actual sales price of the item, not the list price. And that way, you do not have to change the price of every item listed.

NEVER GIVE A REFUND OR REVISED INVOICE AS A SALE. You will get back you paypal fees, but not your seller fees.

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