USPS Rate Hike Affects Amazon Sellers

Button down the hatches, folks! It looks like Amazon and eBay sellers may be in for a bumpy ride.

It looks like more and more that the United States Post Office (USPS) rate hike that is goes into affect on January 27th is going to affect sellers at both “The River” and “The Bay.” First, Ebay sent out an announcement telling sellers that they would not be able to print out USPS Parcel Select postage through eBay until sometime in March and now there are rumblings over on the Amazon boards about how Amazon is staying mum and doesn’t seem to want to comment on whether they will make an increase in reimbursements for sellers on the price of International shipping.

You see, while the problem for eBay sellers is that they won’t be able to print out a Parcel Select shipping label from eBay’s site until sometime in March, Amazon sellers are about get the short end of the stick because if they ship internationally the amount Amazon reimburses its sellers won’t equal the amount that it takes to ship the item.

How much difference are we actually looking at? Eric Nash, the Director of Online Marketing for Stamps.com stated that the costs would go up an average of 58.6-percent. It could potentially be even higher for some prices groups, such as First Class International which is what sellers normally use to ship packages to Canada when the item weighs under 1 lb. As you can see, this is going to make it tough on Amazon sellers who ship internationally because they either have to substantially raise the price of all their items or they can expect to take a direct hit to their pocketbooks.

At the moment, most sellers seem to be waiting to see what Amazon is going to do, but the general conscientious is that if Amazon doesn’t adjust their shipping costs, many of their sellers will stop selling and shipping internationally. Even if Amazon does make a change, however, it seems like we can all expect our international sales to decrease. While many international buyers didn’t blink an eye at paying $5.75 for a First Class package, they are probably going to have to think twice before they agree to pay a staggering $10.55.

The Top Rated Seller Webinar folks recorded a webinar featuring both Eric Nash from Stamps.com and Shipping Supplier Mark LeVine of Bubblefast. This will be a good place to get the real information and some tips of making this work FOR your business.

About our Guest Blogger
This guest post is by Kat Simpson. Kat is a trusted eCommerce author, speaker, educator, and entrepreneur. Kat Simpson has been a successful eCommerce merchant for over 10 years; is an eBay Education Specialist and Gold Level PowerSeller, as well as a successful Amazon merchant. Currently Kat is the hosts the popular weekly eCommerce Podcast That Kat Radio

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