Observations on Shipping

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.

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.