Hello Shoppers, As many of the eBay sellers mention free shipping even on $2 price ranged products, I am wondering how is that possible with a profit? In Canada, Shipping rates areLog In Do they have this magic figure? "$1 product + $0.5 shipping" = $2 product and FREE shipping?
Well, they've definitely accounted for the shipping in the price. They're probably shipping with the slowest method (cheapest) and they might be selling enough items (through ebay and other sites) to be eligible for bulk rates. If they can make $1 per sale they must be focused on selling large volumes. As a business, I couldn't do it. As an individual just trying to do some house cleaning, I wouldn't have a problem.
I was wondering the same thing too. I saw a few items on Ebay that cost $1 with free shipping from China to Canada. I mean those delivery are kind of an international delivery but how can they get shipping cost as low as $1. Even when I ship my ID card oversea it cost $25 for snail mail. I tried asking the seller hoe do they do it but they either don't reply me or they send me a message that are translated with google translate that doesn't make sense.
I read the FAQ of a Chinese online store, and the reason why they can offer free shipping is because they have a partnership with Hong Kong Post, China Air Mail, and EMS, so they get discounted shipping fees. So maybe those Chinese Ebay sellers have partned with those shipping companies as well.
I don't understand it. I have a (very) small business myself and I actually lose money on the shipping depending on how I have to package it. I guess like someone else said if you are doing a lot of volume then it all works out.
Maybe they wait to ship things in bulk so that the shipping costs ain't too much? Something about the way they ship things has to be the solution for that free shipping.
The free shipping is definitely the cheapest they can find, and it can take a month or more for something to arrive. I can only assume that the item does is not even travel by plane, but goes by ship. And with these deals they do they pay by total weight, and each box has a bar code so that no person has to touch it, so it all works out and everybody makes money. With the exception of the time it takes I think this whole arrangement is fine, but you should be aware it will be a while before you get your package.
And if the item is really light, then I guess that they aren't losing that much on shipping fees, because they already get a discount from their shipping partners. Plus labor fees in China are quite low, so I guess it helps too. When I buy from the US or UK, none of the sellers offer free international shipping, they only offer free domestic shipping.
It actually has a simple explanation. The Chinese government. They boost their economy by supporting the businesses, and this includes subsidies on the shipping. I don't know to what extent they do it and whether their is a limit on the weight.
