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Old 10-10-2013, 03:01 PM   #1
J8K VW
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Default Cheap Postage?

Hello,
I run an alloy wheel sales and refurbishment business and have recently started selling small products, wheel polishes, sealants, tyre dressing etc online.

I want to keep my costs down as far as postage is concerned so am wondering how sellers can offer free postage, even on 99p items and continue to make a profit? Royal Mail small parcels 2nd class works out at 2.60 which is the cheapest rate I can find.

I imagine this can be reduced slightly by using a franking machine but does anyone know of a cheaper method?
Thanks.
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Old 13-10-2013, 06:07 AM   #2
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Old 13-10-2013, 11:40 AM   #3
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hermes are good.
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Old 15-10-2013, 10:21 PM   #4
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I honestly have no idea how some of these companies sell for the price they do?

I had a couple of siphons sent over from China and the total cost including postage was 1.40. You couldn't even send and receive them in this country for that amount.

Would love to know the answer as well.....
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Old 30-12-2013, 11:33 AM   #5
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Royal Mail postage can be obtained cheaper by renting your own franking machine.
Try "Frama" (I think that's their name)

It becomes cost effective if your volume hits a certain point - say 10-20 packages a day minimum.

You can buy the machine and pay for 'top ups' on postage.
If you cost model it you can work out which is best for you in the long / short term
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Old 30-12-2013, 12:42 PM   #6
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Just make them pay for postage bud most people won't mind 3 quid
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Old 30-12-2013, 06:30 PM   #7
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It seems like a lot of companies subsidise the postage to some degree. We are all at the mercy of the likes of the RM and their increasing fees - April 2014 will probably be the next rise :-<
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Old 30-12-2013, 08:13 PM   #8
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ive had this before lots of times ,bought summit cheap on ebay with freepost but it can take up to 2 weeks to arrive,to be fair ive never bought of them again seems like bad business to wait 2 weeks for an item id rather pay the postage and get it next day.so put extra on for post people would rather pay it.
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Old 06-01-2014, 12:40 PM   #9
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you have to be very imaginative with packaging also.

Get to know the postal sizes in and out, figure out the absolutely cheapest way of sending things, even if it means splitting some single orders into two and dispatching separately. (A big one I use here is I will send 2 x Large Letters instead of 1 Small Parcel, its nearly 1 cheaper).


Franking machines are ok, you will make a saving if you send 8 letters a day (Less if you are sending large letters and parcels as the savings are bigger), A small parcel costs 2.20ish with franking. I pay around 15 a month +vat for the machine hire, and 6 per 'top up' (so you top up lots in one go as its will always costs you 6 regardless of how much the top up is.)

The biggest thing really is to double check the sizes, are you absolutely sure what you are sending as a small parcel couldn't go as a large letter, you get up to 25mm thick, and you would be surprised what you can fit in that often.


There isn't a fantastic saving on postage anywhere, it's always going to be a reasonably large overhead, it's just trying to work the system in your advantage. And think about it before buying the items, I have made a few losses by buying lots of stock of something in before realising it would have to go as a parcel and no one would simply pay that much for it!

Ignore China, it will only make you mad! I really don't know how they do it so cheap, surely Royal Mail charges them more for the domestic part getting it to your door? Maybe the Chinese government subside?




(If you expect to spend over 5000 worth of postage you can use the 'PPI' things which don't have a monthly fee and you just print on each letter, I think these costs the same as franking but without the extra fees'



Sorry if that was rambling. I only sell online, and I have tried many a thing to save money on postage in the past! To be honest, selectively producing things that will post cheap has been the best method!
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Old 09-01-2014, 07:32 PM   #10
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Thanks for that useful info Dominic. I must admit I've seen items that the postage has cost more than the item would sell for, and most people wouldn't bother on that basis.
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