Flat rate shipping can be the best opportunity to save on shipping and it can be hazardous to your profitability. The big mistake that many eBayers and online sellers make is to assume that it is always the best deal. eBay’s new requirement for a shipper to specify shipping costs makes flat rate shipping even more tempting.
Whether or not it is the best shipping method depends on how much your item weighs.
Here is a rule of thumb guide for you to help determine if it is a good deal or hazardous.
The US Post Office has a Priority Mail Flat Rate Box in which you can put any amount of weight for only $8.95. I have put as much as 14 pounds in this box. The same weight with another service (Parcel Post) or carrier would be twice as much. This is a GREAT deal because you don’t have to worry about fuel surcharges, residential delivery charges, or delivery area surcharges.
However, if you are shipping four pounds or less, it may not be the least cost shipping method. And with the new “Best Match” eBay functionality, it might even be hazardous to getting the sale. A four pound box could be $5 or less to ship. This is 44% less.
My advice is to compare rates amongst different services and carriers to make sure that flat rate shipping is the best deal for you.
Taylor’s Tip #7: Use Flat Rate Shipping Prudently