Shipping is one of the key disciplines of the eBay world.
Customer service and productivity hinge on successful shipping: The
right packaging creates a positive initial experience for the
customer, and the less time you spend shipping, the more time you
have for sourcing and listing.
Shipping Basics
Start by creating a dedicated staging and supplies area. Every
seller needs a large, comfortable area with supplies like tape
guns, rolls of mounted bubble wrap, a mail scale, boxes, and a
laser or thermal printer for labels.
Work flow for label printing and inventory needs to mesh with
this shipping area. "Every label I print is encoded with the
product ID and the mail class," says eBay seller Ryan
Kortendick of RJK WebTronics (eBay User ID: mobile_inc).
"These show my assistant what she has to pack and how it
ships." Kortendick, 30, runs a two-person operation in
Waterford, Wisconsin, that sells small electronics such as two-way
radios and radar detectors and had over $500,000 in sales for
2005.
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Deciding what supplies to use is another issue. Many sellers use
free eBay/U.S. Postal Service co-branded Priority Mail boxes. The
USPS delivers a wide variety of box sizes for free if sellers ship
via Priority Mail. Use Priority Mail flat-rate boxes to ship
anything for $8.10. High-volume sellers should consider buying
their own boxes and using a parcel service like DHL, FedEx Ground
or UPS, in addition to the USPS.
Bubble wrap, packing peanuts and marketing inserts should be
part of a well-stocked shipping area, but know when and how to use
them. "Most people assume that if you surround an object in
packing peanuts, you're safe," says Ken Mills, 46, of
Black Knight Trading Co. (eBay User ID: blackknighttrader) in
Dunbar, West Virginia, which projects 2006 revenue to reach between
$1.25 million and $1.5 million. "They work for general crush
resistance, but a heavier object suspended midway will make its way
to the bottom." Package items properly by keeping these tips
in mind:
- Shake the box. Rattling is not good.
- Tightly packed items fare better than those surrounded by
filler.
- Always quality-check packing. One poorly packed item can
tarnish your feedback.
- USPS claims take four to six weeks, so if a customer's
package doesn't arrive, either reship or refund their
money.
Choosing a Postage System
eBay recommends new sellers use eBay's integrated shipping
features. "You can print and purchase USPS shipping labels on
eBay, which saves a lot of time," says Leigh Goldstein, senior
manager of eBay Shipping Product Marketing. The system is
integrated with PayPal, and the labels include customs forms for
international shipping. Addresses are automatically inserted in the
label purchase flow, so there's no cutting and pasting.
There's also no registration process, software downloads or
account prefunding. Most important, the service is free-just pay
for postage.
Small operations with low volume can get by using the USPS website. But if you
have a steady shipping volume, many sellers recommend Endicia. "I read
about Endicia on the PowerSeller discussion forum," says
Kortendick. "A lot of people rave about it." The basic
service costs $9.95 a month, but it's paid off for Kortendick:
Shipping used to take him a full day, but with Endicia, all his
orders are done in less than an hour. While you can't print
stamps with Endicia, the company plans to roll out a stamp-printing
feature soon.
A huge benefit of using any internet postage system: The USPS
will pick up packages from your home or office for free, as long as
the order includes Priority Mail or Express Mail packages, the
packages each weigh less than 20 pounds, and they're picked up
on USPS' regular route. You can schedule a different pickup
time for $12.50.
DHL, FedEx and UPS have similar software systems for sellers who
ship often and need local pickup. They also offer shipping
discounts on their normal rates for frequent shippers. Says Mills,
"DHL has better rates than UPS. If you ship more than [a
certain amount of packages] a day, they'll set you up with a
scale, a label printer and a dedicated, centralized shipping
computer that integrates with your shipping database."
If you'll be shipping globally, check out UPS's
international shipping tools designed just for eBay sellers. These
tools integrate with eBay.com and let sellers calculate costs,
request a UPS pickup, track transit times and print shipping labels
for international shipments, all at the point of transaction.
Shipping and Handling Fees
Some sellers charge for exact shipping fees, while others add
handling charges depending on the item being packed and the labor
and supplies involved. This depends on what costs customers are
willing to bear.
Raising an item's price and eliminating handling fees
isn't always a good idea: Higher prices mean higher fees paid
to eBay. But eBay's statistics show that the lower the shipping
cost on an item, the more likely it is to sell. "I usually
keep my shipping costs just over actual costs," says Michael
Walker, 47, founder of The Longwoods Trader (eBay User ID:
scout2002) in Easton, Maryland, which sells collectibles and small
mechanical parts. He estimates 2005 sales hit $100,000. The eBay
Shipping Calculator, which you can add to your listings, calculates
exact shipping rates, including any handling charges.
With all of these shipping suggestions, the key is to analyze
business processes and make the appropriate choices. For more tools
and tips, visit www.ebay.com/shipping.
Did You Know?
- The U.S. Postal Service is the most economical choice for items
weighing less than 2 pounds.
- DHL is still building out its U.S. routes, and it ships a lot
of packages via air even though it's called "ground."
The result? Many sellers get overnight service, and customers love
it.
- Most carriers don't consider reused boxes structurally
viable and will deny claims for items shipped in reused boxes.
- Reused packaging materials diminish the perceived value of
merchandise.
- eBay is a great source for shipping supplies.
- Local post office employees can make life easier by giving you
loading access and special treatment. Introduce yourself, and send
holiday presents.