Right now I sell beads from that giant shipment I received online only. There are a few things I've observed about shipping that seem to hold true regardless of venue and item being sold. These are my personal observations and opinions only, not researched facts.
Not All Shipping is Created Equal
Shipping comes in a variety of flavors. In the US many small to mid size sellers and a handful of large ones make use of the regular postal service. Others prefer to utilize companies such as UPS and FedEx. Each shipping provider has a variety of services at different price points and speeds. How fast items arrive depends not only on how much you're willing to pay, but also where the destination is in relation to your starting point.
Case in point: I live in the Greater Seattle Area. One of the big shipping and warehouse supply companies, Uline, recently opened a warehouse in the area. Prior to the new location opening I would pay for UPS Ground (the cheapest available) shipping and my orders would arrive in approximately 3 days from the nearest warehouse. If I needed something faster I had to pay significantly more. Now, that same cheapest available shipping gets me next day service simply because the UPS delivery route that covers my address is based at the same hub that accepts outgoing parcels from the Uline warehouse.
Everyone Thinks Your Shipping Prices Are Insane...
I know I've been guilty of this one. Most often the one that gets me is food. I love fudge. It's dense and is generally sold by the half pound or larger. Fudge is temperature sensitive so it has to be shipped quickly and timed so it doesn't spend a weekend oozing out of its packaging in a post office truck or warehouse. Yet every time I intend to buy some the shipping price sends me into sticker shock.
My theory is that those who shop online regularly at large corporate websites get a distorted view of shipping costs. The upfront charges for shipping are usually less at a large retailer like Amazon, Walmart, or Sears than they would be for an item of comparable weight and size from a much smaller competitor. Economies of scale on shipping supplies and volume discounts with carriers make this possible.
... Unless Your Shipping is "Free"
The widespread introduction of "free" shipping has made shoppers even more sensitive to shipping charges. As we all know, there's no such thing as truly free shipping. The cost simply comes out of the seller's profits or they raise prices to cover the expense. The "free" shipping game is one that will always play out in favor of the giant corporate retailers simply due to their buying and bargaining power.
Shipping Costs More Than You Think
So what goes into shipping costs? Actual freight or postage charges is the most obvious, but certainly not the only thing included. Any handling fees, to cover the labor needed to pick and pack your order, generally get added to the shipping charge. Packaging materials such as bubble wrap, tape, padded envelopes, ink to print shipping labels, and the labels themselves also fall under this category. For some businesses the cost of getting your package to the carrier who will deliver it is significant enough to warrant bumping up the shipping charge.
On top of this the payment processor takes a cut. The end result? Your 1 ounce package that costs $1.95 for postage at the post office retail counter can have a total cost closer to $3.50 after adding in all the associated expenses. Postage discounts available for paying the post office online can help, but certainly are not a panacea for perceived high shipping prices.
That said, there are vendors who pad their shipping prices to guarantee profit. I've observed this sort of behavior more frequently on auction-style sales venues than regular online storefronts. Personally I find this to be a sleazy practice and will not patronize businesses who do this.
Priority Mail is Not an Upgrade on First Class Mail Parcels
This is a little bit of a shipping pet peeve of mine. Surprisingly often I'll see sellers offering an "upgrade to priority" on small items such as earrings with a shipping weight of only a few ounces. Aside from the cost difference and possibly a free box or envelope for the vendor, there's really no benefit to doing this for small, light items. The post office will tell you straight up that First Class has a delivery time frame of 2-3 business days, exactly the same as Priority Mail's 2-3 business days. Priority service is an upgrade on Parcel Post, not First Class Parcel.
Save yourself a little bit of money and decline this "upgrade" when it's offered.
Thursday, June 21, 2012
Tuesday, June 12, 2012
Still Alive!
I admit it, I'm a procrastinator. That post I've been promising about middlemen got put off again and again, and has officially hit the scrap heap. Between trying to find a place that generates reliable sales, processing inventory, and a few dozen other things my brain is starting to feel like a scrambled egg.
My goal is to get a real post up this month about a real topic, either shipping or online selling platforms.
