Because it's getting near the end of the year, I started getting preliminary data together for end of year tax planning and I got some interesting stuff.
I am a small vendor processing only about 1000 - 1200 orders per year. Here is what I found.
The cost (minus postage or carrier fees) of handling an order is close to $3.00. That could vary some depending on how you set up and could be lower if you have enough volume or have high value orders.
Here are things that cost.
Packaging
postage labels and printing
invoice and/or packing list printing
Computer
Website/store
Postage printing website
Credit Card handling (I use PayPal)
PayPal/Credit Card Fees
In addition to the costs above there are some interesting other costs
When you order from say China or Taiwan, the individual items might or might not be labeled "made in XXXX" when you sell them they have to be so labeled. Your labor.
You'll probably also what your business name on the items you sell so you'll be labeling each individual package (kits for instance). Your labor
Spare parts like tubes and transmissions will probably come in bulk packaging and you'll need to sort and repackage. Your labor
Some other interesting things that you will need to consider.
The customer who calls or emails and says "a little while ago I bought some of your XYZ kits and I'm just getting around to doing them now and
the first one I opened has a missing refill spring - can you send me a replacement".... So you send a replacement then check and find that he bought the kits over a year ago.
The "customer" who calls and emails and says "I got some of your kits and there are a few missing parts"...and gives you a list and says can I buy these from you, if you have the parts you either send them free or charge next to nothing....you find that this person has never even been a customer.
The customer who buys 1 $1.00 item from your store, pays by paypal so you only actually get $.66 and then complains that your shipping charge is outrageous.
The customer who "forgets" something on almost every order and emails asking if you can add it .... he almost always remembers just after you finished packing his order
The customer who emails or calls with a complaint about a kit saying they bought it from you and it's a product you have never even seen much less carry in your store....the customer than says "well it isn't marked but I was sure I got it from you". That isn't too bad but then there is the one every now and then who insists he did get it from you and that you are just trying to duck your responsibility.
The customer who calls checking on an order that shipped yesterday and you emailed them the tracking number.
The customer who calls asking where an order is that you shipped a month ago and the post office says was delivered 3 weeks ago.
Don't take this wrong, I am not complaining (such things keep life interesting and I enjoy dealing with people, sometimes I can make them happy.) but if those kinds of things annoy you or make you angry --- don't become a small vendor selling in this venue.
I am a small vendor processing only about 1000 - 1200 orders per year. Here is what I found.
The cost (minus postage or carrier fees) of handling an order is close to $3.00. That could vary some depending on how you set up and could be lower if you have enough volume or have high value orders.
Here are things that cost.
Packaging
postage labels and printing
invoice and/or packing list printing
Computer
Website/store
Postage printing website
Credit Card handling (I use PayPal)
PayPal/Credit Card Fees
In addition to the costs above there are some interesting other costs
When you order from say China or Taiwan, the individual items might or might not be labeled "made in XXXX" when you sell them they have to be so labeled. Your labor.
You'll probably also what your business name on the items you sell so you'll be labeling each individual package (kits for instance). Your labor
Spare parts like tubes and transmissions will probably come in bulk packaging and you'll need to sort and repackage. Your labor
Some other interesting things that you will need to consider.
The customer who calls or emails and says "a little while ago I bought some of your XYZ kits and I'm just getting around to doing them now and
the first one I opened has a missing refill spring - can you send me a replacement".... So you send a replacement then check and find that he bought the kits over a year ago.
The "customer" who calls and emails and says "I got some of your kits and there are a few missing parts"...and gives you a list and says can I buy these from you, if you have the parts you either send them free or charge next to nothing....you find that this person has never even been a customer.
The customer who buys 1 $1.00 item from your store, pays by paypal so you only actually get $.66 and then complains that your shipping charge is outrageous.
The customer who "forgets" something on almost every order and emails asking if you can add it .... he almost always remembers just after you finished packing his order
The customer who emails or calls with a complaint about a kit saying they bought it from you and it's a product you have never even seen much less carry in your store....the customer than says "well it isn't marked but I was sure I got it from you". That isn't too bad but then there is the one every now and then who insists he did get it from you and that you are just trying to duck your responsibility.
The customer who calls checking on an order that shipped yesterday and you emailed them the tracking number.
The customer who calls asking where an order is that you shipped a month ago and the post office says was delivered 3 weeks ago.
Don't take this wrong, I am not complaining (such things keep life interesting and I enjoy dealing with people, sometimes I can make them happy.) but if those kinds of things annoy you or make you angry --- don't become a small vendor selling in this venue.