Introduction
GBFM works differently from most online marketplaces.
To keep things simple, transparent and fair for both sellers and customers, all delivery costs are, and should be, included within your product price. Customers never see separate shipping fees, and sellers never need to configure delivery settings.
This article explains:
- how to price your products correctly
- how VAT applies when delivery is included
- what GBFM expects from sellers
- why we use this model
- how to avoid the most common pricing mistakes
If you are unsure about how to set your prices, handle VAT or manage delivery costs, this guide will walk you through everything step by step.
Why GBFM Uses Delivery-Included Pricing
Delivery-included pricing is one of our core principles. Here’s why:
1. Simplicity builds trust
Customers see one clear price. No surprises. No hidden fees.
2. Sellers don’t deal with shipping settings
You don’t need to configure shipping methods, zones or classes.
You simply price your product properly and we handle the rest.
3. It removes a huge source of errors
Multi-vendor shipping is complicated and often breaks checkout or creates unfair costs. Delivery-included pricing avoids all of it. (Remember the issues eBay had with shipping prices being extreme some years ago.)
4. It keeps you profitable
You can recover your packaging and postage costs directly in your product price.
5. It allows bulk-order savings
If a buyer orders multiple items, you can price in small savings as you only ship once. ( See multibuy shipping discount bands below)
6. It aligns with GBFM values
Fair, honest, transparent pricing.
No tricks. No fake discounts. No surprise charges.
Multibuy Shipping Discount bands
Royal Mail Discount Bands
We are aware that adding shipping into the product price can feel scary and that it might feel like it puts people off buying. If a customer buys products from multiple sellers in one basket and sees multiple delivery charges at checkout, this really does put more buyers off.
With this in mind, GBFM offers four Royal Mail aligned discount Bands. These are optional categories you can assign to your products to have GBFM’s automatic multi-buy shipping discounts apply.
Don’t forget to apply your normal categories as well to ensure your products appear in the menu and search system.

These categories are internally only to allow the discount logic to apply correctly. You only need to pick one that matches closest to your requirements. If you pick multiple by mistake, they will apply in this order: Chilled/Frozen -> Age Verified -> Tracked Parcel -> Large Letter.
If you do not assign a discount band, your product will sell normally without any multi-buy discounts applied.
The four Royal Mail Discount Bands are:
- Royal Mail Large Letter / Untracked
For small, flat, lightweight items. - Royal Mail Tracked Parcel – Standard
For most parcels up to 10 kg. - Royal Mail Age-Verified Delivery 18+
For alcohol, blades, tobacco products or any item requiring legally verified delivery. - Royal Mail Chilled / Frozen 24h
For perishable items that must remain chilled or frozen during delivery.
When you should choose a Royal Mail Discount Band
Choose a band if:
- You want GBFM’s automatic multi-item discount to apply
- You want your customers to get better pricing when they buy multiples
- You want your product aligned with Royal Mail typical costs
You do not need to choose a band if:
- You do not want multi-buy discounts
- You use your own courier or local delivery
- Your product doesn’t fit these delivery methods
Bulk Discounts Applied by Each Band
Each Royal Mail Discount Band applies bulk-buy savings automatically at checkout, and they are designed to fairly reduce the price for the customer, encourage multiple purchases of products, and also take into account the cost of postage and packaging. They are based on the costs of shipping provided here:
Discount Band (Large Letter / Untracked)
- Buy 1: no discount
- Buy 2: £1 off per unit
- Buy 3+: £2 off per unit
Discount Band (All others)
These three bands currently share the same discount structure:
- Buy 1: no discount
- Buy 2: £1.50 off per unit
- Buy 3+: £3 off per unit
Need a different discount band?
If your product needs a new discount structure or a delivery model that doesn’t fit these, just contact us and we’ll discuss adding a new Discount Band for that shipping provider and service.
How Pricing Works on GBFM
1. Your product price must include:
- cost of materials and ingredients
- your time
- packaging
- postage/delivery costs
- marketplace commission
- VAT (if applicable)
- a small margin for growth
Use delivery-included pricing like this formula:
Total Price = Your Costs + Packaging + Delivery + Profit Margin + VAT (if applicable)
2. Example Pricing Calculation
Let’s say you sell handmade candles:
| Cost Item | Example Amount |
|---|---|
| Materials | £4.00 |
| Packaging | £1.50 |
| Delivery (2nd Class) | £3.29 |
| Profit Margin | £4.50 |
| VAT (Zero-rated example) | £0.00 |
| Total Price | £13.29 → Round to £13.30 or £13.50 |
If your item is VAT-standard rated (e.g. bath products), VAT sits inside the final price.
Delivery does not appear as a separate line. It is already included.
How VAT Works on GBFM
Because delivery is baked into the product price:
1. VAT follows the product setting
- Zero-rated products → VAT = 0%
- Standard-rated products → VAT included at 20%
- Reduced-rate items → VAT included at the reduced rate
2. Delivery does NOT affect VAT
Normally, shipping can complicate VAT because it must match the VAT rate of the items in the order.
But because GBFM has no separate shipping line, VAT is simply:
VAT = VAT rate of the product
3. VAT-registered sellers must still:
- include VAT within the product price
- display prices VAT-inclusive
- declare VAT correctly in their returns

