Shipping/delivery costs in the UK

[SH247]

I'm looking to set up a new business mainly selling via eBay initially with the hope to sell via independent website in the future.

I know that eBay offer delivery services via PackLink but have not used this before and wondered if there were any clear suggestions that anyone here has as to the most cost effective delivery services?

The items I will be selling will range from letters to small 1-2kg packages

 

[Mr D]

Royal mail could suit you.

If doing some volume then look at click & drop.

 

[DontAsk]

I know that eBay offer delivery services via PackLink but have not used this before and wondered if there were any clear suggestions

Avoid like you would avoid Hermes, from what I have heard.

 

[Paul Norman]

For light packages you could do a lot worse than just use the Royal Mail.

 

[SH247]

Royal mail could suit you.

If doing some volume then look at click & drop.

Do you have any ideas about the costs? Of course I'll look it up but wondered if you knew off the top of your head?

Some of the items I'm looking at selling have a really small margin and postage cost seems to be the largest factor eating into that!

 

[SH247]

For light packages you could do a lot worse than just use the Royal Mail.

Thanks, seems like that is the consensus here!

 

[Mr D]

Do you have any ideas about the costs? Of course I'll look it up but wondered if you knew off the top of your head?

Some of the items I'm looking at selling have a really small margin and postage cost seems to be the largest factor eating into that!

I use click & drop so pay average weight cost and lower price than post office counter.
Off top of my head its about £3 for 2nd class parcel under 1kg at post office.

Regarding your margin, increase it.

Low margin items can be useful if there is another reason to have them. On their own they can be a liability - a few missing in the post costing you considerably.
Plus postal rates going up in 3 weeks.

 

[JEREMY HAWKE]

I think people need to understand that by its very nature all the parcel networks are going to see some problems . It is unavoidable due to the very high volumes that go through each night .

Curtain companies on here get a slating and I dont think it paints an accurate picture as there are many factors that will effect the customer experience . Ie location in the UK each depot will vary , service level , If you pay for a bog standard service that is all you will get ,
Collection times . Some people prefer a late collection and you may simply prefer the company that has a van on your industrial estate to collect at the latest possible time each day
Volumes, It may be an advantage to find the cheapest price if you have a high volume of freight going out each day

As @Mr D has pointed out you will need to price the product to cover the shipping costs .

Looking at it you appear to be looking for a low price and my advice would be to go with the cheapest as your going to see some drama no matter who you use

 

[DontAsk]

Do you have any ideas about the costs?

Click & Drop saves a few pennies. If you have the volume you should look into business pricing agreements.

 

[SH247]

I use click & drop so pay average weight cost and lower price than post office counter.
Off top of my head its about £3 for 2nd class parcel under 1kg at post office.

Regarding your margin, increase it.

Low margin items can be useful if there is another reason to have them. On their own they can be a liability - a few missing in the post costing you considerably.
Plus postal rates going up in 3 weeks.

As you’ll no doubt know, eBay is a very competitive market so worried that I won’t get sales through if I can’t compete which is what is driving the margins down! No doubt my competitors are ordering in larger volume than I can initially so they’re able to offer those prices.

Thanks for the advice I’ll definitely look into that. Yes heard about postal rates going up... great!

 

[SH247]

I think people need to understand that by its very nature all the parcel networks are going to see some problems . It is unavoidable due to the very high volumes that go through each night .

Curtain companies on here get a slating and I dont think it paints an accurate picture as there are many factors that will effect the customer experience . Ie location in the UK each depot will vary , service level , If you pay for a bog standard service that is all you will get ,
Collection times . Some people prefer a late collection and you may simply prefer the company that has a van on your industrial estate to collect at the latest possible time each day
Volumes, It may be an advantage to find the cheapest price if you have a high volume of freight going out each day

As @Mr D has pointed out you will need to price the product to cover the shipping costs .

Looking at it you appear to be looking for a low price and my advice would be to go with the cheapest as your going to see some drama no matter who you use

Thanks for your advice, yes looking for a low price initially. I’m relatively inexperienced in this so I’m expecting a few lessons to be learned along the way.

I’ll do some comparisons and see what comes out more favourable but seems like Royal Mail may be most likely.

