Monday, October 29, 2012

How to Reduce Postage in Your Amazon Business

One of the most overlooked areas to save money is on postage. Many Amazon Sellers believe that USPS Postage rates are non negotiable and represent a significant part of some product offerings. Any money you save on postage will mean direct dollars in your pocket. So let's take a look at some simple steps that an Amazon Seller can take to reduce their postage spending.

For shipper's that are mailing more than 500 packages per day in the US and / or over 50 packages per day. Internationally, you will soon see that using a Parcel Consolidator is a must. Both the United States Post Office and Parcel Consolidator's offer various rates for different sizes and weights of packages. It would be extremely prudent to review several service offerings before selecting one. For larger shipper's, it may become apparent that several service provider's may need to be used to maximize service to your customers while minimizing your postage spend.

Let's take a look at some simple step's you can take to reduce your postage spend TODAY:

Priority Flat Rate Boxes - This method is extremely advantageous for Sellers shipping very small but heavy items. For instance, Battery Sellers sending Lithium Batteries that are quite heavy but can fit inside of a flat rate box or envelope. Someone shipping a 2 pound package to California could save almost $5.50 per package using this method.

First Class Mail - This method is best suited for lightweight packages weighing less than 13 ounces. This service also provides free delivery confirmation. If your mailing items that weigh between 1 and 3 ounces this is the best and least expensive service to utilize.

1st Class International Mail - In 2013 the USPS has presented a recommendation to the Postal Regulatory Commission that they increase their rates significantly. The cost of mailing one 5 ounce CD to Canada will go up from $3.60 per item to $8.55 per item in 2013. Many Amazon Sellers currently enjoy some healthy sales from Canada, Australia and the United Kingdom. This is one area that a Parcel Consolidator can assist. Using a Parcel Consolidator could bring your cost below the 2012 rates and should be a must for any SERIOUS Amazon Seller.

Priority Mail International - In 2013 the USPS has presented a recommendation to the Postal Regulatory Commission that they increase the rates significantly. The cost of mailing a 1 pound package to Canada will go up from $23.25 per item to $28.25 per item in 2013. Many Amazon Sellers currently enjoy some healthy sales from Canada, Australia and the United Kingdom. This is one area that a Parcel Consolidator can assist. Using a Parcel Consolidator could bring your cost below the 2012 rates.

Another way to save on postage is to print your own postage from your computer.

Endicia.com will automatically extend to you their Commercial Base Postage rates which they have access to. You will instantly have access to reduced postage rates from the ones quoted above. Endicia.com is easy to use and it allows you to batch process your orders. In addition, Endicia.com allows users to automatically check for address errors and will make the necessary corrections to ensure delivery.

Maximize Postal Savings using a Parcel Consolidators

In order for you to maximize your postal savings you will want to use a Parcel Consolidator. Parcel Consolidators work in conjunction with the USPS and eliminate the sorting and transportation traditionally performed by the USPS. A Parcel Consolidator will drop ship your material as far downstream into the USPS cycle, enabling them to do what they do best, deliver to your door. Most consolidators have tracking capabilities that allow customers to monitor shipments from time received in their operation until final delivery by the USPS.

The greatest Postage savings comes when Amazon Sellers are mailing items in the 14 oz to 16 oz weight bands. Parcel Consolidators have the ability to offer Postage Rates at ounce increments that are significantly less than Priority Mail. If you were able to save $1.00 per package how much additional revenue could you add to your bottom line?


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