4. Non-VAT-registered sellers
You do not need to do anything special other than specify there is no VAT in your products:

Just price your products to cover your costs.
How Delivery Works on GBFM
1. Customers see one delivery method only
Nationwide UK delivery is included and shown on the
- basket
- checkout
- order confirmation
2. Sellers do NOT set up delivery
You don’t need to choose:
- courier services
- shipping zones
- classes
- weights
- rates
GBFM handles delivery as a platform-level feature.
3. What sellers must do
Include delivery costs in the product price
This means:
- postage
- packaging
- labels
- cold packs (if needed)
- protective packaging
Use sensible, reliable delivery services
We recommend:
- Royal Mail Tracked
- Evri (where appropriate)
- DPD Local (for heavier parcels)
Dispatch orders on time
Most sellers ship within 1–3 business days.
4. UK-only orders
GBFM currently delivers within the United Kingdom only.
You don’t need to worry about export rules, customs, or international shipping.
How to Set Your Prices Step by Step
Step 1: Calculate your total cost
Add up:
- materials
- consumables
- packaging
- delivery
- your time
Step 2: Add your profit margin
Add what you need to earn per item to make it worthwhile.
Step 3: Add VAT if you are VAT-registered
VAT is included inside your final displayed price.
Step 4: Round the price
Customers respond well to round numbers:
- £8
- £10
- £12.50
- £15
Step 5: sanity-check profitability
Ask:
- Am I making enough per product?
- Does this fairly cover delivery?
- Will I still profit on larger orders?
Common Pricing Mistakes to Avoid
❌ Underpricing delivery
Don’t guess postage. Check real courier rates.
❌ Forgetting packaging
Boxes, wrap, tape and postage labels all cost money.
❌ Not considering time
Your time has value — include it.
❌ Pricing too low to “be competitive”
Cheap prices often lead to burnout or loss. GBFM values fair pricing.
❌ Overcomplicating your price
Round numbers sell better and reduce customer hesitation.
FAQs
What if my product is expensive to ship?
Increase your product price to reflect real delivery costs.
What if I sell multiple items in one order?
Your delivery cost per item falls, which increases your margin. You may choose to price accordingly.
What if I’m VAT-registered?
Include VAT inside your product price as normal. Delivery does not change your VAT obligations.
What if I’m not VAT-registered?
Price your products to cover all your costs — you don’t need to add VAT.
Can I charge for delivery separately?
No. GBFM uses a delivery-included model for simplicity and fairness.
Checklist for Sellers
Before you list your product, make sure:
- [ ] My product price includes delivery
- [ ] I’ve checked my real packaging and postage costs
- [ ] My price includes my time
- [ ] My price includes my margin
- [ ] If VAT-registered, my price includes VAT
- [ ] My pricing feels fair and sustainable
- [ ] I can dispatch within 1–3 business days
Summary
GBFM’s delivery-included model keeps things simple, honest and fair.
You don’t need to configure shipping. You simply need to:
- price your products correctly
- include all delivery and packaging costs
- understand how VAT applies
- dispatch orders reliably
This approach ensures that customers trust the price they see, and sellers stay profitable without unnecessary technical complications.
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