>Sellers can boost profits on eBay with high shipping

>If you are currently a seller on eBay, for certain categorires (e.g. computers, electronics) building your profit in to the item cost can be dangerous on common goods. Your sell through rate will plummet. Many sellers utilize the strategy of low item price and high shipping. The eBay reprot out of Berkeley supports the idea that a buyer will look at an item with lower starting price more. More eyeballs = more sales. Many sellers engage in excessive shipping mostly to compete in a crowded marketplace like eBay. The savings on listing and finaly value fees is mostly a side benefit that helps, but is not the main motivator.

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