When are you going to raise your shipping amounts re Jan 12?

On Jan 12 the shipping cost goes up, when are you putting in the new shipping amounts?

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Re: When are you going to raise your shipping amounts re Jan 12?

Read the  thread Woot! The Canadian Dollar is below 85 cents!

 

With a 15% or more drop in the dollar, I'm not sure there is any need to raise my shipping. In fact, I have gone to Free Shipping on all my LetterPost/LightPacket items for both Canada and the USA.

This is also to get sales moving after having practically closed down since we packed up our house in July and moved out here to BC.

 

My heavier items use Calculated Shipping, so those will correct themselves.

 

 

Message 2 of 29
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Re: When are you going to raise your shipping amounts re Jan 12?

Light packet is going up 25%, the Canadian dollar is down 8% compared to this time last year so for some of us, leaving our rates the same may not be a good idea.

Message 3 of 29
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Re: When are you going to raise your shipping amounts re Jan 12?

Wait till INR starts to increase due to the ridiculous light packet costs and buyer want their money back. Losing the item is not as big an issue in a lot of cases, as what you paid to CP to get ripped off

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Re: When are you going to raise your shipping amounts re Jan 12?

INCREASE costs to the Customer? Really? What will the customer think and say?

 

I am leaving my flat rates at the same level for the fourth year in a row. Next January will be five years in a row with no cost increase passed on to customers.

 

The exchange rate is paying all of my eBay fees and giving me a profit on top of that.

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Message 5 of 29
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Re: When are you going to raise your shipping amounts re Jan 12?

As many people have stated, we don't all sell what you do. Parcels have increased the least as a percentage and usually a minimal amount.

 

Comparing your situation to others never has worked, still does not work, and never will!

 

Light packet in the last 2 years has increased about 70% which is a whole lot more than the dollar has decreased.

 

 

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Re: When are you going to raise your shipping amounts re Jan 12?


@mr.elmwood wrote:

INCREASE costs to the Customer? Really? What will the customer think and say?

 

I am leaving my flat rates at the same level for the fourth year in a row. Next January will be five years in a row with no cost increase passed on to customers.

 

The exchange rate is paying all of my eBay fees and giving me a profit on top of that.


Ditto!

Message 7 of 29
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Re: When are you going to raise your shipping amounts re Jan 12?


@dutchman48 wrote:

 

Light packet in the last 2 hears has increased about 70% which is a whole lot more than the dollar has decreased.

  


That may be so, but I've also used my TRS discount, combined with the falling $Cdn, to "subsidize" my customers' shipping for the last 3 or 4 years.  It's the only way I can reasonably compete with U.S. sellers, since most of my buyers are in the U.S.  And as we all know, they are accustomed to cheaper shipping rates.  

 

Since I can't do anything about the increased shipping time involved in getting items to U.S. customers, the shipping subsidies I provide are a trade-off. I figure for every dollar I lose on shipping, I probably gain a couple of extra sales per month, which cover the losses.  It's a balancing act.  

 

I sell in $US and buy most of my supplies (including shipping labels/postage) in $Cdn, so I usually save money on that end as well. 

Message 8 of 29
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Re: When are you going to raise your shipping amounts re Jan 12?

Hi Rose

I looked at some of your cheaper listings and you are charging $5.17 US for light packet to the US. That is over $6 Can when it costs only $3.79 Can plus tax. What are you subsidizing?

Message 9 of 29
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Re: When are you going to raise your shipping amounts re Jan 12?

The CDN dollar has gone DOWN more than postage is going up.

How does one justify increasing costs to the customer when your costs have gone DOWN.

Rose, I forgot about my TRS discount. I am making a profit on everything.

I used to run into this when I was working. ANY price change, even down, customers would see a different price and say stupidly "Pushed it up again, eh?". "Ah, no, it went down a dollar.".

Price of gas, to drive to the PO, has gone down 30% and is dropping.

On my average $30 widget, the exchange is now giving me an extra $5.

I had no price change in 2013, 2014, 2015, and I won't change in 2016. The last time I changed was January 2012.
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Message 10 of 29
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Re: When are you going to raise your shipping amounts re Jan 12?

Why don't you look at light packet costs over the last 2 years and see how your numbers work

Message 11 of 29
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Re: When are you going to raise your shipping amounts re Jan 12?


