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can anyone explain in EASY terms the free postage deal ?

You know - the price of the item is say £10.00 plus free shipping - so imagine -it cost the retailer £2.50 to ship item...

...then in the back office - the wholesale cost of the item was £5.00 they x2 that to make £5.00 profit on the retail sale - so their does the £2.50 postage come directly out of the £5.00 profit just made or retail price that would be £12.50 if the free postage wasn't included ?

Anyone got a simpler example of what I mean, or an answer in pictures ?

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2 Answers

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Yes, the cost of free shipping comes out of the profit margin.

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That's a good question. I guess that you need to establish if you are delivering the product for free or not. There are different elements related to the product you are delivering like width, Length, thickness and weight.

This is a useful resource for you to calculate how much you need to pay on that. If I were you I would make sure to establish if the postage cost is included or not to the price the buyer is paying.

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