Also impressed by your improvements. Keep up the good work. Another point to consider is the cost you charge for international shipping. You may not be aware that stamps can no longer be included in first class international letter mail. While some sellers continue to do this, it has been against USPS regulations for more than two years. Anything of value now needs to be shipped as a package which is quite expensive. I use a service provided by Shipping Easy which is less expensive than the USPS. You might want to look into this option. Other sellers have decided to no longer sell internationally do to increased shipping costs and other regulations many countries are now placing on sellers located outside their country.
John, Yes there are some countries that want you to collect the VAT for them so they have less to do. International sales are a huge quagmire right now.
George, those stamps aren't "Graded". Those stamps are wishful thinking, and any claim of centering should receive at the very least, a sanity check. I have called out many (including you-know-who) that claims of XF or higher on a stamp that clearly isn't is at best ignorance, and at worst, a real intent to swindle. Even VF is often claimed on stamps that aren't even close. And it's dead obvious. I don't think its unreasonable to claim a stamp is XF or higher, so long as the seller justifies this with something. (I'm even ok if it's at least got an EZGrader approximation, so long as that's not claimed as a cert either.
And damaged stamps are UNGRADABLE. Don't care how good the centering is, if the stamp isn't sound, it can't be graded. Which is something to be aware of with certs. If a stamp image on the cert looks great, but there's no grade on it (save for APEX, which don't do grading), then you should be asking "Why isn't this graded"? Especially PSE and PF certs, which do not charge an excess for grading a stamp at time of cert...
Educating one self about grading, if that is important to you, and what you are buying is important. Same as being able to correctly identify that the stamp you have in hand can be graded... hmmm maybe another article I should write.
I have a headache....I've sold and shipped around a half dozen international orders using USPS International rate ($1.35?). What is point of not allowing this? Also, how in hell are you supposed to be aware of this? What are all of you doing about this?
It's required for CUSTOMS as most countries do collect some of their taxes via customs, VAT taxes and duties. Customs forms were ALWAYS suppose to be used on any items of value. (That's not new, what is newer is that you can no longer send via first class letter rate. Any items of value are suppose to be sent via first class international parcel or better.)
I stopped selling internationally as it's not worth the headaches, the extra fees, and too many smaller orders where I can no longer justify the cost of filling those orders because Hipstamp DOES NOT at this time does not allow us to have a minimum order requirement.
John, the point of it is taxes. Money, money, money, its always about the money. We are not allowed to make a penny without giving our overlords their cut. I deal with it with a never try, never fail philosophy and just don't sell overseas. I have recently decided to give Canada a try, but first problem and I'm out. Not worth it to try to sell scraps of paper that at the end of the day are only worth the value we assign to them. I have been working with a network of people overseas and we trade stamps back and forth to fill in our collections. We just ship first class and the post office can pound sand if they don't like it. Never more than an ounce at a time, never larger than a #10 envelope. Having said all that, I have noticed that the people here in the forums are pretty good at reporting the rules as they learn of them and are usually willing to offer advice.
There is another issue that most people who accept Paypal and ship internationally and the buyer for whatever reason claims not to have received the package. First class international letter rate is NOT trackable. The customs form number is the tacking number. If the buyer puts in a dispute the seller will be SOL without a tracking number and the only way to get the tracking number is to ship via First class international parcel or better. If customs has a reason to suspect a shipment, they are allowed to open the package and inspect it. How they handle it is by the laws of the country they are being shipped into NOT by US law.
Cripes! How many out there just quit selling internationally? So much for using Stanley Gibbons as my mainstay. If I was selling things for thousands of dollars I might understand, but to go through this kind of nonsense for a $2 sales is pure beaurocratic nonsense.....oops, I forgot I'm preaching to the choir. You'd think their would be some kind of de minimus....even the IRS uses one in different situations.
The issue of international shipping from the US is a topic that has been beaten to a pulp by several other threads in these forums. To answer your question of what Bentley and I do about it. We do nothing....we ship to US addresses only. When we started, we shipped worldwide. Quickly, very quickly, discovered that it simply wasn't worth the hassle. We had some nice customers in Australia, Canada, Great Britain, and a few in western Europe but just had to sadly give it up. Surely lost some business and potential business but just had no choice.
