๐ฆ Shipping
The Shipping Profit Equation
Shipping can make or break your margins. A $5 shipping mistake on every sale adds up to thousands lost annually. Master shipping and you'll consistently beat competitors who don't.
๐ Quick Reference: Shipping Impact
Carrier Comparison
Each carrier has strengths. Using the right one for each package is the key to savings.
๐ฎ USPS
*Priority Mail includes $100 insurance. First Class does not.
๐ค UPS
Often cheapest for 2-10 lb packages going long distances.
๐ฃ FedEx
FedEx Ground often competitive with UPS. SmartPost is slow but cheap.
Pirate Ship: The Reseller's Secret Weapon
Pirate Ship offers commercial rates to everyone โ no monthly fees, no minimums. You get the same rates big businesses pay.
- Cubic pricing: Ships by size, not weight. Game-changer for dense items.
- Simple Rates: Pre-negotiated UPS rates that beat retail by 50%+
- Free: No subscription, no markup. They make money from carriers.
- Compare instantly: Shows all carrier options side-by-side
๐ก Pro Tip: Always check Pirate Ship even if you have eBay/Poshmark labels. Platform labels aren't always cheapest, especially for heavy items.
Flat Rate vs. Calculated Shipping
When Flat Rate Wins
| Box Size | USPS Cost | Best For |
|---|---|---|
| Small Flat Rate | ~$10 | Heavy small items (coins, tools, jewelry) |
| Medium Flat Rate | ~$16 | 3-10 lb items, cross-country |
| Large Flat Rate | ~$22 | Heavy items going far, 10+ lbs |
| Padded Flat Rate | ~$10 | Books, games, small electronics |
| Regional Rate A | ~$9-12 | Local/regional heavy shipments |
| Regional Rate B | ~$10-15 | Larger regional shipments |
When Calculated Wins
- Light items: Under 1 lb almost always ships cheaper First Class
- Nearby shipments: Zone 1-3 calculated beats flat rate
- Large but light: Pillows, stuffed animals, lightweight clothing
- Ground shipping: UPS/FedEx Ground often beats Priority for 2-5 lbs
โน๏ธ The Flat Rate Rule: Flat rate favors HEAVY items going FAR. If it's light or local, calculated usually wins. When in doubt, check both.
Dimensional Weight (DIM Weight)
Carriers charge by actual weight OR dimensional weight โ whichever is higher. This catches resellers off guard.
How DIM Weight Works
Formula: (L ร W ร H) รท 139 = DIM weight (for UPS/FedEx)
Example: A 12" ร 12" ร 12" box:
- DIM weight: 1,728 รท 139 = 12.4 lbs
- If actual weight is 3 lbs, you're charged for 12.4 lbs
- That's 4x the cost you expected
โ ๏ธ DIM Weight Trap: Large boxes with light items get destroyed by DIM pricing. Use the smallest box possible. A few extra minutes packing saves dollars.
Avoiding DIM Weight
- Use right-sized boxes. Don't ship a phone in a shoebox.
- Cut down boxes. Score and fold to reduce height.
- Use poly mailers. No box = no DIM weight concerns.
- Consider USPS. First Class and Priority don't use DIM weight under certain sizes.
- Cubic pricing. Pirate Ship's cubic rates ignore DIM weight entirely.
Packaging Best Practices
The 3-Foot Drop Test
Pack every item as if it will be dropped from 3 feet onto concrete. Because it will be. Multiple times.
