Saturday, November 28, 2015

How do sellers make a profit, selling at low cost and offering free shipping on ebay?

A colleague of mine has been buying cheap jewelry and accessories such a cellphone covers  from Hong Kong on ebay with FREE SHIPPING. For example, she's bought earrings for 21 cents (Canadian cents), 79 cents, etc. The products have been delivered and she's happy with them.

I simply cannot understand how the seller could make a profit on these sales  when shipping to Canada, whether from outside Canada or even inside Canada is so expensive.  

I hope to understand this mystery. One skeptic said that she is giving away her credit card information for 21 cents worth of  jewelry but my friend does not feel worried about her credit card information being misused. 

I hope someone would explain how free shipping  is feasible for the sellers.

Economics is such a mystery to me and this is one of the puzzles which I cant get it out of my mind !

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