OMG Canada Post changes are going to hurt sales ALOT

[laidlawgifts]

I have an ebay store in canada.

My shipping costs BEFORE this recent change... were already so high that I was getting bad feedback about how much I charge.

United States has ALOT cheaper shipping available than we do.

NOW a parcel that cost me around 8 dollars to send to the US... will now cost me 13 dollars. 

How can I compete with that big of a change??

Any other canadian ebay stores finding out about this change and are concerned on what to do... to stay competitive?

Nancy

Laidlawgifts

[laidlawgifts]

Forgot to give some details that ebay gave us.

You live in Montreal and need to ship to the following US locations: Florida – 500g (ex: smartphone): $13.66* Texas – 185g (ex: smartphone cover) : $13.11* Oregon – 750g (ex: shoes) : $15.79*

Ok how many people in US would pay over 13 dollars just for a very lightweight iphone cover?  Not many

Also

You live in Vancouver and need to ship a 170g DVD to the following countries: Australia: $39.22* Malaysia: $38.38* United Kingdom: $35.83*

Same thing.  How many people in the UK will pay over 35 dollars for a DVD to get shipped to them?  Not many

Help!  🙂

[lubababie]

If you live in the Toronto area there is a company called Chit Chat Express which will ship using USPS and save you $$ http://chitchatsexpress.com/

I have never used them but after this latest increase I am more likely to.

[dutchman48]

try light packet for cheaper lighter items or just letter mail. No tracking, but way cheaper

[laidlawgifts]

Light packet has to be less than 2 centimeters.

I have many light items that are larger than that ;(

[laidlawgifts]

Ah that chitchatexpress is located too far away from me to use regularly.  Maybe for some larger shipments I have during xmas it would make sense for me to use.

BUT thank you very much for the heads up on them 🙂

Competing with US shipping is going to be impossible I think 😞

[dutchman48]

US rates are also going way up. Would have to compare different sizes and weights between the 2

[laidlawgifts]

Would have to go up alot.. lol

For similar packages in the past, their prices were about half of mine for shipping.

Now with our increase... they would need to increase their prices to twice the current cost... for me to compete... lol

[dutchman48]

go to the usps site and check some of them. Previous posts some said it will be cheaper from Canada than the US for some packages

[dutchman48]

people on the .com board are also complaining a lot about the upcoming usps changes.

[*2010*2010*]

Hi .I have 2 accts,and because of the ever increasing cost for shipping items  to the U.S.,even within Canada ,I`m, considering leaving ebay this year.

And then to top it off,we even get charged  % for shipping charges that (we) I am already losing money on.

It`s not fun anymore

heike2010*2010

[laidlawgifts]

Yeah that part I cant understand.

The commission we have to pay Ebay for shipping charges.

Is this because of the other people that put the item price lower and put the rest of the item price into the shipping cost?

With Paypal and Ebay being the same company... wouldnt take much to know that the shipping costs I am charging my customers, I am not making any money on.  Any programmer could find a way to compare what we charge our customers and what we pay paypal... are very similar.  

But that is a whole new dialogue... and one I am sure we are to lose... lol

Are the shipping charges changes on the Usps site showing?  Or what date will they be available so I can compare?  😉

[laidlawgifts]

Oh yeah..

Shipping within canada is hard too.

It WAS cheaper to ship to Hong Kong than it was to Vancouver... from within Canada... lol

No clue about how that will be after the changes.

Any online store will have this problem.

People compare the item plus shipping.

Canada Post is making it hard to compete for any online store.

[pocomocomputing]

I have an ebay store in canada.

My shipping costs BEFORE this recent change... were already so high that I was getting bad feedback about how much I charge.

United States has ALOT cheaper shipping available than we do.

NOW a parcel that cost me around 8 dollars to send to the US... will now cost me 13 dollars. 

How can I compete with that big of a change??

Any other Canadian eBay stores finding out about this change and are concerned on what to do... to stay competitive?

Nancy

Laidlawgifts

No one says you have to use the new Tracked packet service.

The changes have been discussed in these forums a few times since they were announced by Canada Post mid December.

Small Packet USA Air is still available but without the insurance.

SP Air USA Rates are $7.80 (up $0.19) 250 grams, $10.35 (up $0.15) 500 grams, and $15.56 1 kg (went down 10 cents).

Either self insure (accept losses once in a while) or go to a third party insurer like shipsurance at $1.25 US per $100 insurance. Personally for low cost items self insuring is probably the smartest move.  If loss is 1 in 100, then shipsurance will cost $125 in paid premiums.  That insurance premium will pay for 1 or 2 lost Small Packets USA. Just like Light Packet and Lettermail Oversize, self insure low priced items.

Small Packet USA surface is gone Feb 11 and stays at the old rates from last year.

Tracked Packet may be of use when you need Delivery Confirmation and insurance.   At the 1 kg range, you need to compare to Expedited Parcel with 25% PayPal discount. Also Tracked Packet using PayPal labels is supposed to get a 5% (maybe more) discount from Canada Post PO rates.

Initially, the news is a shock but after a couple of days analyzing the change, not that much difference outside of losing the low cost Small Packet USA Surface.

There are a few other topics that discussed the changes. For more information, search the forums for the past 30 days.  There might be some bits of  information there.

[dutchman48]

Gifts

Here is the link to the USPS pricing as of the end of January. You will have to do some searching and then open the xl files as their mail is way more complicated than ours. You can also go to the .com boards and search for postal rate changes.

https://www.usps.com/new-prices.htm

[laidlawgifts]

mocomputing

"Initially, the news is a shock but after a couple of days analyzing the change, not that much difference outside of losing the low cost Small Packet USA Surface."

Ummm lol.. that was the chosen service I used mostly for the US.

At at those LOW COSTS I will still getting complaints about the high shipping charges.  No matter which choice I have available, my costs are going higher. 

I have yet to compare to the US prices though... but I have a feeling the US will still be able to ship lower than Canada.  Maybe I am too pessimistic?  lol

So I do not agree that after analyzing... there is not much difference 🙂

[laidlawgifts]

What is the cheapest insured shipping service choice for USPS?

Might save me from opening every file ... lol

[laidlawgifts]

LOL

Ok first thing I found ... and not confirmed but it was from the .com forums is 

"In another attempt to raise much-needed cash, the U.S. Postal Service announced this week that it will increase first-class postage rates by one cent, to 46 cents. The price increase will become effective on Jan. 27, and will include a 2.57 percent bump for all USPS services."

2.57 percent?  sheesh thats not much of an increase at all

Canadian increase is ALOT more than a couple percent

[pjcdn2005]

So I do not agree that after analyzing... there is not much difference

laidlaw, You don't agree that there is not much difference between $7.61 for U.S. small packet air and $7.80?

Or $10.10 and $10.35?

Unless you plan on buying insurance for all of your items, that really isn't a huge increase imo.

[Anonymous]

It doesn't matter that eBay owns PayPal and would knew how much you pay for shipping via PayPal Shipping, all they care is getting more $$$$$$$$$$$$$$$ from us.

I see some sellers are putting their items starting at 99 cents and sold for 99 cents or a little more and I honestly don't see how they can make any profits, not even a little after paying the final value fees on the shipping cost, not to mention eBay fee and PayPal fees.  Unless those sellers get exicted to make a profit of 25 cents or less each item?  I just don't get it.