New Seller, Shipping Cutting Into Profit

[brewallace-_0]

I am a new seller who has sold a few items thus far. I order inexpensive poly mailers online and use first class shipping.  I sell clothing, and  am not making much profit-for example, on a $9 sale, I may clear 2.50, as I  offer free shipping.

Can you all please tell me: 

1. Have you found it better to make customer pay for shipping-do you still get a good amount of sales and

2. How do you make sure you are charging the customer the right shipping and they don't have to pay more upon receipt (my biggest concern.)

I've considered maybe I need to switch up what I'm selling, such as books, which I love. I see so many high quality books at thrift stores for $1 or .50- like new- and I own tons of great books, but am not sure of the best way to ship those, either.  

THANK YOU, I appreciate you all. 

[Anonymous]

The easiest is to just continue to offer free shipping but raise your price, if you want it to be hassle free.

Even as a seller that offers free shipping you should still have a quality scale so you know what you are getting into ahead of time.

For books, use media mail. You can read the limitations here. https://about.usps.com/notices/not121/not121_tech.htm

[titipeo]

When offering free shipping, always make sure that your price your item accordingly to include the shipping cost, as it will cut into your revenue. A good point of reference is search the farthest shipping point from where you live and see how much it cost to send an item, that will give you and idea on shipping cost. As for having buyer pay for shipping, if that will increase your sales, who knows. People sometimes will like to know the price upfront, it can go either way. I sell clothing, as well, with shipping included. Most of my inventory is gone, I only have a few thing left. 

As for selling books, please note that you can send books via media mail, which is cheaper than first class, but, it is very slow service. The USPS has been slow in delivering items, it might be worth checking to see if sending books via first class might be an option, if the price difference is not too much. Again, like i said in the beginning, compare cost from the farthest shipping point, east/west coast. Good luck. 

[nobody*s_perfect]

"How do you make sure you are charging the customer the right shipping and they don't have to pay more upon receipt (my biggest concern.)"

When you purchase a shipping label, you ned to enter an accurate weight for your package. Then you will be charged the correct postage, with no risk that your buyer will receive the package with Postage Due. None of this is connected to what you charge the buyer for shipping and handling.

If you don't pay enough for your shipping label (such as if you enter a low weight) then the underpayment will probably be caught by the special equipment at USPS sorting centers, and charged directly to your eBay account.

https://link.usps.com/2017/10/05/what-is-apv/

http://pages.ebay.com/sellerinformation/ship-smart/ebay-shipping-partners/avoid-extra-postage-costs....

[1tuna]

if you like 1st class shipping then I would stick with that.

thats what I use and I charge a flat fee of $5 for shipping

you can try a mix and match to see if you like free shipping or just add $ to the price

I like to sell things that I can pack fast and ship easy

[southern*sweet*tea]

Get rid of free shipping.  That did it for me. I'll never go back to "free" shipping ever.

I get way more multiple purchases without it. Buyers aren't stupid (at least mine aren't). They know that shipping isn't free and that they are overpaying when they buy more than one item from a "free" shipping seller.

[lesegouts]

I definitely agree with Southern*sweet* tea.  I stopped offering free shipping, and reduced the item price. I make out better now than I did before. Except for Media Mail, all other rates are distance based, and since I am in New York, shipping can vary greatly, especially if the order comes from the West Coast. Invariably, the heaviest shipments will be from Zone 8, which is a killer with free shipping. 

I always try to be the lowest price for any common item. My goal is to sell it and get rid of it, not keep it.

3

[chapeau-noir]

I'd get rid of the free shipping and as above, use first class.  You can knock a buck off your prices and still make more money.  For more inexpensive items, free shipping has never made a difference in my sales and I know people whose sales even improved after getting rid of it.  It's hard to bury it in a $9 item, for example, and have it make much sense.

As a clothing seller for some years, I can tell you that for everyday type sellers like me, prices are falling and acquisition costs are rising, so profits are really squeezed.  I still make enough to get along, but it's harder. 

Books are a slow sell unless you have a lot of them as the huge booksellers like Hippo, Better World, etc., have pretty much cornered the  market.  If you know a lot about books, though, you can curate for better profit, and it's very enjoyable.

[chspa-14]

1.) It doesn't matter. People aren't stupid and they know they are paying for shipping. $29.95 free shipping is the same as $24.95+ $4.99 shipping.  Don't try to reinvent the wheel, look at your competitors.  To me personally $14.99 free shipping looks a lot better than $9.99 + $5 shipping. It is different if you are shipping heavy items of course. 

2.) You learn quickly the first time you don't charge enough for shipping. 

[chspa-14]

Make sure you do your math. Once you figure that out the sky is truly the limit on eBay.