I admit it, I'm a procrastinator. That post I've been promising about middlemen got put off again and again, and has officially hit the scrap heap. Between trying to find a place that generates reliable sales, processing inventory, and a few dozen other things my brain is starting to feel like a scrambled egg.
My goal is to get a real post up this month about a real topic, either shipping or online selling platforms.
Monday, March 12, 2012
Falling off the Bandwagon
So I realized today that I still haven't finished the blog post that I've been promising for about a month now. To be honest, I worked on it for a few days then conveniently forgot about it. Instead I worked on getting more beads online and preparing for a show with my handmade product lines.
Procrastination and falling off the blogging bandwagon is far too easy, especially when something becomes difficult. The topic I picked is certainly difficult for me. I decided it would be a brilliant idea to write about the necessity of middlemen in commerce. Figuring out the message is easy, how to say it without sounding like an incoherent, anti-consumer jerk is another matter. Maybe it's a sign that my approach is wrong. While I go back to the drawing board and try to rewrite the post this week here's a fun bead from my massive stash to look at.
This is the Dancin' Coolraffe, aka Giffy, a carved bone bead.
Procrastination and falling off the blogging bandwagon is far too easy, especially when something becomes difficult. The topic I picked is certainly difficult for me. I decided it would be a brilliant idea to write about the necessity of middlemen in commerce. Figuring out the message is easy, how to say it without sounding like an incoherent, anti-consumer jerk is another matter. Maybe it's a sign that my approach is wrong. While I go back to the drawing board and try to rewrite the post this week here's a fun bead from my massive stash to look at.
Thursday, February 2, 2012
CITES - Regulating Trade in Flora and Fauna
A surprising amount of trade, from timber and guitars, to leather jackets, flowers, and more falls under the purview of CITES - the Convention on International Trade in Endangered Species of Wild Fauna and Flora. This international treaty exists to regulate and restrict trade in endangered species.
The species protected by CITES are listed in three separate appendices, each with a different level of restrictions on trade. Appendix 1 and 2 species are usually protected worldwide and have permit requirements for trade while those listed in appendix 3 have requirements which vary by country.
To find out if the goods you want to import are subject to restrictions under CITES, you can search the appendices or use the online database. The agency responsible for CITES compliance in your country is also a useful resource. In the USA the relevant agency is the Fish and Wildlife Service. You will need to know the scientific name of the exact species being used, including subspecies if applicable. Common names are not always listed in the CITES appendices as they can apply to multiple species. For example: the common term 'buffalo' could mean American bison (Bison bison), African buffalo (Syncerus caffer), or water buffalo (Bubalus bubalis).
Determining beforehand if the items you want to import are subject to CITES will save you time, and potentially a lot of money. Attempting to import restricted items without proper permits can result in fines and confiscation of your shipment.
The species protected by CITES are listed in three separate appendices, each with a different level of restrictions on trade. Appendix 1 and 2 species are usually protected worldwide and have permit requirements for trade while those listed in appendix 3 have requirements which vary by country.
To find out if the goods you want to import are subject to restrictions under CITES, you can search the appendices or use the online database. The agency responsible for CITES compliance in your country is also a useful resource. In the USA the relevant agency is the Fish and Wildlife Service. You will need to know the scientific name of the exact species being used, including subspecies if applicable. Common names are not always listed in the CITES appendices as they can apply to multiple species. For example: the common term 'buffalo' could mean American bison (Bison bison), African buffalo (Syncerus caffer), or water buffalo (Bubalus bubalis).
Determining beforehand if the items you want to import are subject to CITES will save you time, and potentially a lot of money. Attempting to import restricted items without proper permits can result in fines and confiscation of your shipment.
Thursday, January 26, 2012
Still here!
Whoops, I hadn't realized a month has already gone by since my last post. The 4 tons of beads mentioned earlier finally arrived two and a half weeks ago, it's been a crazy marathon of photography and writing since then. Once everything calms down a little I'll get another post done covering CITES.
Got another topic you want me to cover? Post a comment and I'll see what I can come up with.
Got another topic you want me to cover? Post a comment and I'll see what I can come up with.
Sunday, December 25, 2011
Book Review: A Handbook On Beads
So far I've written quite a bit about international trade, but not much about beads. With the arrival of my shipment rapidly approaching it's time to change that.
