HOW I STOPPED BURNING $412 A WEEK IN SHIPPING FEES:

My Step-by-Step Action Steps

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but the full (juicy) details are below 👇


MY $900.00 MISTAKE

“Oh. My. Gosh. Babe! I just made a huge mistake!”

 

Those were the first words to come out of my mouth as soon as I hung up the phone. My mistake had just cost me 900 DOLLARS!

 

To get this latest order for my online overstock reselling business, I used our credit cards, which were maxed out. Oh yeah! And, we had tapped out any family members we could borrow money from.

 

I thought that this inventory purchase was a risk worth taking, and I was confident that it was going to pay off handsomely. But when I got that unexpected shipping bill, I was definitely thinking twice.

 

At this point, I would rather walk on hot coals than go back and ask for more help from my family. All of our savings had been poured into this inventory purchase.

 

In just a few hours, there would be a shipper at my doorstep with an unexpected $900.00 bill that was due on delivery!!

 

How the hell did I get myself into this mess?

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◉ How to Stop Burning $400 in Shipping, TODAY

◉ Why Keeping Sales Local is Killing Your Business Growth

◉ The ONE SECRET Elite eBay and Amazon Sellers Don’t Want You to Know

◉ 10 Tactics to Ensure You Don’t Get Scammed by Wholesale Vendors

◉ Why Your eBay Listings Aren’t Selling

◉ How to Offer Free Shipping and Still Make A Profit

Let me give you some more background:

I had been selling overstock products online for a while, basically smaller lots with small quantities that came in case pack boxes. This means that when they were shipped to me by my vendor, they would be delivered via Fedex/UPS or USPS ground service.

 

At times there were multiple boxes per order, and at other times, it was just a single box.

 

I was lucky enough to have a pretty awesome sales rep through my vendor. He was a great mentor to me as I was starting out. (Most people in this business have to learn almost everything the hard way. Yes, even with courses and “gurus” to reference.)

 

Also, my vendor had a pretty good sense of my business. What products I preferred, what my quantity limits were, and what channels I used to sell.

 

One thing you’ll notice, is that most people in the overstock industry will not take the time to hold your hand and show you the ropes. To be entirely transparent, I was the same way until I recently sold my business.

 

There’s a lot of money to be made and a ton of products to move. So when you ask people for help, they’re like, “Ain’t nobody got time for dat!”—especially the people who are truly making money doing this. Most of the noise in this industry comes from people who either have not had any success, or have little to no experience actually walking the walk.

But boy, are they good at talking the talk!

 

Thing is, when I’m looking to learn anything, I want to learn from someone who is better that I am.

 

Otherwise, it’s a case of the blind leading the blind.

 

Having been scammed and misled before and losing a lot of money, my radar is sensitive to BS. As soon as I detect it, I’m OUT!

I was having relative success at the time, so I was feeling pretty confident (read: cocky). I was making an absolute killing on one particular model of Sony MDR-RF985RK Wireless Headphones. I was paying about $45 each (delivered) and they were retailing for $149 (Brand New). I was selling mine for $139 and they were selling as fast as I was listing them.

The only downside was that my vendor never seemed to have enough case lots in stock. In fact, whenever they did, I didn’t even let them post it on their website.

 

I instructed my rep to call me ASAP, and then I basically bought everything they had available - and at those profit margins, I’m sure you would do the same.

FAST FORWARD TO THAT FATEFUL NIGHT...

...when everything changed.

There I was, sitting on the computer, browsing my vendor’s website, and what do I see? A boat load of “my headphones” (you notice they are “mine” now?). I mean, there were easily over 150 pieces! They were in lots of 50 pieces each.

 

It was 1am local time, and I impulsively reached for my phone to call my awesome sales rep dude. Would he even be up at this time? Probably not. I put it down before I dialed.

 

Even though I had put the phone down, my mind was still racing:

 

Was my dude holding out on me!? I thought we were cool!

 

That’s when I saw the worst part of this “betrayal”: the headphones were selling at an average price of $36 per piece, before shipping!

 

What?!

 

Was he holding out and marking up the price too?!

NOW I WAS FUMING!

 

I wasn’t even going to wait for the morning to talk to him. I needed to jump on this, NOW..

 

After checking how much money I had in my business account, I went ahead and bought a 50 piece lot.

The next day was Friday, so I decided to try to raise some more money to buy another lot of 50. That evening, I received an email notification that my first lot had shipped out.

 

By Saturday night, between putting my inventory on sale, using credit cards, and borrowing from my family, I had wrangled up enough for that second 50 piece lot.

