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| | | Author: | ffilz  | | Posted: | Dec 6, 2022 19:42 | | Subject: | Fees cut into margins with high shipping cost | | Viewed: | 285 times | | Topic: | Selling | |
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| I just got a $20 order that resulted in a $60 shipping cost and the result is
about $16 taxes. The Bricklink and Paypal fees on the entire transaction equal
about 1/3 the parts sale price. I figure my "cost" for the items was somewhere
between $10-12, resulting in my getting just a few bucks margin for this sale...
I'm wondering what other folks do to mitigate issues like this? I currently
charge exact postage and don't have any handling fees.
I'm wondering if one thing I should do is bump up my minimum order for international
orders.
Thanks for any thoughts you might have.
Frank
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| | | | | Author: | 1001bricks | | Posted: | Dec 6, 2022 20:07 | | Subject: | (Cancelled) | | Viewed: | 60 times | | Topic: | Selling | |
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| | (Cancelled) |
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| | | | | Author: | 1001bricks | | Posted: | Dec 6, 2022 20:09 | | Subject: | Re: Fees cut into margins with high shipping cost | | Viewed: | 82 times | | Topic: | Selling | |
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| Welcome to a brand new world.
Now taxes are mandatory since the first cent, and because of unknown reasons
gas has increased and shipping prices are sky rocketting, we, BrickLink sellers
and probably many on other platforms, are basically working to pay:
* the site
* the payment service
* their bank
* their IRS
* their postal services
* inherant costs, like packaging, internet, power bill...
* and for some stupid pros like us, their accountant, insurance, etc.
But you can be happy, what remains is all for you!
Of course when you've removed the cost price, the space it takes in your
home/office,
and ignore you had to work, to eat, drink and heat.
| | I'm wondering what other folks do to mitigate issues like this? I currently
charge exact postage and don't have any handling fees.
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I'm not sure there's a solution.
But if your price is too low, then you have to increase it - I guess.
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| | | | | Author: | 1001bricks | | Posted: | Dec 6, 2022 20:19 | | Subject: | Re: Fees cut into margins with high shipping cost | | Viewed: | 72 times | | Topic: | Selling | |
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| | | I'm wondering what other folks do to mitigate issues like this? I currently
charge exact postage and don't have any handling fees.
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BTW, you don't have to charge the service of shipping at the exact
postal rate.
This service includes packaging, stickers, driving to the post/mailbox whatever...
But for buyers not to be surprised, please use (I didn't check if you do)
automatic check out, or, at least, display your prices for this service in Terms.
No surprise and then everyone will be happy.
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| | | | | Author: | popsicle | | Posted: | Dec 6, 2022 20:54 | | Subject: | (Cancelled) | | Viewed: | 106 times | | Topic: | Selling | |
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| | (Cancelled) |
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| | | | | | | Author: | rtzx9r | | Posted: | Dec 6, 2022 21:49 | | Subject: | Re: Fees cut into margins with high shipping cost | | Viewed: | 71 times | | Topic: | Selling | |
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| In Selling, popsicle writes:
| | In Selling, ffilz writes:
| | I just got a $20 order that resulted in a $60 shipping cost and the result is
about $16 taxes. The Bricklink and Paypal fees on the entire transaction equal
about 1/3 the parts sale price. I figure my "cost" for the items was somewhere
between $10-12, resulting in my getting just a few bucks margin for this sale...
I'm wondering what other folks do to mitigate issues like this? I currently
charge exact postage and don't have any handling fees.
I'm wondering if one thing I should do is bump up my minimum order for international
orders.
Thanks for any thoughts you might have.
Frank
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Wish I could offer concrete advise, Frank. I can't...
We shutdown our international selling just in advance of the global-transport
logistical meltdown of a couple of years ago. Have not reopened to sales abroad
since, due to a series of subsequent adjustments in online selling.
As we get regular requests from fellow members abroad, there is a constant pressure
felt to reopen cross-border selling. We might, given some time and as things
smooth out some.
PM, if you have a need to know more.
-popsicle
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Similar situation when I get a $5-10 order from outside the US. The $5 order
and $15 shipping cost minus PP foreign fee and % of shipping cost almost always
equals no profit. Perhaps I need to eliminate OUS orders come to think of it.
