eBay And The Postage Price Increase

eBay And The Postage Price Increase

All over the eBay boards and forums people are voicing their concerns and anger over the soon to be price increases on the Royal Mail network. Yes to the average person on the street 14p increase on 1st and 2nd class postage does seem a lot, but I tend to stand back and take a overall look at the increase and how it will effect my business and the businesses of my clients.

Royal Mail Price Increase, Royal Mail, Andrew Milburn, My Auction Empires, eBay, eBay consultant

While the UK gets cross and upset over the increase we need to look at what can be done.

We can stop using Royal Mail and close our business down – An idea but not good one

We can stop using Royal Mail and use a different carrier for our items – An idea that will work if the items are the right weight

We carry on using Royal Mail and adjust the increase into our costing – To me this is one of the better ideas.

As eBay sellers we need to look at the bigger picture. For example the other day on the news I heard someone say that come the end of the month he will have to stop selling and close his business down due to the postage price increase, they who were around him on the interview were agreeing and feeling sorry for him.

But was that the whole story, well it is very hard to say, the news did not say what he was selling or what quantities he was selling it in, but what he did say they were small items that fitted in jiffy bags. So let’s say his postage costs will go up by 20p an item n round terms. Yes this does add up if you are selling a lot of items a week, but if the profit margin is only that small the seller needs to either source his product from another supplier, find a new product line or increase his sales price by the 20p (or what ever the extra costs are)

Like I said at the start of the article the price increases are quite high, but it is how we react to them. If we have the right margins in our business or maybe tweak our prices a small bit then everything will work out fine. But remember Royal Mail are not the only company out there that deliver packages there are many others who often offer a better service than Royal Mail with full tracking on every item and their prices are very good.

For sometime now I have been using a broker called Parcel2go.com and they work with companies like DHL, Hermes, City Link but the prices are very good and much cheaper than if you went direct to one of the carriers due to the volume they do each day.

So in closing keep a cool head, know your figures, tweak prices where needed and all should be good.

Happy Selling

 

2 thoughts on “eBay And The Postage Price Increase

  1. I agree that we need to keep our heads, and admit I didn’t see the interview you mention. BUT, if like me this ebay sellers offers small items, weighing in at under 100g yet too big for large letter his postage cost will rise from £1.58 per item to £2.70……. a trifle more than the 20p you mention.

    I am busy re-aligning my costs as we speak – and yes I am having to absorb some of the rise because I don’t feel customers will understand why my prices have suddenly jumped. My only hope is that once everyone else has applied their new costings the difference won’t be so noticeable… my real fear is that this is going to cost me in lost sales, and lost profits as my margins become ever tighter.

  2. Hi Diane,

    Yes I agree with you and the 20p was just a rough figure sorry about that. It will be interesting to see how it pans out over the coming weeks and months. Thanks for your comments and I hope it all works out in your favour

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