Chapter 2
IN THIS CHAPTER
Simplifying the shipping process
Checking out different shippers
Using the good ol’ United States Postal Service
Signing up with FedEx
Using UPS
Printing labels from eBay and PayPal
The best part of an eBay business is making the sale and receiving payment. After that comes the somewhat tedious process of fulfilling your orders. You shouldn’t feel bad if this is the point that makes you pause and sigh. Order fulfillment is one of the biggest challenges that face any online enterprise.
But as an eBay entrepreneur, you must attend to these tasks, however much you’d rather not. In this chapter, you explore your shipping options. I give you the lowdown on the three major carriers — FedEx, United Parcel Service, and the U.S. Postal Service — so you can see who fits your requirements. (For the scoop on insurance coverage, see Chapter 3 in this minibook.)
Shipping can be a make-or-break point for eBay sellers. Being expert at knowing the correct carrier, box size, and packaging will affect your bottom line. Even if the selling portion of your transaction goes flawlessly, the purchased item has to get to the buyer economically and in one piece. If it doesn’t, the deal could be ruined — and so could your reputation.
The best way to avoid shipping problems is to do your homework beforehand, determine which method is likely to work best for the type of items you sell, spell out how you intend to ship the item, and charge accordingly. I offer more than one shipping option — including overnight — to satisfy the buyer who may want a specific method of shipment.
Shipping is the heart of an ecommerce business like yours. Don’t even think of selling an item without evaluating your shipping options:
Before listing the item, figure out how the package will ship.
You don’t have to package it up right away, but you should review your options. The two critical factors in shipping are weight and time. The more a package weighs — and the faster it has to be delivered — may or may not reflect higher costs. The time to think about packing and shipping is before you put the item up for sale.
Know your carrier options.
In the United States, the three main shipping options for most eBay transactions are the U.S. Postal Service, FedEx, and UPS. See the section “Shopping for a Shipping Carrier” for information on how you can get rate options from each service, painlessly and online.
Before estimating shipping costs to price your item, make sure that you include all possible fees.
Keep in mind that if your item will sell for over $750, both eBay and PayPal require signature delivery in case the package goes missing and the buyer makes a claim. Paying for this option for United States Postal Service (USPS) packages will currently set you back $2.90. You should also include any insurance costs. (For more on insurance, see Chapter 3 in this minibook.)
If you offer free shipping, your item will receive preference in eBay’s search. Consider this option by building shipping costs in the item price. This works best when an item is light and can be shipped cheaply — while not sacrificing speed. At the very least, offer a flat rate to all your customers.
If you offer free shipping in your listing and eBay can confirm that the buyer did not pay extra for shipping, you will automatically receive a 5-star rating on your shipping and handling charges as part of your Detailed Seller Ratings.
Posting a flat shipping amount is easy for the customer to figure out. With heavier items, use the eBay online shipping calculator at
to give buyers an idea of how much shipping will cost. This way, buyers can consider the extra cost when comparing different sellers who offer the same item. Figure out what the packed item will weigh and then estimate shipping costs.
Keep in mind, though, that if your idea of “reasonable” shipping costs doesn’t jibe with that of your buyer, you may end up with a ding in your DSR feedback rating for shipping fees.
If the item is particularly heavy and you need to use a specialized shipping service, be sure to say in your listing description that you’re just giving an estimate and that the final cost will be determined prior to shipping.
Shipping calculations can be off target, and you may not know that until after you take the buyer’s money. If the mistake is in your favor and it’s a biggie, notify the buyer and offer a refund. But if shipping ends up costing you a bit more, take your lumps and pay it. You can always let the buyer know what happened and that you paid the extra cost. Who knows, it may show up on your feedback from the buyer!
Ship the item as soon as you receive payment; eBay bases transit time on your selection of carrier and your proximity to the buyer, as shown in Figure 2-1.
Make sure you ship the item to arrive in the time that eBay estimates. Ship that package within your stated shipping time (after payment clears). If you can’t, immediately message the buyer on eBay and explain the delay.
When you’re considering shipping options, you must first determine what types of packages you’ll generally be sending (small packages that weigh less than two pounds or large and bulky packages) and then decide how you’ll send your items.
