online stores losing on shipping?
- Thread starter PIPSTER
- Start date
shifty51008
12-5 Chiefs record
Companies like fosters and smith and such get huge discounts because of how much they ship.
ReefPharmer
Active member
I work for a large national chain and we ship about 50 packages per day out of our location. I see the prices to Fedex boxes and it's at least 50% discount from what I would get as a regular walk-in person and often times it's more than 50% discounted.
You can ask how they can absorb shipping into an order that's 175$ and free shipping. I would assume that the livestock actually costs closer to 60-70$ so they still make money.
You can ask how they can absorb shipping into an order that's 175$ and free shipping. I would assume that the livestock actually costs closer to 60-70$ so they still make money.
Pricing with shipping companies is driven by the volume a company ships. If a company ships 200 packages per month, their shipping costs will be much higher than a company that ships 2,000 a month. I am in logistics, I live and breath freight and pricing. Volume drives pricing.
PIPSTER
New member
Thanks guys, that makes more sense...except if I ever want to sell something on the seller's forum. :sad2:
Guess the buyer will have to pay up.
So, not that you should give away the industry, but markups from whole sale are typically 200-300%?
Like a $75 torch is $30 wholesale?
Guess the buyer will have to pay up.
So, not that you should give away the industry, but markups from whole sale are typically 200-300%?
Like a $75 torch is $30 wholesale?
Dmorty217
Saltwater Addict
You need a account to get a discount on shipping thru fedex or UPS. Up to 50lbs the shipping rate for overnight packages is less than 50$
toothybugs
New member
My company gets RIDICULOUS cuts because we ship so much. 50lb package overnighted from Chicago to LA is like 12 bucks. If in any way we can justify a shipment as "in the name of customer service" we ship for employees on the company dime because we want to keep our shipping volume high.
Dmorty217
Saltwater Addict
75$ torch is closer to 10$ wholesale
I've also discovered places like "The --- Store" aren't actually affiliated with the sign hanging on their door. I measured my package and weighed it and used the online calculator to estimate shipping. When I get to the store, it's higher by like $9. I tell them I used the calculator and they said it's always off. I told them they should fix it and that is when they tell me they're not actually the company but s franchise and I need to ship from the main hub in my area to get the online prices.
I could see wholesale on frags being that low. My one LFS sells 3-5" hammer corals for $75 while one 45 min south sells them for $35
I could see wholesale on frags being that low. My one LFS sells 3-5" hammer corals for $75 while one 45 min south sells them for $35
Agreed. Though before folks go on getting their outrage up, consider the level of losses and unsalables.
A1t2o
New member
^This, a buddy of mine owns a LFS and I know what he pays for this stuff, but I also see the box come in and all the dead loss that he still has to pay shipping on. When he pays 175 for overnighting corals from Australia and you lose 1/3rd of them on a bad batch, that shipping cost per coral just went up. and that's on shipping to the store only.
PIPSTER
New member
I have zero problems with someone making a profit, a buyer only buys if it's worth that much to them. People are paying for $150,000 pills.
I understand the risks involved with stocking up a retail outfit, and the net profit is probably more down-to-earth.
My hat's off to anyone who's succeeding.
