Tuesday, December 1, 2009

When The Cost Of Shipping Weighs Us Down

I often find that people don't realize many of the behind-the-scenes considerations of this business, and I suppose it only makes sense -- I mean, do we generally know or understand how to successfully operate our neighbor's business? Ummmm, nope, can't say that I do.

One of the things in my own business that I often struggle with is the idea of selling over-sized items. Not only do I have the challenge of allocating and managing storage space, sometimes the biggest elephant in the room is shipping. Well, actually the cost of shipping. And I realize that, from a buyer's perspective, once you factor everything in and look at the bottom line,
I may as well be offering to ship you an elephant – the shipping cost just gets in the way.

In the world of online sales, where the cost of shipping can at times really weigh a sale down, the selling options are rather limiting -- either you buy smart and price for a low or marginal profit (and plan on it taking weeks or months for that right buyer to come along) or you stick to the smalls and save yourself the headache. I doubt there's any perfect, middle ground, and the reality (as I see it) is that the great divide in online sales could soon become even greater.

As more and more buyers bargain shop with an eye toward free shipping, I would challenge them to give a few minutes of thought to this behind-the-scenes consideration: While bargains are a fabulous thing, "free" is rarely truly free; a seller's time, inventory, know-how, and supplies are his tools of the trade, and they (as well as actual shipping) come at a cost. Sometimes you get what you pay for.

Do you really want to let that irreplaceable treasure you finally found ride along with an elephant who is weighing down a flimsy box packed with “free” in mind?

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