"Free" postage and packing

Discussion in 'The Rehearsal Room' started by James Yelland, Sep 11, 2009.

  1. James Yelland

    James Yelland Active Member

    Just an observation here, but I notice that the new Fodens CD Rococo Variations is being offered on Ebay by a certain well-known purveyor of brass band music for the sum of £16.90, with postage and packing described as 'free'.

    Alternatively, you can go to the said purveyor's own website, where you can obtain the same CD for only £13.95, although here you will have to pay p & p of £2.95, which by a remarkable coincidence comes to a total of £16.90!

    I know that anyone buying anything should always do so with their eyes open, but all the same....honesty is the best policy, isn't it?
  2. Anglo Music Press

    Anglo Music Press Well-Known Member

    Can't imagine why they do this. There must be a reason, but it means they will have to pay VAT on the whole amount, whereas postage, when charged separately, is exempt (I think!).
  3. Red Kite

    Red Kite Member

    ebay are changing their listing rules for "Media" products. This will include CDs and LPs. Sellers have to offer free postage on all listings, so they may be preparing early for the change.
  4. WorldofBrass.com

    WorldofBrass.com Active Member

    Ebay have a tendency to change their policy from time to time.

    They decreed some while ago that all DVDs for UK delivery had to have free postage.
    More recently, they decreed that all CDs for UK delivery could not have postage and packing charged at more than £2.

    In the coming weeks, Ebay will change CDs for UK delivery to come into line with their DVD policy.

    As you point out, the total price to the customer for Rococo Variations is the same, should you purchase from us via our own website or Ebay. However, due to the change in Ebay policy it will become more expensive for everyone to sell things on Ebay as they charge their fees based on the price of the item rather than the item plus postage.
  5. James Yelland

    James Yelland Active Member

    Fair enough!
  6. lynchie

    lynchie Active Member

    Is that just for business users? I seem to remember from selling a bunch of my cds that getting a padded envelope and recorded delivery cost more than £2, and since they take a chunk of your selling price anyway, it just wouldn't be worth it anymore.
  7. WorldofBrass.com

    WorldofBrass.com Active Member

    I think for everyone but I don't use Ebay much as a private seller so I am not certain.
  8. Bass Trumpet

    Bass Trumpet Active Member

    I tend to buy and sell a lot of computer parts - I break old computers for spares etc. Ebay are now imposing free p&p on many categories. Their excuse is that 'customers expect free p&p'. Of course the real reason is that ebay are then able to take their percentage on the full sale price as opposed to the sale price minus p&p charges. Over the years, many sellers have charged next to nothing for goods and then charged higher p&p to compensate. This is ebay's way of assuming complete control over the transaction.

    And the next wonderful rule from ebay? Very soon, some listing will become 'PayPal Only'. And who owns PayPal? Call me cynical....:mad::mad::mad::mad::mad:
  9. tpcornet12

    tpcornet12 Member

    I think the postage element would be classed as a VAT-Free disbursement as it is paid on behalf of the customer rather than a charge for a product/service.
  10. Andrew Norman

    Andrew Norman Active Member

    If you are registered for VAT you have to charge VAT on P&P even if what you are selling is Zero rated eg. Sheet Music.
    There is no VAT on postal services at a Post Office but if you provide it as a service you must charge VAT on the cost (including the stamps).
  11. llewellynd

    llewellynd Member

    Not always, if you supply sheet music which is zero rated then you can also zero rate the supply of delivery charges as this will count as a single supply.

    If you feel really bored try reading Notice 701/10 section 3.9 which explains in much better detail than I could. I know, I should get out more.....
  12. Andrew Norman

    Andrew Norman Active Member

    My apologies, it's 20+ years since I was posting sheet music and at that time postage was vatable. Delivery by any method, if it's implied in the contract of sale, now follows the Vat rating of the goods...
  13. llewellynd

    llewellynd Member

    I spent all yesterday afternoon reading the notices looking for more details of the package test and am still none the wiser.
  14. PeterBale

    PeterBale Moderator Staff Member

    As someone who has made quite a few puchases of cds from ebay over the years ( :eek: ) I can't say I'm over-happy at the prospect of postage being included in the basic price. I am fequently making multiple purchases from the same seller, and up until now most have been happy to do a favourable deal on combining postage. If the postage is going to be included in the basic selling price, then this is less likely to happen, making the deal much less attractive to the buyer.
  15. andywooler

    andywooler Supporting Member

    Unfotrtunately, you have to blame a lot of ebay sellers for this - the practice over the years of over infltaing the postage to reduce the selling price and with it, the asociated ebay & paypal fees has no doubt led to this change.
  16. Red Kite

    Red Kite Member

    I complained when this was announced, maybe it would help if others did .....

    Their reply
    Thank you for writing to eBay regarding the changes made to the postage
    and packaging cost while listing items.

    High postage costs are known to be a reason for buyers to spend less
    online, and free delivery is increasingly common on online shopping
    sites. At the beginning of the year, we introduced free postage in the
    DVDs category. After seeing the positive impact this had on the number
    of items listed and sold, we decided to expand this to other categories.
    The categories we chose are ones where there's a lot of competition with
    other sites.

    If you are selling records and if you feel that the postage cost has to
    be included, you can list your item in the Wholesale & job lots
    category. When you list in this category, you can add the postage above
    the maximum limit. I have mentioned the category path below:

    Wholesale & Job Lots > Music > Records

    I do understand that the sellers like you feel that it is harsh and
    compelling to specify a maximum postage cost for your items if they are
    not relevant. However, please note that the set postage charges only
    applies for the first domestic postal service. You can still specify the
    relevant charge in the other postal services. By making this change, we
    want our sellers to earn and this is the reason why we have implemented
    this change.

    We're confident this will encourage sellers to offer great value, and
    help ensure that buyers continue to shop on eBay - which in turn results
    in stronger sales. And remember, it's only your first domestic postage
    option that has to be free. "

    Didn't really answer my question though !
    Last edited: Sep 13, 2009
  17. James Yelland

    James Yelland Active Member

    Just as a postscript to this matter - if I buy a CD from someone who is offering 'free' p & p, but in reality has just shifted the cost onto the 'buy now' or starting bid price, when answering the 'reasonableness of p & p charges' question in the feedback, should I give them a very good or a very bad rating?
  18. Andrew Norman

    Andrew Norman Active Member

    If you've agreed to buy at that price then I guess you're happy - so a good rating...
  19. Aussie Tuba

    Aussie Tuba Member

    Being an over seas buyer it has been better to buy direct from WOB rather than Ebay because of the VAT break. With Ebay you end up paying VAT as well as extra postage for being overseas
  20. jockinafrock

    jockinafrock Active Member

    I appreciate you are just making an observation, but perhaps potential purchasers should look at the particular band's website (not just Foden's but other bands too) and buy from there? I notice Fodens website has the cd for £13 but not sure what p&p costs are, but I'm sure it would still be cheaper than has been quoted. This way the money is going directly to the band itself. :D

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