I'm looking to sell a 'widget' online so have been looking over all the costs to see if it is viable or not. The one I'm getting stuck on is shipping.
I must not be in on the secret because when I look at DHL, Startrack, UPS and so on the online quotes for my <100 gram tiny package start at around AU$80 to get from Australia to the UK. At the same time I see cheap <$20 products on ebay out of china with free shipping anywhere in the world, clearly they are building the shipping costs in to the sale price but then how much profit does that leave them, not much?
Also lots of products on tindie.com have a US$5 shipping anywhere (United States Postal), but don't the sellers do all the shipping themselves? I didn't think Tindie did distribution.
Do I need to register as company, or provide guaranteed volumes to get decent rates? The target RRP for my widget is AU$40 so It feels like a bit of a kick in the teeth to the customer if they have to pay double that in shipping.
The other option is change the product form-factor to Christmas card
and I'm guessing that's how a lot of PCBA kits or board only products are done.
Mine is not far off that, will be 20x10mm with SMD parts only so we're talking no more then 3.6mm height, Given that it might survive transit without any ridged packaging, or perhaps a cut cardboard book.. Anyway I digress.
The cheapest Australia Post offering is untracked 8 business days air for AU$20 for 0.1kg so that's a little more in the ball park, so then I would just risk non-delivery and things getting lost and if so hope that only a small minority of people will just says they never received and ask for a second.
If anyone knows how this all works I would be grateful to learn. It's a pretty Australia specific question in terms of cost but any general advice would be welcome. Perhaps the answer to the higher costs is simply geography and their is no way around that, Unless I ship lots of units to the US/UK for distribution in advance.
[also if their is a more appropriate group on the forum to post this I'll move it]