๐ Packaging Checklist
Packaging by Item Type
| Item Type | Packaging Method | Common Mistakes |
|---|---|---|
| Clothing | Poly mailer, tissue paper | Using boxes (wastes money) |
| Shoes | Box in poly mailer or box | Shipping in just shoebox |
| Electronics | Original box + outer box + padding | Insufficient padding |
| Glass/Ceramics | Double-box, wrap individually | Items touching each other |
| Books | Cardboard + poly mailer | No corner protection |
| Vinyl Records | Record mailer + stiffeners | Regular boxes (warping) |
| Jewelry | Small box + bubble wrap | Loose in envelope |
| Posters/Art | Tube or flat mailer with cardboard | Folding what shouldn't fold |
Insurance Decisions
When to Insure
- Always: Items over $100 in value
- Consider: Items $50-100 if fragile
- Skip: Items under $50 (self-insure by factoring into margins)
Carrier Insurance vs. Third-Party
| Provider | Cost | Claim Process | Best For |
|---|---|---|---|
| USPS | $100 free w/ Priority | Slow (weeks) | Included coverage |
| UPS/FedEx | $100 included | Moderate | Standard shipments |
| Shipsurance | ~$1 per $100 | Fast (days) | High-value items |
| U-PIC | ~$0.55 per $100 | Fast | Volume shippers |
๐ก Pro Tip: Third-party insurance through Pirate Ship is often cheaper and pays faster than carrier insurance. Worth it for items over $200.
Shipping Supplies Strategy
Free Supplies
- USPS Priority boxes: Free at post office or order online
- UPS/FedEx supplies: Free for account holders (limited)
- Retailer boxes: Ask stores for empty boxes (liquor stores, Costco)
Worth Buying
- Poly mailers: $0.10-0.25 each, saves on shipping vs. boxes
- Bubble mailers: $0.20-0.40 each for small fragile items
- Packing tape: Buy in bulk, never run out
- Thermal labels: Cheaper than ink, more professional
- Scale: $20-30 investment saves hundreds in overweight fees
โ ๏ธ Don't: Use Priority Mail boxes for non-Priority shipments. USPS can charge you the difference โ and they do check.
Cost-Saving Strategies
The 5-Point Savings System
- Compare every time. 30 seconds on Pirate Ship can save $5+.
- Right-size packaging. Smaller box = less DIM weight = cheaper shipping.
- Schedule pickups. Free from USPS, UPS. Saves gas and time.
- Buy supplies in bulk. Poly mailers at $0.10 vs. $1 at office stores.
- Know your zones. Items going nearby should never use flat rate.
Hidden Savings
- Cubic pricing: Dense items ship cheap regardless of weight
- Regional Rate boxes: Between flat rate and calculated โ often cheapest
- Media Mail: $3-4 for books, DVDs, video games (slow but cheap)
- First Class International: Small items under 4 oz ship cheap globally
- Combined shipping: Encourage buyers to purchase multiple items
Platform-Specific Tips
eBay
- eBay labels often competitive but not always โ check Pirate Ship
- Global Shipping Program handles international (takes a cut but no hassle)
- Offer calculated shipping to avoid losing money on distant buyers
Poshmark
- Prepaid label included โ $7.67 up to 5 lbs
- Great deal for heavy items, bad for light items
- Bundle to maximize the flat rate benefit
Mercari
- Offers both prepaid labels and ship-on-your-own
- Compare their label cost to Pirate Ship
- Free shipping listings sell faster but cut your margin
Handling Problems
Lost Packages
- Wait 7 days past estimated delivery
- Check tracking for "delivered" (may be misdelivered)
- File carrier claim with tracking info
- Communicate with buyer โ they'll file too
- Refund or replace based on your policy and insurance
Damaged Items
- Have buyer photograph damage immediately
- Keep all packaging materials
- File insurance claim with photos
- Refund buyer (don't wait for claim resolution)
โน๏ธ Documentation: Photograph valuable items before shipping. This proves condition and supports insurance claims.
Shipping Workflow
๐ Daily Shipping Routine
Related Resources
- Shipping Calculator โ Compare carrier rates instantly
- Box Size Calculator โ Find the right box dimensions
- Military Shipping Guide โ APO/FPO/DPO specifics
- Returns Guide โ Handle shipping returns professionally
- Photography Guide โ Document items before shipping