USPS postal rates increase how will this.....

[Kristy]

With the increase of postage in effect,
has anyone modified their product prices to off set the increased fee as of yet?

[solefoodbk]

I ship with commercial base rates via shipstation. Just checked and the main changes are for everyday people shipping NOT using commercial base rates.

I see we can ship up to 15.99 ounces which is good news. I guess once I process my shipments today I'll see the difference.

[phaz0rz]

Commercial base rates were also raised, and commercial plus rates were eliminated unfortunately. They've also eliminated the Regional Rate C box which sucks, because I used to be able to ship a 30lb package in my region for $10.74.

This increase will have an impact on anyone shipping with USPS. First Class rates are up as well as Priority and Priority Express. The price for any First Class parcels up to 7oz is now $2.60. Which means instead of paying $2.04 to ship a 3oz parcel, you'll now be paying $.56 more.

The only positive change for us is the ability to now send parcels up to 1lb using First Class. For anyone who hasn't noticed the increases yet, just wait. You will haha.

[solefoodbk]

True the prices have gone up.

For what I ship (generally around 8-13 ounces) this is perfect for me. I don't ship to much things under 5 ounces. So actually I think this is a good thing for ME. People will increase shipping rates, I won't.

Safe guard from low dsr's now. Hopefully.

A tax write off anyways ....don't forget.

[yankee]

Originally Posted by solefoodbk

A tax write off anyways ....don't forget.

Yes it is but it is not like you are getting $2.60 off the top, just the percent that is taxable. A lot of people misunderstand that.

So if you deduct $100.00 it is not the same as making $100.00 It is more like saving $30.00 even though you have a negative $70.00

[dealagreeproceed]

Yes noticed the price increase today on 1stclass AND on priority mail (own box)... keep on rolling...

[xxrange]

$2.60!!!!!!

What has gone on with usps

[Dmshark25]

Originally Posted by phaz0rz

The only positive change for us is the ability to now send parcels up to 1lb using First Class. For anyone who hasn't noticed the increases yet, just wait. You will haha.

Thank you phaz0rz for pointing out that USPS now will increase First class mail to 1LB. This becomes huge for me, my main item is always between 15OZ to 1LB 1OZ

So i used USPS small Flat rate boxes and i always have free shipping in my listings. This about $1 per item increase in postage would of squeezed a couple thousand a month from my bottom line.


That is huge that they raised that weight limit, normally id pay $5.25 per item and now ill be paying $3.65 an item. So i get an extra $1.75 added to my profit for each item compared to last month.

Ill need to purchase more shipping supplies but thats only a few cents per item when buying bulk

[HelpNeeded!]

What amazes me is seeing Asian sellers who will list products for $1.00 or so with free shipping.. how is that even possible? They can't really be taking such a loss, or are shipping costs there subsidized or something? Sure for some products on eBay I can get away with a regular stamp if they fit, but I ship with tracking which boosts the price up.

[solefoodbk]

Originally Posted by HelpNeeded!

What amazes me is seeing Asian sellers who will list products for $1.00 or so with free shipping.. how is that even possible?

Cost of doing business.

They NEED those sales and feedback to sustain their account. That's why you generally never see a negative on the first page of their feedback...

[phaz0rz]

Originally Posted by solefoodbk

Cost of doing business.

They NEED those sales and feedback to sustain their account. That's why you generally never see a negative on the first page of their feedback...

They also DO get government subsidized shipping discounts due to some kind of agreement between USA and China.. Must be nice.

I've never had a real problem competing with the chinese though. People like getting their orders in 2 days instead of 3 weeks, so I always point out the difference in shipping time in my listings.

[Hercules]

USPS is making a killing on this. They are paying probably half in fuel cost than they were a few years back, plus this gives Priority shipping a breather/expense discount too.

[phaz0rz]

Originally Posted by Hercules

USPS is making a killing on this. They are paying probably half in fuel cost than they were a few years back, plus this gives Priority shipping a breather/expense discount too.

Are you saying Priority is cheaper now?

I paid about $30 more today in Priority shipping than I would have 2 days ago. I agree with you on them making a killing though. E-commerce is growing faster than ever, gas is cheaper than it has been for 10 years, etc. But USPS has always had financial problems...

[yankee]

Originally Posted by phaz0rz

USPS has always had financial problems...

The most conservative number published by USPS is -$7,000,000.00 a day seven days a week.

I am sure is it a heck of a lot more than that.

[Dmshark25]

http://cnsnews.com/commentary/doug-b...-enormous-debt

[ploughman]

The benefits shortfall is due to a Congressional requirement in 2006 to pre-fund 75 years of benefits in 10 years. Totally ridiculous and something no government agency or private company is required to do.

Even though first class mail is down (that being a money loser anyway), there's plenty of opportunity to operate based on e-commerce + other services, such as some types of banking. They actually had that until the late 60's and still do in countries like Japan.

Congress has been the biggest enemy of USPS viability so far. There's always some special interest trying to block the USPS from getting into their line of business, even though large banks aren't serving large chunks of the population, anyway, and UPS and FedEx have always been cream-skimmers with no intention to serve unprofitable areas like bush Alaska.

But I digress. Unless my postage software is calculating things wrong, INTERNATIONAL SHIPPING and especially First Class International are where the most devastating increases were. A 12-oz. package to Canada that was $9.xx is more like $14.xx, or to other countries one that was $14.xx is more like $21.xx. Am double-checking all this but I may just shut down most international shipments.

[MM78]

LOL, Soon we may be going back to the "Pony Express" if they keep raising prices but taking longer to deliver a damn package!

[yankee]

Originally Posted by ploughman

INTERNATIONAL SHIPPING and especially First Class International are where the most devastating increases

No worries. Just increase shipping fees.

UPS, FEDEX and DHL have all doubled INCOMING international shipping fees since October. Shipments that used to cost me $1800 are now $4200.00
Literally have decreased my bottom line by 25% on small goods and eliminated air shipping for all my large goods and remain profitable.

Point is, The market will just have to adjust. Buyers will pay the fees or they wont get anything from anyone. It will wipe out cheap items being sold over seas but more pricey items will still remain viable.

Sucks but what can we do?

[dealagreeproceed]

Originally Posted by Hercules

USPS is making a killing on this. They are paying probably half in fuel cost than they were a few years back, plus this gives Priority shipping a breather/expense discount too.

great point actually. oil is super cheap so their saving on that and at the same time increasing prices... hmmm... correct me if im wrong but I know they usually increase rates like once a year but this year they seemed to have increased it by much more in some areas,weird...

[exxomscp]

And they say the economy is doing great...

Inflate my DONG.

HA!

[rsot]

Fugging shipping rate increases....ugh

[dealagreeproceed]

"inflate my DONG" hahahahahaha...