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  #1  
Old 12-09-2010
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Default Shipping is Killing Me!

I started selling high Volume at these prices $3-$10


Here is whats killing me:
Paypal USPS $1.41 the package Weighs less then 1oz
CCNOW 5% & $0.50 Per Transaction
Ebay %
(I only used paypal when I need money for shipping labels)


Now My Question is their anyway I can get cheaper shipping with Tracking?
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Old 12-09-2010
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The base rate for mailing any type of a package (and that includes bubble envelopes) that weighs one ounce or less is $1.22. Since you are doing this online, they are only charging you 19 cents for tracking, instead of the 80 cents you would have to pay if done manually. So, the $1.41 is the cheapest rate you are going to get.

Shipping the same package that weighs 5 ounces with delivery confirmation is only $2.07. So, they need a minimum fee per package sent and you are obviously hitting that minimum. Annoying, I know.

It will only get worse in the future, as they lose more business. Many bills are now handled electronically and this will increase as companies start charging extra to mail a physical bill.

Netflix won't help, most content will be delivered over the internet in the future - its already starting to happen.

So what's left? Packages and junk mail. And SOMEBODY has to pay enough so that mail carriers can earn $60k+ per year....
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Old 12-09-2010
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Yep yep yep...had the same problem when I was selling items for 5 bucks!

When it comes to this...you have to cut costs at every corner you can.

I bought a rubber stamp to save on labels for my address.
I bought online, and if the item was a CD, fit them in envelopes perfectly sized (not cardboard mailers) for only .44 cents!
I would ship delivery confirmation IF COMPLETELY NECESSARY! (some will argue it's always necessary...this is your call)
I automated the process as much as possible to save time cuz...TIME=MONEY!
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Old 12-09-2010
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Or even better just sell some high profit items along with all your low priced items, that's what I do sometimes I sell stuff for a penny and pay over a buck in shipping and fees and still come out way ahead...
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Old 12-09-2010
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Quote:
Originally Posted by jbuntz View Post
Or even better just sell some high profit items along with all your low priced items, that's what I do sometimes I sell stuff for a penny and pay over a buck in shipping and fees and still come out way ahead...
I wonder this all the time. How can one sell something for a penny and come out ahead?
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Quote:
Originally Posted by kris View Post
I wonder this all the time. How can one sell something for a penny and come out ahead?
It's because the low cost items build fb and establish the account, the higher ticket items is what brings in the profits...
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Quote:
Originally Posted by jbuntz View Post
It's because the low cost items build fb and establish the account, the higher ticket items is what brings in the profits...
That's what most of chinese sellers do.Low price items are just for building the feedback and attract more vistors.The high value products are what they make profits from.
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Old 12-09-2010
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Quote:
Originally Posted by alexzin View Post
That's what most of chinese sellers do.Low price items are just for building the feedback and attract more vistors.The high value products are what they make profits from.
My brain must be closley related to a chinese brain then but physically I'm far from being chinese but I do like eating my teriaki chicken with chop sticks and I do like asian girls so go figure lol...
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Old 12-09-2010
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There are probably legit reasons why you can't just charge for shipping. There would also be legit reasons to start charging too. I charge for shipping on all my sales, no way I'm paying for shipping out of my own pocket. Shipping DSR doesn't matter, as long as you ship fast most people leave 5 stars anyways.

My items would cost $1.73 to ship via USPS First Class Mail not including the cost for having to buy bubble mailers or small boxes and $4.90-$5.45 via USPS Priority Mail. My trick is to charge $4.99 for shipping, use the free Priority Mail envelopes, buyer gets the item 3 days after purchase, 99%+ 5star DSRs and happy buyers that get their items really fast, which helps A LOT when they leave feedback..