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| | | | | | | | | Author: | SDF_Bricks | | Posted: | Dec 6, 2022 22:53 | | Subject: | Re: Fees cut into margins with high shipping cost | | Viewed: | 67 times | | Topic: | Selling | |
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| In Selling, rtzx9r writes:
| | In Selling, popsicle writes:
| | In Selling, ffilz writes:
| | I just got a $20 order that resulted in a $60 shipping cost and the result is
about $16 taxes. The Bricklink and Paypal fees on the entire transaction equal
about 1/3 the parts sale price. I figure my "cost" for the items was somewhere
between $10-12, resulting in my getting just a few bucks margin for this sale...
I'm wondering what other folks do to mitigate issues like this? I currently
charge exact postage and don't have any handling fees.
I'm wondering if one thing I should do is bump up my minimum order for international
orders.
Thanks for any thoughts you might have.
Frank
|
Wish I could offer concrete advise, Frank. I can't...
We shutdown our international selling just in advance of the global-transport
logistical meltdown of a couple of years ago. Have not reopened to sales abroad
since, due to a series of subsequent adjustments in online selling.
As we get regular requests from fellow members abroad, there is a constant pressure
felt to reopen cross-border selling. We might, given some time and as things
smooth out some.
PM, if you have a need to know more.
-popsicle
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Similar situation when I get a $5-10 order from outside the US. The $5 order
and $15 shipping cost minus PP foreign fee and % of shipping cost almost always
equals no profit. Perhaps I need to eliminate OUS orders come to think of it.
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I believe the main issue here is a combination of:
1. Very high shipping costs
2. Paypal not giving a break on shipping charges.
In the past, some sellers would put very low prices on items, but then charge
huge amounts for shipping, on eBay. It seems Paypal (an off-shoot of eBay) does
not want to make the same mistake again.
Yes, I too have 'lost' many potential sales to Europe simply because
of shipping costs. Such are these modern post-Covid times. Shipping costs have
gone through the roof, but now that the economy is restarting, many big companies
refuse to re-adjust, be it USPS or even those that make storage boxes (prices
tripled over the past ~5 years)
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| | | | | | | | | | | Author: | yorbrick | | Posted: | Dec 7, 2022 01:22 | | Subject: | Re: Fees cut into margins with high shipping cost | | Viewed: | 62 times | | Topic: | Selling | |
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| | | I believe the main issue here is a combination of:
1. Very high shipping costs
2. Paypal not giving a break on shipping charges.
In the past, some sellers would put very low prices on items, but then charge
huge amounts for shipping, on eBay. It seems Paypal (an off-shoot of eBay) does
not want to make the same mistake again.
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Paypal only sees a combined total payment that they process. They don't care
if it is a $100 item with free postage or a $50 item with $50 shipping. They
process the same $100 payment either way. There is no need to give a break on
shipping charges, since they would just end up increasing the fees on the rest
of the transaction.
Sellers just need to take it into account. If shipping is going to be $20, charge
$22 or similar to cover the packaging and the 5% or so pp fees. But that means
giving up the slogan of charging exact postage costs.
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| | | | | Author: | wildchicken13 | | Posted: | Dec 6, 2022 23:17 | | Subject: | Re: Fees cut into margins with high shipping cost | | Viewed: | 72 times | | Topic: | Selling | |
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| In Selling, ffilz writes:
| | I just got a $20 order that resulted in a $60 shipping cost and the result is
about $16 taxes. The Bricklink and Paypal fees on the entire transaction equal
about 1/3 the parts sale price. I figure my "cost" for the items was somewhere
between $10-12, resulting in my getting just a few bucks margin for this sale...
I'm wondering what other folks do to mitigate issues like this? I currently
charge exact postage and don't have any handling fees.
I'm wondering if one thing I should do is bump up my minimum order for international
orders.
Thanks for any thoughts you might have.
Frank
|
Yikes! Was it an international buyer? $60 shipping on a $20 order sounds too
high for domestic shipping.
