The shipping cost keeps on increasing. What can I do?

When we first started shipping a 1 LB package priority mail was about $3.00 now it is up to $8.00 and almost $9.00 depending on where you are shipping to. I just don't get how resellers are able to offer free shipping and turn a decent profit.

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When we first started shipping a 1 LB package priority mail was about $3.00 now it is up to $8.00 and almost $9.00 depending on where you are shipping to. I just don't get how resellers are able to offer free shipping and turn a decent profit.

Some might say it is a numbers game and they go for quantity but with so many people selling the same exact things online (in the gift/collectibles market) it is a very expensive game when you factor in costs for Google ad words. Customers will shop with whomever and there is no real loyalty in that market anymore and many are now able to buy directly from the manufacturer and they do.

With shipping costs to get the products, credit card fees and then shipping costs to ship to the customer profits are dwindling more and more every year. Not to mention many of these manufacturers are now playing games with wholesalers by getting their retail side product for Christmas a month or more before they will ship to us. Then when we finally get product and need to reorder they say it is backordered for months (all the while they are still selling these products on their own website).

I know the writing is on the wall for this business I started in 1996 but I have no other viable business to go into after 2 plus decades of investing my life in it.

What option do I have? Go back to making $10.00 an hour in customer service or working for someone else and being stuck in a 40 hour 9 - 5 gig?

When I think about all the things I gave up to grow this business only now to have it go under it makes me sad and regret all the Christmases I didn't go visit family just so I could make a few more sales over the holidays.

I always thought the businesses that closed for 2 weeks over Christmas were crazy but now I know they were the smart ones and I was the crazy one.

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Sorry I feel for you. We’re getting out of the coffee shop business because “the big boys” have opened three corporate coffee shops within a mile of us in the past couple years. Stuff changes. I’m sure buggy whip and ink well manufacturers had their salad days and then their downfall.

I design my own products, source the manufacturing, and sell them myself. That’s the only sure way I can think of to make sure you’re not being undercut by someone else.

It sounds like you have a lot of knowledge that can be leveraged by another retail/e-commerce business. If you don't have the energy for starting again on your own with a different product, I suspect there are other online retail businesses that would value what you'd bring to the table as a partner or executive.

Question asked by

u/bdusa2020

Date

July 9, 2020, 11:32:49 PM

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