I too gave up shipping International. It just wasn't worth, to me, the hassle of worry about the envelopes arrival in good condition. And expecting someone to pay an extra $14 to $17 or more per order was just a bit more than I wanted to deal with. I too lost some super customers from Australia and Canada. Loved shipping to them, but then things happened and I gave it up.
I also gave up shipping Internationally because of the cost and the VAT problem. I have had a lot of good customers from Europe, Australia and Canada but I can not ship items that have only a few dollars or more as First class mail since it is against the law and as a 25 plus year member of APS I would end up loosing my membership. Not worth it.
Surprisingly some international buyers are willing to pay the high shipping costs. My highest charge is to ship to Italy which is $24.00 which includes tracking and insurance. I can ship to most other countries for $11.00 including Australia and Canada using Shipping Easy without tracking. I no longer ship to countries expecting me to collect VAT.
Do Sellers on eBay, Amazon or another Online Marketplace Have to Collect VAT?
Online marketplaces (OMP) such as eBay, Amazon, Etsy and others will be responsible for collecting the VAT from the buyer when the sale occurs on their website as long as the price is £135 or less. For sales that are over £135, the OMP will not collect the VAT and existing import rules will go into effect (seller pays at port of entry).
The list provided isn't exhaustive, rather the point about Online Marketplaces have the responsibility. So if the amount is under £135GBP ($166USD), it's Hipstamp's responsibility to pay the 20% VAT.
If you hold the sale amount below that threshold, you'll have no responsibility to this. Most who I see discussing this have an average sale of around $35.
Not suggesting otherwise, but as well, how on earth is this enforceable?
Scott I don't believe you are reading the reg's correctly. I read the "threshold" to be between $1 and approximately $180 USD. We have no ability to hold the sales price below any level and I don't see many buyers willing to pay required shipping on a 99 cent order. I read it that the Market Place is responsible for collecting it which I interpret as meaning the seller, not HipStamp.
Nope. That's exactly the point. The marketplace (as stated from the info above) "Online marketplaces such as eBay, Amazon, Etsy and others will be responsible for collecting the VAT from the BUYER when the sale occurs on their website as long as the price is £135 or less".
This isn't my interpretation. This is from stamps.com's website. Title of article is: Shipping from the U.S. to UK with 2021 VAT Rules.
Scott I respect your valuable input to these forums and have learned much from you, but in this case I'm not convinced your information is correct.
I have read the article you reference and it states that if you’re an online retailer shipping products from the U.S. to the United Kingdom (UK), you will need to change your fulfillment process starting January 1, 2021. It further states that on line retailers offering goods and services to UK buyers will be required to register their business with the HM Revenue and Customs (HMRC) to obtain a VAT number. That seems straight forward to me. No interpretation needed.
IF this only required the "MaketPlace" to collect these fees and didn't effect us "sellers" then why would it have a section titled .. Required actions to sell and ship products into the UK in 2021. We are the sellers and shippers, not HipStamp.
My solution to this was to stop selling to UK. I'm satisfied I made the right decision for me. Others can choose if they want to sell to the UK.
Because there are a lot more online sales outlets that don't go through market place portals. And the whole intent is to simplify for the "small fry". As I've said previously, small private sales like 99% of the stamp sellers on this site, are not the target of these new regulations. They know it's much easier to consolidate this where portals are concerned, and it's why eBay started to apply state sales taxes in their online sales. Same kind of requirements, hence why the specifically list "eBay, Amazon, Etsy" but those are intended as examples, not an exhaustive list. It's unenforceable otherwise. If I sell £237 of stamp sales in 12 months (we get the occasional buyer from UK, for example), the resource alone to track this or even administer it isn't worth it. Government management would require far more than the £47 pounds in tax this would generate, just in filing and management. It really isn't their intent. And they make the point of providing a "per shipment maximum" of £135 as the threshold. Sure, as a seller you can't control that, but there has to be a cut-off somewhere. And if your sale is less then that, then it's the portal that is responsible, not the individual seller.
