Shipping question - I'm missing something here.

[Pheasant]

Something I've often observed on eBay is that sellers sell cheap items - anywhere from $3 to $5 - with free shipping. This doesn't just apply to businesses, but to small-scale sellers as well. With current shipping prices, how can they offer that without taking money out of their own pocket? Are they using a courier service instead of Fedex / UPS / USPS?

[lunar_scythe]

if the items are small enough(13 oz or less), they can be shipped first class, so that might be what they do?

[kakenterprise]

Even shipping first class with eBay, PayPal fees, shipping and gas it doesn't make sense.

[MiRaja]

If they're selling enough, they likely get kick backs from Ebay for sheer numbers.  Likely though; feedback.  It's a good way to make a lot of feedback if one has the time and capital to do so. 

[lunar_scythe]

Plus if they buy whatever it is in bulk, they may be getting things for super cheap!

[MiRaja]

Plus if they buy whatever it is in bulk, they may be getting things for super cheap!

Like a lot of the bead sellers.  If I have to buy from China, I might as well get wholesale prices, and buy direct from the merchant, and those merchants count on most people spending $50-$150 with them each round and getting a whole lotta stuff.  Not like any sane person buys international stuff at bulk prices and doesn't get a bunch of other goodies.    So, I might pay as little as .50c for a listing, but since I've bought 20 or so lots anywhere from .50c to $5 a pop, the seller does end up making some profit there, and a lot of these bulk selling companies are either overseas or have a hub here in the states as a distribution center, so very low overhead versus traditional brick and mortar.