Deciding on your carrier can be the most important decision in your eBay business. You need to figure out which one is more convenient for you (located close to your home base, provides pick up service, gives better customer service) and which is the most economical. Settling on one main shipper to meet most of your needs is important because all your records will be on one statement or in one area. However, you may also need a secondary shipper for other types of packages.
Shipping is an extension of your customer service. Whoever delivers the package to the buyer represents your company. Professional labels, clean boxes, nifty packing peanuts — those are the things you control. Safe and timely delivery falls into the hands of complete strangers, but the buyer will blame you for the tardiness or sloppiness of the shipping. Simple equation: Irate customers = lousy feedback.
So what’s a seller to do? Do you use the shipper that other sellers rave about? Perhaps opt for convenience or low price? After you decide on a shipper, how often do you re-evaluate its services?
The rest of the chapter will help you with this decision.
Who constitutes the front line of your eBay business? My shipping front line is Scott, the UPS man; Neil, the Post Office carrier; and Ken, who picks up for FedEx Ground. I know the front-line guys because they help my eBay business run smoothly. They don’t leave deliveries outside under a bush, and they deliver packages to my neighbor if I’m not home. Neil picks up my eBay packages with a smile and a lighthearted “They’re sure buying things, aren’t they?” I respond with a smile and a bit of friendly chat.
Wait, are you telling me that you don’t get the same service? Have you ever taken a moment to chat with your delivery person? When you personalize a business relationship (such as addressing the person by name), you become more than a street address, you become … well … a person. When you’re no longer a number, you become a fellow human being with needs and wants. Believe it or not, people want to make other people happy.
I leave a signal when there are packages to be picked up, and every one is picked up. When somebody delivers a big box, it goes to the back door near my studio; that way I don’t have to drag it through the front door and across the house.
Try building a relationship with your shipping front line. I’ve invited them to holiday parties and offered them a cool drink on a hot summer day. The result? My shipping is the easiest part of my business.
The USPS offers free package pickup at your door (I set my pickups the night before shipping, using the USPS mobile app), but you do have to bring an occasional package in to the post office or use a different carrier. What happens if you have to drop off your packages for shipment? It’s important to consider the closest local drop-off point for your carrier. Each of the major carriers has a search feature on its website to find the nearest drop-off location. You input your address or Zip code, and the feature tells you the locations closest to you.
To get the location lowdown quickly, go to the following sites:
www.fedex.com/us/dropoff
www.usps.com/locator/welcome.htm
www.ups.com/dropoff
The powers that be would like you to believe that a particular method of shipping is cheaper for large items and another is cheaper for small packages. There is a good shipping calculator on eBay (www.ebay.com/shp/Calculator
) where you can compare parcel shipping prices across the vendors. There’s some truth there, but a few more things come into consideration.
https://postcalc.usps.com
.Take a look at Table 2-1 and compare the pricing for a package going cross-country; the prices are based on your business having an account (or printing USPS postage electronically). Retail counter rates are the highest; daily pickup rates will be somewhat less. Trying to translate the rate charts for some major carriers can be a real challenge. I recommend you get pricing estimates directly from their websites or software after you open your account.
TABLE 2-1 Business to Residence 12 x 10 x 6 Package USPS Priority Mail versus Ground (NY to LA)
|
USPS Priority: 2–3 Days |
FedEx Ground |
UPS Ground 4 days |
Actual Weight (lbs) |
2 pounds |
2 pounds |
2 pounds |
DIM Weight |
N/A |
6 pounds |
5 pounds |
Base Charge |
10.28 |
13.18 |
13.10 |
Fuel Surcharge |
N/A |
.53 |
.69 |
Residential Surcharge |
N/A |
3.85 |
3.40 |
Total cost |
$10.28 |
$17.58 |
$17.19 |
Table 2-2 shows you the value of shipping via USPS First Class Package Service.
TABLE 2-2 Business to Residence 8 x 6 x 4 Package USPS First Class Package versus Ground (NY to LA)
|
USPS First Class |
FedEx Ground |
UPS Ground |
Actual Weight |
13 ounces |
13 ounces |
13 ounces |
DIM Weight |
N/A |
2 pounds |
2 pounds |
Base Charge |
3.88 |
9.32 |
9.39 |
Fuel Surcharge |
N/A |
.37 |
.49 |
Residential Surcharge |
N/A |
3.85 |
3.40 |
Total cost |
$3.88 |
$13.53 |
$13.28 |
Know that there are extras for some services, so become familiar with the variations and hidden costs like preferred customer rates and gas fees. Home delivery adds up to $3.85 per package for UPS and FedEx packages. For example, USPS offers regional and flat-rate discounts (more about those further on).
