posted on January 8, 2001 11:17:48 AM
OK, here is something most buyers and sellers will probably be able to find some agreement on. The public spin on the postal rate hike has been that letters are only going up by a cent, but anyone who ships or buys anything requiring a package, is going to need some tissues to clean up the rectal bleeding. OK, before I have to fend off the devil advocates that will chime in with the "cost of gas/business" has gone up, and the " sellers will pass costs on to buyers" arguments, I agree with all that.
However some points on the matter, for those who sell relatively inexpensive items that are not that uncommon: This could hurt. When I bid on such items I always figure shipping and or insurance into the equation. If items like this become a bad value, and easily obtainable in other places where you can acquire them in person. I pass on bidding or buying.
The across the board percentage of increase is huge, in my opinion too large. Priority mail costs have jumped dramatically.Also,here a couple of examples I discovered today, in terms of shipping to a foreign country. (Feel free to visit www.usps.gov to check the following examples out) An item shipped via airmail to Ontario from the States, almost doubled in price, and to boot ground shipping, you know the 4-6 week type, is MORE!!. I couldn't believe this until I just quoted a price to a customer in Sweden, huge jump in the airmail price and once again, the ground shipping was more than airmail shipping! Unbelievable ! Who the hell is going to pay for ground shipping and wait up to six weeks for an item when air mail is cheaper? Admittedly, I haven't checked every country or all possible weights, but these limited examples seem very odd to me if they are the norm.
In addition, a catagory that didn't really seem to warrant a huge increase was the cost of insurance. We all know that on occasion things get lost, but by and large thing almost always get there. The minimum cost for insuring an item (0- $50.00) used to be .85, now it's increased to $1.10. Again, all insurance has increased across the board. I would like to know how they justify this increase? What exactly does that have to do with business cost increases ? Besides,anyone who had attempted to get compensated for a lost item, knows it's harder than producing a sperm sample with Nurse Ratchet watching.
Anyhow, I am going to rant to my elected officials,not that it will do any good. But, check those rates before you skip down to your nearest Post Office and they hand you a slice of your ass,with the receipt.
posted on January 8, 2001 11:41:30 AM
And you know what, you'll still have to stand in long lines! This is exactly why the government is against monopolies, yet the government is a monopoly!
\"It's lonely at the top, but you eat better.
\"
posted on January 8, 2001 11:48:39 AM
About four months ago I was chatting with one of the clerks at the window in the post office while he was processing my packages. He told me that the post office gets enormous profits with Priority Mail and Express Mail. He said the profits are so huge in those categories that the profits fund the areas of the post office that are not profitable.
UPS and FedEx have raised their rates accordingly with the increase in rates by USPS.
The assumption is we can expect annual increases in rates as the carriers take advantage of the increase in shipping needs due to e-commerce.
If your eBay business is affected by such rate increases then it may be time to restructure your business.
posted on January 8, 2001 11:49:33 AM
I had to send a usual Priority shipment today which carries a lot of insurance. Saturday this would have cost $15.20. Today it cost $20.40.
posted on January 8, 2001 12:19:15 PM
May I assume you've been sleeping for the past month or more, so that the rate increase was a big honking surprise to you?
The time to "complain to your elected officials" about rate increases is while they're in the proposal stage, not after they've gone into effect. Your wheel can squeak all it wants at this point, but I doubt you're going to get any oil. OTOH, if sounding irate makes you happy, go for it.
posted on January 8, 2001 01:02:23 PM
As a buyer, I'm not gonna buy a $30 item and pay more than $5 for shipping, so why should I expect it of my customers?
If I am any indication of other buyers ebay can expect a downturn -- before Christmas I bought books and china and videos and lots of Christmas presents -- now I am just buying postcards because I am a cheapskate and don't want to pay the postage for heavier items that I can find locally. If I were to find the two items that I have hunted for for years of course I would pay the shipping, but not for a tape or other common item.
I know it's very frustrating to have the rates take such a huge jump -- I quit selling in December and don't know if or when I will start selling again and the postage rates have something to do with it (although packing those boxes was what I really got sick of). But as long as the USPS can do it, and there is very little opposition, it will happen again and again. Now may be the time to start contacting legislators to avoid the NEXT rate hike.
posted on January 8, 2001 02:01:25 PM
I wonder if this will accelerate the downward pressure on eBay prices. If it does, there will be even less bidding.
posted on January 8, 2001 02:49:06 PM
It's rumored that the old Priority envelopes having a different code on them are more expensive than the news ones to use. Beware!