Selling parts on BrickLink is generally a business with a low profit margin,
but if you find yourself putting in a lot of work for very little money, there
are things you can do to increase your profits:
1. You mention that you charge exact postage. It is okay to charge extra for
postage as long as the final cost is displayed to the buyer somewhere, either
in your store terms or at checkout. Consider implementing instant checkout.
2. Raise your minimum. A $20 minimum is already pretty high, but you can enforce
a higher minimum just for international orders.
3. Only ship within the U.S. Unless you have a lot of international orders, there
is little to gain or lose by shipping internationally.
4. Raise your prices. This will help offset some of your other costs.
Hope that helps.
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| | | | | Author: | yorbrick | | Posted: | Dec 7, 2022 01:13 | | Subject: | Re: Fees cut into margins with high shipping cost | | Viewed: | 59 times | | Topic: | Selling | |
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| In Selling, ffilz writes:
| | I just got a $20 order that resulted in a $60 shipping cost and the result is
about $16 taxes. The Bricklink and Paypal fees on the entire transaction equal
about 1/3 the parts sale price. I figure my "cost" for the items was somewhere
between $10-12, resulting in my getting just a few bucks margin for this sale...
I'm wondering what other folks do to mitigate issues like this? I currently
charge exact postage and don't have any handling fees.
I'm wondering if one thing I should do is bump up my minimum order for international
orders.
Thanks for any thoughts you might have.
Frank
|
Paypal fees are a percentage (aside from the small fixed fee) so are relatively
easy to account for as the postage costs increase if you charge a percentage
more than the actual cost.
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| | | | | Author: | jbroman | | Posted: | Dec 7, 2022 14:37 | | Subject: | Re: Fees cut into margins with high shipping cost | | Viewed: | 63 times | | Topic: | Selling | |
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| In Selling, ffilz writes:
| | I just got a $20 order that resulted in a $60 shipping cost and the result is
about $16 taxes. The Bricklink and Paypal fees on the entire transaction equal
about 1/3 the parts sale price. I figure my "cost" for the items was somewhere
between $10-12, resulting in my getting just a few bucks margin for this sale...
I'm wondering what other folks do to mitigate issues like this? I currently
charge exact postage and don't have any handling fees.
I'm wondering if one thing I should do is bump up my minimum order for international
orders.
Thanks for any thoughts you might have.
Frank
|
Remember, you don’t pay BL fees on shipping. Just for the parts.
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| | | | | | | Author: | ffilz | | Posted: | Dec 8, 2022 12:36 | | Subject: | Re: Fees cut into margins with high shipping cost | | Viewed: | 53 times | | Topic: | Selling | |
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| In Selling, jbroman writes:
| | In Selling, ffilz writes:
| | I just got a $20 order that resulted in a $60 shipping cost and the result is
about $16 taxes. The Bricklink and Paypal fees on the entire transaction equal
about 1/3 the parts sale price. I figure my "cost" for the items was somewhere
between $10-12, resulting in my getting just a few bucks margin for this sale...
I'm wondering what other folks do to mitigate issues like this? I currently
charge exact postage and don't have any handling fees.
I'm wondering if one thing I should do is bump up my minimum order for international
orders.
Thanks for any thoughts you might have.
Frank
|
Remember, you don’t pay BL fees on shipping. Just for the parts.
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Yea, I figured that out later, that does help...
But the saga gets worse... The USPS online postage calculator would not give
me a First Class option, thus the extremely high shipping cost. Get paid, fill
out customs (which I for some reason couldn't do online), get to Post Office.
We can't ship Priority Mail packages to Spain right now. But you CAN ship
First Class for less than $30 (I didn't catch the actual amount)...
Now to figure out the best way to get the most refund (since the buyer paid VAT
almost as much as the items, because VAT is on shipping charge also...) and not
leave me in the hole...
And this is the final straw for me on international shipping...
Frank
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| | | | | | | | | Author: | jennnifer | | Posted: | Dec 8, 2022 13:21 | | Subject: | Re: Fees cut into margins with high shipping cost | | Viewed: | 59 times | | Topic: | Selling | |
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| In Selling, ffilz writes:
| | In Selling, jbroman writes:
| | In Selling, ffilz writes:
| | I just got a $20 order that resulted in a $60 shipping cost and the result is
about $16 taxes. The Bricklink and Paypal fees on the entire transaction equal
about 1/3 the parts sale price. I figure my "cost" for the items was somewhere
between $10-12, resulting in my getting just a few bucks margin for this sale...
