Shipping options for eCommerce store

brynne

I'm after a bit of advice on postal options for a new ecommerce business. I'm selling a variety of items, which vary in weight and value from 20g and €5 or less, to 800g and €60. These things are readily available from retailers in the UK, but - due to disproportionate postage costs - most people settle for inferior quality (and often higher cost) items that they can buy locally - and when I say 'locally', that's only if they live in a city. The appeal and potential success of my online shop therefore hinges on my delivery rates being reasonable enough to make it worth waiting a day or two for delivery, rather than making a 100km+ round trip in the car to even know if [well-known high street retailer] has what they need (and they often don't).

I'm thinking that, for most of the smaller items, An Post's regular post will suffice. There's nothing cheaper, and it's pretty reliable. As long as my customers don't insist on tracking and insurance for items worth less than €5, I don't think I'll have an issue. However, it's the larger, higher value, bulkier packages (multiple or awkward-shaped items) where An Post becomes expensive and, there, I'm looking maybe using a parcel service like SnapParcel, who appear to offer a good flat rate for nationwide door-to-door deliveries ...

Once the site goes live, it's naturally going to take a bit of time before I establish a regular turnover. Are franking machines expensive to buy/run, or would I be better buying pre-paid labels to start off with? Does anyone have any particular recommendations for cost-effective door-to-door parcel deliveries?

Thanks in advance.

spyderski

Be very careful before buying a franking machine, unless you are a high volume user and don't mind paying dearly for the convenience. They are a complete scam. You can only buy the ink directly from the agent, which they charge an exorbitant price for, even though they're basically a modified HP printer cartridge. The cartridge has an expiry date of x months, so even if there's loads of ink left, they stop working. You are also forced to take out a mandatory service agreement, which the suppliers say is a requirement by An Post, costing another few hundred a year.
I got badly stung a few years ago on a franking machine, and I'm amazed there's not more stories like mine. I had to pay up the full service contract in the end to cancel the account, and then the cheeky bastards had the gall to demand the machine back, despite the fact I'd paid over €1,500 for it. I put a sledgehammer through it and told them they could collect it from ouside the office whenever they wanted it. Never heard from them again.

PARlance

spyderski wrote: »

I put a sledgehammer through it and told them they could collect it from ouside the office whenever they wanted it. Never heard from them again.

Franking machine got well and truly franked. Not that I condone such behaviour (but fair play).

brynne

Thanks for the warning, spyderski. I'll knock that idea on the head for now.

MOH

I tried something similar a while ago. I'd second skipping the franking machine. And sadly there's no real bulk options via An Post.

Postage is the killer for low-cost items. Lowest packet cost is €2.85, which is a fair chunk extra for the customer if the item is only 4 quid.
If you're selling complementary products and you can bundle a few of them together as a pack (or if they're single use and people would buy multiples at a time) that offsets that a bit.

For the higher priced stuff I'd definitely courier it, you're looking at €7.05 untracked for 800g with An Post, you could probably get €8 or less than that with a courier if you commit to a certain volume a month and pre-pay (I can't open the Snap Parcel site for some reason).

brynne

MOH wrote: »

IPostage is the killer for low-cost items. Lowest packet cost is €2.85, which is a fair chunk extra for the customer if the item is only 4 quid.
If you're selling complementary products and you can bundle a few of them together as a pack (or if they're single use and people would buy multiples at a time) that offsets that a bit.

Thanks, MOH. Yes, postage is always a killer. I must say that, having lived in the UK and France, I find An Post very backward in terms of the services it offers. I can't believe, in this day and age, you can't buy postage labels online. (In France, La Poste even has a system for sending secure registered letters/documents direct from your computer, and having a hard copy delivered and signed for via the normal mail. Great when you have to send a recorded delivery letter to cancel contracts etc. But that's by the by.)

Re postage costs here, I'm banking on the the combined convenience of not having to drive into a city, my potential customers needing a combination of small items at any one time, and not wanting to pay international postage for more specialist items that aren't expensive, but are difficult to find in Ireland. But, yes, there are some great deals to be had from courier companies, especially if I'm shipping more than 20 or so packages per week. Here's hoping!

ColmEm

You mention SnapParcel OP but I've found SnapParcel to be dreadful. Absolutely dreadful. I've stopped using them because of poor service and stupidly went back to them on a couple of occasions. As it happens I went back to them this week. I keep thinking that surely they will have improved. So Tuesday I put in the details for a parcel and tried paying by credit card but got a security message on their website (regarding their site, not my card) and it wouldn't process the card. Not a good start. I went ahead and used PayPal.

I booked the service last Tuesday for collection Wednesday. I got the confirmation email that it would be collected on Wednesday. The courier reported I wasn't here on the Wednesday (I was, same thing has happened in the past). They collected the parcel on the Thursday but didn't scan it. The tracking system updated later in the day and claimed that I again wasn't here and that they didn't pick it up! Try explaining that to your unhappy customer. Today (Friday) they reported it picked up and they will, hopefully, deliver it on Monday. But I wouldn't bet on it.
Booked Tuesday, and they will hopefully deliver on Monday. That's SnapParcel.