Also, Parcel is only 6 day wait. Maybe change to that.
On another thread I found this info: (Thanks to the poster).
posted on January 8, 2001 03:04:15 PM
I definitely have changed the mix of items that I sell online as a result of the postal rate increases--book rate stuff, jewelry and textiles. All can be shipped relatively inexpensively.
However, I accumulate large inventories from April through August and I just don't think we had enough warning of the size of these increases to make sound business decisions. I still have significant inventories of the heavy stuff that I will have to unload at a smaller margin than I anticipated.
Will definitely be talking to our elected officials about longer lead times when increases this big are planned in the future. A small investment in campaign contributions does get their ear -- if enough of us complain effectively, we may even be able to get some results in a few years.
It hurts, I knew it was going to hurt but I sure don't have to like it. And I don't have to keep quiet now just because this one is a done deal. I complained then and I will continue to complain until someone at least makes a token response.
The needs of business should be addressed a little more effectively under the new administration and I, for one, will make my voice heard on these unnecessary postal rate increases.
posted on January 8, 2001 03:54:19 PM
I have said this before if you stop useing free priority boxes and start shipping frist class and and parcel post shipping cost will be less then they were before the incress.
Any item from 12 Oz to 2 pounds will ship for $2.97 use U-Pic to insure your packages .40 cent to insure packages up to $100 so a 2 pound package shipping parcel post $2.97 + insurance .40 = $3.37.
Postal rates havent gone Beserk the cost of free boxes went up $1.25 for every pound over 2 you put in them.
posted on January 8, 2001 04:20:54 PM
The problem with the postage increase for eBay sellers is I can not pass the cost on to the customer. Bidders will figure it in and bid less to acount for the added shipping.
I use to add a small handling charge but I am now just charging actual Shipping and Insurance. I will have to eat the cost of the bubble wrap I buy.
posted on January 8, 2001 04:23:44 PM
Dman:
I hate to point out a flaw in your logic, however I just checked the shipping for 15 oz item, parcel post from CA to NY, and it's $3.45, not $2.97. That $3.45 is only .05 cents cheaper that the same by priority mail. Of course, with parcel post I still have to add in the cost of buying the box.
posted on January 8, 2001 04:31:47 PM
I think the rate increase WILL affect some sellers, mostly those who sell run-of-the-mill items. A very unique or rare item will be bought regardless of the shipping cost because it CAN"T be found locally.
Like xellil, I purchase items on E-bay that I COULD get locally if I wanted to go scouting around; CD's, movies, household items. It's convenient and fun to buy these things on E-Bay BUT if the shipping cost pushes the total I pay up over a certain point, then I'll just get the items around town.
Now CD's could actually ship for the same price as before because first class for 4 or 5 ounces is cheaper. Anything over a pound will cost a lot more. Think of board games, small appliances, sporting goods; those type of items are fairly weighty. Add on the new postage cost and many items will have to sell well below retail to be worth buying, at least for me.
posted on January 8, 2001 04:54:16 PM
And we are all so lucky that ALL of our inventory is rare and unique right?? Parcel post just doesn't save enough for the hassles unless the package is very small. I've shipped dining room sets (not thru the mail) and a lot of my quality collectibles are hard to find but heavy. When the shipping rates add significantly to the price paid, I can do better at the local antique mall. The rates WILL hurt and we need to do whatever we can to raise awareness in those who make decisions that affect our businesses so directly. No way should we subsidize junk mailing and non-profits who get the best rates and the smallest percentage increases. Priority mail, at reasonable rates, is critical to doing business at ebay and we have the numbers and dollars to speak and be heard.
posted on January 8, 2001 05:09:30 PM
I used to ship even the small things in priority boxes for the simplicity, but now I'll just use my homemade boxes, so basically the shipping costs for me are going down. It's good business to find ways to decrease prices even while other costs are going up.
posted on January 8, 2001 05:23:19 PM
And the original post mentioned that this might be one topic we could all agree on!! FAT chance. Think I'll go jiggle doodads too.
posted on January 8, 2001 06:08:01 PM
Sorry to inturrupt all this ranting and doodad jiggling, but I'd like to know if anyone can give me some more information on foreign shipping rates.
