posted on March 22, 2002 10:35:40 AM
Well folks, it was approved, and will go into effect in about three months. This will change the way most of us conduct our auctions, because for items over 16 ounces, it will no longer be possible to give a quoted shipped price to everyone. It will depend on how far you live from the buyer. For example, a 3 pound item currently costs $6.45 to ship. If you live in Los Angeles and your buyer does too, then the price will go down to $4.75, but if they live in Maine, the same item will cost $8.55 to ship.
I don't know about you, but it seems like most of my customers are not local. I can't imagine a buyer paying $10 shipping/handling on a $20 3 pound item, so I think it could really hurt some sales. Unless the buyer is savy (and most are not) they will simply see in the auction to email for a postage quote. We'll be spending a lot more time figuring out postage, and then when they get the quote may not bid because of the cost.
There is one thing that will change as well, and that is parcel post. Right now, for items under 5 pounds, the difference in price is really insignificant, so most ship priority mail. That will probably change, as there will be a decent difference between the two prices now. For example, a 5 pound package shipped across the country priority mail will now cost $12.15 (It now costs $7.70) but parcel post (8 days instead of 2 or 3) will only cost $9.43 (It now costs $7.25)
It's going to be ugly, get ready to be shipping experts...
posted on March 22, 2002 11:09:19 AM
I think a lot of sellers could use this as leverage to do a mini promo. Really push multi- auction shipping to save on postage costs. In some cases, it would be less expensive to buy a second item than to give the money to the post office.
Also, if you can raise your prices just a bit, you can offer "upgraded" shipping at no additional charge. You have to carefully calculate this so as to avoid really giving it away.
posted on March 22, 2002 01:50:55 PM
Sellers in the center of the country will have a competitive advantage. I'm on the east coast and ship lots to California!
Well, since most bidders don't read auction terms anyway [and mine are very short]. I'll just state something like "$X.00 Priority Mail shipping east of the Mississippi, $50 extra otherwise."
I have a FedEx account and suspect it'll be getting a lot more use after the USPS rate increase.
posted on March 22, 2002 02:18:27 PM
I must say, I am really disapointed in the new Zoned Priority mail service. I've done the whole "contact me with your zip-code so I can calculate the postage" thing before when I shipped via Parcel Post. It is NOT very cost-effective to have to do this. When you figure in all the extra e-mail and time spent on the USPS website, it really increases your shipping costs. Fortunately most of my items are under 2 lbs (I rarely have anything over that). I currently charge $5.00 to ship any item undr 2lbs via USPS priority mail. I haven't received any complaints about this method, even though I occasionaly am making $1.50 handling on some packages. I think I will continue this method and ship anything under 2lbs via priority mail for $6.50 once the new rates take place. Not exactly fair to those in zones close to me... but if I had to apply the actual cost of calculating postage on an individual basis for each auction, I'd be pretty close to that price per package anyhow. How do the rest of you intend to deal with it?
posted on March 22, 2002 02:29:44 PM
Has anybody sat down and summarized how the new rates wil effect Priority mail, 1st Class and Media Mail? Anybody find a chart for those 3, which effects most of us?
posted on March 22, 2002 02:42:01 PM
There's a link on the USPS website where you can get a chart of what zip codes are in what zones (in relation to your zip code)...don't have the link, but type in "zone" in the search box and you should be able to find it. I have the link to the proposed rate increase on first class/Priority (not sure if it's the finalized version or if the link will show up):
posted on March 22, 2002 02:49:12 PM
Information is also available at
http://www.prc.gov/
Good for priority and parcel post rates - Nothing yet for media mail, I don't think they need PRC approval for that, as well as for international rates. I cringe when I think what it will cost to send something overseas, I believe the 1 ounce will easily go up to $1 or more, and multiple ounces will be very expensive.
posted on March 22, 2002 03:26:19 PM
I did as cougerls88 suggested and found this page:
http://postcalc.usps.gov/Zonecharts/
You simply type in your zip code (first 3 digits) and it makes a zone chart (graph) for you. It was exactly what I was looking for. Thanks!
