Postage

[robknight]

Hi all,

I run a small e-commerce business. I currently use a drop-shipper to fulfil my orders, but I am considering going alone - setting up a small "warehouse" (back bedroom!) and shipping the orders myself.

I can make significantly better margins this way...untill it comes to the postage.

For example, one particular product that I sell a lot of weighs 1.25Kg. My dropshipper ships this using Royal Mail Recorded Signed For at a cost to me of £2.80 + VAT However, I have just taken the parcel to the local post office to see how much it would cost me to send it using the same method. £5.42! That seems incredibly expensive to me.

With the increase in postage costs, I wouldn't be making significantly more by shipping the orders myself, rather than go through the drop-shipper.

I have also looked at some courier services, but they are WAY too expensive.

Does anyone have any ideas or tips on postage? I can't believe how expensive the Royal Mail is these days!!

Many thanks,
Rob.

[Top Hat]

Royal Mail Tips

Don't send signed (depends on parcel cost) save 60p each (or used to)

Try Packet Post (need to be doing over 15 parcels per day) on you parcel example you would save about £2:30

Your drop shipper has a very cheep price, I suspect they have not updated them since the PIP changes.

Sending thing second class (up to 1Kg) saves 50p

[robknight]

Thanks for your reply.

I really would like to send signed for if possible, as I feel that will minimise my "it hasn't arrived, honest" phone calls. At least I will have proof of delivery that way.

I'm only sending between 8 and 10 parcels a day, so packet post isn't for me just yet.

I would like to continue to send first class as prompt delivery is one of the selling points of my site.

I know I am asking a lot - but, does anyone else have any ideas?

Thanks so much!

[Top Hat]

I really would like to send signed for if possible, as I feel that will minimise my "it hasn't arrived, honest" phone calls. At least I will have proof of delivery that way.

How much is your item? if less than £40 you'll probably be better to send unsigned and save 60p, (But you need to do the maths)

Signed for has other problems too, its not left if the no one is in, which causes no end of missing/returned parcels.

Do Amazon get signatures for small parcels?

I'm only sending between 8 and 10 parcels a day, so packet post isn't for me just yet.

Talk to RM and boost your figures a bit, you'd probably get an account.

More ideas, no at the moment RM is the cheapest best (IMHO)

[robknight]

Thanks again!

Do I have to proove to Royal Mail how many parcels I am sending??

Thanks,
Rob.

[wilfy]

from experience sometimes it pays to go flat rate. sometimes you will lose out but sometimes you will gain. shipping plays a big part in my decsion to purchase on a website