Postage Costs - The Sellers Last Frontier
So you have been selling on eBay.
Do you have difficulty rationalising postage costs and handling costs (shipping) to you customers ?
They just don't understand do they ?
Then you need to know this little known secret that will save you from writing potentially hundreds of emails to
explain your shipping costs to customers.
Like many, I can see the postage cost argument from both sides of the coin. As a seller you need to cover your costs.
As a Buyer you don't care about the sellers shipping costs? At the end of the day its all about WIIFM (What's In It For Me).
To overcome any potential issues I want to share with you a way that you can eliminate completely shipping and
handling costs being advertised to your customer when they receive your item.
Please note if you are a Seller that charges ridiculous shipping (postage & handling) costs you should not continue reading because no-one can help you
until you help yourself and realise that you will only ever get one sale from anyone by charging extreme postage costs. Be realistic, would you
pay $20.00 for postage of an item of weight less than 500grams that fits in a prepaid satchel from Australia Post (Cost $5.70) - No you wouldn't.
Anyway, for those of you still reading here we go....
Set up a charge account with Australia Post.
Yes, there will be a form to fill out when you do your postage run but lets look at the benefits:
1. You pay all your postage costs monthly which means it will improve your cashflow.
2. When you post an envelope or parcel you can put a great little stamp that says "POSTAGE PAID AUSTRALIA".
3. You can purchase all your supplies and put them on your charge account.
4. You get an itemised receipt each time you do your postage run with means you can track your postage costs
leading to better accounting practices.
What all of this means from a practical sense is that when your customer receives your item and they admire your packaging,
there is no postage label to fix a steely gaze upon. You know, when you send a large padded envelope and you either have a
group or $0.55c stamps that your customer quickly calculates.
Alternatively, you have an Australia Post printed label with the total
calculated, in an easy-to-read format. Both theses scenario's mean that before your customer has opened the package they
have already compared the invoiced postage and handling charge (shipping costs) with the postage sticker amount.
This now means they have deduced that you have overcharged them on postage....
In reality the Customer does not understand the components of the shipping charged. The package cost, the packaging inside to protect the item cost,
the postage cost, your time (cost), your petrol to get the item to the post office (cost), your car maintenance (cost).
You know what - they don't have to care or understand because they are the Customer.
What does all this have to do with a charge Account at Australia Post.
Put simply, none of the actual postage charges are advertised to the Customer. The Customer now opens the package sees the item
and happy days, positive feedback.
Again, if you don't charge excessive postage & handling (shipping costs) you are half way to providing excellent customer satisfaction.
Be realistic, don't be excessive with postage & handling charges.
Use a charge account and it will help your cashflow, eliminate "advertising"
of postage charges to your customers and allow you to focus on you customer service and packaging.
I hope this helps you in some way.
Thankyou for your time. If you have found any part of this interesting please feel free to
say "YES" - this guide was helpful to me in understanding postage.