2012

CONTENTS Chapter 1 Shipping costs & logistics for wholesale buying . . . . . . . . . . . . . . . . . . . . . . . . • Importing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • How to import from US suppliers who don’t ship to your country . . . . . . . . .

Chapter 2 Buying in bulk from a local supplier . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Chapter 3 Dropshipping . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Chapter 4 Selling online & shipping out to customers . . . . . . . . . . . . . . . . . . . . . . . . . . . . • How much to charge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • Calculating postage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 5 How come other sellers are able to offer such cheap shipping? . . . . . . . . . .

Chapter 6 Best shipping services by country . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • Shipping options: USA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • Shipping options: UK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • Shipping options: Australia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • Shipping options: Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • Shipping options: NZ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Chapter 7 Shipping internationally . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Chapter 8 Where to go for more shipping advice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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SHIPPING HANDBOOK

Copyright © 2012 SaleHoo Ltd. All rights reserved. No part of this ebook may be used or reproduced without permission from SaleHoo

SHIPPING COST & LOGISTICS FOR WHOLESALE BUYINGImporting (goods from other countries)

As far as shipping is concerned, importing is the most expensive option. Whether or not the shipping cost is going to be worth it depends on what you are buying, so be sure to research thoroughly and compare with the cost of buying locally. Importing can be complicated for those who have never done it before, so new sellers are often best to start local.

The shipping cost for an import will depend on how much you are importing.

• Small imports of up to 150 lbs (62 kg) can be shipped easily via Fed Ex, DHL, UPS or EMS.

• Imports over 150 lbs will need to be shipped via sea, as the cost of air freight becomes too expensive at this point. Sea freight involves contacting a freight forwarder to book passage on a cargo ship and using a customs broker to prepare the paper work for Customs clearance. Your freight forwarder will work out all the logistics and (hopefully) find you the best deal, usually for around $300.

How much does it cost to ship via container? A lesser container load can cost anywhere between $600-$2000, while a full container load usually costs between $2000-$5000 (yup, big price gap there we know, which is why it is crucial to shop around!).

How to import from US suppliers who don’t ship to your country

Eighty percent of suppliers in the SaleHoo directory will ship to your country if you email them and ask - even if it says on their website that they don’t. However, if all else fails, then you may wish to open an account with a mail forwarding company such as http://www.mbex.net/. This will give you a US address, allowing you to purchase from US suppliers who don’t ship overseas.

It may also save you money in freight if you wish to make several small purchases from different suppliers. MBex can then consolidate the purchases into one shipment and forward it onto you – the bonus here being that MBex gets a shipping discount from Fedex, which they pass on to their customers.

SHIPPING HANDBOOK

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BUYING IN BULK FROM A LOCAL SUPPLIERFor pallet orders, most companies ship using freight companies. This can be quite a significant amount, especially with fuel prices going up, so make sure you work this into your cost analysis. Expect to pay between $450-$800 for a dedicated truck, depending on the distance between you and your supplier.

One alternative for cutting costs is to piggyback your order with another company in the area. This can mean a big saving, but synchronizing requires careful planning and quite possibly, a wait time.

DROP SHIPPINGA charge of between $2-$5 usually applies for handling, plus a shipping cost. Drop shippers usually display shipping costs on their website.

Ideally, they will be using a well-known and respected company (such as Fed Ex) and not Basil’s Budget Delivery services!

SELLING ONLINE & SHIPPING OUT TO CUSTOMERSHow much to charge

• Shipping & handling costs must be specified on all eBay auctions

• It is always good practice to specify shipping cost, even if you are selling on a site that doesn’t require you to do so. The more information you give your buyers, the easier it is for them to make a decision to purchase.

• Bear in mind that eBay gives items with cheaper shipping cost preference in their search.

• Providing fast shipping is very important for getting good feedback and maintaining overall customer satisfaction.

• Spend some time comparing rates and service between shipping companies before selecting one.

Calculating postage

Get yourself a good quality shipping scale (can be purchased on eBay) to use in conjunction with online shipping charts and calculators.

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SHIPPING HANDBOOK

Copyright © 2012 SaleHoo Ltd. All rights reserved. No part of this ebook may be used or reproduced without permission from SaleHoo

HOWS COME OTHER SELLERS ARE ABLE TO OFFER SUCH CHEAP SHIPPING?You’ve checked the shipping price of the shipper’s website…then you check the shipping price your competitors are offering in their auctions, only to find it is cheaper by a buck or more! How is this possible??

