Not being able to compete with United States Market Due to High Shipping Costs!

[eyerave]

Hi everyone! I live in Canada and recently started selling some of my products online. I am selling to Canada, United States and the rest of the world. However, as many of my fellow eBayers already probally know it is very difficult to compete with the United States sellers and to attract US buyers due to high shipping costs. I'm basically unable to sell to the largest market in the world. The United States, Because other sellers who are located in the US offer free shipping or rates that are so little for example $3-4 it costs them, when it is around $10-$20 for me to send a tracked packet from Canada.

My product sells for roughly $20 on ebay and shipping costs. It would be nearly pointless for me to offer free shipping or to lower my price by enough moneys to compete with the other US sellers. I have contemplated sending a massive order to some family I have in the United States and to basically hire them on as shipping items for me every couple days from the United States so I can offer free shipping or such little shipping rates that will attract US buyers not only Canadian and possibly international buyers but that is just an idea. Not sure if they would even be interested in doing it.

I guess this was just more of a rant than anything, but i am also looking for opinions and any information from fellow eBay sellers who have more experience with selling than I do. I use Canada Post, I haven't looked into any other shipping providers yet so that will be the first thing I should do some research on. Am I missing something? or is it just as simple as that shipping rates in Canada are just outrageous and it is difficult for small business's to compete due to that.

Any opinions, feedback, suggestions are greatly appreciated!

Thanks everyone in advance.

[luminites]

Why do you have to use tracked packet? Is it 2 cm thick or under? If it can be shipped using light packet, use that. If not, use small packet.

[dgour98]

Long time reader first time poster here...

I feel your pain. Just yesterday i received a message from a buyer in central US, asking if there were other options on shipping, something cheaper. I use expedited with tracking, but the less expensive option was $16.00. It was too much for the buyer

and i understand that. (withing Canada the package was $9, which is reasonable).

I once bought a book from California a few years back... shipping was $6.  If i were to return that book to California it would have

cost me $18. That was the day i realised Canadian sellers were screwed.

Only thing we can hope for is Canadian buyers should buy Canadian, or try.  I always try to buy from within Canada, especially lately with the global shipping program and such that makes it hard for US sellers to sell to us.

But yes, i can ship to BC for less than half price that it costs me to ship across a US border not 40 minutes from me.

[luminites]

I don't know if there is a service like this in Edmonton or near Edmonton, but there's Books to the Border in BC. For a small fee, they bring your packages to the US and it's shipped using USPS. Try researching. I'll let you know if I find something.

[reallynicestamps]

Am I missing something?

Yep.

Why are you bothering to track your parcels at all? Since they sell for under $20, you are buying them for much less. (If not you are doing it wrong).

If a parcel goes missing, how much are you really out? The procurement cost, listing cost (if any between the 50 free auctions and many free listing promotions), eBay+ Paypal fees and the shipping cost.

How much does that actually come to?

How often have you lost an item? Your demographic , I suspect, is a little more entitled and hard to please than mine, but run the numbers.

Now. Both tracking and insurance protect you. Not the buyer. And buying insurance is good for the insurer, not for you. After all, he has to keep your premiums more often than he pays out, or he goes out of business.

So.

Self insure.

To every asking price add a few pennies. Put those virtual pennies into a virtual Cookie Jar. When you get a claim, pay out of the Cookie Jar. There will probably still be pennies left over.

If you use Paypal labels, which are cheaper than going to the PO, by as much as 18%, each label will have a number. Mostly these are just Canada Post bookkeeping. But give them to your customers.

The honest customer will be happy to have this as a reassurance that the purchase has been mailed. The dishonest customer may think that the number is a tracking number and not try anything sketchey.

Yes, you will have losses. So does WalMart in spite of the scarey greeters. It's a question of managing risk.

BTW- I'm looking for something along the lines of a blue rod about 6-8" long that will light up easily (Firefly cosplay). Any idea where I might find such a thing?

Ten percent of nothin' is, let me do the math here... nothin' and a nothin', carry the nothin'. -- Jayne Cobb