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Shipping on a larger scale
 

Alright, guys. I have noticed there are many niches for products under 15 dollars with decent profit margins considering the total cost. But the major elephant in the room tends to be shipping eating the cost to death.

My question to you bigger guys in the market--- How can you get cheaper shipping than First Class with tracking to meet requirements? If only I could ship less than a pound for a dollar, then I could maximize several markets.

Re: Shipping on a larger scale
 

I personally dont know of anything cheaper then the usps first class. Maybe take a look as fedex smartpost and ups. What you can do if you have not already is cut shipping cost is get a thermal printer and the will eliminate ink and you can bum free shipping labels from ups and you can get free shipping supplies like usps padded envelopes for free.

Re: Shipping on a larger scale
 

Haha. This is why I always examine the shipping method used by Amazon when I order anything from them. They're so tight with USPS they can send a package using the "parcel select" mail class and have it delivered in 48 hours plus have it delivered on a Sunday. I hate those guys. Every carrier Amazon uses ships their packages at a loss just to keep their business. Must be nice.

Anyway, I seriously doubt you'll find anything cheaper than First Class mail. I've done plenty of shopping around and have never had any luck. Unless you're shipping several thousand packages weekly, the rates offered by UPS Surepost/Fedex Smartpost aren't going to compete with USPS First Class.

To the best of my knowledge the only cheaper options you're going to find are shipping with a stamp, or shipping your packages as flats. Neither option comes with tracking. Stamped "letters" can't be thicker than 1/4" and flats can't be thicker than 3/4", so there isn't a whole lot you can ship with either of those classes.

On a side note the new USPS rates really suck, don't they?. I'm getting tired of USPS punishing shippers for their stupid employee health plan obligations.

Re: Shipping on a larger scale
 

Yeah, the new rates this week are gonna suck up some margin big time this year. On the upside, they broke up the 1-4oz and 4-8oz rates for a little better savings for lighter stuff.

Re: Shipping on a larger scale
 

Ship a pound for a dollar or less... what the heck dude... dream on!

Might as well ask which carriers will ship for free! LOL!

If only my suppliers would give me product for nothing I could maximize several markets too - think of how my profit margins would go up then!

Re: Shipping on a larger scale
 

Thanks for all of the replies, guys.

I see people selling so cheap on eBay I honestly wonder how they get the product that low. They must be making pennies or buying 1000s and now listing the inventory completely.

I, too, have had to start eating the rate hike. That nickel and dime adds up at the end of the money when you ship hundreds of packages.

Re: Shipping on a larger scale
 

In reality the United States has one of the cheapest most efficient postal systems in the world.
It's a given that these prices are going to continue to rise every year so if your selling on the margins you should find a product that can obsotb the cost of shipping.
It's not easy but it is very possible to find products that sell at a 3 $ 400% mark up and higher.

Re: Shipping on a larger scale
 

Just noticed your post. Unfortunately though it doesn't make any sense.

There are no savings for lighter parcels with the new rates. On the contrary it's now more expensive to ship light parcels. It's now $2.61 for 1-4oz parcels, and $2.77 for 5-8oz. Previously it was a flat $2.60 for 1-8oz. I'm failing to see where you see any savings. It now costs a penny more to ship 1-4oz, and $.17 more to ship 5-8oz.

Please elaborate, lol, because I would really like to get the savings you're referring to! :thumb:

Re: Shipping on a larger scale
 

I think he was trying to say that it is nice that there is a gap between 1-4 and 5-8oz so instead of all under 8oz being 2.77 1-4 is 2.61 ect.

Re: Shipping on a larger scale
 

all under 8oz for 2.60 was the best. shipping is the least of my worries for small items. i'm getting ra.ped way worse from seller/listing fees in various market places.

Re: Shipping on a larger scale
 

In conclusion, people have to either A. have massively lower wholesale cost than general sourcing, or B. have some kind of retail wholesale agreement with a massive carrier. I am leaning towards A with the difference in yuan and dollars, and the time cost not shipping it DHL or express.

Re: Shipping on a larger scale
 

You hit the nail on the head. E-commerce is global so platforms like Ebay are the most competitive in history.

It's really hard to be profitable in certain niches until you're able to bring inventory in by the container load, or you're able to go to China and source products in person. Nearly all sellers big sellers are importing from China, so you'll need to get creative in terms of extracting a profit from the yuan/dollar differential.

Re: Shipping on a larger scale
 

Although I'm sure I could make the venture profitable, the opportunity cost of that much inventory for that small of profit would not be effective. I guess I will stick to mid-tier items that go for 10-50 dollars and under 2 pounds.

Re: Shipping on a larger scale
 

That is mostly items shipped out of China, they always have the lowest prices. BUT it takes a month plus to arrive......