Tuesday, June 23, 2009

US Postal Service increase rates on Flat Rate Shipping

I sold a few items on Ebay to try to get some extra cash and I used to use the US postal service flat rate shipping boxes to ship domestically in the U.S. The price used to be a reasonable $4.95 for a 11" X 8.5" X 5.5" or 11-7/8" x 3-3/8" x 13-5/8" medium size box. They have recently increased the shipping price to $9.85 for the same box. This upsets the "Ebay economics" since the minimum you can expect to pay of an item on Ebay is about $10. If you sell and item that is moderately expensive then you can make up the difference in shipping. For instance 10% of $100 is $10 dollars. So if your item is less than $100 then a significant amount of your sale goes into shipping. This could be the begining of a shift from online purchases to brick and mortar purchases. Once what was more convenient to purchase online my be more cost effective now at the retail store since shipping is going to force online retailers to charge more for shipping or product or both. Keep a look out for rising shipping costs and how it will affect the online retail market.

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