USPS Rate Increases for smaller Ground Advantage...thoughts
Summary: The discussion revolves around frustrations with USPS rate increases and their impact on small businesses. redlinear expresses concern about the inefficiency of these rises, suggesting they hinder the market for inexpensive items. Participants discuss strategies to adapt, including restructuring pricing and packaging items differently to manage shipping costs effectively. doodledog8 highlights rising fuel costs as a factor, while oldwestgold and bashort debate USPS's delivery volume statistics. Overall, there's a consensus that shipping rates are becoming increasingly challenging for sellers, prompting necessary business adjustments.
I don't get it.
I mean, with FedEx and UPS....yeah.
But with USPS? Not so much.
If I go to a car and pull an "out of the way" bolt for somebody? It's gonna cost them. Probably more than the bolt is worth.
BUT, if I have a car in the shop and I'm taking parts off of it already and somebody walks in, points at a bolt, and says "I need that"? I'll probably give it to them....I'm already there.
Basically the same with UPS, FedEx, USPS.
USPS is already there. They handle and sort the same manner every day. They run the same routes every day. Getting paid the same to deliver 1000 or 2000 parcels.
One would think that dropping their rates would create more small packages thus increasing revenue.
Their cost is already there and "basically" set.
With the increases in price, USPS is ending a substancial market of little cheap items everywhere...not just eBay.
I dunno.....I guess I just think they are going about it the wrong way.
stainlessenginecovers
·1 week agoYou all know those magical 'Rural' areas? Surcharges for those? 17000 of the 41000 zip codes are Rural.
Rural is almost ALWAYS delivered by a 'subcontractor'.
That subcontractor has been getting 'killed' in the hours required to shluff along packages.
Mail is one thing but.....
1000 houses with mail takes 3 hours.
500 of those getting packages takes ANOTHER 3-4 hours and the sub is NOT compensated ONCE they do a contract.
Contracts last 6 years.
Then, they are 'rebid'.
The 'rebid' has increased over 60% for those that were 'up' during that time AFTER covid.
So, in reality, they need $12 to 'deliver' that package..but right now they are only getting $7.
Eventually that small package will be $12.
So boys and girls, hand on to your seats.
And...as far as UPS and Fedex go; same thing. Their prices will also soar as it simply costs MORE to shluff along those packages.
bashort
·1 week agoI think that when it gets to $12 it will "need" to be $20. I think the USPS has a very leaky bucket financially, more money in the bucket will only increase the leak.
oldwestgold
·1 week ago · Edited30 years ago, the USPS stated that for every 1¢ increase in fuel, it added $1 million to its annual expenses. Try to imagine what that is today. Another fun fact: The USPS delivers more mail volume in ONE DAY than UPS and FedEx COMBINED deliver in ONE YEAR.
bashort
·1 week agoYour "Fun Fact" is not a fact.
USPS delivers average 450 million pieces per day (including letters, flats, and marketing mail).
UPS and FedX combined deliver 8 Billion packages per year
oldwestgold
·1 week ago · EditedI worked for the USPS in upper Management for 33 years. My facts are correct. FYI - Everything you read on the internet isn't a fact. GO play fact police someplace where one cares.
bashort
·1 week agoLike you said, you can not believe everything you read on the internet
doodledog8
·2 weeks agoMaybe you are unaware of the fact that Diesel in California is now costing over $8.00 gallon and gasoline is over $6. I appreciate it that 'cheap' items are costing a fistful to ship but that's the breaks for Everyone. No you probably won't be able to compete with CCC but I am not surprised it has gone up. You could always go as some do with the stamp routine, but as i have had things go missing etc, I wouldn't ship w/o tracking. Just put a note in your listings, it does help.
lakefor94
·2 weeks agoIf I need that bolt you have, @redlinear and I don't feel like spending my time and gas driving into town to get one, I don't care if it costs me $6.50 or whatever to get it shipped. Shipping cost is a non-issue.
It is really all about time spent.
redlinear
OP2 weeks ago@lakefor94
More like $8.50 it seems any more.
All my bolts are now $18.50 with free shipping. I hate that, but....just the way it is
lakefor94
·2 weeks ago · Edited@redlinear
My calculated shipping listings go up automagically and raising shipping on my flat rate items items is easy through business shipping policies.
I quit doing the free shipping on the cheap stuff earlier this year. I changed to $2.50 flat rate and then upped it to $2.95. If I need to raise it again and I think I will after finishing this post. Let's make it $3.50 --- Done
Addendum: went with $3.45 Anything including the cheap stuff is now $3.45 to ship rather than the free shipping I had earlier in the year. 721 listings.
tsme35
·2 weeks agoI agree BUT USPS doesn't get it. Been having to redo my whole business plan for last couple years and shipping has surpassed the sellable limit for fishing lures. I use to list one lure at a time, now I have to put 4-5 lures together and still hard to sell them. Seems $5 shipping was the breaking point, now I put 5 lures together at $6.50 shipping, SO, if I sold the 5 lures separate, PO would get $25 for shipping BUT now they only get $6.50 instead. Their losing money not making any. The surcharge wiped out 80% of my fishing rods and pretty much all tackle boxes. Only reason I'm still selling fishing lures is because I have a USPS business account on click-n-ship and don't pay the rural rates, at least for now.
redlinear
OP2 weeks ago@tsme35
Yeah, I bought out a tackle store that went out of business about 10 years ago.
Even then, I found out real quick that I couldn't sell many singles.
Thankfully I ended up with a truck load of those $150 swim baits for $10/each.
That made enough money on the whole deal that I now simply have walls covered with bags of Zoom and semi-cheap hard baits.
mam98031
·2 weeks agoIt is a mess for us all to be sure. Especially with USPS. For me, so far, buyers have been paying the new higher rates with literally only one complaint. I politely explained things to them and all seemed fine. But this really is horrible for buyers.
kandf_vintage_finds
·2 weeks agoI feel your frustration. I will be retooling my store to address this situation. Not sure how yet.......
redlinear
OP2 weeks ago@kandf_vintage_finds
I had a couple thousand items from $8.50 to $13.50.
Changed those items and EVERYTHING else that was under $18.50, TO....$18.50.
I actually think it helped. Money per sale for sure. But, I think I'm selling more of that stuff now.
lakefor94
·1 week agoYep. I am in this to make money regardless of shipping costs. It is a non-issue.