 

I was still pretty pissed at my rep, wondering why I hadn’t heard from him. Shaking my fist in the air, I vowed to give him a piece of my mind when I eventually heard from him.

 

Normally, with my smaller packages, I either paid for shipping on delivery or have them billed to my Fedex account.

 

I don’t know if you’ve noticed yet, but through all this, I hadn’t accounted for the shipping cost yet.

 

Stick with me—I am about to learn a very important (spelled c-o-s-t-l-y) lesson. Hopefully, you can read this and avoid this lesson, too.

On Monday afternoon, I get another email notification....

This one stated that my second lot had shipped out and that I should “expect a call from the shipper within 24 hours to schedule delivery”.

 

That was clue #1 that something was off.

Don’t Lose This Valuable Information & Get Additional FREE Premium Guides

Normally, I only give these tips and techniques to paying students at Overstock Academy. I don’t know how long I’ll leave this page up. Grab the downloadable guide, so you can keep this forever and use it to grow your business.

In fact, I’ll send you ALL of my premium guides, including:

◉ How to Stop Burning $400 in Shipping, TODAY

◉ Why Keeping Sales Local is Killing Your Business Growth

◉ The ONE SECRET Elite eBay and Amazon Sellers Don’t Want You to Know

◉ 10 Tactics to Ensure You Don’t Get Scammed by Wholesale Vendors

◉ Why Your eBay Listings Aren’t Selling

◉ How to Offer Free Shipping and Still Make A Profit

You see, I had never needed a call to “confirm” anything before. I would normally just get an email with tracking numbers.

 

But, you know how the mind works, when it’s racing with excitement and anger all wrapped together—la-di-da... I didn’t pay much attention to it. I brushed it aside and simply went about business as usual.

Finally, that evening my rep calls me and I answer...

 

I couldn’t wait to hear what this dude had to say for himself.

 

First he explains to me that he was off on Friday, to which I’m thinking to myself:

 

“Do you know what sound this is? It’s the world’s smallest violin playing the world’s saddest song! Whatever, dude!”

Then, sounding rather surprised, he asks, “Did you place a huge order for 50 of those Sony headphones you like?”

 

I answer a little cooly, “Ummm yeah. More like 2 orders. I’m shocked you didn’t call me about this! Or were you saving them for someone else?”

I know, I know! I was ready to draw blood. My claws were out.

He says, “You realize those were pallet lots, not case lots... right?”

You could hear crickets, I became so silent.

 

“Hello... Amy?...a...are you still there?” he calls out.

I may as well have been gagged and blindfolded and thrown in a dungeon. I was in shock about where my cockiness and rashness had landed me.

 

It was time for a mega-size helping of good ol’ Humble Pie that only a business mistake can serve you—and mine was nice and cold.

Allow me to explain what dawned on me over the next 10 minutes...

How my vendor operated is that they received their inventory by the pallet, in truckloads. Every day they were receiving 7 to 10 truckloads.

Every. Single. Day.

 

First, they would immediately attempt to sell them by the truckload, then by the pallet-lots.

 

When the vendor couldn’t sell by the truckload or pallet-lots within a specified period, they would then break down the pallets into case lots.

 

I was buying case lots at the time.

 

Because they had to pay their employees to do this, they marked up the unit price on case lots to cover their costs.

 

This was why the 50 piece lots I had impulsively purchased had lower per-unit cost! I was purchasing a pallet. Not a case.

 

Boy, was I feeling like a jerk!

BUT WAIT: IT GOT WORSE.

Secondly, since I had purchased goods that were on a pallet, they were not being shipped via Fedex Ground. They were using a freight shipper on an 18-wheeler semi-truck.

 

My driveway didn’t have a loading and delivery dock. I didn’t own a forklift or pallet jack. This meant the truck shipping my items had to have a liftgate.

 

Using a liftgate came with a $200 fee from the shipper.

 

And, oh yeah: I was in a residential location.

 

Freight shippers charge an extra $250 for residential delivery.

 

Hold on... AND...

 

These were costs PER SHIPMENT. Meaning for each shipment I would be paying $450 in addition to the shipping fee $286 each!

Here is the breakdown of what I was facing:

I had just cost my business an unexpected additional $900—which I didn’t have.

 

I was on the verge of tears! What the heck had I done?!

 

The shipper had already picked up the pallets, so there was no canceling the order.

 

Not only was my cost per item significantly higher, but I didn’t even have the means to unload, let alone move the inventory into our garage!

Plus, an 18-wheeler truck in my neighborhood? Nosy neighbours and all?!

 

I can see it now...

 

My husband and I hauling headphones back and forth from the edge of our driveway into the garage, which was already stuffed full of boxes. We’d be covered in sweat from running back and forth in the sweltering Florida heat.