Hi,I set up a store,same as yours,2 years ago & sold less the 5% over 3 months,now sell on auction & sales are a lot better,I think unless you have a few thousand to sell a store is no good.
Thanks for the feedback Michael. Tell me how you sell on auction....you mean on this site? I have pretty much bought mentally that this will be a slowly growing enterprise. Actually, sales have been a bit on the rise ( 4 this week so far). I'm fully retired, so I will just be patient. While I used to enjoy collecting, I now find identifying, then selling, fascinating....and WAY tedious! But, I have the time (unless I'm fishing). Also, I am now limiting posting for sale stamps with an asking price of at least $2. As I learn to buy better, I hope to raise this, and increase profit margin vs time spent. Lesser value stamps, I will eventually sort out and sell cheaply as packs or something. Hate to pitch them, and hope younger collectors can fill their albums. Hope you business keeps improving.
John you can choose to only list stamps with an asking price of a least $2.00, but doing so will greatly impact your sales potential. Most sellers provide a wide range of stamp values in their inventories. You have many more buyers looking to collect the more common stamps. If you look at the first 15 US stores listed on HipStamp which have the most exposure to anyone looking at stores, only 2 have a minimum stamp value of $1.00 or more. In fairness, the one with $1.00 ships for free which is reflected in the pricing. The other is $1.60 plus 50 cents for each additional. Personally this extra shipping charge would turn me off from searching this store. One has a minimum of 2 cents, but charges 10 cents extra to ship additional stamps. Another at 5 cents plus 5 cents. Several with 10 to 15 cent minimums with free shipping for additional stamps. For the most part, this last group also have the most total sales in this study.
Each seller must choose what works best for them, but personally I would be missing out on many sales without offering lower valued stamps. One $40 order received yesterday was for 100 stamps. Only one of those stamps was priced for more than $2.00. I estimate that it took me about 2 1/2 hours to process these stamps including selecting, listing and packaging. I'm satisfied with the enjoyment I received working with these stamps. After all, this is primarily a hobby, not a business for me.
Good luck John with your sales and stay active on the forums.
No matter what business you are in, there are 2 ways to make money: High margins on small quantities or small margins on huge quantities. You have to ask yourself, what is the effort versus return? It is VERY easy to lose money in this business. There is an old adage: How do you make a million dollars in Philately? Start with two million.
You have to take into account store fees (monthly cost), seller fees (% when sale occurs), PayPal fees (%/minimum cost they take on every transaction), cost of material (how much did you pay for them), cost to ship (envelopes, postage, toner, ink, labels, etc.), cost to ship (are you driving to get those materials, or send those orders off)? All this really does pile up. You can't expect to make much at the end of the day, selling majority 20c (I'd even say selling majority $20 or less) items. No matter how many you are selling.
So far, the sellers I see come and go here, are the ones that try to get 10,000+ items at less than $1 average for their entire listings. Do some quick math on that. If you have 10,000 stamps listed at $1, the MOST you can make is $10,000k. How many months would it take to sell all those out? (Hint, months if not years). And that's your maximum value. Now, deduct all the elements I just listed, you're taking off near $100 a year just in store fees (and the moment you list 10,001 you jump from $7 a month to $20 a month).
Then the cost of shipping (didn't mention dealer cards, (highest cost, but best protection) or glassines (some stuff is worth putting in a glassine as well), plus your postage... the "profit margins" on this material are in the 5% realm. That means, you need to sell tens of thousands to make a reasonable value out of this. (I would say, target $4k a month). Now, if you're average item value is 25c then you need to sell 16,000 stamps a month to hit $4k in sales. (That's an average of around $135 a day.) Now, if your profit margin is 5% in this example, you're making $200 for all that effort. (Call me crazy, but that's CRAZY). Have you really factored what your profit margin is? Take the same example, with a 40% margin (secret sauce: That's what I shoot for) then the same sales yields $,1600 for - wait for it - WAY less effort...
I know not everyone is setting out to make a descent "side hustle" out of this, and some do for the enjoyment, but wouldn't it be more enjoyable if you did actually have something to show for it? Do you consider your store a sidewalk Lemonade Stand, or are you actually trying to cover the gaps in pensions or put a kid through university? Your "goal" is what should guide you.
