Shipping Without Delivery Confirmation?

[thelabelpalace]

Hi Guys,

i I just wanted your input and feedback on your experiences with this. I sell customized address labels, and after fees my gross profit is only 3.00. What is killing me right now is the 2.61 in shipping with delivery confirmation through printing my labels via eBay. If I ship just through normal stamps without confirmation, I can slash that cost in half and make a much more reasonable profit.

What am I afraid of though is people scamming me saying that did not get their package. For people that don’t ship without confirmation, what is your experience? Is this a good idea? Any suggestions welcomed. Thank you so much!

[7606dennis]

I would probably consider raising my price to cover the cost of shipping with tracking.  To ship without tracking leaves you vulnerable to anyone that claims INR.

[thelabelpalace]

I agree, and I considered this, only issue is all my competition in this and trying to keep my prices with in theirs. If a buyer claimed that, I guess in my case I wouldn’t be out much hopefully, but it’s probbaly the fear of negative feedback. But maybe it’s rare that a buyer would do this sort of behavior.

[duchess-at-speakeasy]

If you are mailing a First Class package, tracking is free and included in the minimum postage cost, currently $2.61 for up to 4 oz. USPS rates go up again in January. The minimum retail postage is $3.00; you can affix stamps and a Label 400 (tracking number) or pay at the PO counter.

So just price your items to include your mailing costs or add the necessary s&h to cover your expenses. In other words, buyers pay for everything.

I do mail postcard orders -- generally 1 to 3 cards -- as a non-machinable letter in a #11 envelope. Cards and light cardboard provide the required rigidity, weight is 2 oz. I affix a $0.91 stamp. No tracking, no insurance. However, I also offer FCPS as an option if the buyer happens to want tracking. Most of these orders are valued under $10.00. Larger orders, over 3.5 oz. are too heavy to be a letter and must be mailed as a package. I've been selling 30+ years (long before eBay) and have never had a lost order or a complaint. In fact, in the good old days, dealers sent batches of postcards on approval; the buyer chose what he/she wanted, paid and sent the remainder back to the dealer.

~~C~~

[thelabelpalace]

Thanks! I think that experience is very helpful that you are talking about with the postcards. Most times than not, since I am selling address labels, most people only order one sheet. One sheet is way way under a ten dollar value. So it may make more sense to just ship those low value orders with stamps, to keep my margins reasonable on my end, but like you said to offer them delivery confirmation or put it on more valuable orders. I just can’t see buyers trying to scam me out of a 3.00 label order I hope with no postage. Even so, being out that little wouldn’t hurt me too much. That was very helpful!

[7606dennis]

If you fear negative feedback too much I would advise abandoning eBay and finding other pursuits.

There are always going to competitors willing to sell for less than you.  Price cannot be the only factor separating you from the competition.  If it is, you may need to reevaluate your business model. 

If you are selling an item for $3 that you only have 10¢ tied up in, you may be willing to risk the loss of a few.  Provided, of course, that you have a high volume of sales.  However, I would advise keeping a very close eye on the number of INR cases if you forgo the protection of tracking.

[thelabelpalace]

Thanks Dennis, I agree raising prices will probably help. And I feel how I run my business The quality I give in product differentiates me, I usually have repeat sales for that reason. Just have to value my work more 🙂 

[bigdeals.etc]

I would think for the most part if a buyer says they didn't receive it (regardless of whether they are lying), they would almost never file a negative before either messaging you about it or filing an INR case. Either way you can still salvage the sale and avoid the negative. At least that's what happens in my experience.

But I only sell a few lightweight items that I just slap a stamp on them (5%). 85% of my sales I get tracking for. And 10% are for international which I take the risk and not get tracking for too (sort of like what you're thinking of doing but for domestic). So far so good with me and that. Your only real way of knowing is to try it out for at least two weeks.

[bigdeals.etc]

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@thelabelpalace wrote:

Thanks Dennis, I agree raising prices will probably help. And I feel how I run my business The quality I give in product differentiates me, I usually have repeat sales for that reason. Just have to value my work more 🙂 

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Don't forget your customer service level should differentiate you from your competitors. For example I'm sure many of our competitors are overseas companies... and their CS stinks I hear. Just be better than them in the CS communication.

[dhbookds]

I would try to raise the price point to just under $10.........Right now you are selling 30 for $1.80 w 1.99 shipping.....  increase the quantity, offer "packages'  3 different labels for 9.75, etc.  Shipping would stay the same, but you could charge the full amount.

I don't know the field.....so need to study competitors, but you need a higher $$ sale. 

[duggmills]

My opinion is: shipping without tracking is like playing a slot machine at an Indian owned casino.

However, at $3.00 net, it's almost not worth the effort. On a good day you may be right up there with so many of us at that luxurious pay grade of  four cents an hour.

[atikovi]

Selling $1.80 items unless you have 100's of sales a month isn't a very efficient use of your time. So with fees, shipping, supplies, you clear maybe a dollar? 

[papyruspapillo]

I usually ship without delivery confirmation if the item sells for under $100. That has worked for over sixteen years. I've only had to refund a buyer one time; this was an established, repeat customer, and I didn't doubt his honesty. I was scammed once, years ago; I have thwarted a couple of attempted scams since. I must add that I sell mostly collectible paper and ship items in sturdy envelopes.

[chung-lee-2]

Raise your price and offer free shipping .

[atikovi]

Smart people sort by price+shipping, although free shipping may be a psychological advantage.