Tracked Postage on Low Value Items - Experiment

For various reasons I've decided eBay will be the guinea pig for trialling tracked postage only, starting from tomorrow (my shop has been closed over a week, so this will be interesting) - I'm posting about it here because a lot of my items are low value ($4-$7), and just thought there might be some sellers with similar business structures who could be interested in the end results (whether it be a success or failure etc), in which case I'd follow up in a few weeks, and again in a few months. 

 

If there's any specific info or stats someone would be interested in knowing, let me know so I can keep track of it. 

 

A couple of things to note, in case it puts any subsequent info I post in the right perspective, while I do get a lot of single-item purchases, the core of my business is multi-item purchases from repeat customers; which is something I expect would make the higher postage cost a little easier to take (postage is going from a bit over $3 flat rate to a bit over $6 flat rate). 

 

I've also set up a discount for orders of $50+, so this may have an effect on some of the changes in buying patterns (if I still get any sales, anyway Smiley LOL ).

 

Lastly, some of my buyers are quite aware of the other platforms I sell through, and I won't be making any changes on those as yet, so this may result in decreases on eBay, but increases elsewhere (if I detect a significant pattern of that, I'll note it here when I update for anyone interested in that kind of stat). 

 

If no one is interested, all good, and we can carry on as though you din't see nuthin' here. Smiley Very Happy

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Tracked Postage on Low Value Items - Experiment

I'll be awaiting the results of your experiment as an onlooker.

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Tracked Postage on Low Value Items - Experiment

lyndal1838
Honored Contributor

I am with the Countess....I will be watching with interest.

At least everyone will be reassured that it will be a well run experiment dealing in facts not the usual hysterical rhetoric that is so often seen on these boards.

Go Digi!

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Tracked Postage on Low Value Items - Experiment

I have to admit I did a double take when I saw digital*ghost as the OP -

 

my immediate thought was what in the he!! could any most of us know that digi doesn't Smiley LOL

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Tracked Postage on Low Value Items - Experiment

Thanks for being the guinea pig, will watch out for your report back.

Appreciate your time and giving us your results.

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Tracked Postage on Low Value Items - Experiment

gec2002
Community Member

Just curious, how are you going to evaluated the results?  Are you also selling some items priced normally (no tracking) on eBay to use for comparison (control), otherwise how will account for the general variability in ebay sales. 

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Tracked Postage on Low Value Items - Experiment

I don't have much variability in my sales on ebay, except for the boom that happened last year, my sales figures have been pretty consistent for a few years, which is one of the reasons ebay is the testing ground - I've been established here the longest, and pricing is a significant factor in most eBay shopper's buying decisions, so significant changes will be pretty easy for me to see. All of my items have been updated to tracked shipping only - having some untracked at lower cost I suspect would just cause confusion, especially since the majority of sales involve multiple items so people would probably choose a mix of $3 and $6 post items and pay $6 post anyway.

 

The main test is to see whether sales will be drastically affected, to a point where having postage that is up to slightly more than twice that of some of my item prices, is not sustainable - that part will mostly be relevant to me, as what is and isn't sustainable will vary from business to business, and some businesses can transition much more easily (eg if a business has low value items and most customers are one-off and only purchase one item, this kind of change would affect them very differently, so I intend for this to hopefully just be able to offer some general insight into the effect of switching basically overnight, with some short and longer term insight.

 

My prediction is that sales of single items will slow quite a bit, but sales of multiple items won't slow as much, however I'll be keeping it in place for at least 3 months, because I expect a lot of people will immediately baulk at the initial change and look elsewhere, but I also have confidence in the fact that I do have some niche products and this will help me over that initial resistance. 

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Tracked Postage on Low Value Items - Experiment

Just my inner statistician bubbling to the surface. Can't resist a good randomized experiment topped off by a quick student t-test. Just be careful adding a confounding variable (multi-sales) may cause a spurious correlation.

 

Just kidding go for it girl.

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Tracked Postage on Low Value Items - Experiment

I think during last year's peak boom was probably the best time to have tested it, but if I'm being honest I'm kind of hoping this will make my workload a bit more manageable, and maybe even my website a bit more attractive Smiley LOL (I have untracked options there, but it's set up so that once the order reaches a set level, only tracked options become available). This does mean for the stat nerds (of which I count myself as one, albeit a dabbling one, so it's a term of endearment Smiley Very Happy ) there's some bias in my experiment.

 

i.e. eBay is the biggest source of stress for me ATM, so if it reduces certain types of orders, and especially reduces post-sale handholding that so often seems to be required for those orders, I'm personally going to consider it a success, even if I take a hit financially Smiley Embarassed - at the same time, however, there are a lot of similar businesses that charge $9+ for parcel shipping, with items starting from less than $1, who do really well (one of them - not on ebay - was doing so much business last year their handling time shot up to 2 weeks), so only time will tell how this will go down. 

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Tracked Postage on Low Value Items - Experiment

Day 2, or approximately 17 hours after re-opening with tracked-only postage options...

 

 

Just kidding, this isn't an real kind of update - I just wanted to say it was kinda weird to only have one package being posted going untracked when normally more than half are (the one untracked was placed via the website, all other orders off-eBay selected express or paid for the upgrade voluntarily). For some reason I felt a little bit like Oprah this afternoon, despite it not being through any benevolence of mine lol.

 

"You get a tracking number, you get a tracking number, everyone gets a tracking number!" 

 

 

Kermit Kermitthefrog GIF - Kermit Kermitthefrog Muppet GIFs

 

 

 

Which is just to say, sales did start trickling in despite the jump in cost, none have been for only one item as yet, per se, though there've been a few that are just  2x 1 product. So yeah. 

 

 

 

 

Spoiler
Lame - I know, I know... bad joke 

 

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