How can ebay/half.com afford to pay shipping reimbursments to sellers and why do they do it?

Question

obviously they are stinking rich but why offer this credit if they can just hose us down for more. they lose money by giving shipping reimbursements. Do they receive some type of tax credit for their hospitality?

Answer 1

The way I understand it, half.com charges the buyer a set shipping fee, and then reimburses the seller for something closer to their actual shipping costs.

For example, if you buy a book from half.com, it might cost the seller $1.50 to ship, but they will charge you $3.99 in shipping and handling charges. They reimburse the seller for the $1.50 it costs them to ship the item, but they still gain $2.50 from the sale.

I don't think they're "stinking rich" and I don't think they're "hosing" anybody for anything. I think they're just a business who's following good business practices and making money by doing so.