New 2013 Postage Rates Include Some Whoppers

by: iheartjacksparrow

Thanks, Colin, for the clear explanation of the changes. Since 99% of what I ship is via First Class Package I'm glad to know that that will be a relatively small increase. I no longer ship outside the U.S., unless the buyer wants to pay for Express Mail, as the tracking just isn't there otherwise.

I'm not happy to hear that PayPal shipping is being folded into eBay shipping since I've been using PayPal MultiOrder shipping. I guess it's time to move over to the USPS Click-N-Ship for Business.

by: Rexford

What really gets my goat is that every time USPS has a rate increase the ONLY thing that the mainstream media cover is the increase in the stamp prices.  They NEVER cover these much larger increases for packaging.  Therefore, unless the public ships packages, they are clueless about what it actually costs to ship a package.  With eBay's ill conceived DSR rating system, eBay sellers get slammed even when they are shipping at the lowest price they can.   And don't EVEN say free shipping to me.  There is no such thing as free shipping no matter how much that phrase is used. Staying that it is free doesn't make it so.

by: Rexford

ooppppps, meant "saying that it is free doesn't make it so".

by: mylifeisgood

Better question is " How long will it take Fleabay and Pigpay to update their shipping this time"?

by: Basset

Thanks Colin - for sharing your USPS homework with us!
The increases are of significance for those who offer eBay's ''free'' or my preferred name for it: ''Shipping included in price''. Item prices will most likely be going up a bit more, especially for over 13 oz items. I've been giving eBay's ''free'' shipping a test drive but I worry that when buyers look at the shipping included price for items that have to go Priority, it can be off-putting. I do think it makes a difference on an unconscious level for some buyers to see the one higher combined price figure as opposed to a separated smaller price that needs to be added together with shipping. Even if the separated pricing figure adds up to a higher number.

One thing besides increased postage costs that concerns me. If an internet sales tax passes - and I believe eventually something will come about - How will buyers feel about being taxed on the higher ''free'' shipping price where shipping cost has been added. Will they then start flocking to the price & shipping separate items? Even big name retailers that offer ''free'' shipping still charge buyers sales tax when applicable.

Back to USPS - everything in the news about these guys would make you think they are going down the tubes, yet I have seen NO drop off in service on a personal level or for my business. Regardless of what is going on behind the scenes - I have to give them good marks!

by: Marie

@mylifeisgood

That is a good question.  When PP handled labels, it has been my experience that they were on top of rate changes and it was never an issue.  But who knows with Ebay.  They have had many problems with this label program.

by: Wire

guess it might be time to go to stamps or something like them.

by: Marie

@wire

How would that help?  

Some stamps will cost you more if you go to the post office to purchase them verses doing your labels on the internet.  Electronic labels can and do save money, not to mention the ease of it.  And with stamps you aren't going to get DC unless you go to the post office and pay extra that you wouldn't have to pay if you did your label on line.

by: AC_in_Mich

@marie I think wire might have been thinking stamps.com service, not physical stamps

by: Marie

OH, dang I need more coffee.  Of course they do.

That however won't avoid the price increases.  But they are a good alternative to Ebay labels if the monthly fees is cost effective for you.

by: Tula

"requirement to stand in line for presenting package to a retail clerk (you cannot drop off)"

I'm a little confused on this one. Are you implying that this may be a new requirement or that it is already required? I regularly drop my international packages in the mailbox. Most of what I send out is under 5 ounces and is in padded envelopes. I print my postage with Endicia, then drop them in the mailbox. I only have to use the counter if it won't fit in the box or exceeds the weight specified on the mailbox (some of them say you can't drop in anything over 13 ounces).

I agree, though, that doubling the international postage is going to be a hardship for many of us. I offer free shipping domestically, and offer partially-subsidized rates for international sales, so I may have to raise my prices a bit to compensate.

by: mindelec

""requirement to stand in line for presenting package to a retail clerk (you cannot drop off)""

i'm confused about that statement too.  i print out the labels at home and drop the boxes (usually weighing in the 1-3 lb range) in the bin at the post office along with my media mail packages.  i haven't talked to a postal clerk in years, lol.

by: elpereles

The 1st Class International packages increase was too much. The USPS technically is punishing people that ship low weight items.

I sell International. It is bad for me.

@Tula, the International package must be present to an USPS office or hand to your letter carrier. Not in mail box, but we know that some USPS worker don't know or care about their rules. It is up to them to tell you to made the corrections if they believe there is a problem. Anyway the carrier is the one that take the items in the mail box then to the same place.  

by: Ric

Sellers who will be increasing prices to cover the new rates should remember to include the increase in FVF when repricing their items to cover the new rates.

Postal increases make eBay very happy as they get a boost in Final Value Fees from sellers who offer free shipping and raise prices to cover the higher shipping costs.

They will also get a nice bump in revenue as their 9% Penalty Fee on shipping costs not included will generate more revenue as well.

These additional revenues might make up for the revenue they will lose when they force sellers to process shipping through eBay.

Like many sellers, I will not gamble my business by using eBay's glitch prone shipping process. Bottom line is that instead of getting the revenue from shipping labels processed through PayPal, eBay corp will lose 100% of that revenue from me as I will not process labels through eBay.

by: Moonwishes

With around 20% of my business being international sales that are shipped via first class international, this is going to be a huge stumbling block in my business. I'm literally shocked that the PO thinks that raising prices 100% would help them make more money. They will be making less since most international customers will decide that they don't need the item.

Does the PO even realize how much of their business is being driven by on line sales? That those of us that might go through 1-2 books of stamps each year are instead spending thousands on postage to send our goods all over. I think this is a case os cutting off your nose to spite your face to raise rates this high!

by: Basset

One thought - if international first class is significantly higher, will sellers / buyers be more inclined to use the new eBay global shipping distribution format when it gets rolled out? Seems like higher int'l postage rates might make that program more attractive to both buyers & sellers. The timing is could work to that program's advantage.  

by: Patricia

I wish Congress would stop gorging themselves on money the post office needs in order to run.  They are the reason for the outrageous and almost yearly raises.

by: monkey

Bummer about the rate increases, everybody's going to be impacted ... most importantly the Buyer.

But then again, this is just another good reason for the Seller to offer FREE SHIPPING.

Of course I'll need to raise the overall price on my listings a bit to compensate for the postage increases.

But if my listing is up against another seller's listing, and the Buyer notes other guy's increased charges for shipping ...

... they'll be even more inclined to choose my listing since I offer free shipping.

by: Kelly

You can absolutely drop 1st Class international packages (and other mail types) in your own mail box, a postal drop box, etc, and do not have to personally hand it to a carrier if you print your own labels/postage (there are restrictions, but for the most part, if you print your own label/postage/custom forms, it's okay to just drop it off.)

by: RCL

Moonwishes! Re "I'm literally shocked that the PO thinks that raising prices 100% would help them make more money."  Don't forget that the USPS does not wish to be profitable. The USPS has never made a nickel, nor ever will.