Good afternoon and welcome to second of our PowerSeller Pointer Workshops. Last week's was on Shops Basics abnd can be reviewed here
The pinks, here at eBay UK, were approached by a group of PowerSellers who asked if they could use the Workshop Boards to host a series of workshops around the theme of good eBay practices for businesses on eBay. Individually they are PowerSellers who have each enjoyed (through tremendous hard work and skill) business success on eBay but collectively they want to share with you some of the pointers they picked up along the way, so who were we to say no to such a kind and thoughtful offer?
Today’s is on Postage & Packing and will be led by world4kidsuk and postalsupplies
Feel free to ask questions as the workshop runs but please be mindful of the fact that our two hosts will be doing their best to address many issues at the same time – such is the quick fire nature of forums! We learnt a lot from last week's session (hence why this is today being hosted on the appropriate board) but hopefully like last week it will be an informative and fun two hours.
Us pinks will also tag along for the ride and will be happy to do our best to field questions that perhaps our Pointers cannot. Finally we’d also ask you to respect the considerable time and effort that these sellers have put in. Their enthusiasm for eBay and the how to unlock the potential of the site knows no bounds and I would certainly like to start by thanking them for their efforts.
All the best Jamie
The remainder of the course runs as follows:
May 12th – Book Keeping May 19th – Advanced Shops May 26th – HTML Basics
Hi and welcome! I'm Julie (eBay ID: World4KidsUK). Trading on eBay has proved to be a fantastic way for me to work whilst having young children at home. Now that they are at school my eBay business has become fulltime. Despite being hard work and challenging, it's lots of fun!
Today's session is all about Post and Packing. This afternoon, we'll cover:
1. eBay buyers expectations of P&P 2. Sending your parcels – the options 3. Pricing your P&P 4. Packaging and supplies hints and tips 5. Packing best practice
We'll start by looking at how anticipating your buyer's expectations can help you.
1. What do your Buyers Expect? Put on your 'buyer's hat' – What good experiences have you had on eBay – which packages had the 'wow' factor? Incorporate new ideas and stay ahead of the competition!
As a Buyer I expect:
Securely packed items
Sensible P&P prices
Quick delivery
Clear delivery times – if a seller only posts twice a week that is not a problem - as long as I know before I bid!
Depending on category – there will be others too. Maybe you can offer a gift service? Premium postage services, a PickUp facility? Use ideas that could give you an edge over the rest!
You have fewer queries and damages to deal with – freeing you up to list more, source stock.
eBay is a 'high contact' environment. eBayers expect lots of communication. If your post, pack and despatch systems are efficient, you exceed your customers' expectations – by anticipating their expectations.
For example: A despatch email, containing tracking numbers (if appropriate) and a 'pessimistic guess' on delivery time is good customer care.
It gives a competitive edge and builds trust in you. It stops many of the 'where's my parcel?' emails! You stay in control of the transaction throughout.
The transaction 'turn' is quicker – i.e. the time between listing and receipt by the customer.
When you first start, cashflow is a hurdle for small businesses. Streamline your pack process and complete transactions quickly, you can gain the most business benefit from cash and stock!
You will generate goodwill, referrals and repeat customers. This leads to higher end prices, multiple orders, and more profit for you.
Build trust with your customers and you will quickly find that eBay is *not* about the cheapest widget all the time. It may tempt a customer to buy from you initially, but your despatch and communications process will return them
Your sell through rate is likely to be higher which means that you pay a lower percentage of eBay fees.
Buyers are 'put off' by unfair postal charges. To keep people buying, review your charges, and the service offered regularly. Keeping a high percentage of items profitably sold versus items listed is critical to your success! – and p&p charges have a useful part to play here. We look at charges in more depth later in this session.
Your four points above are exactly what I try to do. I know I'm not the cheapest seller of my lines on ebay but I try to make up by giving exceptional service. Well packed and delivered fast seems to be what my customers want.
The biggest turn off I found on ebay is sellers that state " they are not responsible for loss of item in the post" ....in other words, if it gets lost tough.
Am I right in always refusing 'Surface Mail' to the US and Australia. To be covered by seller protection surface mail is too slow as it may take more than 45 days. Kaz
I think customer service, dispatch times, quality packaging are very important, but I also think that price can have a very strong bearing on sales volume, dependant on the product type,
The products we sell are a one use item hence, reliabilty and product life are not so much as a factor in sales level,
#19 The best advice is to state in your auctions and/or Terms and conditions how often you ship. So long as you set the customers expectations it doesn't matter how often you ship - the important thing is that they know when they buy when they'll get their item
Hi Julie - as a business seller is it expected that you will ship 5 days a week? As long as you state in your listings how often and when you post you do not need to post every day, you just need to make sure the customer realises what they are getting. Kaz
2. Sending Parcels – The Options: This section gives an overview on the delivery methods available.
There are many ways of sending your parcels. The option that works best for your business will depend upon the size and weight of the items and the number of items you sell.
The main options for sending parcels are:
Stamps
SmartStamp
PacketPost PPI - with or without Royal Mail collections
Your need for a more streamlined Posting operation is likely to change as your business grows.
Queuing up at the Post Office to weigh your parcels and buy stamps works for a few parcels a week, but as your business grows there are better options available. These can save you both time and money.
glosticksI think customer service, dispatch times, quality packaging are very important, but I also think that price can have a very strong bearing on sales volume, dependant on the product type,
The products we sell are a one use item hence, reliabilty and product life are not so much as a factor in sales level,
Price definately has a strong bearing - although people may be put off by very low prices they can equally be put off by prices that are too high. It's all about knowing your market and most importantly tailoring your service to that market
SmartStamp The next step on from using stamps is SmartStamp which is an on-line Royal Mail service where you can pay and print off your stamps yourself
PacketPost RM PacketPost . The requirements to operate in this, are that you send in excess of 5,000 packets per year from one address. There more about this scheme on the RM website:
My own experience in opening a PPI PacketPost account and having daily collections has made a huge difference to my business both in money and in time savings. The average saving on postage costs is over 20%.
