Saturday, January 1, 2011

2011 Shipping, Will There Be Changes?

As you can guess, the USPS has increased pricing on their Priority Mail services beginning January 3, 2011. This happens almost every year, so it wasn't too much of a surprise, and the increases weren't too dramatic, but we do have some concern about one crucial issue, specific to shipping fabric.

It seems most small fabric retailers use the Priority Flat Rate packaging because it is the best value for our customers. When comparing parcel post, Fedex, and UPS, the cheapest, quickest method 9 times out of 10 has been to stick with good old USPS. The most widely used packaging within the flat rate option is the Flat Rate Envelope. Most of us try to squeeze in 7-9 yards of fabric so that our customers are only paying around $5.00 for shipping. We've seen a few get flagged on the customer's end for postage due because "someone" decides that the envelope is too full and they should charge extra, but when this happens 2 times out of 8000 shipments, its not too much cause for concern. We had heard of this issue sporadically happening throughout the country with other fabric shops, but again, not too much of a concern unless a specific postmaster became uncooperative. Unfortunately, this may be changing. When we went to the post office this past week, our very awesome postmaster informed us that USPS has sent a flyer around showing the flat rate envelopes packed with more than paper with a big "X" through them, basically telling postmasters they are not to accept packages that are "overfilled." The big problem here is subjectivity. Those of us shipping this way, and our customers, will be at the mercy of each individual post officer and their opinion as to what is acceptable or not. The other problem, our postmaster may deem it acceptable, but one on the customer's end will say it's not and either return the package or require more postage due. The hard and fast rule has always been that as long as you can close the flap to the proper position, you were good to go. Now, there seems there will be a great deal of unpredictability. Not good for us, not good for our customers. You'd think they would be happy to have the business, but with ending 2010 with an over $8 billion loss, they are probably going to try and grab every cent they can. So, what to do? We continue to research other shipping methods and carriers, but in all honesty USPS is still the cheapest way for our customers. If they do not allow any depth to their envelopes, this will most likely not continue to hold true, and it would require higher shipping charges across the industry(not just with us). So, is there any good news? There is word that USPS will be offering a flat rate legal size envelope for the same price as a letter size. If they don't get ridiculously stringent with their criteria and allow a little bit of depth to the package, we may be able to change the folding configuration to still fit a decent amount of fabric and use the larger envelope. Another good thing is that because of our volume, if we had to switch carriers, we would at least receive some decent discounts that we would be able to pass along to our customers.

What can you expect from Quilt Fabric Closeouts? For the time being, we will continue to use the flat rate envelopes but we will HIGHLY recommend keeping an order to 7 yards for a $4.95 shipping rate. Beyond that we suspect we will see a high increase in these packages being flagged, requiring customers to pay more postage to receive their package. We will also continue to send packages as inexpensively as possible. For those within our shipping region we often weigh the package to get a better rate and pass this savings along to our customers. It seems that USPS will be offering some new regional offerings as well. We will also continue to pass along information as we receive and experience it, and make changes as necessary to provide that greatest value for your shipping cost dollars.

What can you do? The best way to maximize your shipping is to fill your package to capacity. We often see orders for 5 or 6 yards, which requires the same shipping charge as an order for 7 yards (Shipping cost: 5 yds - 99 cents/yd, 7 yds - .71 cents/yd). If we receive an order for 10 yards, we often have to bump up to a medium flat rate box, which holds up to 20 yards (shipping cost: 10 yds - $1.07/yd, 20 yds - .53 cents/yd). As you can see, if you are able, order the maximum amount allowed within your preferred package/cost bracket to get more for your money. You may also consider combining orders with a friend or guild member. If you each only want 3 yards of fabric, it will be much cheaper for you to split a $4.95 charge than to each pay this individually. If it saves you money, we definitely don't mind at all!

If you would like to read up on the new rates and offerings from USPS in 2011,
http://www.usps.com/communications/newsroom/2010/pr10_103.htm

We want to wish everyone a happy, healthy new year and we look forward to living the journey with you!

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