I agree that selling stamps with a 5% profit margin doesn't make any sense and a 40% margin is much more desirable, but who said anything about selling stamps at a 5% margin? My direct "cost" of a stamp that I would list for 25 cents is 5 cents. I calculate this to be an 80% margin which is twice as much as your desired 40%. The higher percentage margin is possible on lower priced stamps and I wouldn't expect to receive that much on a $25 stamp.
The only time I loose money on shipping is when I decide the order is beyond the risk level I'm willing to accept and I send the order with tracking and insurance. The rest of the time I'm making about 70 cents on my $1.80 charge. The other money goes to costs including selling fees, monthly store cost, PayPal fees, packing materials and postage at 65% of face. The monthly sales from my Lemonade Stand exceed the $1,600 projected in your example. While I may need to squeeze a few more lemons, I generate enough to help the grandkids with college. Given the fact that 53.8% of the stamps listed on HipStamp are less than $2, a lot of other sellers also enjoy squeezing lemons.
The point of my original post was to let John know that he could increase his sales with expanding the type of material he lists. If he prefers not to do so, that is his choice.
Yes, I get that people have different objectives. My suggestions are aimed at those in the range of trying to make a reasonable side income, to those who are looking to leap into this "full time". I have done both off and on over the years. When economies have tanked, and I've suddenly found myself in a position where I wasn't working, I have quickly and easily shifted to selling full time, and still making a decent living off it (at one point, living entirely off my stamp sales for 18 months). My stamp sales back then got me through my Masters degree, and then later paid for my Doctorate. These days, my stamp sales are building my house... I didn't get there by focusing on 25c to $2. Just want people to know it CAN be done. And if that's what you're aiming for, I'm happy to share how to make it work.
I have also done this off and on for 50 years now and I also realize that time IS money. I have learned from a number of people that told me that you do not make money by selling cheap items unless you are doing this to waste time and with the 20 or more years I might have left I want to enjoy life. I am just trying to get rid of all of the items I have accumulated on the side since neither of my sons have any interest (the vast majority of younger people do not care about stamps) and I do not want to put a burden on them to have to sell what I have. A person needs to figure out what they want out of life. I have made enough in those years to pay for my house. put my kids through school and have a nice IRA (which I am soon going to have start taking distributions from). What a person wants to do in this business is up to them, With the postal rates, HipStamp fees and the fees you have to pay PayPal a person can not sell stamps at 25 cents a piece to be able to make it worth while to even be selling. I used to sell that low in the '70's but now that price is $2.00. John mentioned selling a $40 order that took 21/2 hours to fulfill so he was (as he said what his cost was 20%) netted $24 minus the fees for postage, PayPal and HipStamp and packing material he probably netted a little over $18.00 and at 21/2 hours plus the time he had to list those items he probably netted $3.00 an hour. Now if you have nothing else to do with your time and you thoroughly enjoy what your doing then you are happy but for e I can easily get a job for $15.00 an hour being a greeter at WalMart.
We have had a $5 minimum for a long while. Last week we discussed moving that up. We haven't landed on a number yet, but it will be somewhere between $15 and $50. Because you hit the nail on the head... Time IS money.
Shouldn't your shipping charges be coving all the expenses to cover most of the orders actual shipping costs in the first place?
Scott,
There is actually another way to make money in this business, without going to either extreme that you are talking about. You can do it if you are figuring your cost and price per item by an average. However you can not be top heavy in low value items. (That will not work.) The lower value items should only be looked at as add ons to an order where they are adding them to some somewhat better items. Second you have to be have your system in place where you can do all the processes fairly quickly and well.
A short lesson in math.. $40 sale less $8 cost plus 70 cent profit on shipping equals $32.70 divided by 2.5 hours (listing time already included) equals $13.08 per hour. Not the $15 at Walmart, but I don't have to stand on my feet. Besides I like the good feeling knowing that I'm helping others fill those empty spots.
To each his own. Have a good day and happy stamping.
Your figures are off. First off you need to take the GROSS of the total order including your shipping charge before deducting anything. Now I am assuming from what you are stating the entire order including your shipping charge came to 41.80. You have ONLY factored into your equation your cost of goods. You then factored in a profit on the shipping charges to come up with a total of 32.80 which is WRONG.
