[T-Satt]

It is just so weird…I don’t see the why!

[T-Satt]

Yeah, I saw all of those too. So I wonder why 2 reps and an account manager don’t know about this.

[T-Satt]

I have seen that as well in my research, but that is dated October 2017. When I have talked to FedEx this week, and when I see their published rates (which FedEx has told me 3 times does NOT use dimensional weight), that is my confusion.

The rates right now don’t match that article. The information from FedEx does not match that either.

FedEx tells me one thing, EBay another.

[T-Satt]

That would be a really good answer to get. Can someone at EBay ask these questions to FedEx? I have asked FedEx to contact EBay as well.

The stories I get from the two sides don’t match, and we sit here in the middle.

[T-Satt]

Have you seen the SmartPost rates PDF link that I have posted?

[T-Satt]

So that is my big question…why?

FedEx has told me 3 times that dimensions don’t matter for SmartPost. So why do they matter for EBay?

[T-Satt]

Mallybills: I really appreciate all your help on this, but I still can’t understand why eBay would be having higher rates on SmartPost than for Home Delivery, when everything I hear from FedEx when I contact them directly, and looking at their SmartPost rates on their site (at http://images.fedex.com/us/smartpostguide/pdf/FXSP_ByPound_2018.pdf ) says that the FedEx rate on our example (2 lbs, 16x16x8) should be no more than $10.98 (Zone 8)

Is FedEx showing in correct rates on their site? Are they wrong when they tell me that SmartPost should be cheaper?

I’m still having them work on getting SmartPost put on our account directly, and it would be interesting to see what the SmartPost rate would be directly with FedEx.

[T-Satt]

Mallybills: Did you get that quote on FedEx.Com for SmartPost or for Home Delivery/Ground? I know that the DIM weight is used for Home Delivery/Ground, but I have been told no less than 3 time from 3 different reps at FedEx that DIM weight is NOT used for SmartPost.

[T-Satt]

Well said MyCottage.

[T-Satt]

Amen BethGreen.

Malinda, any info would be great. I have a separate thread on my (and Beth) issue with FedEx under the Saga of FedEx SmartPost that details the problems…

[T-Satt]

Plus, there isn’t a punishment for not offering, but there is a benefit for those that do…

[T-Satt]

For us, we are similar to Sonia. We extend the Handling time, and we use the Vacation Mode to alert buyers that shipping will be later than normal. In addition, we also have a template message that we keep on our phones that states that we are out of town, the date we will return, and the date items will ship out. When we get a sale, we copy and paste that message to the buyer.

We feel that the handling time covers us with eBay and does show (a little) on when the item will arrive. We like the banner on the items and the message to make sure that there is no confusion with the buyer.

Works for us, we communicate a lot, and we have only had 1 or 2 cancellations. Plus, now that we schedule listings, we still show activity, so our sales stay active.

[T-Satt]

Retro, we are similar. We currently show $3,048 in sales in the last 31 days through promoted listings, with an ad fee of $244.

And I make sure we get our $30 credit…

[T-Satt]

I have seen that and had those same thoughts.

A new thought in “If these walls could talk…”

[T-Satt]

Absolutely Jay.

So for discussion, I have posted our calculation of our Baseline, 5% increased sales, and 13% increased sales.

Based on what I’m seeing (if the increase does occur), then the increased sales will far outweigh the cost in returns.

PS – I used a much higher return cost of $8 per return. Almost all of our returns are clothing, so an average of $4 would be much better, but I wanted to see the more extreme side. I also even assumed a higher Baseline return rate of 3% (we are at 2% now), and a DOUBLE of our return rate from 3% to 6% on the increased sales.

BASELINE
Number of Sales: 281
Avg COGS: $5
ASP: $27.70

Sales: $7,784
COGS: $1,405

Return Rate: 3%
# of Returns: 8
AVG Cost of return Shipping: $8
Cost of Returns: $64
TRS+ Fee Savings: $70

5% SALES INCREASE
Number of Sales: 295
Avg COGS: $5
ASP: $27.70

Sales: $8,172
COGS: $1,475

Return Rate: 6% (I even doubled the return rate)
# of Returns: 18
AVG Cost of return Shipping: $8
Cost of Returns: $144
TRS+ Fee Savings: $74

Increase in Gross Profit over Baseline (after taking out eBay fees): $283
Cost of increased returns: $80

13% SALES INCREASE
Number of Sales: 318
Avg COGS: $5
ASP: $27.70

Sales: $8,809
COGS: $1,590

Return Rate: 6% (I even doubled the return rate)
# of Returns: 19
AVG Cost of return Shipping: $8
Cost of Returns: $152
TRS+ Fee Savings: $79

Increase in Gross Profit over Baseline (after taking out eBay fees): $748
Cost of increased returns: $88

[Author]

Posts