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onceuponatime4you
Community Member
Posts: 8
Registered: ‎02-07-2011

royal mail price increase 2014 & ebay fees

Well here we go again.....so not only are we being charged by Ebay on our postal cost, Royal Mail have announced a 20p increase on small parcel prices.  

 

Eventually sellers and buyers alike will no doubt find other platforms to sell / buy their items.  I have many friends who have found the constant increases just not worth selling their items and have left Ebay altogether finding their trading practises nothing more than high way robbery.

 

Julia

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bmw_r1200gsa
Community Member
Posts: 966
Registered: ‎11-11-2013

Re: royal mail price increase 2014 & ebay fees

in reply to onceuponatime4you

eclecticatrading wrote:

Well here we go again.....so not only are we being charged by Ebay on our postal cost, Royal Mail have announced a 20p increase on small parcel prices.  

 

Eventually sellers and buyers alike will no doubt find other platforms to sell / buy their items.  I have many friends who have found the constant increases just not worth selling their items and have left Ebay altogether finding their trading practises nothing more than high way robbery.

 

Julia


Still the cheapest way to post from within the UK 

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bargaincare
Community Member
Posts: 1,255
Registered: ‎10-06-2012

Re: royal mail price increase 2014 & ebay fees

in reply to bmw_r1200gsa

But it's only the cheapest way because Royal Mail are a private company with an almost complete monopoly of mail.

 

I'm sure others will go on about Collect+, Hermes etc etc, but none of the others are of any use for anything below 1kg.  Royal Mail is the only company that can do it because they have the critical mass.  The barriers to entry for any other company are huge, and Royal Mail are milking it for all it's worth.

 

A parcel that cost £2.60 to post less than a year ago will now cost £3.11, which is the amount you must be paid by a buyer via ebay to end up with the £2.80 to pay for the postage.  So between these two squeezes it has a huge rise for sellers.  Similar rises also apply to PPI postage.

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bmw_r1200gsa
Community Member
Posts: 966
Registered: ‎11-11-2013

Re: royal mail price increase 2014 & ebay fees

in reply to bargaincare

bargaincare wrote:

But it's only the cheapest way because Royal Mail are a private company with an almost complete monopoly of mail.

 

I'm sure others will go on about Collect+, Hermes etc etc, but none of the others are of any use for anything below 1kg.  Royal Mail is the only company that can do it because they have the critical mass.  The barriers to entry for any other company are huge, and Royal Mail are milking it for all it's worth.

 

A parcel that cost £2.60 to post less than a year ago will now cost £3.11, which is the amount you must be paid by a buyer via ebay to end up with the £2.80 to pay for the postage.  So between these two squeezes it has a huge rise for sellers.  Similar rises also apply to PPI postage.


International has also gone up a fair bit not to worry about UK to UK it will soon be cheaper to take a flight to China and post to the UK from there.

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dishmop12
Community Member
Posts: 514
Registered: ‎27-08-2004

Re: royal mail price increase 2014 & ebay fees

in reply to bmw_r1200gsa

bmw_r1200gsa wrote:



International has also gone up a fair bit not to worry about UK to UK it will soon be cheaper to take a flight to China and post to the UK from there.


 

odd you should say that because I believe some sellers in China pay people to carry parcels on the planes and post them when they get to the UK.  Its quicker.

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bmw_r1200gsa
Community Member
Posts: 966
Registered: ‎11-11-2013

Re: royal mail price increase 2014 & ebay fees

in reply to dishmop12

dishmop12 wrote:

bmw_r1200gsa wrote:



International has also gone up a fair bit not to worry about UK to UK it will soon be cheaper to take a flight to China and post to the UK from there.


 

odd you should say that because I believe some sellers in China pay people to carry parcels on the planes and post them when they get to the UK.  Its quicker.


China to the UK is cheaper than UK to UK on a lot of small parcels yet RM deliver both in the UK

 

thats a lot of UKs for one message

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ianwhorlow
Community Member
Posts: 5,473
Registered: ‎26-04-2008

Re: royal mail price increase 2014 & ebay fees

in reply to onceuponatime4you

I didnt think the increases were too bad at all. Small parcel 1 to 2 kg has actually gone down, 1st class from 6.85 to 5.45 and no change to Med Parcel below 4 kg.:smileyhappy:

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frinton1000
Community Member
Posts: 3,302
Registered: ‎17-01-2012

Re: royal mail price increase 2014 & ebay fees

in reply to bmw_r1200gsa

UK to China (or Australia for that matter) is cheaper on a 250g Medium Parcel than UK to UK!

 

And you can send a 500g Medium Parcel to Siberia for less than you can inland.

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spring-collectables
Community Member
Posts: 50
Registered: ‎09-09-2004

Re: royal mail price increase 2014 & ebay fees

in reply to bmw_r1200gsa

As registered Business Sellers postage fees are a claimable expense as are ebay fees (and PP fees and many other fees).

 

Why stress out about mail price increases when you know you can claim them back (or at least claim against profit made) at the end of your tax year?

 

 

 

 

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spring-collectables
Community Member
Posts: 50
Registered: ‎09-09-2004

Re: royal mail price increase 2014 & ebay fees

in reply to frinton1000
There is no "medium" parcel size for International to Siberia or anywhere? There is a size limit however and it is quite a large one!
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frinton1000
Community Member
Posts: 3,302
Registered: ‎17-01-2012

Re: royal mail price increase 2014 & ebay fees

in reply to spring-collectables

spring-collectables wrote:

As registered Business Sellers postage fees are a claimable expense as are ebay fees (and PP fees and many other fees).