I'm wondering what other folks do to mitigate issues like this? I currently
charge exact postage and don't have any handling fees.
I'm wondering if one thing I should do is bump up my minimum order for international
orders.
Thanks for any thoughts you might have.
Frank
|
Remember, you don’t pay BL fees on shipping. Just for the parts.
|
Yea, I figured that out later, that does help...
But the saga gets worse... The USPS online postage calculator would not give
me a First Class option,
|
The calculator does show the First Class International prices. You just can't
purchase it online.
| | thus the extremely high shipping cost. Get paid, fill
out customs (which I for some reason couldn't do online), get to Post Office.
|
Use Paypal Shipstation (if you don't need to add the IOSS) or Pirate Ship
to print postage quickly online including the customs forms.
| | We can't ship Priority Mail packages to Spain right now. But you CAN ship
First Class for less than $30 (I didn't catch the actual amount)...
|
Less than 8oz is about $15. 8-32oz is about $25.
| |
Now to figure out the best way to get the most refund (since the buyer paid VAT
almost as much as the items, because VAT is on shipping charge also...) and not
leave me in the hole...
And this is the final straw for me on international shipping...
Frank
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Yes, you need to be more informed about the shipping systems before you ship
international.
Good luck,
Jen
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| | | | | | | | | | | Author: | ffilz | | Posted: | Dec 8, 2022 15:13 | | Subject: | Re: Fees cut into margins with high shipping cost | | Viewed: | 36 times | | Topic: | Selling | |
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| In Selling, jennnifer writes:
| | In Selling, ffilz writes:
| | In Selling, jbroman writes:
| | In Selling, ffilz writes:
| | I just got a $20 order that resulted in a $60 shipping cost and the result is
about $16 taxes. The Bricklink and Paypal fees on the entire transaction equal
about 1/3 the parts sale price. I figure my "cost" for the items was somewhere
between $10-12, resulting in my getting just a few bucks margin for this sale...
I'm wondering what other folks do to mitigate issues like this? I currently
charge exact postage and don't have any handling fees.
I'm wondering if one thing I should do is bump up my minimum order for international
orders.
Thanks for any thoughts you might have.
Frank
|
Remember, you don’t pay BL fees on shipping. Just for the parts.
|
Yea, I figured that out later, that does help...
But the saga gets worse... The USPS online postage calculator would not give
me a First Class option,
|
The calculator does show the First Class International prices. You just can't
purchase it online.
| | thus the extremely high shipping cost. Get paid, fill
out customs (which I for some reason couldn't do online), get to Post Office.
|
Use Paypal Shipstation (if you don't need to add the IOSS) or Pirate Ship
to print postage quickly online including the customs forms.
| | We can't ship Priority Mail packages to Spain right now. But you CAN ship
First Class for less than $30 (I didn't catch the actual amount)...
|
Less than 8oz is about $15. 8-32oz is about $25.
| |
Now to figure out the best way to get the most refund (since the buyer paid VAT
almost as much as the items, because VAT is on shipping charge also...) and not
leave me in the hole...
And this is the final straw for me on international shipping...
Frank
|
Yes, you need to be more informed about the shipping systems before you ship
international.
Good luck,
Jen
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I have shipped internationally mostly without issue in the past. This time, when
I tried to get a shipping quote from USPS, First Class was not listed (of course
when I do it today, it IS listed). So seeing Priority Mail as the only option,
I contacted buyer before invoicing and they wanted to proceed. So I invoiced,
they paid, and then I tried to do the customs form online. No go. Use paper customs
form I had on hand. Go to Post Office. That form is longer usable. Fill out new
form, go back to clerk. We can't send Priority to Spain right now (NO INDICATION
on the USPS site that was a problem).
So now, yes, I can re-package in my own box and send First Class, but the buyer
has been overcharged both on shipping and VAT. And because PayPal no longer refunds
fees, I effectively have also been overcharged.
So I need some suggestions on how to proceed with the most fairness for all.
I'm not sure where to reach out for help...
