Does anyone know how these guys do free delivery at $1?

Hi All

I am trying to figure out how these guys do national shipping for free for $1. Wouldn't a christmas card envelope cost this???

https://www.ebay.com.au/itm/Premium-Reusable-Rainbow-Stainleā€¦

Comments

  • its one item… would fit in a standard envelope.. probably making 50 -80c per item once u take into account shipping
    Brush is $1 rest of the straws vary in price up to $1.90

  • Envelope stamp for sure. They would have bought these in bulk and can still make profit despite the shipping.

    • How about paypal fee $0.3 + 2.6% + ebay fee, no sure how do they make profit

      • +1

        Order 1000 for a super low number like <20c each from a supplier in China?

  • I didn't realise there were envelope stamps cheaper than $1???

    • +3

      Even if they only break-even on costs (which isn't difficult when dealing in bulk), they sometimes do this to either A) lossleader to try and sell other items they stock and/or B) increase their sales and feedback/profile numbers for future.

      There's an entire supply/demand business of selling eBay accounts with high feedback alone.

  • I asked the same question when you can buy USB cables shipped for $1.

    The straw / usb cable themselves cost like 5 cents when purchased in bulk.

  • +3

    Possibly sent from overseas for less, then international reciprocal postal agreements to deliver mail. It does hurt Australian and US postal services as China takes advantage of it, so Trump is trying to kill it.

  • No chance you can get 7 days delivery from overseas. I work in online retail haha - hence amazed.

    • +1

      It does happen. Not all the time, but surprisingly often.

    • +1

      Pretty rare for it to be that quick, but it does happen. Still waiting on goods sent at the start of April… not expecting to see them.

  • +2

    They would rely on people buying more than one straw in the same transaction. The more straws people buy in one transaction, the more they profit.
    Say you buy one straw, they might break even. Buy any more and they can ship the subsequent straws in the same package for the same shipping cost. Most of the payment for additional straws would be profit as they only have to pay one 30 cent PayPal transaction fee + 2.6% for the whole lot + the ebay fees + the cost of the straws.
    Assuming the average person would buy at least 2-4 of these, they should be turning a good profit.

  • +1

    Perhaps, dropshipping?

  • Bent coloured straw - $1.90

    Maybe that's the prime target :-)

  • But even $1 delivery does this exist? I thought min was $2?

    • $1 untracked letter item. Must be under 5mm thick and less than 130mm x 240mm, but some people get away with sending 3cm thick envelopes with a $1 stamp on it.

  • I bought a heap of these very recently. Came pretty fast in a postpack bag. I think most people would buy more than one at a time.

  • Could be a "Loss Leading" item where the seller has budgeted a certain amount of money to cover some product and shipping to practically throw it away, in order to promote their store/brand and stimulate sales of other things in their stock. Basically getting you in the door to their shop in the hope you will buy something else again and provide word of mouth, etc. You have already shown the link to their item/store. :)

  • Why?
    Tax benefits and concessions.
    "Selling" means they are running a valid business claiming GST via BAS with ATO.

    Losses will not be massive … how many brushes will they sell?

    My guess only, of course.

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