 

The whole time we’d be unloading this shipment, and our nosy retired neighbor, Mitch, would sit on his porch yelling to his wife, “Marlene! Hey, Marlene baby! Turn that TV off and get the ice tea! Come out here! These crazy kids are at it again!”

 

Yikes!

 

It was time to bite the bullet and have a conversation with my husband.

 

It was time to explain to him what I just learned.

 

Now, if you have been reading my articles, you know that my husband is a hopeless optimist. I mean, he finds positive aspects in almost any situation. But even knowing that, I must admit I was kinda freaking out—not because I was afraid of a negative reaction from him, but because what I did was pretty dumb.

 

Even I couldn’t believe I had done that!

AFTER A LONG AND DIFFICULT CONVERSATION, HIS FINAL RESPONSE WAS...

“Well babe, I guess you are buying pallets lots from now on!”

See, while most people would have been scarred for life after accidentally ordering pallet lots instead of small cases, we decided this was just a lesson in building a better system so we could expand.

By the way...

  • We knew figuring out how to make this work wouldn’t be easy.
  • We knew the profit margins for the pallet lots would great, though!
  • We had bigger dreams for our business--bigger than small case lots!
  • We had young mouths to feed.
  • We knew stepping up our game was the most logical next step.

My new challenge...

 

...was finding a system that allowed me to buy pallet lots and improve my profit margins.

 

I’ll cut to the chase and explain the solution I came up with. This little trick saved me over $400 per shipment!

 

First off, for all this to make sense, allow me to illustrate how freight goods travel to you.

 

Next I will show you how it all works...

Don’t Lose This Valuable Information & Get Additional FREE Premium Guides

Normally, I only give these tips and techniques to paying students at Overstock Academy. I don’t know how long I’ll leave this page up. Grab the downloadable guide, so you can keep this forever and use it to grow your business.

In fact, I’ll send you ALL of my premium guides, including:

◉ How to Stop Burning $400 in Shipping, TODAY

◉ Why Keeping Sales Local is Killing Your Business Growth

◉ The ONE SECRET Elite eBay and Amazon Sellers Don’t Want You to Know

◉ 10 Tactics to Ensure You Don’t Get Scammed by Wholesale Vendors

◉ Why Your eBay Listings Aren’t Selling

HOW FREIGHT GETS TO YOU.

  • From the Retail Store unsold merchandise goes back to the Vendors Warehouse or Distribution Center.

 

  • Once you make a purchase, the shipper picks up the goods and takes them back to their Freight Dispatch Terminal. •It’s then loaded onto a truck (sometimes train) that transports it to a Shipper’s Receiving Terminal that is closest to your location.

 

  • The goods are then loaded onto another truck that delivers your products to your location.

If you are purchasing a full truckload (like I eventually did), some of the steps above may be skipped and the vendor may ship the full load directly to you.

 

In this industry, it’s easy to make a lot of money by purchasing smaller lots. However, my aspiration for you is to someday purchase full truckloads. Because that is when you go from cooking with firewood to cooking with gas!

The profit margins are insane!

STEP-BY-STEP: HOW TO AVOID BURNING $400 CASH MONEY PER FREIGHT SHIPMENT

 

Step 1:

Once you have completed your order with the vendor, you will want to find out how many pallets your order will include. You will want to ask the vendor what the shipping quote would be to have the items sent to your direct location.

 

As with my wake-up call in the example above, there is a residential delivery fee that’s usually $200 or more, as well as an additional liftgate fee of $200 or more.

A liftgate is an enclosure at the rear of a truck that can be mechanically raised during loading and unloading cargo. It basically takes the pallet of inventory from the back of the truck’s trailer and lowers it to the ground safely.

 

So these 2 fees alone can increase your shipping cost by between $400-$500 dollars.

Step 2:

If you are receiving inventory to a residential address, ask the shipper where the closest freight shipping terminal to you is located. The local terminal is where the goods will arrive, right before being delivered to your location.

 

Step 3:

Tell the shipper you would like to pick up the your shipment at the terminal rather than having them delivered to your house.The beauty is that at the terminal, they have a loading dock, a forklift, and a pallet jack to move the pallets around. You can either track your items and be at the terminal when they arrive, or you can set everything up so you receive a phone call when your items arrive.

 

Step 4:

It’s most ideal if you have a truck or larger vehicle to pick up your large order of items. However, if your vehicle isn’t big enough to transport the items from the terminal, don’t worry! I got you!My little sedan wasn’t that big (plus I had a humongous flowery pink car seat in the back), and neither was my husband’s little Toyota Matrix Hatchback.

