Opinion on what new USPS zone based shipping rates will have on sales?

[parkersparrow]

I was wondering what everyone thinks about the effect the new zone specific usps rates will have on sales. Will we see an increase in local sales? If a buyer has a choice between two sellers with the same item with the  same or similar price the one closer to that buyers location will most likely get the sale.  How can we price competitively if we now have multiple shipping zone prices to take into account?

[sam9876]

50 cents isn't going to make a difference.

[*coins]

I've almost always had people in nearby states buying items from me if they are heavy (over 1 lb) and have to go PM. Most people across the country don't want to pay the huge amounts of money to have something heavy shipped across the country anyways. I think sales will stay the same for me at least.

[parkersparrow]

It might make a difference to a buyer searching by price no? I've already noticed more sales this week from nearby states, could be a coincidence.

[dtexley3]

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@parkersparrow wrote:

I was wondering what everyone thinks about the effect the new zone specific usps rates will have on sales. Will we see an increase in local sales? If a buyer has a choice between two sellers with the same item with the  same or similar price the one closer to that buyers location will most likely get the sale.  How can we price competitively if we now have multiple shipping zone prices to take into account?

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Long winded answer.

Last year about this time FedEx SmartPost went to dimensional shipping.  80% of my previous packages that weighed > 1 lb were shipped this way because I could offer relatively low flat rates across all zones.  I didn't have a lot of zone 1-4 sales because the flat rate was a bit higher, but it was more than offset by strong sales in zones 7 and 8. 

When the change went into effect I moved all my > 1lb items to calculated shipping offering multiple carriers.  My zone 1-4 sales have increased, but my zone 7 and 8 dropped massively, resulting in an overall sales loss of 30% for packages over 1lb.

I expect a similar change in buyer behavior this year for the < 1 lb stock. 

I will be buying less and be far more picky about what I buy.

[southern*sweet*tea]

Do you sell wants or needs?

Are you in a category with lots of competition?

Are you paying too much for your inventory?

If you're selling wants instead of needs, shipping cost really isn't going to matter much. If someone wants what you have, they'll buy it, especially if the condition is better than the competition's.

If you sell in a crowded category or are selling needs, total price will play a bigger factor.

If you're overpaying for your inventory it doesn't matter what the shipping cost is, you're just hurting yourself no matter what.

[a_c_green]

I've always offered Free Shipping on items of 15.999 packed ounces or less, and will continue to do so. I'm prepared to eat a price variation of a buck or two due to the new Zone Pricing.

[the*dog*ate*my*tablecloth]

Some inventory just isn't worth selling no matter how cheaply you can buy it. If it's an easily replaceable item people will start to pick one up when they're running errands instead of buying it on Ebay and having it shipped to their house.

If I'm selling vintage toys that are hard to find, a buyer will be willing to pay shipping to get it to their house. If I'm selling socks, buyers may go to Marshall's instead.

[the*dog*ate*my*tablecloth]

And before I upset any clothing sellers, I used socks as the most generic things I could think of. I still come to Ebay to buy a specific coat or Lands End sweater I can't find in the stores.

[sharingtheland]

I have quite a bit of a certain type of needlework item.  It's from my "collection" over the years and they are not at all high priced.  Actually, they are the lowest priced items I sell.   They are also lightweight and listed from $12 at the lowest, with most around $15-$20, and a few higher than that.

Shipping on one to CA this week went from $2.90 to $3.73 (I could be a bit off on those numbers, from  memory, so no one has to look them up and correct me).  After mailers, poly bags, fees, etc., there is no way I'd be buying these now for resale; I just happen to have hundreds on hand that I won't ever get done.  

Some have competition, some don't.  But I still added a minimal shipping cost on relists this week.  We'll see how that goes.

As far as the wants, I listed a widget the other night that sold in 5 minutes  (dang, why didn't I start higher - I thought $125 was a good price, lol).  With around $12 shipping.  I'm assuming that buyer would have paid whatever to get that widget.

Long post short - there is no way I'd be buying low priced items at any weight for resale now.  

[18704d]

" If a buyer has a choice between two sellers with the same item with the same or similar price the one closer to that buyers location will most likely get the sale. How can we price competitively if we now have multiple shipping zone prices to take into account?"

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As someone said earlier:  Ship for Free

All my listings are Free Shipping.

the new rates don't cost me an extra 50cents off each sale,

and No I didn't raise my prices.

Lynn

[fxpel]

I am on the East Coast. I am now losing money every order I ship to the Midwest and West Coast. My shipping charges were barely enough to begin with. I will have no choice now but to raise my shipping ONCE AGAIN. Since I sell small parts, many of my items cost less then the cost to ship. Soon my customers won't even bother buying from me and will start using China more where shipping is often free or less then a buck. The fact that Ebay whacks me a fee on shipping doesn't help. Been selling on Ebay for 18 years, but like the saying goes, "All good things must come to an end". Soon it will be goodbye Ebay.

[sharingtheland]

Lynn, I'm in VA.  A 5 oz (6 oz?) item mailed to CA this week increased close to $1 in postage cost.   

A seller on either coast, listing low priced items, has to really rethink pricing, shipping costs and types of inventory.

[18704d]

"Lynn, I'm in VA. A 5 oz (6 oz?) item mailed to CA this week increased close to $1 in postage cost. "

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Oh yes, I agree.

I see your situation.

I'm in the MidWest,

so that helps me a lot.

Thanks!

Lynn

[parkersparrow]

Oh! that's interesting. I didn't even think of that. Sellers in the middle states probably won't see much of a price difference shipping coast to coast.