posted on March 31, 2002 09:42:15 AM new
With the coming postal rate hikes, I am considering my auction end times will be focused more on my local buyers. I suspect most buyers prefer paying for Zone 1 rates instead of Zone 5 rates if possible. Are you considering changes with the new postal hikes?
posted on March 31, 2002 09:52:51 AM new
The only change I plan to make is quit shipping with the postal service. I'm going to run everything via UPS... and now I have to buy boxes!
posted on March 31, 2002 10:03:56 AM new
I have mainly been shipping via priority mail but with the priority rates going up, I just bought a supply of the Tyvex mailers in different sizes so I will be shipping via parcal post, book rate & parcal post more often than before......Bulkier & more fragile items will be shipped via UPS......as far as shipping boxes, in 2 years I have never had to buy any boxes......I have plenty of businesses locally that allow me to take their excess that their supplies are shipped in.....so that is not an expense for me.
posted on March 31, 2002 10:37:05 AM new
may as well,usps shipping does not help when it comes to chargeback.
dc is worthless,certificate of mailing is worthless.insurance is 1.10 while ups is included.
posted on March 31, 2002 10:40:11 AM new
I had UPS for a year and they broke so much stuff it was sickening. I am now switching to FED-EX The rates over a few pounds is fantastic and like UPS they provide tracking and insurance. Much cheaper than Priority and they pick them up...no more lines at the post office.
As for boxes. Yes, I have businesses that donate boxes and peanuts and I also have a gal at the local box shop that calls me when they have overruns on boxes they print with companies logos, etc and I get them for less than 25 cents each.
Good luck, but no, I won't be changing the time I end listings.
There's no danger of developing eyestrain from looking at the bright side of things!
posted on March 31, 2002 10:54:55 AM new
I am not quite ready to go to UPS for most items, but I will be checking the rates. They are not conveniently located here, the Mail Boxes Etc. (Even though they are owned by UPS) charges too high of a surcharge, and I don't ship enough heavy stuff to have them pick the stuff up from me)
My strategy is for the 1-3 pound stuff, to either change the packaging method (Go away from their heavy boxes, which add a decent amount of weight) and find lower weight shipping supplies, and give the buyer more options to ship via parcel post. It will take longer, but if they can save $4 on shipping, they might like it.
One thing about the new rates, it will not be possible to really quote the rate like I do now, so I will have to say contact me and I will give them Priority Mail, and Parcel Post rates...Lots of more work on my end (and yours too I am sure) but unless I leave ebay, what choice is there?
posted on March 31, 2002 02:15:59 PM new
"One thing about the new rates, it will not be possible to really quote the rate like I do now, so I will have to say contact me and I will give them Priority Mail, and Parcel Post rates...Lots of more work on my end..."
What I plan to do is include my zipcode and the package weight in ads for items that will ship priority, plus a link to the zip code/zone page at the USPS website. Buyers who are seriously concerned can figure it out for themselves. Of course, I will get some email because some buyers are too lazy to figure it out, but I think this will cut down considerably on me having to answer a lot of postage emails.
Neither FedEx nor UPS are viable options for most of what I sell, which averages 2 pounds or less. What can still go first class, will. If things must be shipped priority, well, them's the breaks. Parcel post used to be a bargain, but it is also zone-weighted and now that priority mail will be, too, I feel pretty sure there won't be much of a price break. And in fact, now at medium weights, there's only a few cents' difference.
posted on March 31, 2002 02:47:05 PM new
As to breakage, I have shipped thousands of packages over the years via both UPS and FedEx Ground (when it was called RPS) with little problem. Overall, the Fedex ground had a higher damage rate than UPS.
There are guidelines and standards for packing and shipping fragile items via UPS and Fedex ground, and I strongly urge anyone planning to ship via these services to read and HEED what these services recommend as basic standards. It may surprise some of you.
Most damage, short of having a small box run over by a truck or caught in the gears of a conveyor, can be prevented.
Much of what I buy via ebay does not come close the to the standards they set out, and this is the cause of excessive damage. Using inappropriate second hand boxes with insufficient dunnage (protection) is the primary culprit. It comes from sellers being cheap an seeing packing as an expense, not an investment.