You have to start with the gross amount of your sale including the shipping charges. Which is $41.80. less your cost of goods comes to $33.80 less what you factored in for your cost of shipping including postage is $1.10 which comes to $32.70. You still left off Hipstamp FVF which is about $3.70 which leaves $29.00. Paypal fees for an average per order comes to about 5% when you factor in the transaction fee for orders under $100. Which is about $2.10 for that order which leaves you $26.80 at this point. You also have to factor in the cost of your store as an average per order. If you are averaging 400 orders per month that comes out to an extra 15 cents per order to cover you store subscription fee. Which leaves you a net of 26.65 for the order. (That still does not include glassines et al.) Which gives you a grand total of $10.66 per hour not the 13.08 that you stated above.
Comments
Another point to consider is the cost you charge for international shipping. You may not be aware that stamps can no longer be included in first class international letter mail. While some sellers continue to do this, it has been against USPS regulations for more than two years. Anything of value now needs to be shipped as a package which is quite expensive. I use a service provided by Shipping Easy which is less expensive than the USPS. You might want to look into this option. Other sellers have decided to no longer sell internationally do to increased shipping costs and other regulations many countries are now placing on sellers located outside their country.
Yes there are some countries that want you to collect the VAT for them so they have less to do.
International sales are a huge quagmire right now.
Even VF is often claimed on stamps that aren't even close. And it's dead obvious.
I don't think its unreasonable to claim a stamp is XF or higher, so long as the seller justifies this with something. (I'm even ok if it's at least got an EZGrader approximation, so long as that's not claimed as a cert either.
And damaged stamps are UNGRADABLE. Don't care how good the centering is, if the stamp isn't sound, it can't be graded. Which is something to be aware of with certs. If a stamp image on the cert looks great, but there's no grade on it (save for APEX, which don't do grading), then you should be asking "Why isn't this graded"? Especially PSE and PF certs, which do not charge an excess for grading a stamp at time of cert...
Educating one self about grading, if that is important to you, and what you are buying is important. Same as being able to correctly identify that the stamp you have in hand can be graded... hmmm maybe another article I should write.
Customs forms were ALWAYS suppose to be used on any items of value. (That's not new, what is newer is that you can no longer send via first class letter rate. Any items of value are suppose to be sent via first class international parcel or better.)
USPS does show it under their postal calculator
https://postcalc.usps.com/
The second line asks you what the value is of what you are mailing.
Hipstamp also has this
https://help.hipecommerce.com/support/solutions/articles/14000112965-international-shipping-costs-from-the-us
I stopped selling internationally as it's not worth the headaches, the extra fees, and too many smaller orders where I can no longer justify the cost of filling those orders because Hipstamp DOES NOT at this time does not allow us to have a minimum order requirement.
The issue of international shipping from the US is a topic that has been beaten to a pulp by several other threads in these forums. To answer your question of what Bentley and I do about it. We do nothing....we ship to US addresses only. When we started, we shipped worldwide. Quickly, very quickly, discovered that it simply wasn't worth the hassle. We had some nice customers in Australia, Canada, Great Britain, and a few in western Europe but just had to sadly give it up. Surely lost some business and potential business but just had no choice.
Greg
Not worth it.
From: https://blog.stamps.com/2020/12/22/shipping-from-the-u-s-to-uk-with-2021-vat-rules/
Do Sellers on eBay, Amazon or another Online Marketplace Have to Collect VAT?
Online marketplaces (OMP) such as eBay, Amazon, Etsy and others will be responsible for collecting the VAT from the buyer when the sale occurs on their website as long as the price is £135 or less. For sales that are over £135, the OMP will not collect the VAT and existing import rules will go into effect (seller pays at port of entry).
The list provided isn't exhaustive, rather the point about Online Marketplaces have the responsibility. So if the amount is under £135GBP ($166USD), it's Hipstamp's responsibility to pay the 20% VAT.
If you hold the sale amount below that threshold, you'll have no responsibility to this. Most who I see discussing this have an average sale of around $35.
Not suggesting otherwise, but as well, how on earth is this enforceable?