So here’s what I did.

 

We went to our local Home Depot and rented those $19 per hour pick-up trucks. We picked up our merchandize and hauled it home, unloaded it all, returned the truck, and that was that!

 

If you don’t own a truck or van and can’t borrow a friends you have several options

 

•Option #1 Home Depot Rental @ $19/hr

 

•Option #2 Enterprise Truck Rental @ $59/day

 

•Option #3 U-Haul Truck or Trailer Rental @ $19/hr

 

Also, investing in a trailer may be a long-term goal to keep in mind. This eliminates an ongoing rental cost, if you’re doing this on the regular. You can find them on your local Craigslist for affordable prices! Even buying brand new is still pretty affordable!

Don’t Lose This Valuable Information & Get Additional FREE Premium Guides

Normally, I only give these tips and techniques to paying students at Overstock Academy. I don’t know how long I’ll leave this page up. Grab the downloadable guide, so you can keep this forever and use it to grow your business.

In fact, I’ll send you ALL of my premium guides, including:

◉ How to Stop Burning $400 in Shipping, TODAY

◉ Why Keeping Sales Local is Killing Your Business Growth

◉ The ONE SECRET Elite eBay and Amazon Sellers Don’t Want You to Know

◉ 10 Tactics to Ensure You Don’t Get Scammed by Wholesale Vendors

◉ Why Your eBay Listings Aren’t Selling

PRO TIPS:

  • The shipper will hold your products for a limited time while you organize transportation.
  • The agents at the terminal will load a pallet onto a pickup truck using their forklift.
  • If you are receiving your inventory at a commercial location that does not have a loading dock (like your 9-to-5 or a storefront), you will have a fee for a liftgate.
  • If your order has a small number of items, you may be able to jump into the back of the driver’s truck and quickly break down your pallets by handing them to someone standing on the ground. Then you can avoid the lift gate fee altogether.

 

FYI: do not count on the truck driver helping you in any way! He will gladly watch you sweat your ass off, while perched on a rock, texting his  girlfriend.

 

  •  Keep in mind that drivers are paid for a certain amount of time at each stop, and there is an additional fee for any overage. This fee is charged to the company that you purchased from. If this happens, the company could refuse to ship to you, especially if this becomes a constant problem you create for them. Be quick and respect everyone’s time!

FAQ’S:

 

What if the shipping terminal is too far?

 

If the original shipper does not have a shipping terminal near you, find out if your vendor would be able to ship through another shipping service. You will only need to do this research once, when locating the nearest terminal to you, and then apply it to your future purchases.

 

What if you are in a remote area?

If you’re in a very remote area and there is just nothing close to you, (which isn’t common), then you would want to factor in the time to travel the distance and the fuel expenses and see what the difference between that and the shipping fees looks like. Then use your judgment as to what option would be most cost effective for your business.

 

This is one of many industry tricks that I’ve personally learned, which I now share at Overstock Academy. These are the same tricks that I used to scale my own overstock business to the next level.These systems are also what allowed me to sell the entire company.

 

This is how you can save over $400 per shipment starting this week.

Learn from my mistakes...

 

I truly hope this was helpful to you and your business. If it was, please share it so we can both help someone else.

 

Remember, it takes a wise person to learn from their mistakes, but an even wiser person to learn from the mistakes of others.

I am not afraid to share my mistakes with you because I have been in your shoes, I already ran the same race you’re in and I have the calluses and the bruises to prove it.

 

I’m not here to simply talk the talk—I’ve walked the walk!

 

You can do this.

 

Believe in yourself, and honor your effort—because I do.

-----------------------------------

Thank you again for investing your precious time to go through this guide.

If this is something that you are struggling with and you don’t want to try to do this yourself. Or if you’d like more guidance, we would love to find out if you’re a good fit for Overstock Academy. 

Here is a link to check out the details of our trainings

Remember my friend, you are no longer alone on this journey.

Amy Q.

Don’t Lose This Valuable Information & Get Additional FREE Premium Guides

Normally, I only give these tips and techniques to paying students at Overstock Academy. I don’t know how long I’ll leave this page up. Grab the downloadable guide, so you can keep this forever and use it to grow your business.

In fact, I’ll send you ALL of my premium guides, including:

◉ How to Stop Burning $400 in Shipping, TODAY

◉ Why Keeping Sales Local is Killing Your Business Growth

◉ The ONE SECRET Elite eBay and Amazon Sellers Don’t Want You to Know

◉ 10 Tactics to Ensure You Don’t Get Scammed by Wholesale Vendors

◉ Why Your eBay Listings Aren’t Selling

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