And I have now disabled international shipping in my store... It's not like
I actually had that many international customers lately anyway which makes sense
considering how international shipping prices have skyrocketed.
Frank
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| | | | | | | | | Author: | pitz8008 | | Posted: | Dec 8, 2022 15:28 | | Subject: | Re: Fees cut into margins with high shipping cost | | Viewed: | 46 times | | Topic: | Selling | |
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| In Selling, ffilz writes:
| | In Selling, jbroman writes:
| | In Selling, ffilz writes:
| | I just got a $20 order that resulted in a $60 shipping cost and the result is
about $16 taxes. The Bricklink and Paypal fees on the entire transaction equal
about 1/3 the parts sale price. I figure my "cost" for the items was somewhere
between $10-12, resulting in my getting just a few bucks margin for this sale...
I'm wondering what other folks do to mitigate issues like this? I currently
charge exact postage and don't have any handling fees.
I'm wondering if one thing I should do is bump up my minimum order for international
orders.
Thanks for any thoughts you might have.
Frank
|
Remember, you don’t pay BL fees on shipping. Just for the parts.
|
Yea, I figured that out later, that does help...
But the saga gets worse... The USPS online postage calculator would not give
me a First Class option, thus the extremely high shipping cost. Get paid, fill
out customs (which I for some reason couldn't do online), get to Post Office.
We can't ship Priority Mail packages to Spain right now. But you CAN ship
First Class for less than $30 (I didn't catch the actual amount)...
Now to figure out the best way to get the most refund (since the buyer paid VAT
almost as much as the items, because VAT is on shipping charge also...) and not
leave me in the hole...
And this is the final straw for me on international shipping...
Frank
|
International shipping is extremely simple. Being completely honest, international
shipping isn't the problem. Set up instant checkout. Charge all international
orders other than Canada and Mexico the same price. Make a checkout for 0-7 ounces.
And 8-30 ounces. You are wasting far too much time trying to send an exact amount
for shipping to each country. That's way too much time wasted.
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| | | | | | | | | | | Author: | ffilz | | Posted: | Dec 8, 2022 16:10 | | Subject: | Re: Fees cut into margins with high shipping cost | | Viewed: | 71 times | | Topic: | Selling | |
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| In Selling, pitz8008 writes:
| | In Selling, ffilz writes:
| | In Selling, jbroman writes:
| | In Selling, ffilz writes:
| | I just got a $20 order that resulted in a $60 shipping cost and the result is
about $16 taxes. The Bricklink and Paypal fees on the entire transaction equal
about 1/3 the parts sale price. I figure my "cost" for the items was somewhere
between $10-12, resulting in my getting just a few bucks margin for this sale...
I'm wondering what other folks do to mitigate issues like this? I currently
charge exact postage and don't have any handling fees.
I'm wondering if one thing I should do is bump up my minimum order for international
orders.
Thanks for any thoughts you might have.
Frank
|
Remember, you don’t pay BL fees on shipping. Just for the parts.
|
Yea, I figured that out later, that does help...
But the saga gets worse... The USPS online postage calculator would not give
me a First Class option, thus the extremely high shipping cost. Get paid, fill
out customs (which I for some reason couldn't do online), get to Post Office.
We can't ship Priority Mail packages to Spain right now. But you CAN ship
First Class for less than $30 (I didn't catch the actual amount)...
Now to figure out the best way to get the most refund (since the buyer paid VAT
almost as much as the items, because VAT is on shipping charge also...) and not
leave me in the hole...
And this is the final straw for me on international shipping...
Frank
|
International shipping is extremely simple. Being completely honest, international
shipping isn't the problem. Set up instant checkout. Charge all international
orders other than Canada and Mexico the same price. Make a checkout for 0-7 ounces.
And 8-30 ounces. You are wasting far too much time trying to send an exact amount
for shipping to each country. That's way too much time wasted.
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Does the automated shipping pricing make allowance for packaging weight? I have
had some orders have significant packaging weight, especially when I need to
find an unusual size box.
Also note that this is not a business for me, I'm just selling excess parts
mostly from my early days of set purchases.
Frank
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USA, Oregon
France, Provence-Alpes-Côte d'Azur
United Kingdom, England
Canada, British Columbia