This isn't my interpretation. This is from stamps.com's website. Title of article is: Shipping from the U.S. to UK with 2021 VAT Rules.
I have read the article you reference and it states that if you’re an online retailer shipping products from the U.S. to the United Kingdom (UK), you will need to change your fulfillment process starting January 1, 2021. It further states that on line retailers offering goods and services to UK buyers will be required to register their business with the HM Revenue and Customs (HMRC) to obtain a VAT number. That seems straight forward to me. No interpretation needed.
IF this only required the "MaketPlace" to collect these fees and didn't effect us "sellers" then why would it have a section titled .. Required actions to sell and ship products into the UK in 2021. We are the sellers and shippers, not HipStamp.
My solution to this was to stop selling to UK. I'm satisfied I made the right decision for me. Others can choose if they want to sell to the UK.
And the whole intent is to simplify for the "small fry". As I've said previously, small private sales like 99% of the stamp sellers on this site, are not the target of these new regulations.
They know it's much easier to consolidate this where portals are concerned, and it's why eBay started to apply state sales taxes in their online sales. Same kind of requirements, hence why the specifically list "eBay, Amazon, Etsy" but those are intended as examples, not an exhaustive list. It's unenforceable otherwise. If I sell £237 of stamp sales in 12 months (we get the occasional buyer from UK, for example), the resource alone to track this or even administer it isn't worth it. Government management would require far more than the £47 pounds in tax this would generate, just in filing and management. It really isn't their intent.
And they make the point of providing a "per shipment maximum" of £135 as the threshold. Sure, as a seller you can't control that, but there has to be a cut-off somewhere. And if your sale is less then that, then it's the portal that is responsible, not the individual seller.
Each seller must choose what works best for them, but personally I would be missing out on many sales without offering lower valued stamps. One $40 order received yesterday was for 100 stamps. Only one of those stamps was priced for more than $2.00. I estimate that it took me about 2 1/2 hours to process these stamps including selecting, listing and packaging. I'm satisfied with the enjoyment I received working with these stamps. After all, this is primarily a hobby, not a business for me.
Good luck John with your sales and stay active on the forums.
You have to ask yourself, what is the effort versus return? It is VERY easy to lose money in this business. There is an old adage: How do you make a million dollars in Philately? Start with two million.
You have to take into account store fees (monthly cost), seller fees (% when sale occurs), PayPal fees (%/minimum cost they take on every transaction), cost of material (how much did you pay for them), cost to ship (envelopes, postage, toner, ink, labels, etc.), cost to ship (are you driving to get those materials, or send those orders off)? All this really does pile up. You can't expect to make much at the end of the day, selling majority 20c (I'd even say selling majority $20 or less) items. No matter how many you are selling.
So far, the sellers I see come and go here, are the ones that try to get 10,000+ items at less than $1 average for their entire listings. Do some quick math on that. If you have 10,000 stamps listed at $1, the MOST you can make is $10,000k. How many months would it take to sell all those out? (Hint, months if not years). And that's your maximum value. Now, deduct all the elements I just listed, you're taking off near $100 a year just in store fees (and the moment you list 10,001 you jump from $7 a month to $20 a month).
Then the cost of shipping (didn't mention dealer cards, (highest cost, but best protection) or glassines (some stuff is worth putting in a glassine as well), plus your postage... the "profit margins" on this material are in the 5% realm. That means, you need to sell tens of thousands to make a reasonable value out of this. (I would say, target $4k a month). Now, if you're average item value is 25c then you need to sell 16,000 stamps a month to hit $4k in sales. (That's an average of around $135 a day.) Now, if your profit margin is 5% in this example, you're making $200 for all that effort. (Call me crazy, but that's CRAZY). Have you really factored what your profit margin is?
Take the same example, with a 40% margin (secret sauce: That's what I shoot for) then the same sales yields $,1600 for - wait for it - WAY less effort...
I know not everyone is setting out to make a descent "side hustle" out of this, and some do for the enjoyment, but wouldn't it be more enjoyable if you did actually have something to show for it? Do you consider your store a sidewalk Lemonade Stand, or are you actually trying to cover the gaps in pensions or put a kid through university? Your "goal" is what should guide you.