The main advantages of PPI PacketPost are:
Savings are made in the actual price you pay for postage
Incorporating this with a RM collection is a time saving.
Time = money. RM collections cost from £260 p/a (charges vary according to your collection time) and free when you spend over £15,000 annually.
Prices are based on smaller increments than standard tariff prices.
You are charged an average price based on the total weight of the post you are sending and the number of items.
Tip – fishing scales are great for weighing post bags.
The documentation is straightforward to complete and there is an on-line version available.
The account operates on either a 30 day account basis or pay as you go.
You print your own PPI labels – using a large label can enable you to incorporate return address and logo if required. (Security aspect of advertising needs to be considered)
The way that the Royal Mail charges for parcels is changing this Summer to Pricing in Proportion. You may find that you need to rethink your packaging or delivery methods – so review the section. The Link is here:
Couriers Couriers vary both in terms of the services they offer, what they carry and their charges. The best advice would be to shop around and get quotes. Courier Rates are negotiable, and dependent on your projected volume.
Several couriers allow 'ad hoc' pick ups – you phone or email when you have a parcel for them, when sending more than around 20 parcels a week, you'll save money by getting a courier contract.
Before signing a courier contract, read the small print and get several quotes!
Things to look out for:
Insurance exclusions for glass, china or jewellery
Maximum consignment measurements
Redelivery charges (important if your deliveries are to private houses!)
Fuel surcharges
Minimum quantities for pick up
Multi consignments (some couriers allow multiple parcels to the same address, for one fee)
Payment terms
Access arrangements – pallet pickup / tail lift and other special services
Evening delivery requests
You'll hear good and bad about every courier company, but satisfy yourself that you have the best company for *your* business.
Franking Machines This is an option but a very expensive one. The equipment can be expensive, and PacketPost is usually a better option – but it may work for you if you send lots of one size envelope, for example.
Posting Restrictions to be considered: Whether using Royal Mail or any of the Courier companies restrictions may apply. Find out about these before you sell or you may get hit with a hefty bill or complicated issues.
krythyCan I combine IDs to use Packet Post or would the accounting side be too complicated.
Your packet post contract is with the Royal Mail. If you own both ID's there's no reason why not. The only time it would be complicated is if the two ID's were run by two seperate Limited companies
Is it possible to change my ID name, as i want it to apply to my business im going to start up. Or would it be better to start with a new account? As i had negative feedback from someone thanks to a mixup with parcel force! i want 100% feedback with my business!
I have almost no problems with buyers asking when an item will arrive.
I send multiple emails through SMP. Confirmation of sale with full payment details confirmation of payment received, and advice of WHEN THE ITEM WILL BE POSTED confirmation that the item has been posted, and A NOTE OF WHEN TO ADVISE ME THAT IT HAS NOT ARRIVED.
Feedback I leave for the buyer at the same time as I confirm that the item has been posted. This is not acceptable to some sellers I know, but my genre of buyer seems to like it.
People like to be informed all the way. I don't mechanise these emails, I may personalise them so that they suit the individual transaction if necessary. They take time, but not so long as placating nervous buyers.
By happenstance, I received this message today:
Dear Lynne,
Many thanks for confirming receipt of payment for and despatch of the item. I look forward to receiving it and will confirm receipt of the item by leaving feedback. Your effort in keeping me informed at each stage of the transaction shows great customer care, and is much appreciated ...
P&P charges are a 'hot potato' on eBay, with many moans about 'fee avoidance', 'charging more than the stamp' and other buyer issues. As a business you need to be profitable and efficient.
Buyers want a 'fair' deal. A 30p stamp, a reused jiffy bag with no bubbles left and a scrap of sellotape that was charged at £2.75 – the perception is 'cheapskate'.
A First class PPI mark, a new jiffy and a printed invoice in a window envelope is likely to be perceived as good– the difference in cost to the seller is likely to be under 10p.
You can legitimately charge for the postage cost (ie the stamp) any packaging materials, and a reasonable handling cost, within your shipping charge – but use your shipping charges cleverly and they become a marketing dream! There are a few ideas further on in this session
allymcd90 Is it possible to change my ID name, as i want it to apply to my business im going to start up. Or would it be better to start with a new account? As i had negative feedback from someone thanks to a mixup with parcel force! i want 100% feedback with my business!
100% feedback is almost impossible to keep, to be honest I'd carry on with your ID. It won't stop you selling and it could happen again on a new account anyway. I certainly didn't open a new account when I got negged
#38 yes you can change your ebay id. unfortunately negative feedback is a part of operating your ebay business. You have a couple of potions. Work with the ebayer to have the feedback withdrawn by coming to a compromise. Alternately you can restore your 100% by trading out of it.
Visibility Always put your shipping charges on your listing. If you ship to Europe, or worldwide, put those rates in too – state which services you're offering. eBay relies on 'impulse' to a greater or lesser degree – don't spoil those 'impulse' buyers by making them email for a shipping quote – they may not wait for your response and buy elsewhere instead. Here's a postage calculator from the Royal Mail website:
A great way to keep your shipping charges visible is to put them in a table in your listing – as well as in the information box provided by eBay. Here's an example:
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