• Shipping companies offer commercial rates, so if you are a business, don’t be a schmuck and keep on paying retail! Opening a business account with a shipping company will give you a 30%-60% discount.

• Buy online – most shipping companies offer reduced rates for online purchases. Plus it saves you time at the post office.

• Some sellers have a strategy of providing extremely low (or even free) shipping to attract more customers. To cover their loss on shipping they usually either build the shipping cost into the item price or encourage customers to add on accessories at checkout.

• Compare services: For example, it only costs $37 (or $35.15 online) to ship up to 20 lbs from the USA to Australia using USPS flat rate International Priority mail boxes, whereas Express Mail International would cost you $97.90.

• Use an accurate shipping scale – being just a few ounces out can cause you needless expense.

• Remember that time involved in shipping is a significant cost too, so try to cut down on complications. For example, don’t feel you have to go to the post office each day, even if you only have one item to ship. Some sellers state that they only ship Monday, Wednesday and Friday and most buyers don’t mind an additional day’s wait.

BEST SHIPPING SERVICES BY COUNTRYShipping options: USA

USPS – USPS is the cheapest service by a long way, especially on Priority Mail, First Class Mail and Media Mail. It’s also the shipping option used by the majority of online sellers. Not only that, you can order free boxes and labels online and get them shipped right to your door. USPS will also pick up your packages for free, saving you a trip to the post office.

Fedex – Best service for heavy items as they take packages weighing up to 150lbs. Good discounts on business accounts.

UPS – Have a special pricing option for eBay sellers, however their service can be more expensive than other shipping companies.

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SHIPPING HANDBOOK

Copyright © 2012 SaleHoo Ltd. All rights reserved. No part of this ebook may be used or reproduced without permission from SaleHoo

DHL – More cost effective than UPS and USPS for heavier items, but according to some sellers, service is not as reliable.

Shipping options: UK

Royal Mail

Used by the majority of sellers in the UK. Don’t forget to check out the business rates on offer.

Business Mail Services

Courier companies

Can be more cost effective for larger items and shipping internationally.

Recommended

Interparcel

The National Courier Association

Shipping options: Australia

Regular post

Australian Post – Cheapest option for smaller items, but don’t forget to compare services. For example, it can be cheaper for some items to ship in a pre-paid satchel rather than parcel post.

Courier – The cheapest interstate courier by a long stretch is Greyhound Freight. Service includes signature on delivery and insurance.

Other alternatives include the Australian Post courier service and Fastway.

Shipping options: Canada

Canada Post – Used by the majority of online sellers in Canada.

Canada Post small business discount

eBay Canada shipping calculator

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SHIPPING HANDBOOK

Copyright © 2012 SaleHoo Ltd. All rights reserved. No part of this ebook may be used or reproduced without permission from SaleHoo

Couriers

DHL Express

Greyhound Courier

UPS

Shipping options: NZ

NZ Post – Cheap option for packet post and small items.

Courier – Using a courier can give you an edge as it’s faster and safer than regular post. Plus you can buy discounted courier bags through the Trademe Postage Centre and save $$$.

Cheapest:

Post Haste & Fastway

Other options:

NZ Courier & Courier Post

Tip

Open an account with your courier and negotiate the rates.

SHIPPING INTERNATIONALLYShipping internationally is more expensive and involves filling out the green Customs declaration form. Note that your customer may be required to pay customs duties on the package, depending on the value and classification of the item. Also, if the customer has purchased shipping insurance, it is critical that you declare the true value on the declaration. The shipping insurance will only cover the declared value!

• Shipping to Canada? Then you can insert this nifty little tool My Border Pro into your listings, to enable buyers to see the estimated duties and customs brokerage rate upfront.

• Shipping to NZ or Australia? Customs duties only apply on items valued over $399 to NZ, and over $1,000 to Australia.

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SHIPPING HANDBOOK

Copyright © 2012 SaleHoo Ltd. All rights reserved. No part of this ebook may be used or reproduced without permission from SaleHoo

WHERE TO GO FOR MORE SHIPPING ADVICEThe Shipping Coach

Helpful Hints

USPS Shipping Tips & Tricks

International Shipping

eBay SHIPPING the Buyer-Seller Dilemma TIPS & TRICKS

Tips & Tricks of eBay Shipping

eBay Discussion Boards

SaleHoo Forum

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SHIPPING HANDBOOK

Copyright © 2012 SaleHoo Ltd. All rights reserved. No part of this ebook may be used or reproduced without permission from SaleHoo