I didn't put "time"
The only time I loose money on shipping is when I decide the order is beyond the risk level I'm willing to accept and I send the order with tracking and insurance. The rest of the time I'm making about 70 cents on my $1.80 charge. The other money goes to costs including selling fees, monthly store cost, PayPal fees, packing materials and postage at 65% of face. The monthly sales from my Lemonade Stand exceed the $1,600 projected in your example. While I may need to squeeze a few more lemons, I generate enough to help the grandkids with college. Given the fact that 53.8% of the stamps listed on HipStamp are less than $2, a lot of other sellers also enjoy squeezing lemons.
The point of my original post was to let John know that he could increase his sales with expanding the type of material he lists. If he prefers not to do so, that is his choice.
My suggestions are aimed at those in the range of trying to make a reasonable side income, to those who are looking to leap into this "full time". I have done both off and on over the years. When economies have tanked, and I've suddenly found myself in a position where I wasn't working, I have quickly and easily shifted to selling full time, and still making a decent living off it (at one point, living entirely off my stamp sales for 18 months). My stamp sales back then got me through my Masters degree, and then later paid for my Doctorate. These days, my stamp sales are building my house...
I didn't get there by focusing on 25c to $2. Just want people to know it CAN be done. And if that's what you're aiming for, I'm happy to share how to make it work.
I have learned from a number of people that told me that you do not make money by selling cheap items unless you are doing this to waste time and with the 20 or more years I might have left I want to enjoy life. I am just trying to get rid of all of the items I have accumulated on the side since neither of my sons have any interest (the vast majority of younger people do not care about stamps) and I do not want to put a burden on them to have to sell what I have.
A person needs to figure out what they want out of life. I have made enough in those years to pay for my house. put my kids through school and have a nice IRA (which I am soon going to have start taking distributions from).
What a person wants to do in this business is up to them,
With the postal rates, HipStamp fees and the fees you have to pay PayPal a person can not sell stamps at 25 cents a piece to be able to make it worth while to even be selling. I used to sell that low in the '70's but now that price is $2.00.
John mentioned selling a $40 order that took 21/2 hours to fulfill so he was (as he said what his cost was 20%) netted $24 minus the fees for postage, PayPal and HipStamp and packing material he probably netted a little over $18.00 and at 21/2 hours plus the time he had to list those items he probably netted $3.00 an hour.
Now if you have nothing else to do with your time and you thoroughly enjoy what your doing then you are happy but for e I can easily get a job for $15.00 an hour being a greeter at WalMart.
We have had a $5 minimum for a long while. Last week we discussed moving that up. We haven't landed on a number yet, but it will be somewhere between $15 and $50. Because you hit the nail on the head... Time IS money.
Scott,
There is actually another way to make money in this business, without going to either extreme that you are talking about. You can do it if you are figuring your cost and price per item by an average. However you can not be top heavy in low value items. (That will not work.) The lower value items should only be looked at as add ons to an order where they are adding them to some somewhat better items. Second you have to be have your system in place where you can do all the processes fairly quickly and well.
To each his own. Have a good day and happy stamping.
Your figures are off. First off you need to take the GROSS of the total order including your shipping charge before deducting anything. Now I am assuming from what you are stating the entire order including your shipping charge came to 41.80. You have ONLY factored into your equation your cost of goods. You then factored in a profit on the shipping charges to come up with a total of 32.80 which is WRONG.
You have to start with the gross amount of your sale including the shipping charges. Which is $41.80. less your cost of goods comes to $33.80 less what you factored in for your cost of shipping including postage is $1.10 which comes to $32.70. You still left off Hipstamp FVF which is about $3.70 which leaves $29.00. Paypal fees for an average per order comes to about 5% when you factor in the transaction fee for orders under $100. Which is about $2.10 for that order which leaves you $26.80 at this point. You also have to factor in the cost of your store as an average per order. If you are averaging 400 orders per month that comes out to an extra 15 cents per order to cover you store subscription fee. Which leaves you a net of 26.65 for the order. (That still does not include glassines et al.) Which gives you a grand total of $10.66 per hour not the 13.08 that you stated above.