Being a bead novice the first stop in my quest for basic information was the local library. There I found a rather worn, thin trade paperback by the name "A Handbook on Beads" by W.G.N. van der Sleen. Published in 1967, and out of print since the 1970s, this book is still an excellent resource for a bead beginner.
The first of the two parts of the book is all about terminology. This is where the real value of this work lies. Several pages of diagrams are included to illustrate bead shapes, different measurement points, patterns, and even production methods and materials. That many of the terms are given in 5 languages is an added bonus.
Part 2 of the Handbook contains overviews of different types of beads historically made in different regions. Again there are useful diagrams and for some regions chemical analysis of early beads by type (wound or drawn) and color is provided.
Overall I was impressed enough with the wealth of information in the book to track down a copy for myself. Given the age of the book copies in good condition are not always easy to come by. The copyright page in mine states that it was part of a run of only 1,000 from 1973, printed as a courtesy after the book was out of print. I have found no mention of later printings. Sadly, there will not be any updated editions either, the author passed away shortly after the original publication.
Title: A Handbook On Beads
Author: W.G.N. van der Sleen
ISBN: 0873870603
Being a bead novice the first stop in my quest for basic information was the local library. There I found a rather worn, thin trade paperback by the name "A Handbook on Beads" by W.G.N. van der Sleen. Published in 1967, and out of print since the 1970s, this book is still an excellent resource for a bead beginner.
The first of the two parts of the book is all about terminology. This is where the real value of this work lies. Several pages of diagrams are included to illustrate bead shapes, different measurement points, patterns, and even production methods and materials. That many of the terms are given in 5 languages is an added bonus.
Part 2 of the Handbook contains overviews of different types of beads historically made in different regions. Again there are useful diagrams and for some regions chemical analysis of early beads by type (wound or drawn) and color is provided.
Overall I was impressed enough with the wealth of information in the book to track down a copy for myself. Given the age of the book copies in good condition are not always easy to come by. The copyright page in mine states that it was part of a run of only 1,000 from 1973, printed as a courtesy after the book was out of print. I have found no mention of later printings. Sadly, there will not be any updated editions either, the author passed away shortly after the original publication.
Title: A Handbook On Beads
Author: W.G.N. van der Sleen
ISBN: 0873870603
Monday, November 28, 2011
HTS - Method and Madness
Most items being imported to the US need to be classified to determine what duty rate must be paid, whether the item is subject to import quotas, and even whether or not the item can even enter the country. The classification system used is known as the Harmonized Tariff Schedule of the United States - usually referred to as simply HTS(US).
The HTS is divided into over 90 chapters broken down by material, item type and primary usage which assign a 6-10 digit number to everything. In general a lower chapter number corresponds to items closer to a raw material state. Determining the correct classification for something can be as much an art as a science. With this in mind, let's first take a look at some of the General Rules of Interpretation.
General Rule 2(a) states:
"Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled."
This particular rule is not applicable in my case, but does mean that you cannot reduce the duty on an import by shipping it in pieces unless the parts are sent in separate shipments. In the eyes of customs a pile of bicycle parts that can be assembled into a bicycle are equivalent to one already assembled.
Rules 3 and 5 largely deal with the order of operations in trying to classify items, including how to handle mixtures or things that are only partially described by the applicable headings. Rule 3 also provides a tie breaker for determining the HTS code of an article that is equally described by multiple headings with the same level of specificity: use the one with the highest number.
The fourth rule is the shortest and in my opinion most straight forward. "Goods which cannot be classified in accordance with the above rules shall be classified under the heading appropriate to the goods to which they are most akin." In short, if your item simply isn't listed anywhere, classify it as the most closely related item that is.
I highly recommend reading the General Rules of Interpretation for yourself. There are 6 as of the writing of this article, though the PDF version also contains over 600 pages of General Notes - additional rules, updates, and exceptions.