@dutchman48 wrote:

Hi Rose

I looked at some of your cheaper listings and you are charging $5.17 US for light packet to the US. That is over $6 Can when it costs only $3.79 Can plus tax. What are you subsidizing?


The patterns that are listed with $5.17 US shipping are the heavier ones (over 250gms), and in fact I always lose a bit on shipping those.  The actual cost to me for Light Packet for those particular items is $6.37 Cdn.  I think $5.17 was the 2012 (or maybe even 2011) rate on those, and I haven't changed it.  I won't be changing it this year either. 

 

I do sell a number of patterns that come in under 250gm, and you'll see those are usually listed either with free shipping, or if I recall, shipping costs of between about $2.50 and $3.75 US (occasionally I can use letter mail for the really small and light items).  As you say, the lowest weight class in Light Packet is $3.79 Cdn + 15% tax (I'm in Nova Scotia), so I pay $4.36 for those, and lose money on each one.  

Message 12 of 29
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Re: When are you going to raise your shipping amounts re Jan 12?

By the way, I also keep track of all my shipping losses -- I make a note on every invoice I print out for my records -- so I know I almost always lose from about $0.50 to around $2.00 on the actual shipping on every transaction.  

 

In fact, it's so rare that I don't lose money that I really notice it (and I write a happy face on the invoice).  Smiley Happy

 

However, those small losses are more than made up for in the exchange rate on the sale itself, my TRS discount, and the fact that I sell in $U.S. and almost always buy (supplies, postage, etc.) in $Cdn.  Overall then, as 'Mr. Elmwood' pointed out, it's probably pretty close to a zero sum.  In some cases (if the item price is, say, over $100), I may come out better than 0, since the amount I gain on the $US exchange more than compensates for the shipping subsidy.  It's a workable strategy. 

 

Oh yes, and I claim the shipping losses on my tax return too.  Woman Happy

Message 13 of 29
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Re: When are you going to raise your shipping amounts re Jan 12?

Hi Rose

Point taken. Now maybe Mr. E can understand that what everyone sells will affect shipping costs, increases, exchange, etc and that his shipping method WILL NOT fit everyone elses, just like yours and mine will not be the same.

 

My main point it light packet which I use a great deal has gone up 70% in the last 2 years which will hurt a lot of sellers, including me, selling lower priced items. They can't increase the selling price or shipping as nothing will sell, so basically sales stop as do listings, as do income.

 

The business is no longer viable and we have CP to blame. Plus Ebay's percentage on shipping takes another chunk the higher postage gets.

 

Business plans come and go but for some to use a broad paint brush is not an accurate or logical answer to a posters question.

Message 14 of 29
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Re: When are you going to raise your shipping amounts re Jan 12?

Hi Rose

I charge less than you do for shipping and yes, I also lose money on shipping. It can only go on so long and with another 25% increase this month, it gets to the point it becomes a waste of time to support the ridiculous CP increases.

 

Don't forget, Ebay also takes 6% or more of shipping and Ebay takes 2.9% of the shipping charges as well.

Message 15 of 29
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Re: When are you going to raise your shipping amounts re Jan 12?

You are right of course that every business here is different, and has different challenges and benefits.  

 

My challenge is items of every imaginable weight, size, dimension and value.  This offers both problems and options as far as shipping is concerned.  I admit it's taken me a couple of years to fine-tune the solutions, but so far it's been working well.  And the falling $Cdn has just added some sweetener to the pot.  

 

I see you're selling coins.  You mention eBay's percentage on shipping taking some of your earnings (which is true).  If you sell primarily to U.S. buyers, you could consider offering free shipping on your first domestic rate (i.e. Canadian lettermail, I imagine), and then you wouldn't be charged any FVFs on shipping.  

 

I forgot to mention that this is another area I took advantage of over the past couple of years, which helped me to hold the line on shipping costs.  I've listed free shipping on many of the items that generally sell to the U.S.  For every one of of those, I'm saving the 9% FVF on shipping (actually it's less than that with the 20% TRS discount).  