I'm really not sure if the courier company pays the same attention to SnapParcel orders as others, so be warned.


Another frustrating problem I found with SnapParcel:

You have to book before 4pm for collection the next day, which is fair enough. Their courier usually calls by here at about lunch time. I've had customers buy overnight and given I had already booked the courier for a previous customer purchase on the previous day and given the fact the courier was calling here anyway, I contacted SnapParcel in the morning and asked if they could process a package early for me (in the next few hours, before lunch). I could then hand it to the driver who is calling here anyway. Save the driver time, save me time, the customer gets his parcel earlier. NOPE. No chance. Not with SnapParcel.


I contacted them today about their latest failure. No response. It's all happened every time I've given them a go. Absolutely no chance I will ever use them again.



Have a look at ParcelConnect when you're starting off. If you have a dropoff station close by you can send parcels up to 2kg (or more, they don't check in my experience) for €6.99 (€8.60 after VAT).

brynne

ColmEm wrote: »

You mention SnapParcel OP but I've found SnapParcel to be dreadful. Absolutely dreadful.... I contacted SnapParcel in the morning and asked if they could process a package early for me (in the next few hours, before lunch). I could then hand it to the driver who is calling here anyway. Save the driver time, save me time, the customer gets his parcel earlier. NOPE. No chance. Not with SnapParcel.

Thanks for this. It's very tempting for me, as a start-up, to go for the cheapest option, but I can see that this might be a risk.

It must be a common problem. There is a genuine gap in [my particular] market, but I need to price my products/delivery just right in order to plug it. My existing customers are based within a 50km radius, but I'm aiming for a national market. I recognise that quickly identifying a formula for cost-effective, reliable delivery will be sink or swim.

_Brian

MOH wrote: »

I tried something similar a while ago. I'd second skipping the franking machine. And sadly there's no real bulk options via An Post.

Postage is the killer for low-cost items. Lowest packet cost is €2.85, which is a fair chunk extra for the customer if the item is only 4 quid.
If you're selling complementary products and you can bundle a few of them together as a pack (or if they're single use and people would buy multiples at a time) that offsets that a bit.

For the higher priced stuff I'd definitely courier it, you're looking at €7.05 untracked for 800g with An Post, you could probably get €8 or less than that with a courier if you commit to a certain volume a month and pre-pay (I can't open the Snap Parcel site for some reason).

I use an Post parcel, 800g should be about €7.05 tacked with no commitment on quantity.

Jarren

How about approaching courier companies directly?

Fastway charge us for a sachet 3.50 +VAT, they are not strict on the sachet sizes at all.

Just a thought.

brynne

Jarren wrote: »

How about approaching courier companies directly?

Fastway charge us for a sachet 3.50 +VAT, they are not strict on the sachet sizes at all.

Just a thought.

That's a good price, but our experience with the local Fastway driver doesn't inspire confidence. They often have deliveries for us, but he always find some excuse why he can't deliver to the door - we always end up collecting our goods in a car park somewhere.

Even so, you make a valid point about approaching the courier companies direct. Though I expect that I might have to be doing a regular volume to get such a good discount.

Edited: I'm wondering whether it might be worth my taking a hit on the profits to subsidise the delivery charge in the short term, while I build the sales volume. Is that a realistic idea?

Delacent

If you are doing any half decent quantities, an post will give you a business rate.

I'm in a company that does decent volume of 200 parcels a week and we pay 3.75+vat for up to 20kg. An post collect too.

Even 40 parcels a week will get you a good price.

All tracked and signed for.

Details of the business managers are on their website. Just give them a call.

EIRE1922

What a joke SnapParcel are!

I booked on the 20th of October past and in good faith to have an item delivered from the U.K. to Ireland and not only did KDA/Titan Logistics/SnapParcel Courier not deliver the item (even broken), but they also broke it!

They never even bothered to make contact with me and indicate the status of the order for an entire week until I made contact. Two weeks on they also refuse to refund my money!

Apparently Paul Collins is clearly up to his old tricks again going by other reviews of their company! Paul even managed to mislead & deceive PayPal (after I opened a case against him as I paid through PayPal) by claiming the item was delivered (certainly not to my address), when it clearly was never delivered (only to their premises) and it was not even my signature when it was signed for! Best avoid such a shoddy service and company!!!! They are an utter disgrace & need to be held accountable and shut down!

tacofries

Talk to you AnPost regional manager if you want to change to them.

The offer small businesses €5ex vat tracked and signed to Ireland, €8.31 tracked and signed to UK for parcels up to 2kg.

They also do IBMS rates which are not tracked or signed but are very cheap. Works out at like €3.33 for 500g parcel to the US., even cheaper for the UK ..

protelos

What about shipstation?