USPS Parcel Post Changes Could Be Costly for Online Sellers

by: Philip Cohen

Ah well, everybody’s getting desperate for revenue—including the post office. Still, even though the online providers of “stamps” will keep most/all of any discount for themselves, the online price should never be greater as no costly human resources are wasted by the PO providing such service. So, something strange is going on here with this particular fee being cheaper at the PO; maybe it is simply a “glitch”; maybe the PO is adopting the eBay strategy of targeting a “reduction” (or at least a no increase) of fees to the little people who are prepared to stand in the queue at the PO—who knows? Maybe the PO should try another of eBay’s disingenuous strategies: free postage to selected sellers, and if the parcel is successfully delivered, collect the final fee from the receiver—the way the majority of mail was sent in the US prior to 1856 … LOL

eBay / PayPal / Donahoe: Dead Men Walking ... http://bit.ly/11F2eas

by: bitbybit

Anything heavy like that would best be shipped at a much better rate with Fedex. IMO it is quicker, includes insurance up to $100, and tracking. It may not be available in certain locations or convenient to sellers but just a suggestion.

by: comet

Sometimes the UPS and FEDEX services are cheaper for larger packages but not always a viable alternative.  I don't offer FEDEX unless I contact the buyer directly and make sure they don't mind waiting until I am going to be in a FEDEX drop off town.  Which would NOT be the one I live in!!!  

UPS is almost incomprehensible as to rates on their web site so I end up having to make at least two trips to the local hardware store to get rates and then  to drop off.    Then you have to hope and pray that the clerk's HANDWRITTEN UPS label is CORRECT--several times this has NOT been the case and they won't "allow" your label to be used!  

The Po has it's own annoyances not the least of which is that around here they are closed for most of the day!  And always after most other business get done so unless you can drop something in the box outside you are out of luck.

And when you DO wait in that PO line they often try and tell you that the "on line" PO price is wrong--not that you confused the "Purchase on line" cost but that the listed price on THEIR own site is==wrong.  

I can't see this improving any time soon.  Until Congress picks them up and shakes them until their mail bags rattle.  Absurd to have a branch of Govt that so many people depend on that is completely unreliable and doesn't even know what it is doing on a day to day basis.  Oh--I wasn't talking about the PO there now was I????  

Maybe Congress should pick ITSELF up and shake themselves  until THEIR teeth rattle.  

by: Ebay Seller-Ebay Buyer

The huge spike in overseas shipping is what hurts my business the most. For overseas shipping, the post office has found a way to hurt U.S. sellers, Non U.S. buyers, Ebay and Amazon and most likely themselves as well.

Doubling rates for under 1 pound is horrible and a 50% increase between 1 and 4 pounds is almost as bad.  1 cd to Asia and Europe will double from $6 to $12 and a 12 inch vinyl record to Europe and Asia goes from $14 to $22.  

The post office thinks if people want things bad enough they'll pay the high shipping. This is true for rare, higher priced items, but most likely won't be true for lower priced items. So the post office most likely sees a huge drop off in overseas packages.  Each year I do less Ebay due to bad Ebay policy, but for 2013, It's the post office who knocks me off of ebay.

by: mindelec

"The post office thinks if people want things bad enough they'll pay the high shipping. "

i doubt they thought that, but with a 50% increase they have to see a great decline in packages to see a negative difference.  otherwise it is more money for less work.

the problem for sellers comes in that there are limits to what people will pay for certain items.  rarely do i sell a $10 book overseas when shipping is $24 and even higher priced books have taken a hit.

by: Tiffee Jasso

I have already lost most of my International sales due to the increase in USPS rates of almost 300% in some cases. I am just a small seller, but if other sellers are losing the same amounts as I am, it is huge on the scale of overall sales and profits to both sellers and Ebay. I doubt it will affect the Post Office. They will still make the same revenue due to increases but will only have to move about 1/2 the mail through their system.  

by: cosqueen

The USPS shot themselves in the foot by increasing international postage. My international business has declined by over 75% since I had to increase postage costs.  So, in fact they are LOSING business and discouraging international trade.  Everyone loses.... come on USPS think about this.  

by: racecarguy

I agree that the USPS really messed up one of the few areas of their business that offered actual profit (something they are apparently not REAL familiar with...).
I used to ship a ton of diecast model cars over seas, but the recent ''indecent'' increase has slowed that to a crawl. (the heavier diecast went from $38 -barely acceptable- to $56!)
They KNOW that package shipping is their most viable profit center currently, so WHY would they Intentionally try to mess that up??

