eBay charges FVF on the total amount (item + shipping). Whether you offer free shipping or charge the buyer, total fees are similar.
With free shipping, you build shipping into a higher item price. Fees on the total are the same either way.
Benefit of free shipping: higher search ranking, Best Match boost, and buyer preference.
Reach for this calculator when you need to present a business metric to stakeholders. Accurate, consistently-defined figures command more credibility than estimates, particularly in financial discussions.
The most consequential business calculation error is excluding indirect costs from the calculation. Labour, overhead, and opportunity cost are frequently omitted when evaluating profitability, producing overstated margin figures.
A marketing manager calculates campaign ROI: £15,000 spend, £72,000 in attributed revenue, 35% gross margin. Net profit from the campaign: £10,200. ROI: 68%. The figure justifies the budget allocation and provides the benchmark for the next campaign.
No — eBay charges FVF on item + shipping regardless. But free shipping can boost visibility and sales volume.
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