Then again, I am surprised at the care and professionalism shown by the minority of ebay sellers who know what they are doing when packing up my goods.
[ edited by litlux on Mar 31, 2002 02:48 PM ]
posted on March 31, 2002 03:53:31 PM new
I think buyers are more concerned paying a fair rate (not getting ripped off), and if USPS rates go up, then all ebayers who raise their rates accordingly is charging a fair rate.
People aren't really paying more for shipping because people's wages, and ss benefits etc all go up as cost of living increases.
The last PO rate was quite high yet people kept right on buying and no complaints on my end.
posted on March 31, 2002 04:15:48 PM new
I think that at some point, expense will outweigh convenience and we will lose buers in certain categories where price is not so much a competitive point.
Common goods are easier to buy online cheaply, but when the postage to send them cuts too far into the savings, people will simply switch to buying them locally.
Uncommon items, collectibles, etc., display a little less elasticity. If you absolutely cannot get the thing within 100 miles of your home, you WILL buy it on eBay regardless of the price of shipping, unless of course it has gone completely out of your price range.
I'm trying to avoid low-profit items with relatively high shipping for that reason. I'm also specializing more in specialty goods that aren't commonly available to most people (antiques, etc.). Those who are in the market will more easily bear a raise in shipping.
posted on April 1, 2002 09:28:13 AM new
Yesterday I packed some stuff to send to New York (I'm in Indiana) and the box weighed about 6 pounds.
Went to the USPS site and it was going to be $8+ for priority mail. Went to the FedEx site, put in the zips, weight, and measurements and sent it by FedEx ground for $4.94 which included tracking and $100 insurance.
Opened an account online, printed out the shipping label, paid for it online, and dropped it off at the FedEx terminal this morning.
No lines, no smarta$$ clerks, smooth as silk.
I'm always kinda amazed (well, not really, it is kind of a government agency) that the USPS won't look internally for ways to boost their productivity and profit rather than rely on rate hikes to make ends meet.
Seems like almost every move they make says "Hey, why don't you try UPS or FedEx?" Then they wonder why their market share drops.
posted on April 1, 2002 09:38:56 AM new
The last USPS rate increase paid for a brand new post office in our town, with new computers and a new software system. I guess this next one will go towards checking packages for anthrax or something. There's a FedEx drop box convenient to me and I will check out their rates. I don't like spending more and my customers don't either.
posted on April 1, 2002 09:45:02 AM new
One reason USPS finds it difficult to be competitive with the other services is that it is required by law to perform services that the others aren't.
No other company has to deliver regular first-class mail all over the U.S., including places that UPS and FedEx don't go. The postal service is responsible for delivering all our magazines (and junk mail) as well.
It has to walk a fine line between charging enough to cover these services and keeping first class prices down to a reasonable level. It requires commercial mailers to do a lot of "postal work" to qualify for lower rates (presorting mail, etc.). Joe Blow can drop an envelope in a post box with a partial address scribbled in pencil and probably 90% of the time it is delivered... for 34 cents.
I'm not defending the sometimes shoddy service and snotty clerks, but it's important to realize that the postal service has a much larger mandated job than any of the other delivery services and that some of its rates subsidize services it cannot charge enough for.
posted on April 1, 2002 10:29:21 AM new
I just wish everyone would stop complaining about the USPS rate hike. Still, the United States Postal Service is one of the cheapest in the WORLD! Trying mailing packages in Great Britain, France, Australia and see how much they charge for shipping! I lived in Great Britain and France for a few years and believe me it IS NOT CHEAP to mail even a letter! Inflation and other economic factors influence a rate hike by the U.S.P.S as well as other carriers in the business. I am in no way associated with the Postal Service, but as an eBay seller, I can honestly say that with over 4,000+ packages shipped solely by the USPS, I may have only had one or two broken items and only one package never received! I think that is a pretty good track record.
posted on April 1, 2002 10:31:10 AM new
I'm waiting for FedEx and UPS to announce their rate increase. They usually follow pretty closely behind the post office!
