How many times have you decided not to sell an item (or to only sell it in multiples) simply because the cost of shipping is too high? Often for lightweight low cost items it can cost as much, if not more, for postage than the actual item is worth.
Amazon have had the same issue, and have now come up with a solution – Amazon’s new “Add-on programme“. Add-on items are low-priced products for sale on Amazon that can be purchased as long as you’re ordering at least £20 of eligible products. Currently only items dispatched from Amazon are part of the Add-on Items programme; items dispatched directly from sellers don’t count towards the minimum order amount.
Items which qualify as Add-on items are identified by a blue tag in Amazon search and there’s a special Add-on Items version of the Buy Box to fully identify them.
Shipping of low value items has been a bigger problem for Amazon that might be for other retailers. Due to the Amazon Prime promise of next day delivery at no additional cost, it meant Amazon had to either ship items at a loss, or simply sell them in multiple quantities to increase the average order value. Add-on items enables Amazon customers to buy a collection of low cost items and so long as the total order value exceeds £20 it makes it worthwhile for Amazon to ship the order.
Currently we can’t see any items from third party sellers under the FBA program qualifying as Add-on items, but doubtless if the program is a success this may come in the future.
Many thanks to Mark of Arcasmia for spotting these on Amazon!
2 Responses
Ebay should allow sellers the option of setting minimum order values for items purchased from their ebay store. This would encourage basket shopping by buyers and encourage sellers to sell units rather than multi quantities of low ticket items. To use shipping costs as a choke for this has a number of disadvantages.
I have a number of 99p items that often cost over a £1 to post. However I do get numerous orders where they buy several 99p items together and even allowing for combining p & p I can sort out the postal cost.
I have noticed several times they will buy one item and it costs me a slight loss on postage. Then they come back with a much larger order for 5 or even 10 items. Almost as if the first purchase was some form of test. Then I do not mind.