Selling on eBay? Postage increase adds to the burden

Along with increases we’re forced to face on the costs everyday essentials -- like gas and food — we are slapped with yet another. Postage is going up AGAIN as of May 12.

Pay your bills online and send your friends notes and birthday greetings through email. But for eBay sellers, it’s something we have no choice but to deal with.

For sellers who have been quoting flat rate shipping numbers in your listings, will you continue doing business as usual? Or will you now use the shipping calculator? From what I understand, items listed with calculated shipping, won't rank in a price search.

Flat rate had always worked out okay for me in the past. You make out on some and lose a little on others.

Looking at the USPS rate chart, living in zone 1, it will cost $4.80 to ship a priority item under 1 pound 13 ounces to a buyer in this area. However, the same package will cost $8.25 to ship out to the west coast. Not wanting to risk negative feedback or be penalized in eBay searches for excessive shipping and handling charges, sellers have much to consider in stating s&h for each item posted.

You may not want to overcharge, but can you afford to eat $2.50 to $3.45 on a good percentage of your sales?

Other factors come into play as well. A handling fee is fair to apply, but how much is reasonable? Packing supplies such as bubble wrap and tape are expensive. Gas — obviously! And the occasional unscrupulous buyer who will hold the seller hostage (by threatening negative feedback) for a refund. There has to be a way to absorb the costs.

Low starting bids generate interest and encourage bidding in the online auction format, but the risk is obvious. Sellers will have to charge more — but where should it apply?

It's commonly understood that postage costs are passed onto buyers, but with the economy tightening at a quickening pace, I wonder how much more customers will be willing to pay to get an item mailed to them that’s more likely a want and not a need. It seems reasonable to assume that the pool of buyers with money to spend on “extras” like collectibles and one-of-a-kind gifts is shrinking.

I’m betting that second-hand shopping locally will pick-up big time. Thrift stores like Salvation Army and Goodwill have already reported a big increase in sales. New flea markets have popped up this year here in Connecticut — in Moosup and Putnam and in nearby Foster, Rhode Island.

While we love shopping online too, how many can afford to pay even more than the cost of an item to have it delivered?

Some may. A lot more buyers overseas are keeping US eBay sellers busier than ever. If you’ve been hesitant to offer shipping to other countries because of the headaches in filling out customs forms — don’t be. With the shrinking US dollar, overseas buyers are finding bargains in buying US items on eBay.

It's amazed me to see that one of my buyers paid $74 to have an old record player sent to their country — when the cost of the item was just $24. The fact is, $74 in US dollars isn’t so much to them because their money has more buying power.

Market conditions will always be ever-changing. Like it or not, changing with the tides is something we’ll always have to do.

Read more about the new postage rate increase:
http://www.usps.com/prices/welcome.htm

From The Norwich Bulletin:
Postage rates rising Monday. Stock up on those 41-cent Forever Stamps today if you can.