Free postage - how?
Discussion
Looking at selling some lower price 'consumables' and I'm struggling to get my head around the free postage thing. Up to now I've always used TNT, DHL and so on insured for high value B2B, as most want packing slips, pre 10 and signed POD.
Say you sell something small to a home user for £15.95 inc vat with free postage. Item costs a tenner 'wholesale' exc. vat - you've got to cover postage, packing and making it worthwhile. I've seen these sell on eBay by the hundred and know the prices are what they are.
How's it done? Bulk Jiffy bag and RM second class unsigned? Also, anyone using ebay's click and collect for such items?
Say you sell something small to a home user for £15.95 inc vat with free postage. Item costs a tenner 'wholesale' exc. vat - you've got to cover postage, packing and making it worthwhile. I've seen these sell on eBay by the hundred and know the prices are what they are.
How's it done? Bulk Jiffy bag and RM second class unsigned? Also, anyone using ebay's click and collect for such items?
It's only done in two ways.
1. They make 1p/nothing/loss... unsustainable and stupid but does happen
2. They buy product in the tens of thousands at dirt cheap prices, or they are the manufacturer direct from China and there is adequate margin.
Volume posters will get cheaper rates then a low-volume poster but either way this is a margin game. Question is, do you want the aggro for a few pennies here and there?
We've just pulled all of our low margin ranges from eBay and Amazon as it just isn't worth doing unless you get the product direct from the source in high volume and have a USP.
1. They make 1p/nothing/loss... unsustainable and stupid but does happen
2. They buy product in the tens of thousands at dirt cheap prices, or they are the manufacturer direct from China and there is adequate margin.
Volume posters will get cheaper rates then a low-volume poster but either way this is a margin game. Question is, do you want the aggro for a few pennies here and there?
We've just pulled all of our low margin ranges from eBay and Amazon as it just isn't worth doing unless you get the product direct from the source in high volume and have a USP.
eBay is a race to the bottom, if you see legitimate businesses selling goods for super cheap then they are only making a few percent profit and there is literally no point in anybody undercutting them.
I also quite often find lots of people taking advantage of Royal Mail by shipping stuff on a cheaper service by under declaring weight and thickness.
Those guys must be buying direct from the manufacturers and still not making huge amounts, if they are buying direct what is to stop you doing the same?
I also quite often find lots of people taking advantage of Royal Mail by shipping stuff on a cheaper service by under declaring weight and thickness.
Those guys must be buying direct from the manufacturers and still not making huge amounts, if they are buying direct what is to stop you doing the same?
Edited by Mudgey on Thursday 22 December 08:33
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