Are sellers operating at a loss on postage?

[ekrabappel]

I want to sell a 1kg item that I know will fit in a 3kg small satchel. Postage for a small satchel is $8.95 plus 15c for the satchel (if I buy 100). So that makes $9.10 (not counting my time and fuel etc). I see the same items for sale on E-bay from Aus that have $10 postage. Assuming an E-bay slice of the postage at 11% = $1.10. Take that away from the postage = $8.90 compared to $9.10 equates to a 25c loss on postage alone.  Is there another way the sellers are getting cheaper postage rates?

Ta

[misty_blue_treasures]

You can get cheaper postage if you go through MyPost and reach a certain number of lodgements.

Or they may just be making their sale price higher to cover the postage, or just happy with a reduction in profit on the sale. Everyone works differently.

[curraone]

Will your item fit in the smallest satchel (previously known as 500g)?   Or the A1 box?   They both have a 5kg limit now.

[ekrabappel]

Are you talking about the small flat rate satchel (25mm x 355mm)? If so, yes. I cannot lcate any smaller satchels on the aus post site.

[ekrabappel]

That could be it. I've seen things like buying postage through EBay but don't know if that works out any cheaper. 

Also love the way the EBay postage calculator doesn't factor in the added cost of FV on postage.

[curraone]

Prepaid Parcel Post satchels offer you a convenient way to send parcels anywhere within Australia. Our Parcel Post delivery service will ensure your parcels are delivered in 2 or more business days within Australia.

Parcel Post Small satchels are for items weighing no more than 5kg.

Dimensions: 355 x 220mm

[paper-jack]

If you buy online direct from Australia Post you can get 10 small postage prepaid satchels for $89.70 and they will send these to you free postage (which makes sense). Or you can buy one of these packs from your local post office. From my point of view online is better as I can pay with paypal.

[davewil1964]

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@misty_blue_treasures wrote:
You can get cheaper postage if you go through MyPost and reach a certain number of lodgements.

Or they may just be making their sale price higher to cover the postage, or just happy with a reduction in profit on the sale. Everyone works differently.

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You only need 8 parcels per rolling 8 weeks to get discounts for non-rural destinations through MyPost Business.

OP - That is a 45c discount over standard for a small satchel. Better than eBay labels. And free to register.

[eol-products]

Many medium to large sellers will get a 30-40% discount off listed rates for most areas. I also list items with a postage amount below what it will cost me on items that may be priced around $10 as it looks better than charging $9 postage and $8 for the item.

[jellybirddesigns]

Actually, I don't use Aus Post satchels.

I buy plain white satchels in a certain size from another Ebay supplier which work out around 18c each.

I have an Aus Post business account which has 5 levels/bands of postage discounts. I'm on Band 3 at the moment,

When I post, because it's not an Aus Post satchel, I get an average of $1.43 discount for non-rural areas.

If I was on Band 5, I would get $1.79 discount on the parcel rate, so a parcel would only cost $7.16 + 18c for the satchel.