I just won an auction for a small book, and then I went looking to see what the rate should be. I live in Canada. I knew that the rates had gone up, so I expected it to be a little more than previous purchases, but from what I could find, it appears that the same book that I have received with postage of $1.85 will now cost me more than $15.00!! I just wanted book rate surface. Is this amount correct? Is there any way to get it for a reasonable price? This is CRAZY!!! Can anybody HELP ME?? Please?
If the prices are going to be this ridiculous, I'll have to give up completely on buying from the U.S. It was already expensive enough for me after calculating the exchange on things I bought.
posted on January 8, 2001 06:14:10 PM
A 2 lb package to Canada with following dimension restrictions, (Max. length 24", Max. length, height, depth combined 36", is $6.35 according to the online international rate calculator
posted on January 8, 2001 06:23:15 PM
I always get a laugh out of how angry people get when I point out to them that all that hollering won't change a thing.
I get an even bigger hoot out of seeing them call me names. Means I hit the mark
[ edited by HartCottageQuilts on Jan 8, 2001 06:23 PM ]
posted on January 8, 2001 06:35:04 PM
I AGREE!!! A 1 cent increase in 1st class letter mail is insignificant compared to the 20-25% increase in priority and insurance rates.
The government's own CPI (inflation index) has gone up maybe 7% in 2 years while postal rates for the fastest growing segment of their business (Packages) go up 3 times that.
If the electric co or phone co. tried to pull this every 2 years the outcry would be heard round the world. Yet we all sit back and accept it from the USPS.
If you decide to write your Congressman be sure to write to this individual also, as his board has the power to set the rates (not Congress):
Mr. Einar V. Dyhrkopp
Chairman Postal Board of Governors
475 L'Enfant Plaza SW
Washington, DC 20260-0010
Supposedly they had public hearings and testimony for a year and a half but I don't ever recollect seeing anything on this or know anyone that was invited.
As mentioned this rate increase is going to come directly out of our profits and sales. A national sales tax will be the next bite.
posted on January 8, 2001 06:36:17 PM
Ummmm, OK. This must be another case of those unclear definitions. At least they're unclear to me. I get $6.35 for "Global Airmail Letter Post". This sounds like it is for letters only. I was looking at "Global Economy Parcel Post(Surface)" at $15.25. Although, now that I look at it again, "Global Airmail Parcel Post" is cheaper at $13.25. So why they call the other Economy is beyond me. So is Letter Post for parcels? If so, then the cheapest is for "Global Economy Letter Post (Surface)" at $5.60. But this is still a pretty large increase over $1.85, although considerably better than $15.25. For that matter, maybe it could even go "Global Priority Mail - Flat-rate Envelope (small)" for $4.00?
posted on January 8, 2001 06:58:56 PM
Hi snarky --
I shipped two international packages today...one to Canada and one to Japan, and YES, "Letter Post" does apply to parcels weighing 2 lbs. and under, and they must meet the same dimensions as what used to apply under "small packets."
Hope this helps!
forgot an adjective
[ edited by Julesy on Jan 8, 2001 06:59 PM ]
posted on January 8, 2001 07:08:13 PM
Thank you Julesy. So would the Global Priority Envelope apply too? The book will be fairly thick (about 1.5 inch) but not very large (paperback size). I have had the same book mailed in padded envelopes.
posted on January 8, 2001 07:13:41 PM
There is no flaw in my plan here is the postal rates for parcel post started shipping with these rate yesterday through stamps.com
Parcel post new rates.
1 lbs 2.97
2 lbs 2.97
3 lbs 3.36
4 lbs 3.52
ECT..
priority
1 lbs 3.50
2 lbs 3.95
3 lbs 5.15
4 lbs 6.35
ECT.
Frist class
11 oz 2.44
12 oz 2.65
13 oz 2.86
There is a lot more then .05 cents difference between priority and frist class and parcel post.
Once you get to up to 7 lbs there is over $5.00 difference between parcel post and priority.
Most of my parcel post shipping within a 1000 miles usually get to it location in 3 day cost to cost is 4 to 5 day depending on the zipcode over a year parcel post shipping and waiting a day or two longer for packages can save auction bidders thousands of dollars and year and and save a seller profit margins a lot.
Postal insurance $1.10 U-Pic .40 cents there is more then .05 cent difference here too.
but I'd like to know if anyone can give me some more information on foreign shipping rates.