In your auctions, you could say:
--------------------------------------------
Shipping weight = 6 pounds. Shipping will be:
Zones 1, 2, 3 = $8.00
Zone 4 = $9.00
Zone 5 = $10.00
Zone 6 = $11.00
Zone 7 = $12.00
Zone 8 = $13.00
CLICK HERE to see what zone you are in.
------------------------------------------
That could link them to a page of yours with a chart like you got from the link above.
The price for each zone that you put would be your price after you figure in postage, handling, dc, insurance, or whatever your policies are.
You could even have a web page pre-made up with one of these postage policies for each weight: 1 lb., 2lbs., 3 lbs., 4 lbs., 5 lbs., etc. Then you could just cut and paste the correct one for the weight of that particular item.
Hmmmm, I wonder if anyone makes bubble wrap with helium in it?
posted on March 22, 2002 04:30:29 PM
I am a Canadian seller, and we have had the different charges according to the zone # in the U.S. for a long time, also within Canada. We not only have that to contend with, but our packages have to be measured, LxBxD, divided by 165, and if that comes to more than the actual weight, that is the weight charged for, so U.S. sellers, be thankful you don't have to do that too! It means that a large light box can be VERY expensive to mail.
posted on March 22, 2002 04:35:49 PM
I tend to view how the Canadian government runs as a model of how NOT to have a government work. 15% sales tax, taxes on incoming parcels, high taxes overall, I don't think I could stand it. You guys are taxed and regulated to death, I really feel sorry for you.
I read in some ads, "shipping will be no more than $x.xx. The closer you live, the less the shipping cost."
But this could still produce e-mails requesting shipping costs.
I have also seen, "shipping will be via USPS Priority from my zip to yours. My zip is xxxxx, the weight is xxlbs. Please add $x.xx handling fee to cover packing materials."
posted on March 22, 2002 07:26:35 PM
Normally just a lurker here - just wanted to post my two cents - I've found that the easiest way for the zone dependent shipping rates is to provide the weight of the package in the auction along with a link to the Rate Calculator at the USPS site and your zip code. Let them find what the shipping will be to their zip code on their own - saves you the hassle of dealing with all the emails before the auction is over. Then when the auction ends - request contact info on the winning bidder and figure the shipping to the City/State listed there. Just to double check, I make a note that if they aren't shipping it to the city/state listed with eBay that they need to contact me and I'll update shipping. It usually works flawlessly and saves the hassle of waiting for them to respond with shipping address and the multiple emails. Hope that doesn't sound confusing.
posted on March 23, 2002 02:13:39 PM
You're all leaving out one important element, buyers are making more each year with cost of living raises, and business owners raise their prices along with inflation. Say a worker gets a .25¢ cost of living wage, they are making an extra $2 a day. Paying an extra $2 on a package costs the same to them as a year ago in relative terms.
posted on March 23, 2002 11:50:19 PM
OMG, what a nightmare this looks to be.
Shipping accross country will in some cases be 2-3 times the cost of shipping locally. I hope you are not planning to ship a heavy object accross country!
posted on March 24, 2002 12:29:05 AM
The problem is that the bidders choose us, we don't choose them. I can see it now, a bidder places a bid on a 5 pound item, and even though I say write first for a postage quote (there is no way I am going to figure out in advance and list every single postage possibility) they don't write. We then tell them it costs $15 or whatever it costs, and they do not follow through on paying because they believe we are out to get them. They just won a similar item last week and only paid $6 to ship it. Do you think they are going to get it, I don't...
posted on March 24, 2002 02:15:22 AM
UPS, through a reseller (like a mailboxes ETC type of place), has always been a better deal over 3 lbs. - usually costs the same or less than Priority, and includes the insurance and tracking at no extra charge. I'm not sure how else to use UPS infrequently (unlike stores who ship something nearly every weekday, and have an account with UPS), but if someone knows how and can provide some rate comparison with the new Postal, I bet the rest of us would all appreciate it -
posted on March 24, 2002 08:55:40 AM
Check out the rates for federal express home delivery. There's a huge difference between them and the new USPS rates.