posted on April 1, 2002 02:45:25 PM new
As to being the cheapest, that might have applied a few years ago. Currently it costs 48 cents in Canada to send a first class letter, that is less than 30 cents with the rate exchange. The problem I have is that the increase is so huge over a short period of time. A 20 ounce package from LA to New York cost $3.20 on January 1, 2001. On July 1, 2002, 18 months later, that cost will be $5.70 - That is an unacceptable increase over such a short period of time. Don't get caught in the propoganda of the post office, "It is only a penny more" or only a few cents more. These are substantial increases that affect us all. Even if you don't buy or sell on ebay, a lot of businesses you shop at do use them to receive merchandise, and trust me, you will be paying the increase.
posted on April 3, 2002 07:02:00 AM new
I guess you guys know that FedEx is carrying all of the priority mail now, don't you? The post office quit flying (or thats what my PO told me). FedEx is also placing their drop boxes at the PO's which is part of the deal between the 2.
I'm starting the transition to UPS today. Once all my priority ships, bye bye post office. I'm not happy about it eiether.
posted on April 3, 2002 08:39:05 AM new
I love my post office. I get great service and am on great terms with all the clerks.
However, another rate increase is a little hard to swallow. They just finished building a new multi-million dollar post office with a new computer system. That money didn't come from nowhere. It came from eBay sellers shipping priority mail items. (I spend an average of $50 to $100 per week, and I'm just small potatoes.)
The PO's expenses haven't doubled. It's price gouging. As ahc3 pointed out, rates have nearly doubled in just two years. I'm running a (small) business, not a charity. So I must look for cheaper ways to ship. There's a FedEx drop box right next to my job.
posted on April 3, 2002 08:47:42 AM new
Everyday, and I mean everyday, my mailbox is full of junk mail that all immediately goes into the recycling bin. Why can't the USPS raise those rates enough to help pay for increased costs instead of greatly increasing the Priority Mail?
posted on April 3, 2002 10:25:50 AM new
They should use the rate hike to hire more people to faster process media mail. Did you notice on the rate chart it now says estimated delivery is now 8 days vs before it said 4 days?
I'm seeing an average of 10-14 days in the last month, with one over 45 days and another at 18 and counting. Pathetic. Could be their attempt to persuade us to use Priority.
posted on April 3, 2002 10:38:12 AM new
bidsbids, the Po only raises rates on the class of mail which is losing money. If they lose money on Priority, they raise rates just on Priority.
Since the PO gives Fedex much of the Priority Mail; their first class is going down hill, what is going to be left of the PO? I'd like to see Fedex take over the PO system. Obviously the PO has an antiqued operating system, the volume they do would be the envy of any company yet they are struggling.
posted on April 3, 2002 10:57:34 AM new
"I'd like to see Fedex take over the PO system. Obviously the PO has an antiqued operating system, the volume they do would be the envy of any company yet they are struggling."
===============
Hoo-boy. If that ever happens, Saturday delivery will disappear immediately. So will rural route delivery (or you'll pay a hefty extra charge). First class rates would jump sky high, and there would be lots of other changes that most of us would not like at all.
Much of the "volume" that the Post Office does involves delivery services that no rational for-profit business would be willing to do...or willing to do for so little money. The PO is mandated to provide these services; FedEx and UPS are not. That's one of the reasons they can essentially "cherry pick" the stuff they want to do and charge a price that is very nice in comparison to the PO. If they actually had to compete with the USPS and at the same time provide identical services, I think you would see that they couldn't do much better.
posted on April 3, 2002 12:27:28 PM new
Not necessarily. Fedex could have a new division that takes over the PO. They could close some PO buildings that are only a few block apart, and the increased efficeincy could cause prices to drop. Po employees are paid more, have no profit incentives and are thus not adapt to compete.
posted on April 3, 2002 01:14:34 PM new
Quickdraw, that is totally wrong. They do not raise rates on specific parts of their business that lose money. They don't even necessarily get what they want, they usually try to raise rates across the board, and only some of them are approved. Priority mail is a HUGE profit center for the Post Office, since it is a scam. They give you cheap packing supplies, process the mail the same way, and charge up to TEN TIMES the price it costs to deliver. If anything, a first class letter rate of 34 cents is subsidizes by other services. If they raised only parts that were losing money, it would cost $1 to send a letter...
