Posted in Free Shipping, Shipping

Mail Increases and Effect on Free Shipping

Let’s start out with the facts.  This is from the USPS website:

USA Domestic Shipping:

  • Priority Mail Express – Overall rates will increase by 3.4%.
  • Priority Mail Express Flat Rate – All Priority Mail Express Flat Rate products will see an increase in pricing. Increases will vary depending on the type of product.
  • Priority Mail – Average increase of 3.9%.
  • Priority Mail Flat Rate Boxes & Envelopes – Postage rates will increase across the board in 2017.
  • Priority Mail Regional Rate – Postage will increase for most Priority Mail Regional Rate Boxes in 2017. No change in postage for a Regional Rate Box A going to Zone 5. Postage price will decrease by $0.49 for a Regional Rate Box A being shipped to Zone 8.
  • First Class Package Service – Overall rates will increase by 4.1%.
  • Parcel Select Ground – Rates will increase by 2.7%. Although, rates for some weight & zone groupings will actually decrease.

I wanted to give percentages because as resellers, we are paying different rates.  For instance with Ebay, an Above Standard seller will pay more than a Top Rated Seller, which will pay more than a Top Rated Plus Seller.  Etsy Sellers are affected, because the buyer will see the shipping charge when viewing your product.

I was thinking about how this will all affect a reseller as I was putting together my Amazon Pantry order (free ship if you bought from 5 subcategories) and Amazon Subscribe and Save (Free Prime Shipping and discounts with multiple items).  If the prices on these items increased from last month, I couldn’t tell.  The psychology of this for me is that my shipping was free and the more I purchased the more discounts I received.

I use this psychology with my own Ebay stores and feel pretty confident I will survive this latest increase in fees.

  • I am going to take the time to raise my prices on items by 10%.  The postage may have increased only 4%, but I do Buy It Now with Best Offer.  I want the leverage to take lower offers because of this increase.
  • I have sales that run through the month on items listed a month or more.  Generally it is 25%, so I will change it to 21%.  The Cassini algorithm (a mystery, but there is speculation) says that items are ranked higher when on sale 20%-25%, than those at 19% or lower.
  • I will have a promotion that says they will receive $5 off $50, $10 off $100, etc…. so that the more they buy, the more savings.  I recoup the loss through combined shipping.
  • I will continue to offer free economy shipping, with optional priority shipping at their expense.

I have watched several resellers decide that with this increase, they will add calculated shipping.  That is their business model and I respect them for it.  They sell different items than me as well.  I have tried to keep all items under 2# and this is probably the biggest reason I am able to continue FREE SHIPPING.

If you have questions or comments, I invite you to write them below.  If you have been enjoying my blogs, please send money….JOKE!  Hit that Subscribe Button….it is free!

#JewelsForThePauper

Where everything is Fit for a Queen

But

Priced For the Pauper!

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Author:

"If someone would have told me 10 years ago that I would be here today...." You hear that said a lot when someone is fulfilling an ambition they've had for years but never thought to act on it. I have been a full time reseller for a year. There have been ups, downs and a huge learning curve for me. Once I got a hang on the selling platforms, I explored other social media and ecommerce options. Currently, #JewelsForThePauper is on Facebook, Twitter, Instagram, Pinterest and now BlogSpot. I have had this ambition, I knew I would be able to act on it at the right time. I feel so grateful to be able to do something I enjoy, be my own boss and bring in extra cash for our household. I am not sure where this blog is going to "go," but you have to have a start and today is the day!

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