I’m a big fan of the U.S. Postal Service. Just ask my wonderful letter (er, multiple parcel) carrier Neil. I (as well as the bulk of eBay sellers) use the post office for the bulk of online sales because it’s convenient and saves money. In my over 20 years selling items on eBay, they’ve never lost a package.
The USPS is open to everyone. You don’t have to set up an account to use its services. To get a basic idea of what you’ll pay to send a package, you can access a retail-rate calculator on the USPS website (https://postcalc.usps.com
), shown in Figure 2-2.
The post office has worked hard to keep up with the competition in the parcel business by offering many online features and custom pickup. They also offer many classes of service, with a weight maximum of 70 pounds. Table 2-3 shows the transit times for services that are most popular with eBay sellers. Note that the USPS delivers packages seven days a week; the other major carriers offer only five business days a week.
TABLE 2-3 Most Popular USPS Services
Service |
Time to Cross the Country (Days) |
What You Can Ship |
First Class |
3–5 |
First Class mail can be used to mail anything, as long as it weighs 15.9 ounces or less. You can send a letter, a large envelope, or a small package. |
Priority Mail |
2–3 |
Priority Mail is just First Class mail on steroids (for heavier items). |
Parcel Select |
2–8 |
Parcel Select is cheaper (and slower) than Priority Mail. |
Media Mail |
2–8 |
Media Mail is the least expensive way to mail heavy items. The only caveat is that you can use Media Mail to ship only books and educational items. |
Read on for details on the most popular forms of mail used by eBay sellers.
Good old regular mail — in particular, First Class — is the way we send bills and letters. It works also as an economical alternative for eBay items weighing up to 15.9 ounces.
Too many sellers make the jump to Priority Mail because they don’t take the time to think about the weight of their items. It doesn’t have to ship in an envelope to go via First Class mail.
The two-to-three-day Priority Mail service is the most popular form of shipping for eBay packages. There are three price options: Flat Rate, Regional Rate, and Weight/Distance. You can get free cartons from the post office. You can also print postage online through Endicia (www.endicia.com
) or Stamps.com at www.stamps.com
. See Chapter 1 in this minibook for more about these postage options and for a complete list of what the USPS supplies for your mailing needs.
The Priority Mail rates are perfect for 1-pound packages (starting at $5.95 cross-country when printed online). They also have a flat-rate Priority envelope in which you can jam in as much as possible (regardless of the package’s final weight) for $5.95 (retail rate $6.65).
Because USPS rates are based on distance and weight, you can save money by using their new flat-rate Priority Mail boxes. (I’ve been able to jam quite a bit into them!) The Regional Flat Rate boxes (sizes A and B) can be a deal with the medium-size B box starting at $7.17 ($9.42 retail). Flat-rate boxes ship anywhere in the United States for as little as $12.40 ($13.60 retail) for a medium box.
If you want to use the USPS and have a heavy package (up to 70 pounds) that doesn’t fit the requirements for Media Mail, use Parcel Select Ground (formerly Parcel Post). Even with the latest rate changes, USPS Parcel Select Ground rates can be highly competitive when you compare them to the UPS or FedEx Ground rates.
When you print your postage electronically, this service is called Parcel Select. Standard Post is for those who buy postage at the Post Office.
To stay new and hip, the post office renamed its old Book Rate to Media Mail, causing many eBay sellers to mistakenly miss out on this valuable mailing tool. The savings are immense. The drawback is that you must mail only books and/or educational media. Transit time on Media Mail is at least 7 to 10 days, but the cost savings on heavy packages may be worth it — as long as your customers realize how long transit time can be.
The Postal Service levies additional charges for some often-used services but also gives free services to online postage customers:
https://tools.usps.com/go/ScheduleAPickupAction!input.action
https://tools.usps.com/go/TrackConfirmAction!input.action
You can also verify a package’s delivery by calling a toll-free number, 800-222-1811.