Since I don't pay for shipping anyways might as well charge extra to ship items faster, faster shipping > free shipping in the buyer's eyes imo. I never, to my knowledge, lost a sale due to shipping costs either so, just food for thought.
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Last edited by jamblix; 12-09-2010 at 08:44 AM.
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  #10  
Old 12-09-2010
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Yeah only thing you can do is try and get the cheapest supplier possible, also sell at highest possible price.
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Old 12-09-2010
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Quote:
Originally Posted by jeffweico View Post
The base rate for mailing any type of a package (and that includes bubble envelopes) that weighs one ounce or less is $1.22. Since you are doing this online, they are only charging you 19 cents for tracking, instead of the 80 cents you would have to pay if done manually. So, the $1.41 is the cheapest rate you are going to get.
I ship a lot of 2 ounce packages and pay $1.41 each time, but I received a cellphone battery today in a bubble mailer from an Ebay seller that only paid 88 cents for shipping 2 ounces using Stamps dot com.
He sell many THOUSANDS of batteries a month so you can figure out how much he is cheating on shipping. He is putting a few extra thousand dollars in his bank account.
No way my Postmaster would allow me to do this, and it makes it unfair for his competitors, although I know of a lot more that cheat the system.
He ships from the Bronx, NY so draw your own conclusions. Maybe the Postmaster gets a little kickback??
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Old 12-09-2010
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There is a seller in Ohio who sold 53,000 last month.

He sells a similar item that I sell and his shipping is not even close.

He is lying and printing postage out that is not correct as I have looked at his postage cost and it is dead wrong.

He is cheating the system.

To make matters worse he comes to the antique auction that I attend and pays 5.00 for an item and sells it for 5.00. I watched him on many occasions do this. I seen him buy several case knives and sell them for the same price he paid.

I also saw him buy a piece of Fenton glassware for 125.00, sold it for 125.00 and charged 15.00 for shipping. The item probably did not weigh 3 pounds.

And to think they were going after people for over charging for shipping.

He is making money on shipping and cheating the system.

I have always went against the grain on the free shipping stuff and wont sell any item with free shipping.

I will adjust my price to compete but wont do the free shipping.

The system is rigged for your competition to cheat so you have to find others ways to beat them at their own game.
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Old 12-10-2010
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Quote:
Originally Posted by jamblix View Post
faster shipping > free shipping in the buyer's eyes imo
In most cases I couldn't agree more. When they get stuff in a few days they forget the shipping costs. Free [slow] shipping disappointments them. Even though it was free they don't connect the two.

Free shipping bumps you up and people like it for sure. But those same cheap buggers don't like waiting either

But the worst thing you can do is charge too much and have the real amount on package. I still get stuff I buy all the time that I paid $11 for shipping and 3 weeks later it shows up with a $2 stamp. Just asking for trouble there

They may not admit it to themselves, but people prefer fast over free. Human nature when you buy something you want it now
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  #14  
Old 12-10-2010
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I ship most of my stuff first class for free which has an average of 3 days delivery time, that's fast and free...
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Old 12-10-2010
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Same here I offer free shipping on everything I sell. I ship everything first class or Priority Mail the same day it sells if it is before 6pm.
I know exactly how much it will cost to ship a item and factor that into my costs when figuring out what to price a item at.
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Old 12-13-2010
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I know this sounds weird to everyone...BUT, most (not all) items sell BETTER when you have a REASONABLE shipping fee attached to the item. Sounds weird, but it really works. I have done research on this over the past few months working in all different types of sections and items.
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  #17  
Old 12-13-2010
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Quote:
Originally Posted by holymoly View Post
I know this sounds weird to everyone...BUT, most (not all) items sell BETTER when you have a REASONABLE shipping fee attached to the item. Sounds weird, but it really works. I have done research on this over the past few months working in all different types of sections and items.
Yeah, for me I always put free postage and usually my items get a few extra £'s added on, helps with search rankings and increase my DSR. (Mandatory 5 stars for shipping costs ftw - I was getting sick of 4.8 for shipping when everything had "free shipping").

I always find it funny when buyers thank me for the free postage or I see people complaining about being charged extra for postage.... They were charged the highest price the seller wanted to sell the item for, "postage costs" are just for show. In most cases anyway...
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