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Annual Postage Rate Increase - 2019 edition
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cosmicray



Posts: 6603

PostPosted: Sun Jan 27, 2019 5:15 pm    Post subject: Reply with quote

MoonwishesStore wrote:
Once I see how my rates go on Amazon I will look into changing things there.

That made me go and look at the rate chart again. For Priority Mail, there are both Commercial Base and Commercial Plus, but for FCPS, there is only Commercial. So I guess it makes no difference where/how you invoke electronic postage, same rate everywhere.
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SheilaDeesPostcards



Posts: 3844

PostPosted: Sun Jan 27, 2019 6:27 pm    Post subject: Reply with quote

Moon, I'd like to know how Amazon's postage charge compares to Endicia. Endicia, Stamps.com and PayPal normally have the same rates and use the Commercial Rate. I've never used Amazon's postage program, but I'd be interested to know how their rates compare to what you are charged on Endicia. Since Amazon said they negotiated a deal with the USPS, I'd be interesting what they are charging their 3rd party sellers to ship. I would be their rate is going to be the same as Endicia or PayPal.
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MoonwishesStore



Posts: 15380

PostPosted: Sun Jan 27, 2019 6:45 pm    Post subject: Reply with quote

Sheila, Amazon gets the same rates as my endicia program does (don't know if it changes depending on what you pay for. But my Amazon 3 oz packages were still $2.66 just like with endicia. The problem of course with Amazon and every other venues that do this is that they also take part of your S&H and take a FVF on that as well. So you might have to get into finer mathematics to figure out what you have to increase your charges to if you do, to get enough to cover the postage and the fees, shipping supplies, etc. I've only gotten eCRATER orders far this weekend, so I'm not really sure what I will be paying with the new rates on Amazon. Or maybe I am just too lazy to want to figure it out right now.

Currently, I have a high postage rate that makes my stuff look much more expensive than others, but then some I guess are happy if they only make $1-$3. That isn't worth it to me at all. I'm getting way to close to NEEDING to 'retire' and so what I earn now means that much longer we aren't living under a bridge so to speak. Incidentally, I have been setting aside a % of our profits each month into a Roth IRA and I am amazed at what that has grown to considering that I'm not making thousands each month as some sellers do. If you are selling with no goal for the money you earn you are doing yourself a disservice as well as saying I'm already too older to save for retirement.
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cosmicray



Posts: 6603

PostPosted: Mon Jan 28, 2019 6:19 am    Post subject: Reply with quote

SheilaDeesPostcards wrote:
Moon, I'd like to know how Amazon's postage charge compares to Endicia. Endicia, Stamps.com and PayPal normally have the same rates and use the Commercial Rate. I've never used Amazon's postage program, but I'd be interested to know how their rates compare to what you are charged on Endicia. Since Amazon said they negotiated a deal with the USPS, I'd be interesting what they are charging their 3rd party sellers to ship. I would be their rate is going to be the same as Endicia or PayPal.

Amazon has two rate systems, the one (presumably negotiated) they use internally for FBA shipments, and the one they resell to their third party sellers. The latter is Commercial Plus for PM, and Commercial for FCPS.

PayPal Postage uses Commercial Base for PM and Commercial for FCPS.

I also refer back to this post from a few years ago …

https://community.ecrater.com/viewtopic.php?p=316033#316033

In it, I explain a formula that allows a reverse calculation of the price to charge, based on what return you want from selling a specific item. This assumes that the vast majority of your customers order one item at a time.
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MoonwishesStore



Posts: 15380

PostPosted: Mon Jan 28, 2019 8:26 am    Post subject: Reply with quote

No Amazon orders going out today, but three eCRATER ones and how weird to see the different prices for the same weight of package! Even more interesting, and I am sure it won't last. I have had more Virginia orders than ones from California this month/year! Also had a mail forwarding package which I only get every couple of years on eCRATER, while I usually average about 9 of them a year on Amazon.

I do know that at least how the postage goes, Amazon prices that I pay are the same as what I pay on endicia. But with Amazon charging fees on the shipping, I'm not sure how that will effect us for our shipping costs. Trying to calculate costs when you are increasing prices due to a postage hike gets a bit weird as with every increase the fee increases as well. Just one more reason to like eCRATER since why do Amazon and eBay, et. al. think that they need to take a fee out of the shipping amount paid? I can understand PP doing it as they don't care what the amount is being used for, they are covering the entire amount of money processed, but not the venues themselves.
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MoonwishesStore



Posts: 15380

PostPosted: Fri Mar 01, 2019 10:00 am    Post subject: Reply with quote

Just did my end of the month figuring (until I find more hidden receipts in my purse, etc.) and I noted something interesting but of course, not fully unexpected. My shipping costs were up around $20 or more for the month. When I checked last's numbers every time I got around that amount for shipping, I had sold about $200 MORE. I have also noticed that when I bought inventory from the manufacturer they used to send it all in one box. Now, I am getting partial shipments, I suspect to decrease the cost of shipping although what they charge me is more than plenty for shipping them all together. Rolling Eyes I suppose they want to come out with as much money in hand after calculating their income and expenses as we do.
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