posted on April 3, 2002 01:24:10 PM new
I've lived in a lot of places, and have never seen a situation where two government-run post offices were within a few blocks of each other. Perhaps you are thinking of the contract P.O.s, operated by retail firms, drug storse, etc., who pay for the privilege(not the Mail Boxes Etc. type companies). The contract P.O.s actually EARN money for the USPS, as they pay a nice fee to open up a window at the back of their store and thus get new customers for their regular business.
Very few employees DO have a profit incentive to work harder. Most firms don't offer performance bonuses or profit-sharing. Employees will never have the same commitment to the bottom line that owners do...and why should they? Their own personal "bottom line" is always going to be most important to them.
Believe me, people have asked over and over why postal services are not completely privatized, and I gave you the highlights of the reasons why not. In fact, the USPS recently sent out a survey asking about possible cost-cutting measures it was considering, and one of them was eliminating Saturday delivery (obviously a big winner in the savings department). It was turned down resoundingly. And it's almost certainly the first thing any private firm would insist on.
I'm old enough to remember special delivery, when a postal delivery person came directly to your door at any time of the day or night to deliver one letter. I can recall getting mail on Sundays during the holiday season, and two or even three deliveries a day during the same peak rush time. And it was relatively cheap--about 3 cents a letter back in the early 1950s, to 10-12 cents in the mid-1960s.
Of course, gas was about 25 cents a gallon then, and you could eat lunch in a cafe for about $1.00 including a tip. A new car cost $1500 or $2000, and a new house (even in CA) ranged from $10,000-$20,000.
One thing that could happen even now, would be to insist that letters be addressed via some standardized label or format--typed on a computer, or printed out from some central location. I think it would go over like a lead balloon, but it would massively speed up delivery and probably offer some cost savings as well.
posted on April 3, 2002 01:24:55 PM new
ahc3, where do you get your information?
The USPS seeks rate increases where they are losing money. Why do they lower some first class rates and raise other classes? That blows your $1 for first class theory away.
The USPS seeks rate increases when they are in the black too. They've done it in the past so they would make sure they avoided being in the red. A lot of the problems of the USPS are labor costs, those can not easily be divided into profitability of different classes of mail.
I don't know if you know the process, but it is pretty complicated. The reason some rates go down is because there is a board (postal rate commission) that really sets the rates. When additional ounces went down in the past, they were reduced by this board. The USPS usually submits an increase that is higher than what goes into effect. This board takes about a year, and then tells them what they can have. They usually complain, and if the Board of Governors is all in agreement, they can override the postal rate commission.
The USPS does not usually get what it wants, but most of it. That is why this rate increase is unprecedented, because they got what they wanted without a fight. However, they do not raise certain rates because of profit or loss of that service, but try to get in the black overall. Priority Mail is a strong profit center for them, and will get even better with the new increases.
posted on April 3, 2002 01:45:36 PM new
My city has two PO's within 10 blocks, and another two that are within a mile. The PO sets it per neighborhood, maybe they think they shoud be like convenience store like 7-11! USPS and Fedex each have one company outlet in my city. I think there are more PO's in my city than 7-11's!
If employees at private companies don't keep up their productivity they may find themselves without a job, just like during the recent economic slowdown. The PO hasn't had any layoffs. Many companies also send out their labor to other countries where it is cheaper.
The PO has closed most windows except one on Saturdays. They have discussed dropping Saturday deliveries too. Belive me, the Po will eventually drop Saturday delivery. The PO is a joke, lines 10-15 deep and one person working at the counter. The contract stations are better and should be used exclusively.
posted on April 3, 2002 03:53:53 PM new
One strategy is to include a one-size fits all shipping price with Buy It Now.
If it costs $8 to ship to Alaska (probably the furthest US point for most), offer FREE SHIPPING with Buy It Now and include the One Size Fits All shipping in the BIN price.
