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Auctionbytes-Update, Number 80 - October 06, 2002 - ISSN 1528-6703     Previous Story | Contents | Next Story


Online Auction Shipping: Cutting Boxes to Cut Costs
By David Steiner
AuctionBytes.com

October 06, 2002
Reading AuctionBytes: Online Auction Shipping: Cutting Boxes to Cut Costs

Q: When does 1 ounce equal $1.90?

A: When you've underestimated the shipping weight on a USPS package.

The U.S. Postal Service increased shipping rates last June. For many auction sellers, the problem was not only the price increase, but the fact that the USPS dropped the "Flat Zone" limit from 5 lbs. down to 1 lb., making it much more difficult to calculate costs. A 5-lb. item shipped Priority Mail to anywhere in the continental U.S. used to cost $7.70. Now it can range anywhere from $5.85 to $12.15.

While I'm sure that most of us have adapted by either raising our fees, becoming creative or finding alternative shipping methods, there are instances when you may have quoted a shipping price to a customer, only to find that the package tipped the scales a bit heavier than expected. A 1-ounce mistake in my shipping calculations could cost nearly two dollars on a 1-lb. item.

Here's an example: A 1-lb. package going from Boston to Albany, New York, costs $3.85 for USPS Priority Mail. The same package going from Boston to Los Angeles also costs $3.85. It's easy to figure out shipping costs for 1-lb packages! However, if my scale is not adjusted properly or doesn't jive with the scale at the Post Office and edges over the 1-lb. weight, my item might cost as much as $5.75 to ship to California. That's why I've learned to trim back my lighter packages to ensure that they fall under 1 lb. and not sacrifice any of the structural integrity of the box.

There is a nice range of Priority Mail supplies for shipping smaller items. The Priority Cassette Mailers, for example, are good, light shipping containers. But I prefer, especially if I'm shipping something breakable like a small plate, to have a box that affords me a bit more padding room without adding a significant amount of weight. So my choice is usually the 7"x7"x6" USPS Priority Mail Box #4. With a bit of trimming, you can eliminate several inches from the box and save nearly 1.5 ounces. Enough to give you a bit of safety when you have to get this package out under 1 lb.

I've created a little picture essay that illustrates my method for trimming a #4 USPS Priority Mail Box http://www.auctionbytes.com/cab/pages/packing. I'm sure that there are modifications to other Priority boxes that would work just as well.

OK, I can hear it now, "Sure Dave, I'm going to go through all this trouble to save a little over an ounce."

Well, I actually have this down to a science, so that it takes me less than 3 minutes to alter a #4 Priority box. If I can save $1.90 every 3 minutes, that comes out to $38 per hour.

Not a bad way to trim costs.

About the author:

David Steiner is President of Steiner Associates LLC, publisher of AuctionBytes.com. David was formerly a television producer.



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