Join hands to get cheaper shipping rates

[spidersportsgoods]

The recent increases in Canada Post rates are going to affect our business in a very negative way. I assume that it will affect most of the other power sellers as well.

I am sure this has been suggested and tried before - but I just thought I will give it another shot here.

Can't we form some kind of registered entity say "Power Seller Consortium of Canada" to get better discounts from shipping agencies for our collective shipping volumes. I am sure there are some complications along the way like paper work etc. but if people like the idea - we can all do our little share of the work and make it happen.

Thanks

[catseye*]

I think that was already tried...with very bad results.

[shoplineca]

Talked about before, investigated and talked about again.

In a nut sehll, forget about dealing with CP and referring about eBay business to get your best discount.

Second, CP wants only one client for the account so a corporation would have to be formed that would bear the financial responsibility should one or more members not pay their account.

The best rates negotiated will not affect the majority of people who wish to take advantage of the better rates, that is those people shipping small packets.

A couple of us have almost the best CP rates for other services already and the number of additional packages shipped by people joining probably wouldnt be enough to get us to the next and level (Level 4) so we would not have any incentive to join.

I would suggest you look at your local Chamber of Commerce and see if one of the benefits is an already negotiated cheaper rate.

Or in your case, perhaps their is a Canadian billiards association or sporting goods association that you might join should they have already negotiated substantial membership benefits including CP shipping rates.

One of the problems with setting something like this up with CP is the discounted rates are generally given according to the shipper's postal code.

As an example, I have a standard commercial shipping book with rates that is cross referenced to a special postal code sheet, prepared expressly for my business according to where I ship from. I cant move from Ottawa to Toronto and use the same document, and a new one would have to be prepared based on my new postal code. CP looks at their cost in moving my mail from where I am shipping it from, not a general 20% or 40% discount for all shipments.

I am not trying to shut you down on the thought, its just that this has been explored quite abit about 2 years ago and it comes down to the fact that many sellers wanting discounts will never get them from CP as CP never discounts those services.

And then the liability issue over who will accept responsibility for the non-payment of CP invoices (not to mention the headache in trying to reconcile who is responsible for what CP bill.

If such a partnership was established, that group would have to employ fll time staff of at least one person just to reconcile the accounts and follow up on non-payment or late payment by members. Then CP will expect to see one payment coming in.

Too much work and risk, I believe for the benefit (savings) that could be derived.

Malcolm

Malcolm

[javax.swing]

Have you already signed up for the PowerSeller CP discount? For not having to talk to anyone or negotiate rates, it's pretty damn good. I discussed this in another recent thread.

[spidersportsgoods]

Hi Malcolm

Whenever I have called CP ( and I tried on several occassions ) - the only answer I get is that I have to ship minimum 50,000 pieces in a year to get ANY discount more than V1.

Is there any way you can hook me up some more discount?

Thanks

[spidersportsgoods]

CP eBay Seller discount is pretty useless for us because it only applies to USA/Canada deliveries. The international deliveries do not get any discount through the eBay agreement.

[catseye*]

Is there a difference between the V1 discount and the PS discount??

[shoplineca]

spidersportsgoods
What method of shipping do you use? Express Post, Expedited, Puroloator, Regular Ground, Regular Airmail, small packet?

There are only so many discounts available and for the most part, if you ship Express Post, Expedited and Purolator, you can get a Canadian discount.

Their discounts are however the same for the US and Offshore for all commercial accounts (those that are registered with CP and given a commercial account number). This is different than V1 and PS discounts and any refernce number they may have given you for those discounts.

Few other discounts are available for the other services.

The bottom line is CP is so big and with virtually no competition in the small packets and regular mail including airmail, they dont have to give discounts.

The problem with offshore is that CP's costs go up dramatically to provide offsore delivery as they self-insure so all losses incurred in the us or Erope are 100% paid by CP with no recovery from the foreign carrier that may have lost the package or damaged it.

Also, CP must pay those other countries almost full fare to take your package that extra distance, at the same time, the majority of CP's expense is still moving that item around Canada to the point that they turn it over to the foreign postal company.

I'm not trying to stand up for them, just point out that it seems providing offshore service is more of a pain for CP than a money maker and they dont have any room to move to offer much in the way of discounts due to increased risks and handling problems and costs.

Malcolm

[javax.swing]

catseye*, have you read the following thread? It's only a few down from the top and it discusses what the PowerSeller discount equates to in my case:

http://forums.ebay.ca/thread.jsp?forum=44&thread=100017316

spidersportsgoods, I suggest you read that thread too. It's far from "useless", unless you like paying counter rates.

"The international deliveries do not get any discount through the eBay agreement."

While this is true, if you ship online you still get 3% automation savings on those services. Also if you have a contract, you still pay old Small Packet rates, as the new rate hike was only for COUNTER RATES.

[javax.swing]

Actually catseye*, you did read that thread and posted a reply to it!!!!

The answer to your question about PS discount versus V1 is earlier in the thread:

http://forums.ebay.ca/thread.jsp?forum=44&thread=100017316&message=100406005#100406005

That post details the discount I'm getting simply by going to the PS homepage and following the CP link to signup for an account. Not as good as Malcolm's discount, but I did ZERO work to get it.

[javax.swing]

"The bottom line is CP is so big and with virtually no competition in the small packets and regular mail including airmail, they dont have to give discounts."

However, they have introduced Commercial Pricing from Small Packets. The rates rose only for over the counter sales. My EST is still showing old rates, so I guess that's what the commercial pricing is. Thank goodness for that!!!

[shoplineca]

javax.swing
Yeah I think that is the best that can be hoped for. Not that you will get discounted rates on the small packets but when there is a rate increase, they will hold the commercial rates at the previous levels.

This was pretty heavily discussed at an eBay session in Ottawa where there was a CP rep there. People were asking for some services equivelant to what USPS offers for shipping media (Media Mail). CP said it will never happen in Canada.

That would probably be the biggest solution for a good majority of Power Sellers.

Malcolm