If you are living in 2020 then you know the economy has changed in the United States. We are now simply living and working at home much more than ever before. The COVID-19 pandemic has changed our lives and our shopping habits. That is why so many people are also trying to start new companies online because all the money is moving in that direction. Many people are not allowed to use brick and mortar stores and it is showing to be a big issue for the in-person sales companies. So if you are changing your company model or simply getting into selling online there is a big portion of this that deals with shipping. The whole idea of eCommerce is to buy online or in the comfort of your home or on your phone and have the items shipped directly to your home. It is super convenient and really is the main part of eCommerce. So because it is the main part of the whole industry, you must be wise in choosing the best packaging to send your items in.
On my first selling experience, I actually ended up losing money online. I was selling a book and it was a heavy book. I put a low price on it so it would sell and then found out that I actually spent more to get the item to the buyer than I made from the buyer. But how does this happen? Well, first you need to understand that the platform you are selling on will charge you money. If it is eBay or Amazon they each charge 10-13 percent in fees. Then you may pay up to 3% on the transaction fee for the credit card used. That means that right off the bat you lose 10 to 16% of the sales price right when the item is purchased. So this is a cost you need to think about.
On my first selling experience, I actually ended up losing money online. I was selling a book and it was a heavy book. I put a low price on it so it would sell and then found out that I actually spent more to get the item to the buyer than I made from the buyer. But how does this happen? Well, first you need to understand that the platform you are selling on will charge you money. If it is eBay or Amazon they each charge 10-13 percent in fees. Then you may pay up to 3% on the transaction fee for the credit card used. That means that right off the bat you lose 10 to 16% of the sales price right when the item is purchased. So this is a cost you need to think about.
The next thing to think about is shipping the item. I had a book that needed a cardboard box or so I thought to ship. So I went out to Walmart and purchased one. Then I also got markers and tape to seal it up. By the time I did this I thought I would be ok and still make 10 bucks. But in the end, I forgot how much shipping the actual item could be. It cost me another 15 bucks to ship the book through USPS. I lost 5 whole dollars on my first sale. But lots of good lessons were learned in this.
The idea is that I have to be able to make a profit after all the items are in place. I needed cheap cardboard boxes to put my items in or I needed to use less expensive bags. I also had to change my pricing to reflect the actual cost of these items. Don't forget that tape and markers add up if you are using a ton of packages. Then you have to get labels and pay for shipping. So build these costs into your product. You have to be able to still save money in the end in order to make it worth your time. Time is also a huge cost and you need to think about paying yourself as well.
The idea is that I have to be able to make a profit after all the items are in place. I needed cheap cardboard boxes to put my items in or I needed to use less expensive bags. I also had to change my pricing to reflect the actual cost of these items. Don't forget that tape and markers add up if you are using a ton of packages. Then you have to get labels and pay for shipping. So build these costs into your product. You have to be able to still save money in the end in order to make it worth your time. Time is also a huge cost and you need to think about paying yourself as well.