 

Usually this is just a few pennies, but on larger items that go to the U.S. with expensive tracking, I'm saving a bundle, sometimes enough to pay for the whole month's subsidies on everything else.  For example, I recently sent a ca. $300 item to the U.S. with $40 tracked shipping.  I paid no FVFs on the shipping, got 20% off my 9% FVFs on the sale, earned 10% or more on the $US exchange, and saved 10% on my shipping label (which I purchased with the $US dollars earned).  Add it all up, and it helped me offer the customer shipping of only $25 to the U.S.

 

As I said, it is a workable strategy, but there are a lot of aspects to it.  You have focus on not just getting cheaper rates, but taking excesses from one area and applying them to others where you are losing money.  

Message 16 of 29
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Re: When are you going to raise your shipping amounts re Jan 12?


@dutchman48 wrote:

Hi Rose

Point taken. Now maybe Mr. E can understand that what everyone sells will affect shipping costs, increases, exchange, etc and that his shipping method WILL NOT fit everyone elses, just like yours and mine will not be the same.

 

My main point it light packet which I use a great deal has gone up 70% in the last 2 years which will hurt a lot of sellers, including me, selling lower priced items. They can't increase the selling price or shipping as nothing will sell, so basically sales stop as do listings, as do income.

 

The business is no longer viable and we have CP to blame. Plus Ebay's percentage on shipping takes another chunk the higher postage gets.

 

Business plans come and go but for some to use a broad paint brush is not an accurate or logical answer to a posters question.


You are getting it all wrong. Making shipping the most important line item is ignoring the overall cost structure.

 

Customer believe we are lying on shipping cost. Customers believe we get a discount or it is free. Actual shipping? Does not exist. How can it be actual when cutomer believe we get it for free? How can it be actual when eBay takes a cut.

 

Not everything is suitable for selling on eBay. Blaming your finances, or eBay, or the PO will not solve anything.

 

Extrapolating your experience to me? How about the other way. How about understanding that many of us have a better financial model that predicts and delivers constant profits and costs? I do not waste my time and effort on a money losing business model.

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Message 17 of 29
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Re: When are you going to raise your shipping amounts re Jan 12?

I tried free shipping in Canada and it does not work for me. Because a lot of what I sell is under $5.00 (not as a business, but getting rid of collections and accumulations), I just can't subsidize it in Canada as more Canadians would buy the items. Selling a $3.00 item with free shipping and paying CP, Ebay, and Paypal, what would be the point at all.

 

Like my wife says, bury it in the back yard for future generations to find.

 

I am trying to find a different site that does not charge on shipping, where I can sell items and sell so many for 1 shipping charge, say 10 for 1 price, and not have to worry about all the Ebay shipping and cart glitches where you end up refunding all kinds of shipping charges.

 

Also, any INR claims with what CP will be charging, eats a lot of the gains.Every $5.00 loss of shipping does start to add up now.

Message 18 of 29
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Re: When are you going to raise your shipping amounts re Jan 12?

I do not argue with all of your last statement, but your generalizations do not fit everyone.

 

Read what I just posted. NOT EVERYONE IS DOING THIS AS A BUSINESS.

 

None of which has any bearing on CP is jacking up rates (and yes, 70% is jacking and a rip off) which is what I am talking about. That is the area where they are hammering consumers, not just Ebay sellers.

 

 

Message 19 of 29
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Re: When are you going to raise your shipping amounts re Jan 12?

Yet you have over 4,000 FB, and what looks like a perfect FB/DSR record.  Surely that reputation on eBay is worth hanging onto in order to keep selling here.  

 

I know you're in a competitive category, but sellers like you and me (with spotless records) are becoming a rarity.  As the others drop off due to defects, you may find your competition will actually decrease and you can raise your prices somewhat. 

 

Your idea is a good one, but why take it elsewhere?  Why not try "grouping" your items here, i.e. pick coins that make a good set or theme and try selling them as a group, which might permit you to offer tracked shipping, or at least free shipping to Canada to avoid FVFs on all your shipping?  As long as you take good photos and show all the pieces in the group, there's no reason you can't offer, say 4 or 6 coins in one listing. 

 

I don't know how big a collection you've got, but I doubt you'll find better exposure on other sites -- and you'll probably find new and uglier problems.  One thing I can say is that although eBay is very micro-managed, it has done a lot to restrict the worst of bad online behaviour by buyers. 

 

You've got an impressive seller reputation, and I'd say try to build on that rather than burying the coins in the backyard. 

 

 

 

 

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