FedEx is world-famous for its reliable service. It’s the number-one choice for all major companies who have to get packages on time. In 1978, FedEx introduced the slogan “When it Absolutely, Positively has to be there overnight” and has built its business on that promise. FedEx acquired Roadway Package Service (RPS) and formed FedEx Ground, which has a separate division called FedEx Home Delivery that delivers to residences. For the services they provide, you’ll be happy to know they are still devoted to their on-time promise. Read on.
When FedEx’s Home Delivery began, their slogan was “The neighborhood-friendly service that fits the way we live, work, and shop today.” Although I rarely get warm fuzzies from my package delivery, this slogan brought meaning to the philosophy behind their service: to bring professional shipping to your home residence. Now FedEx Home Delivery is part of FedEx Ground, and offers low rates and high-quality service. They’re the only shipper that offers a money-back guarantee on home service. They deliver until 8:00 p.m. and on Saturdays, but not on Mondays.
To open an account, visit the FedEx.com
site. To learn more about FedEx, visit the Ground website, shown in Figure 2-4, at
Even if you have a current FedEx account, you need to sign on to add the Ground service (which includes Home Delivery). Registering for Ground service is even easier than registering on eBay, so give it a shot.
I opened my FedEx Ground account through a link on the FedEx home page, and got the skinny on how to use the service. FedEx gives you a service schedule to let you know how long it will take your package to arrive at its destination (see Figure 2-5). The online calculator allows you to choose the option of home delivery, so you don’t even have to look up alternative rates and charts.
Here are a few fast facts about FedEx Ground services:
FedEx has one of the most intuitive online apps for shipping. The FedEx Ship Manager (or Ship Manager Lite for the non-account holder with a credit card) interface will turn your computer into a one-person shipping machine. You can search for rate quotes, track packages, and use the shipping notification option to send tracking information emails to your recipients.
To ship your item from the FedEx website, just sign in and go to the online Ship Manager by clicking the Ship link. You’ll be presented with a simple, all-in-one online waybill. Figure 2-6 shows you what it looks like.
When you’re filling out the form, note some important entries must be made:
Dimensions: Be sure that you know the proper dimensions for the package you’re sending.
If you sell repeat items in your eBay business, why not measure the boxes ahead of time and keep a list near your computer so you’ll know the size? (For example: Light kit 14 x 12 x 26.)
After you fill out the form, you can click the Courtesy Rate button at the bottom to get a shipping-cost estimate (not including any special discounts).
Today’s UPS is a $51 billion revenue company focusing on enabling commerce around the world. Every day UPS delivers more than 19.1 million packages and documents worldwide — and I’m sure much of that total represents eBay transactions.
Here are some quick facts about UPS:
Although we always complain when the U.S. Postal Service raises their rates, you should know that all other shipping carriers raise their rates every year.
Every UPS package is automatically insured for up to $100, assuming you declare a value. The post office charges extra for this service, but you can save money either way by using a private insurance policy for your packages (see Chapter 3).
The de-facto standard for eBay shipping is Priority Mail. Compared to UPS 3-Day Select, Priority Mail is the clear cost-saving winner if you must ship packages for swift delivery.
For heavier packages, UPS is considerably cheaper than Parcel Post for packages over 6 pounds. After your packages pass that point, and if time is not of the essence, UPS may be the best way to go.
When you ship via UPS and are trying to figure out how to get the best rates, you have quite a conundrum. UPS basically has three rates for small-time shippers:
I consider PayPal to be de rigueur (a must have, to all you non-French speakers) for all online sellers. By using PayPal, a seller can streamline the buyer’s shopping experience, making it simple to buy, click, and pay. Along with all the timesaving tools PayPal supplies for the seller, they now offer online shipping services for items through the United States Postal Service or UPS at no extra charge. This is a convenient system for those who don’t ship many packages each week because there’s no need to use additional software or sign up with an additional service.
Sounds good so far, but (I hate the buts — don’t you?) the PayPal postage system can make bookkeeping a nightmare for large-scale shippers. That’s because PayPal withdraws the postage amounts directly from your PayPal account balance. This is problematic because the result is that your books won’t balance: Your final deposits won’t match your posted eBay or web sales.
When you’re ready to deal with shipping, you simply sign on to your PayPal account and handle it right on the site. To begin the shipping process, follow these steps:
Default printing preferences are set for any laser or inkjet printer with an 8.5 x 11 standard paper size.
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