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Increasing Postage Costs

I usually pay all of my bills online and I don’t usually shop online unless it is with someone that offers free shipping so I am not always aware of postage costs rising. Most large e-commerce sites offer free shipping when you reach a certain amount or promotion codes for free shipping. I had not really thought about how rising postage costs may be affecting small businesses until I read this recent article on BusinessNewsDaily.com explaining how the rising postage costs are hurting small e-commerce sites. Selling online has long been a way for small businesses to save money by not paying for a physical location. Sites like Etsy allow for women working from home to make money selling their unique items online. I had not put much thought behind the fact that when small businesses like these offers free shipping to lure me in to buying from them that they are essentially eating that shipping cost themselves. I love supporting small businesses and even better women owned small businesses so shame on me for not thinking about how me benefiting from free shipping affects them.

Businesses offer deals like free shipping to lure in customers and my shopping history would show that at least for me, it is effective. Larger businesses can afford to eat the cost of shipping even with them on the rise but smaller businesses that have very little mark up to begin with will not be making any profit on their items by doing this with the higher shipping costs. From the consumer side however, to make a small purchase on a site like Etsy it would need to be something you really wanted in order to make it worth paying as much in shipping for an item as the item itself. Either that or the item needs to be unique enough that you can’t run out to Walmart or Target and find something similar. With the current economy we are all pinching pennies but I truly believe that the only way for the economy to completely recover is for small business to grow. So next time you are shopping online and are thinking “me, me, me” like I apparently do and are only thinking about what the business is going to offer you to get your business, also take in to consideration the cost of those incentives to that business and continue shopping small businesses when you can.

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