eBay Seller Explodes Sales with this Shipping Tip

August 21, 2010

Here is a tip from Jay Eichler, owner of The Ultimate Thomas Store, http://www.ultimatethomas.com, that he say “exploded his sales in the last year.”

“Up to last year, I was a seller on eBay (and via my own website) which shipped most of my orders (under 3 lbs) via USPS. I would use their website (usps.com) to generate the labels and ship via Priority Mail. The shipping labels I purchased especially to print in the dimensions required by Click-N-Ship (or PayPal shipping, for those that use it).

I decided late in 2009 to upgrade my entire shipping station and purchase a thermal printer (purchased reconditioned off of eBay for ¼ of it’s “new” price) to print my labels. In addition, I upgraded to a USPS-approved shipping service (in my case, Endicia), which then allowed me to offer First Class shipping of my items which could ship for under 13 ounces. Yes, this would mean that I would not be able to use the “free” shipping supplies offered by the USPS for Priority Mail shipping, but I soon realized that the boost in sales my items would get would far outweigh the benefit of the free supplies.

The result of this combination of changing shipping service methods, as well as the thermal printer (which you can get labels for free if you have and use a FedEx or UPS account) has resulted in a surge in sales due to the lower prices I can offer. While I am paying for the Endicia service ($15.95/month), my costs are still lower due to the free labels and since I use a thermal printer, no use of printer toner.

I’ve said it before, and I’ll say it again…this was the best thing I’ve ever implemented to help my business.”

To provide you an example of the savings, I looked up how much it would be to ship a 12 ounce package from New York to Beverly Hills. As you can see below, a First-Class Package is $3.09 compared to Priority Mail with the online discount of $5.44. The savings is 43% which is HUGE for an eBay seller. Thank you Jay!


What You Don’t Know About Shipping Will Cost You Plenty!

May 16, 2010

When it comes to shipping packages, I am known as the expert (at least in my family). I have been in this industry since 1976—too many years to add up in my head. I can almost intuitively look at a package, guess its weight, and declare what the best carrier and service will be. Who needs rate shopping software?

So, when my wife asked me to ship a “care” package to our 25 year old son in South Carolina, I knew the best way to ship it. I made the following assumptions:

  • The package was light—weighing 5 pounds.
  • It was being shipped residential.
  • It was going a relatively short distance, from New York to Charleston (as compared to a zone 8 which would be cross country).

So, based on what you know about shipping, which carrier would you choose?

My choice was the US Post Office. We all know that the USPS is the best way to ship light-weight, residential packages; right?

I went to www.usps.com and selected the option to calculate postage. Here are the results:

Can you imagine that I was shocked! I couldn’t believe that this package was $20! So, I did the next thing a savvy shipper would do, I went to www.fedex.com to compare rates. Here is what I found:

My cost was $11.86 with FedEx Home Delivery for the same level of service as USPS Priority Mail at $19.50 (with my discount for paying for postage electronically).

I saved $7.64 or 40% by choosing the carrier that I assumed would be more expensive!

Now, my dear readers, who can figure out why this happened? Please comment your thoughts on why the USPS was 40% more for this light-weight residential package. In my next post, I will share the answer. There was a reason my assumption was wrong.

In the meantime, don’t assume that you know because what you don’t know about shipping, could cost you plenty!