Some items are very straightforward to locate in the HTS. Take glass beads for example. The entirety of Chapter 70 is dedicated to glass products, so that is a logical starting point. Heading 7018 covers "Glass beads, imitation pearls, imitation precious or semiprecious stones and similar glass smallwares and articles thereof other than imitation jewelry; glass eyes other than prosthetic articles; statuettes and other ornaments of lamp-worked glass, other than imitation jewelry; glass microspheres not exceeding 1 mm in diameter." Given that the first two words are 'glass beads', 7018 should be the correct heading. Determining the proper subheadings is similarly trivial in this case. 7018.10 covers "Glass beads, imitation pearls, imitation precious or semiprecious stones and similar glass smallwares." 7018.10 has three subheadings underneath it, neither of the first two apply, so we default to the last one, "other" giving a final HTS code of 7018.10.50 for glass beads.
A more difficult example is beads made of camel bone. Chapter 5 is for "Products of animal origin, not elsewhere specified or included," but does not contain any headings for finished bone products. It does however note that for the purposes of the HTS, 'ivory' means not only ivory in the traditional sense but teeth as well. To find an appropriate heading I searched prior customs rulings for the term "bone bead" and came up with heading 9601 - "Worked ivory, bone, tortoise-shell, horn, antlers, coral, mother-of-pearl and other animal carving material, and articles of these materials (including articles obtained by molding)." Reading through the few available subheadings leads to a final answer of 9601.90.60.
For truly unique items, it's safest to request that customs rule on the correct classification for your item. Information on how to request a ruling can be found at http://www.cbp.gov/xp/cgov/trade/legal/rulings/
The HTS is divided into over 90 chapters broken down by material, item type and primary usage which assign a 6-10 digit number to everything. In general a lower chapter number corresponds to items closer to a raw material state. Determining the correct classification for something can be as much an art as a science. With this in mind, let's first take a look at some of the General Rules of Interpretation.
General Rule 2(a) states:
"Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled."
This particular rule is not applicable in my case, but does mean that you cannot reduce the duty on an import by shipping it in pieces unless the parts are sent in separate shipments. In the eyes of customs a pile of bicycle parts that can be assembled into a bicycle are equivalent to one already assembled.
Rules 3 and 5 largely deal with the order of operations in trying to classify items, including how to handle mixtures or things that are only partially described by the applicable headings. Rule 3 also provides a tie breaker for determining the HTS code of an article that is equally described by multiple headings with the same level of specificity: use the one with the highest number.
The fourth rule is the shortest and in my opinion most straight forward. "Goods which cannot be classified in accordance with the above rules shall be classified under the heading appropriate to the goods to which they are most akin." In short, if your item simply isn't listed anywhere, classify it as the most closely related item that is.
I highly recommend reading the General Rules of Interpretation for yourself. There are 6 as of the writing of this article, though the PDF version also contains over 600 pages of General Notes - additional rules, updates, and exceptions.
Some items are very straightforward to locate in the HTS. Take glass beads for example. The entirety of Chapter 70 is dedicated to glass products, so that is a logical starting point. Heading 7018 covers "Glass beads, imitation pearls, imitation precious or semiprecious stones and similar glass smallwares and articles thereof other than imitation jewelry; glass eyes other than prosthetic articles; statuettes and other ornaments of lamp-worked glass, other than imitation jewelry; glass microspheres not exceeding 1 mm in diameter." Given that the first two words are 'glass beads', 7018 should be the correct heading. Determining the proper subheadings is similarly trivial in this case. 7018.10 covers "Glass beads, imitation pearls, imitation precious or semiprecious stones and similar glass smallwares." 7018.10 has three subheadings underneath it, neither of the first two apply, so we default to the last one, "other" giving a final HTS code of 7018.10.50 for glass beads.
A more difficult example is beads made of camel bone. Chapter 5 is for "Products of animal origin, not elsewhere specified or included," but does not contain any headings for finished bone products. It does however note that for the purposes of the HTS, 'ivory' means not only ivory in the traditional sense but teeth as well. To find an appropriate heading I searched prior customs rulings for the term "bone bead" and came up with heading 9601 - "Worked ivory, bone, tortoise-shell, horn, antlers, coral, mother-of-pearl and other animal carving material, and articles of these materials (including articles obtained by molding)." Reading through the few available subheadings leads to a final answer of 9601.90.60.
For truly unique items, it's safest to request that customs rule on the correct classification for your item. Information on how to request a ruling can be found at http://www.cbp.gov/xp/cgov/trade/legal/rulings/
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