Buyer paid USPS retail shipping and I still did not have enough to cover label cost. Anyone else?
Summary: lou2cat is experiencing issues with USPS postage increases, specifically with discrepancies in charges between different weights of packages, leading to a shortfall when eBay applies Final Value Fees (FVF) on shipping costs. mudshark61369 and shire123 discuss the FVF policy, noting how it affects profit margins on low-cost items. shire123 emphasizes the importance of accounting for all costs, while winklers549 and lou2cat acknowledge changes in USPS charges for rural locations, which now bill for a minimum of one pound. lou2cat is seeking clarification on these issues.
With the last round of USPS postage increases, I am still trying to figure things out. I know rural customers are really getting hit hard with paying for the full 15 ounces regardless of weight -- had 1 of those the other night. Tonight I investigated a bit after purchasing a label. Buyer was charged $8.30 retail price for a 4 oz package (there were 2 price options in his zone - 0-8 oz and 9-15.99 oz) and I was charged $7.46, the amount for a 15 ounce package. Not a problem until eBay charges you the FVF on the postage (somewhere between 12-15% I think). Then -- I come up short. I don't ever remember this occurring before in my 20 years of shipping on eBay. Anyone else noticing discrepancies? I just hate to add a fee to cover postage. Have always been honest about what I charge, but buyers are not aware of the continuous price increases from USPS. Holiday rate increase is just a few days away.
winklers549
·1 week agoUSPS Does not have Oz weights to rural locations they charge for the 1 Pound Rate to all rural locations.
lou2cat
OP1 week agoWell aware of that. They used to do ounces across the board, but recently started charging for the full pound, regardless of package weight.
shado-x
·1 week agoThey charge for the 15.99999oz rate, the 1 lb rate is higher, then the 1.01oz rate is again different. There needs to be arrests made at the USPS for doing that. When it is fixed, the USPS will make it worse anyway.
shire123
·1 week agoAs long as I have increased my selling on ebay (the last 5 years or so), I was aware that the FVF is also charged on shipping and taxes. Yes. They charge the fee on the sales tax. That was always clearly stated by ebay.
How sellers miss that is beyond me.
When determining your prices you MUST take into account ALL of you costs in order to make a profit. Those costs include fees, boxes, packaging materials.
If you come up short that is totally on you.
lou2cat
OP1 week agoThanks for the scolding. 20 years plus selling here and I am well aware of When and Why we pay FVF on everything. I cannot determine why the buyer was charged for a 4 oz label and I was charged for a 15 oz label. Difference is about $1.50-$2. Let me know when you figure that out. I have never come up short when the buyer pays USPS retail shipping price.
shire123
·1 week ago@lou2cat Your post seems to imply that it is the FVF on shipping that resulted in your "coming up short". If that's the case then it's a simple math problem. As postage rates increase, with the ebay FVF on shipping, more and more will be taken out of shipping so that if you rely on USPS retail rates you will be coming up short more often.
mudshark61369
·1 week ago@lou2cat ,
Years ago (2011 I think) ebay started charging Final Value Fees on the shipping cost of items, because of sellers listing items with at a very low price, with a very high shipping cost.
Ex: item cost $1 shipping $50 to avoid paying FVF fees on the item only.
Now they charge an FVF mostly 13.25% on the total cost of a sale including what the buyer paid for the item, shipping and sales tax. That combined with the postal cost increases has made it hard to make a profit on items selling for under $10. You can increase the price of items or the shipping cost but you still pay the fees on the increased price, it just doesn't cut as deeply into your profit margin.
lou2cat
OP1 week agoBeen selling for over 20 years and I am well aware of when and why we pay FVF on total amounts and needless to say, how that all works. I can't determine why buyer was charged for a 4 oz label and I was charged the amount on a 15 oz label. Difference is almost $2.