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.
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