Best shipping rates / methods

[brentwoodbazaar]

I have been selling on ebay for 20+ years but I occasionally feel like I'm missing something when it comes to finding the best/cheapest shipping methods.  I often see experienced sellers with items that have S&H amounts I can't possibly match.  For example, yesterday I was going to list an item that looks to sell in the $10 range.  That would be fine with what I have invested in it.  However, when looking on ebay for comps I found several that had sold for $10 with FREE S&H!  The item weighs over a pound so it will be a 2 pound package shipped.  Depending on the location that would cost between 10 and 15 dollars for me just to ship.  (It won't fit a small flat rate box/envelope).  What  am I missing?  Thanks for your time.

[glasser]

Have you looked at other carriers like UPS and FedEx. Their ground shipping costs can be pretty reasonable compared to USPS especially over longer distances with the discounts eBay offers. . Don't know the size of the item but that figures in as well big time now with USPS.  Pirate Ship also has discounted UPS rates.

[nobody*s_perfect]

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@glasser wrote:... . Don't know the size of the item but that figures in as well big time now with USPS.  ...

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With USPS, size currently affects postage cost only for packages that are over 1 cubic foot (i.e., 1728 cubic inches). UPS and FedEx also have dimensional rates.

[lesegouts]

UPS and FedEx tack on fees that are not shown. Residential surcharges ($5+), dimensional measurements that don't agree with yours, and are pretty much unappealable. FedEx 2 Day is priced very aggressively at 80% off list. They make some of it up with the extras. I can't get those rates for my business.

[brentwoodbazaar]

Thanks for taking time to reply.  I have compared with other services (and Pirate  Ship) but it still doesn't help explain how someone can sell an item for less than what the S&H will be and still make a profit.

[reclaimed_denim]

I don't think you're missing anything.  It's pretty much impossible to charge $10 and make a profit on something over 1 lb with free shipping (unless a media mail item). Even a flat rate envelope (-7.52 or more) leaves little profit after your fvf (approx -1.50 or more). You'd need to have less than 98 cents invested in your item to make any profit.  And good luck, if it gets returned, right?  So I hear ya!

I think a lot of inexperienced sellers tend to price too low.  In the new listing format, ebay will suggest pricing (typically way under value) based on certain key words and I think a lot of these sellers might accept that price without researching first.  The market is really saturated and prices are way down compared to years ago.

You mentioned experienced sellers though. It's possible they checked off free shipping by mistake?

I just list my stuff for the amount I want to get and it moves more slowly, but everything eventually sells.  Shipping costs are insane now, plus the fee we pay on top of it.  I finally gave in and raised shipping across the board after losing money there the past few months. 

[chapeau-noir]

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@brentwoodbazaar wrote:

Thanks for taking time to reply.  I have compared with other services (and Pirate  Ship) but it still doesn't help explain how someone can sell an item for less than what the S&H will be and still make a profit.

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They may not be making a profit.  Some 'experienced' sellers seem to have little grasp of the concept.  They may be having loss leaders, there may be a mistake in the listing. 

You will get commercial base rates using eBay and other shipping programs for USPS, so that's what you have to work with.  I don't use UPS or Fed-Ex save for very large, heavy items - spendy and slow, though good for those large, heavy items.  But I don't think there is any secret or method to their madness.