posted on June 15, 2002 04:37:33 PM
For those who use UPS or FedEx, this applies
to the USPS only. This thread is not meant
to be a discussion of different companies.
You can start a new thread to discuss that...
Now, the USPS is raising their rates for the
3rd time in 18 months (apparently to rent
Grand Central Station again for another party)!
I've always offered a flat rate up to 5 lbs.,
and for items heavier than that said "cost will
be based on distance and weight", but the USPS
has stopped offering flat rates from 2 to 5 lbs.
The way I see things, other than switching to
another shipping company, that leaves two options:
First, I can still offer a flat rate based on
the rough average of the different postal zones
(ie., $4.75 to $8.55 for a 3 lb. package, equals
$41.20 for the 6 columns, divided by 6 = $6.87,
so say $7.00). The current rate for up to 3
lbs. is $6.45. Using this system, some people
would pay more than needed, and others would
pay less, but you would still be able to offer
a flat rate. On average the costs would offset
and balance over time (I'm concerned with my
bottom line, ie. not paying for customers shipping
costs). I've been thinking about this for days,
but seeing it in print now, I don't like it! It
smacks of socialism, like the current system.
Second, you could list a range, including
something like this in the item description,
"shipping is $4.75 to $8.55, depending on
distance from my USPS Zip Code of 44129."
I think this is the best way to go, as it
is fair to everyone. I'm in Cleveland, Ohio,
and it isn't fair for someone in Detroit to
pay the same price as someone who live in
Los Angeles. It is further to L.A., so it
should cost more. Price controls have
never worked. Of course, we will all lose
some sales due to this postal increase,
until people get used to the new system.
I think the time is right to contact your
Congressmen and Senators concerning
privatizing the USPS! In the meantime, I
guess I will go with option #2.
Z
---
"Cannot say. Saying, I would know. Do not
know, so cannot say". -- Zathras (Babylon 5)
posted on June 15, 2002 06:32:36 PM
I've decided to follow the KISS rule...
It's difficult enough just getting any kind of a response out of buyers...let alone a 1st email for ZIP & a 2nd email with the appropriate charge...SO...
I'll keep my present FLAT-RATE charge of $4.99 for 1-2 lbs, but will switch to PARCEL-POST
posted on June 15, 2002 06:34:54 PM
I decided to go with your Option 1, made up my mind on it a few weeks ago. I am not listing this summer, so I will watch other sellers, see what is working and not working, and I will be flexible enough to change my mind if necessary.
The reason is my customers are a mix of dealers and end collectors, mostly affluent. I started putting fixed rate shipping costs in my auctions over a year ago, being careful to state that the cost included shipping, handling and insurance. The buyers liked the change and the results were positive:
1. No more emails asking about shipping costs;
2. More than 90% of completed auctions were paid within 24 hours via Billpoint or Paypal; and
3. Customers felt like they got a good deal when an auction ended at $500, instead of $100, but they paid for insurance based on an estimated final price of $100 - and they came back to bid again and again and again.
I am going to watch my categories carefully. I am focusing the summer on acquiring specific high-end inventory for the winter months. I feel that the increased postal rates will make some items that used to be profitable in my categories no longer as alluring to the bidders. I started changing my inventory mix after the last postal rate hike, because I felt at that time that the next postal increase would decrease customer demand even more. My tactics have been effective so far, in that focusing more on higher selling items with larger profit margins, and decreasing the total number of active listings, has given me steadily increasing profits at a time when many eBay sellers are crying the blues.
What is important is to always think ahead, anticipate factors which we can not control such as dramatically higher shipping costs, and be flexible enough to change the inventory mix before the outside market forces affect our sales. What is next? The clerks at the post office say to expect no more free supplies by the end of this year.
posted on June 15, 2002 08:25:33 PM
Parcel Post is going to the sliding scale same as Priority, just a touch cheaper with longer delivery rate. and in my opinion they are pretty rough on merchandise as opposed to Priority.
posted on June 15, 2002 08:32:03 PM
I'm going with a range as well. I'm in the Midwest and don't think averaging the zones would be well received by my Buyers. My zone 1-4 Buyers would be paying a $2-4 "handling" charge to offset the zone 8 Buyers. Since the postage amount is printed on the package (unlike UPS and FedEx) it would be clear that they overpaid on the postage.
The 2 emails to complete the shipping charge amount with the Buyer will be a drag, to say nothing about the "Ask Seller a Question" emails asking for a shipping quote for their zipcode.
uline.com is a great source for boxes. I recently got 10X10X10" boxes for 39 cents/each with only a 25 minimum. They ship from 5 different warehouses across the US and you can pick up if you live in the Chicago/Minneapolis/LA/Newark/Atlanta area.
posted on June 15, 2002 08:37:04 PM
Actually this thread does apply to UPS also. Probably Fedex as well, but I don't use them. Shipping through UPS is also done with zones. I ship between 50-60% of my packages UPS because the the weight of the items I sell. What I do is get the contact info of the buyer which will include the city & state of the buyer. Most of the time this works unless someone has moved, but that is the exception to the rule. With their location known, I go to the UPS site and figure the shipping there. It works well. I also have done it at the USPS site, but mostly for international shipping. Starting the end of the month, I will be doing it for my light weight items to see the best way to ship. Yes, it is a little more work on my end, but that is the cards we have been dealt.
Also, it would be nice to recommend to ebay and all of the others auction sites that bidder info be included to the seller in the end of auction notice.
airloom,
parcel post already uses the sliding scale that priority is changing to at the end of the month. Just in most cases with items under 3 lbs, it was just better to send it priority.
[ edited by caffeitalia on Jun 15, 2002 08:45 PM ]