 

Why stress out about mail price increases when you know you can claim them back (or at least claim against profit made) at the end of your tax year?

 

 

 

 


Because you still have to pay them. All they do is reduce your profit (unles you put your price up), so instead of paying tax on, say £40,000, you pay it on £39,500.

 

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norseway53
Community Member
Posts: 17,599
Registered: ‎28-10-2006

Re: royal mail price increase 2014 & ebay fees

in reply to spring-collectables

spring-collectables wrote:

As registered Business Sellers postage fees are a claimable expense as are ebay fees (and PP fees and many other fees).

 

Why stress out about mail price increases when you know you can claim them back (or at least claim against profit made) at the end of your tax year?

 

 

 

 


For some sellers, even very small increases can make their products look overpriced; claiming increased fees back against decreased profits is a cause for concern.

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frinton1000
Community Member
Posts: 3,302
Registered: ‎17-01-2012

Re: royal mail price increase 2014 & ebay fees

in reply to spring-collectables

spring-collectables wrote:
There is no "medium" parcel size for International to Siberia or anywhere? There is a size limit however and it is quite a large one!

Yes, exactly. My point was that if I have an item which is a 500g Medium Parcel, it is cheaper to send this to Siberia (as it is just priced as the normal Airmail Small Packet rate) than it would be to send to the UK.

 

However, an inland Small Parcel, which is still priced at the Airmail Small Packet rate, is cheaper to send within the UK, so I had to make the distinction.

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buttcracker_mick
Community Member
Posts: 8
Registered: ‎20-04-2008

Re: royal mail price increase 2014 & ebay fees

in reply to onceuponatime4you

I totally agree, if selling smallitems the cost of e bay.pay pal and postal charges ( not forgetting packaging it is hardly worth sell now

buttcracker

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buttcracker_mick
Community Member
Posts: 8
Registered: ‎20-04-2008

Re: royal mail price increase 2014 & ebay fees

in reply to onceuponatime4you

 totally agree, if selling smallitems the cost of e bay.pay pal and postal charges ( not forgetting packaging it is hardly worth sell now

buttcracker

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spring-collectables
Community Member
Posts: 50
Registered: ‎09-09-2004

Re: royal mail price increase 2014 & ebay fees

in reply to norseway53

RM increase their fees this time every year - a business has to look forward ..... not back.

 

There is nothing wrong with Collect+ or MyHermes for items over 1kg providing the parcels are packaged correctly there is no problem, problems arise when items are not packaged correctly and damage occurs.

 

So many sellers have this in their listings "I cannot be held responsible for items damaged in the post by Royal Mail or Other Courier after they have left me" ????

 

and others put something along the lines of "ebay are now charging 10% on postage fees so I have had to increase my postage" ...!!

 

So by increasing your P&P cost you are giving ebay more in fees - eg., charge £2.60 ebay take 26p, charge £5.00 ebay take 50p, charge £10.00 ebay take £1.00.

 

The more you charge, the more ebay take.

 

It's not rocket science!

 

 

 

 

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frinton1000
Community Member
Posts: 3,302
Registered: ‎17-01-2012

Re: royal mail price increase 2014 & ebay fees

in reply to spring-collectables

spring-collectables wrote:

RM increase their fees this time every year - a business has to look forward ..... not back. 

 


That's exactly what people are doing. We are all, I'm sure, considering how we will deal with the price changes. Some will take the hit on their profits, others will pass it on. Some people no doubt will actually see a cut if they do a lot of the sort of items whose price has come down. I will probably do a bit of both in terms of absorbing and charging.

 

I think you'll find many business sellers have been looking out for this announcement for weeks. It'll be the private sellers who go to the PO on 1st April and find they're being charged more and hadn't realised it who'll complain the loudest.

 

I think you'll find most comments so far on both threads I have seen have been along the lines of "it's not too bad, could have been worse" type of thing.

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555njp
Community Member
Posts: 186
Registered: ‎20-01-2011

Re: royal mail price increase 2014 & ebay fees

in reply to frinton1000
Look how many businesses left the market after last year's RM price hikes. Many products simply won't be viable by mail order any more so I think several more will fall. I tried adding the increases to my items and sales dropped like a stone! I absorbed as much as possible but combined with eBay charging a fvf on postage too, most products no longer have any margin. Not only that but the wholesalers have starting increasing their prices too, probably to protect revenue because demand has fallen? Customers simply will not over pay for postage, money is tight out there so they are slowly returning to the traditional shop.
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ianwhorlow
Community Member
Posts: 5,473
Registered: ‎26-04-2008

Re: royal mail price increase 2014 & ebay fees

in reply to 555njp

555njp wrote:
Look how many businesses left the market after last year's RM price hikes. Many products simply won't be viable by mail order any more so I think several more will fall. I tried adding the increases to my items and sales dropped like a stone! I absorbed as much as possible but combined with eBay charging a fvf on postage too, most products no longer have any margin. Not only that but the wholesalers have starting increasing their prices too, probably to protect revenue because demand has fallen? Customers simply will not over pay for postage, money is tight out there so they are slowly returning to the traditional shop.

How many busineses "left the market" ?  Do you have figures for that.

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blossom-time
Community Member
Posts: 39
Registered: ‎03-10-2006

Re: royal mail price increase 2014 & ebay fees

in reply to 555njp

"Customers simply will not over pay for postage"

 

absolutely and why should they (customers that is) ??

 

John Lewis seem to have cracked it!!!!

 

OK,  ebay is a little (slightly) different selling base, but it is still the same basis - give the customer what they want , at the price they want to pay and get it to them how they want to receive it  ....  simples ....

 

 

 

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