Professional Advice Needed with Shipping

[ryanb4614]

Hello I have a ecommerce store, all my products ship from a warehouse to my customers. I currently use the warehouse's shipping rates, where I am only getting 1 order a week, could be 1 order a day but every time someone gets to my shipping page during checkout they leave, I dont blame them the following is what they charge a summary of it (what they charge me).

Lbs. What they charge me/What I charge my customers:
1 $9.14 /$8.99
2 $9.63 /$9.99
3 $9.84 /$9.99
4 $10.09 /$9.99
5 $10.34 /$9.99
6 $10.67 /$10.99
7 $10.96 /$10.99
8 $11.44 /$10.99
9 $11.65 /$11.99
10 $12.05 /$11.99
11 $12.45 /$11.99
12 $13.14 /$12.99
13 $13.66 /$13.99
14 $14.02 /$13.99
15 $14.63 /$14.99
16 $15.37 /$14.99
17 $15.73 /$15.99
18 $16.38 /$16.99
19 $17.00 /$16.99
20 $17.63 /$17.99
They also charge a $2.00 fee for every order
They also charge another $2.50 fee if the order is under $17.00
I charge a $2.00 fee if the order is under $20.00 so Im not lossing $4.50 on the entire order. I am trying to balance out the $2.00 per order in the shipping + product price (product prices are very good at what i sell them at and I would hate to increase the amount then I would be out of the lead for competitive prices)

I have signed up with fedex to see Now i would have to worry about a $13 pick up fee plus the warehouse $2.00 fee. Fedex seems to be cheaper in some points but it depends where the location is. The warehouse allows me to use my own carrier but so far I am not getting better rates and don't believe I can until I get better volume per day. The warehouse uses UPS as their carrier.
Any ideas how I can fix this, what are my options seeking for professional adivce. Thanks!

[Encrypted]

Buy a large quantity of items from the warehouse so you don't need to pay a $2 fee every time you get an order. Then ship it from your location. That's the only way to beat the system.

[ryanb4614]

Thanks for getting back to me but there are 20,000 plus items I sell and 80,000 items the warehouse carries. That would be near to impossible for me to do. I am looking about to work in the $2.00 fee from them and lowering shipping rates.

[ryanb4614]

I have been reading alot about USPS. Has any one had experience with this? Seems to be better package deal then UPS and Fedex. What are some experiences, pros and cons? It says they do free pickup no matter how many packages. Rates are alot cheaper. Question, I have for them maybe someone here knows. If I have to ship a couple large items UPS will combine 3 box for the same prices just charge the weight. How would it work with USPS would i be charged $10 per box?

[rogercbryan]

Buy a large quantity of items from the warehouse so you don't need to pay a $2 fee every time you get an order. Then ship it from your location. That's the only way to beat the system.

I agree with this. When you are drop shipping the companies keep the product price low so you think you are getting a good deal (as the seller) they then try to make their money on the shipping. The only way to combat this is to buy a load of the product and then ship it yourself. I ship 500+ items a day between my bookstore and my eBay store. The shipping profit is as much as 35% of my income. As long as you do not have control over that you are not going to be profitable.