Hi guys, this is Neil Waterhouse.
This video is about how to set up free shippingin some areas of Australia.
and not for others.
For example… setting up free shipping insay Melbourne but not free shipping for say the Northern Territory.
This video is for people selling in Australia.
If your eBay business is not located in Australia,I’ll be bringing out other videos about free shipping in other countries shortly.
If you’ve been selling on eBay for longenough, you will know that if you list a heavy item on eBay with free shipping, you can prettymuch guarantee your first order is going to come from some remote location, like a remote mining camp in the backof Western Australia or.
Or some remote island off the Queensland coast… or off the Western Australia coast and it basically costs you a fortune to shipit.
And that money can really kill your profit.
On the other side of the equation, everybody out there seems to wants free shipping, so how do you offer free shipping without losing your shirt every time somebody buys your item or your heavy item in some remote location? The answer is the eBay postal rates table.
For those who have been watching my YouTube channel for a while, you will know I shot a video in the past regarding the rates table however now eBay has changed the URL so I am shooting a new one to bringit up to date.
Now the way the postal rates table works…is it breaks Australia up into 15 regions.
Within those regions, you can choose If andany regions you wish to do free shipping.
You can also choose which regions you wishto charge for shipping and… You can choose how much you want to chargefor shipping within those 15 regions.
In the past, before eBay brought out the postal rates table, we would ship all small to medium items for free shipping anywhere in Australia We do that knowing that we would lose some money on the real remote locations however.
we would make higher profits if the buyer was close to our warehouse.
At the end of the day, we were just lookingat the averages.
For years we were harping on to eBay to breakupAustralia into zones and when they finally did, it enabled us to be more competitivelocally as we could drop our prices as we knew we would not have to suck eggs givingfree shipping to these remote locations.
The good news is, many eBay sellers have nottaken advantage of this postal rate tables which means it’s a good day to be you.
Now, we all know free shipping is not free, what we did in the past before the rates table was available, was we would simply add what we determined would be the average price of the shipping.
For example, lets say we were selling an item for say $100.
Because our warehouse is in Sydney, we would base all our shipping costs from Sydney And we do it base from Sydney to Adelaide Now choose Adelaide because it is kind of like halfway across Australia.
And then freight-wise it's sort of halfway to what it can cost if it goes to somewhere remote locations.
Let’s say the shipping to Adelaide, we'll say, $20.
We would list the item for $120.
hundred dollars for the item plus the free shipping, which of course is not free it's $20, so $120 in total.
Now, if somebody in Adelaide purchased the item, we would break even on the shipping.
If somebody in, say, Sydney purchased the item, the shipping might only us cost $10 so we would make an extra $10 profit.
If somebody purchased the item from somewhere remote…say the Northern Territory, the shipping might cost say $30 and we would lose $10 from the profit of the item.
Now…The big advantage of using the postalrates table is you can you be much more competitive or aggressive against your competitors in your local area.
Let’s say you are based in Sydney againas an example, where you are listing the same item for say $100, and you know the shipping within Sydney is say $10, you can now list the item for $110 with free shipping to Sydney instead of $120.
And you can do this knowing you’re not going to lose your shirt as nobody else out of that Sydney region or that region within Sydney can purchase the item.
This now makes you $10 more competitive in Sydney.
For the other 14 regions, the postal ratestable allows you to charge everybody else in all the other regions that is based on whatever price you choose based on the items weight.
Of course you may choose to also do free shipping in say Sydney, Brisbane, and Melbourne and then make everybody else in the other 12 regions pay.
It is purely up to you, and of course… Everybody else in the other 12 regions, they all pay different amounts And of course that's based on the amounts you entered into the postal rates table.
Now the downside of the postal rates tableis you can only set up one postal rates table per eBay account.
Now… if you are running a dropship business, you may have suppliers in say Melbourne, Sydney and Brisbane.
If that is the case, the ultimate best wayis to run three separate eBay accounts.
You don't have to be.
this is the ultimate best way One eBay account is for each state.
This of course for a new small eBay selleris a pain in the backside however… Once you’ve got at least one overseas virtualassistant helping you, it is really not that hard to run multiple eBay accounts.
I will put a link below for the postal ratestable.
Also, make sure you check out the FAQ page on that link that I'm gonna send you will be on the bottom of the page 'coz there's some great information in the FAQ Now I am not going to go into the nuts andbolts of exactly how to set up the postal rates table as I would just be duplicating what eBay hasput on that page however.
just a couple of notes when setting it up.
eBay offers three different strategies when setting up.
That is, you can charge shipping by item, you can charge shipping by weight, or you can charge shipping by surcharge.
We prefer the weight based option as you onlyneed to add the weight of each item in each listing to make it work and then eBay automaticallyshows the shipping fee to all of your customers.
And eBay calculates the shipping to the buyer as eBay knows your postcode and it knows buyer's postcode.
I will put up a screenshot of the 15 different regions however this is also available in the FAQ section from that link I just put above.
Personally I think the postage rates tableis absolutely mandatory for anybody running an Australian eBay business as it gives you the ability to offer free shipping wherever you like and also gives you the ability to charge buyers whatever you like based on their location and the items weight That’s all for this week, if you know anybody who might find this video helpful, please click on one the share buttons below and pleaseleave a comment below and let me know if you are already using the postal rates table.
Until next week, list more, sell more.
This is Neil Waterhouse.