 

[Mr D]

As you’ll no doubt know, eBay is a very competitive market so worried that I won’t get sales through if I can’t compete which is what is driving the margins down! No doubt my competitors are ordering in larger volume than I can initially so they’re able to offer those prices.

Thanks for the advice I’ll definitely look into that. Yes heard about postal rates going up... great!

So either go for being competitive with the cheapest or go for profit.

I have a bunch of competition selling the same range I do. The cheapest is around half my price.
He will probably outsell me on that range 10 to one or more.
At a rough guess I get about 8 times the profit per sale. He has to work 10 times harder than me for a couple of quid more profit.


There are customers who will always buy the cheapest. Fair enough if you want to always be cheapest.

Over the past 10 years we do not compete on price, we go for the profit. In that time have sold out of tens of thousands of items, have sales in excess of 100,000 and soon enough reach 200,000.
That is not pounds, that is orders.
On Amazon and eBay mainly, sites not noted particularly for high prices.

Customers wanting the cheapest only is a valid customer demographic to chase. Though these days plenty of foreign competition.

It is not the only customer demographic.

Set your own pricing or outsource it to your competitors. Up to you.

 

[SH247]

So either go for being competitive with the cheapest or go for profit.

I have a bunch of competition selling the same range I do. The cheapest is around half my price.
He will probably outsell me on that range 10 to one or more.
At a rough guess I get about 8 times the profit per sale. He has to work 10 times harder than me for a couple of quid more profit.


There are customers who will always buy the cheapest. Fair enough if you want to always be cheapest.

Over the past 10 years we do not compete on price, we go for the profit. In that time have sold out of tens of thousands of items, have sales in excess of 100,000 and soon enough reach 200,000.
That is not pounds, that is orders.
On Amazon and eBay mainly, sites not noted particularly for high prices.

Customers wanting the cheapest only is a valid customer demographic to chase. Though these days plenty of foreign competition.

It is not the only customer demographic.

Set your own pricing or outsource it to your competitors. Up to you.

Very interesting!! I just wonder what it has taken to drive customers to you over your competitors when you charge a higher price? What would you say you do differently?

I guess this is the beauty of running a business and the sort of decisions you have to make that are key to success.

 

[Mr D]

Very interesting!! I just wonder what it has taken to drive customers to you over your competitors when you charge a higher price? What would you say you do differently?

I guess this is the beauty of running a business and the sort of decisions you have to make that are key to success.

Look around.
You see dozens of shops selling the same stuff supermarkets are and for a higher price. Yet sells still.
Or in town centres you see shops selling stuff at over double the price can buy it on ebay. And the shop doing a half million plus turnover....

Not everyone goes cheapest. When I worked the markets there was a child clothing seller. Three nearby shops in that village sold children's clothing. For ages the shops sold stuff and the market stall sold stuff - yet the market stall sold stuff cheaper.

 

[Chris Ashdown]

Often its perceived value and presentation that allows the seller to sell at a higher price

The obvious perceived value is the number of sales the seller has made and any ratings from customers, whilst presentation may just be better images and description, many sellers all use the standard image the makers supply, and you have to hunt for information, the clever ones spend some time taking their own images, and telling the customer all the information they want to know

 

[Mr D]

Often its perceived value and presentation that allows the seller to sell at a higher price

The obvious perceived value is the number of sales the seller has made and any ratings from customers, whilst presentation may just be better images and description, many sellers all use the standard image the makers supply, and you have to hunt for information, the clever ones spend some time taking their own images, and telling the customer all the information they want to know

Yes, description has its place.

Can get too long a description, too big a block of text. And some put every keyword they can think of in the title whether relevant or not.

If I'm looking for a case for my phones I don't need to know the case fits 30 different phones - I do want to know its going to stay on my belt and its going to secure the phones.

 

[Red Wood]

On Amazon and eBay mainly, sites not noted particularly for high prices.

Which do you have more success with. Do you prefer one channel over the other, if so, why?

 

[Mr D]

Which do you have more success with. Do you prefer one channel over the other, if so, why?

Success? Both.
I can buy a carton of a particular product. Stick it on one site. And eventually sell out at the price set by me.
Perhaps it takes a couple of weeks. Perhaps it takes 6 months. Perhaps it takes 3 days.
Success regardless.

I have more trade on ebay due to having more stock on ebay. Probably £10k more listed on ebay than amazon.