by: Scotty

Ina....maybe you could do an article or commentary on the impact of the USPS International price increases and the corresponding significant decline in international sales (particularly on ebay).  I, for one, have had a 80%+ decline since the 27 Jan increase....and it was immediate.  I cannot be the only one this is affecting....with those type of declines, surely it will affect ebay revenue as prior to the increase, the international side was 60%+ of my business....now is is practically non-existent.  Just a thought....thanks for your efforts...

by: iheartjacksparrow

I don't advertise that I will ship internationally, but I will occasionally get a question from someone about shipping to their country. As soon as I quote the price, I never hear from them again.  

by: dans parts

My February International sales were 17 sales out of 110 total = 15%.  Normal is 20-30%.

17 sales last night (first ones for March), with ZERO International.

Part of the problem with the discrepancy on Parcel Post prices is that USPS considers Standard Post and Parcel Select as two DIFFERENT classes of mail, thus different prices.  And they have chosen to not make the one class of mail (Standard Post) available for online purchase.  That's where you get sticker shock.

FedEx is nice and reliable, but 35 miles (one-way) to a drop-off site?  Don't think so.  UPS is 8 miles, but MUCH more expensive, and like mentioned, their rate structure is so incomprehensible that I'm afraid to quote anyone a price for fear of being VERY wrong.

It was nice that someone has pointed out this price discrepancy for various weight packages.  I don't ship much by Parcel Post (or Standard, Select, etc), but now I'll know to be careful with prices.  And thanks to Ina for sharing, as always.

Dan

by: monkey

@JackSparrow

"I will occasionally get a question from someone about shipping to their country. As soon as I quote the price, I never hear from them again."

That's exactly right, Jack. I quit selling internationally because I wasted a lot of time researching shipping costs.

Also the lack of tracking international shipments economically, and the possibility that customs will lose or hold up the shipment ...

by: james

Parcel select goes via third party shipper (usually fed ex) to the post office. Isps removed the parcel rate and raised standard rates to almost or exactly match priority rates.  Another step toward privitization.

by: Ina

@ Comet "The Po has it's own annoyances not the least of which is that around here they are closed for most of the day!"

Perhaps you should consider filing a complaint with the PRC, see this article from Kenneth, "Postal Service Complaint Department, Open for Business"

http://www.ecommercebytes.com/cab/abn/y11/m04/i04/s01


shortcut:

http://ebyt.es/13AOdvh

by: tmooreseller

It is not the USPS's fault for having to increase rates, it's Congress's. The do-nothing Congress failed to repeal the law requiring the USPS to contribute to a pension fund for nonexistent employees against the event they are hired. This law was passed during the Bush administration, so you can imagine how much damage has been done to the USPS's credibility. By law, the USPS must remain in operation even losing billions of dollars each year, and has no subsidy to keep it operational from the Federal government. So until that stupid law for a pension fund is rescinded, the USPS must do whatever it can to stay open. To compensate I have been forced to raise my prices. Guess what that does?

by: Patricia

Don't know about this but perhaps a seller here can answer me a question.  I recently sent a 6 X 9" 3/4" thick package to the UK.  Though it weighed just 3 oz. I was charge $9.45 because the package was rigid.  Does this sound right?  I seldom if every ship outside of the US so this doesn't make sense to me.

by: Patricia

@ tmooreseller that's correct...but the Congress is purposely trying to beat down the USPS so they can privatize it for their rich buddies!  Nothing is being done to stop this or to help the USPS!!!  People are stuck on it being the fault of the internet...it is NOT.  Any Ebay seller can tell you they still depend on USPS.

by: Ming the Merciless

USPS directs online complaints back to the Post Office in or nearest the complainant's zipcode so you might not want to use your real name when making the complaint.

As many of us have been saying for years, the problem is the Republican facist corporatist obstructionists in Congress who are attempting to starve the Postal Service into privatization to further enrich their puppet masters, the Wall Street banksters.

by: dans parts

@Patricia

$9.45 is the correct (new) rate for 1st Class Package International to UK,  for a 3oz or 4oz package.

Before the rates changed on January 27, that package (at 3oz) would have cost $4.56.

That's why any of us will be lucky to retain any International sales.

by: Massachusets Howler

13 years and this has finally pushed me to domestic only.
The heck with the forms, the heck with the non-existent tracking, the heck with impatient buyers, the heck with being tricked on the conversion.
The heck with it.
Mass Howler
And the heck with paying EXTRA for the privilidge.
Fuel the JET with that JD.