Has anyone here done business through fedx?
[ edited by outoftheblue on Mar 24, 2002 08:58 AM ]
posted on March 24, 2002 09:21:24 AM
If you have a web site with some scripting capabilities, you could built a shipping calculator and include this section in your auction. All the buyer has to do is punch in the weight and zip code to calculate the rate.
posted on March 24, 2002 04:53:09 PM
This will make more work for sellers - Ill probably just find a flat rate that averages out over most zones - Possibly the highest rate zones Ill list as a seperate shipping option and note it in the terms. I was also thinking of posting my zipcode with the USPS link and a note saying add my handling of (x) to the rate posted at USPS. It will all work out.
OK4
posted on March 24, 2002 06:59:31 PM
I sell heavy cast iron products. After starting a daily UPS pick up account my business almost doubled.
Yes it cost me $7.00 a week for the service but it's worth every cent. I can now ship merchandise from Alabama to the West
coast and points in between at a much more reasonable rate.
Not only is it better for my customers but also for me. Insurance claims are painless and you also get paid for the shipping cost
as well as the merchandise.
Insurance is free for the first $100.00 and 0.35¢ for each additional $100.00 worth of merchandise. Package tracking is also free for your customer. Not only that but UPS sends your customer an email with tracking information and an expected delivery date as well as other pertinent information. The customers love this feature and once the item(s) are shipped you don't hear from them again until you receive feedback.
There are intelligent and very responsive real people that can be called 7/24 to help you with any problems or assistance
you may require.
Shipping labels and some other supplies are free and easy to order with an 800 number. The software is easy to use and
customer support will walk you thru setting it up if you so desire.
Don't know how I lived without them. I expect to see a large increase in UPS shipments after the postal rates take effect.
posted on March 24, 2002 07:08:40 PM
I honestly don't expect bidders to look up their postal rate. They are just too lazy, and it is sort of confusing. It's just an extra step in the process. Maybe an idea is to post the highest price, and say it will be discounted depending on where you live? I agree that UPS becomes more of an option, but didn't they start charging extra for home deliveries. I do believe that the USPS will see a noticable drop in business because of this, because quite frankly there will be fewer bidders. I do buy items on ebay that weigh more than a pound, and I am not going to pay $10 to ship an item across the country that I just paid $20 for. It removes any incentive to buy on ebay. Glad ebay selling is not a full time business for me...
posted on March 24, 2002 07:35:10 PM
Home delivery is $1.10 more than to a business, but the rates are still cheaper than parcel post and priority mail if the item weighs over 5 pounds. Of course that is going to change with the new postal rates.
At present I ship 5 pounds and under packages by priority mail. I don't use parcel post as there is usually very little difference unless the customer lives close to me.
If the customer buys more than one item and the combined total is over 5 pounds then I ship it UPS.
Example: I have a 60 pound package going to a residence in Hillard, FL 32046 from my zip in Alabama and the cost by UPS is $17.83. By parcel post it's $16.46. By priority mail it's $42.20, but those figures are going to change big time with the rate increase.
posted on March 24, 2002 07:55:06 PM
95% of my auctions are clothes and I have been shipping in the box that is the next size up from the large video box. Most of my single items come in at just over 1 pound. Looks like I will immediately experiment with shipping in the tyvek envelopes. This will make most all my items weigh under 1 pound.
posted on March 24, 2002 08:23:47 PM
rampaged,
Thanks for answering my question in your 10:35 post. I didn't see it before I asked my question. No need to repeat it
posted on March 24, 2002 09:00:42 PM
marcn - I sell clothing too. I went to shipping in tyvek envelopes after 9-11 (because my PO people said that the envelopes travel faster). Don't really know if that was true or not but it did make a difference whether the package was 15.8 ounces or 23.7 ounces. Those boxes add weight.
With this postal increase I am not sure what I will do. Most of my items are either right under 1 pound or right under 2 pounds.
