Is there a set discount percentage off buying shipping labels because I just noticed it fluctuates..
I just made a sale and went to the shipping label page. My box is 10 x 7.5 x 4.5 inches and shipping through ground advantage. If the weight is 1 lb 1 ounce, the shipping label said a 37% discount for $8.65. If my weight is 1 lb, the label drops to only 19% for $8.46.
I understand the extra ounce over a pound bumps it to the higher cost, but my question is only about the percentage you save off of the label. Why only 19% instead of 37%?
I hardly make sales on eBay, so I didn't realize the discount percentage you get for buying the label on eBay instead of at the post office could fluctuate. I thought it was just a solid percentage off you get for buying the label through them- like for example 30% off shipping labels.
8 comments
tobaccocardyahoo
·6 months agoComplicating the USPS discount calculation is the fact that Ebay calculates two rates for each package, based on size, weight and zone for Priority Mail or Ground Advantage and charges the lower rate. Those rates are the Commercial Rate and the Cubic Rate. If the package qualifies for the Cubic Rate, the cost is usually lower.
gator08041971
·6 months agoSome additional info:
https://pe.usps.com/text/dmm300/Notice123.htm#_c450
christworks
·6 months ago@chaosvalentine The degree of the discount varies depending on carrier, service selected, weight/size/shape of the package, the shipping zone you are shipping to, and whether a delivery surcharge applies.
The reason there is not a flat across the boar rate is because it would not be pratical. Instead, eBay has agreements with each carrier they offer, and eBay negotiates contracted rates based on projected shipping volume during the contract period. The contract will also spell out details as to how new rate discounts are calculated when postal rates increase.
Poshmark is an example where there is a flat rate discount with the cap being the size and weight of the package. They are able to get a slightly better rate overall because they have an exclusive contract with USPS.
chaosvalentine
OP6 months agoMakes sense for different carriers/services, etc. I just don't know why if I choose USPS ground advantage for a 14 x 12 x 4 inch box from my location to the buyer's, why I would get a 37% discount for 1 lb 1 oz, but only a 19% discount for a 1 lb 0 oz. All the other factors are the same- I just added/deleted the 1 ounce to see the percentage difference
christworks
·6 months agoThe first pound carries the base cost. This is true whether you buy your postage through eBay or at the counter at USPS.
Even on a seller level, I do this. I use flat rate shipping with rate tables, and I have many shipping policies to cover a variety of package weights and sizes. There is virtually no discount for anything 1LB and under, because all of my supply costs are loaded onto that first pound. I have to pay for tape, box, labels, fees, etc, so there is little room for a discount for lightweight items. However, to upgrade to 2LB or 3LBs or 4LBs, the increase is much smaller. For example, I may charge $6.00 to ship a 1LB 6x6x6 package to Zone 8. The cost for a 2LB package that is the same box size and going to the zone might be $9.00. It is a 50% discount off the 1LB price. The reason is because my 1Lb price has other costs built in to it.
gator08041971
·6 months ago@chaosvalentine
Most likely because the price difference breakpoint is just that. Different. At a lower price, you have a lower difference, thus a smaller %. You are seeing your shipping cost? (what you pay) Or is that the retail shipping cost? (as if you went to the post office and paid there) What I'm getting at, is the price difference is probably much higher above 1 pound, so you see a larger savings.
As an example based on your numbers:
19% savings at $8.46 means the retail is $10.44. Whereas the 37% savings for item over 1 lb at cost being $8.65 is retail at $13.73. And if I were to look up the USPS retail rates for your ship to destination (which I don't know at the moment) I'm betting for a package with the dimension and weight would probably match that price above.
Try 2lbs. See if the price and % remains the same, because as I always understood it, the weight in ounces only matter below 1lb. After that, its rounded to the next pound anyway, unless I missed a recent change. I know they allow half inch measurements now with USPS though, before you had to round up to the next inch.
chaosvalentine
OP6 months agoYes, the cost differences for the extra ounce over each pound rounds it up to the higher cost. That hasn't changed. But I guess you're right- the lower the shipping cost, the lower a discount they'll give you.
So for example with my stats-
1 lb or less costs $10.50 retail, eBay label 19% off to $8.46
1.2 to 2 lb costs $14 retail, eBay label 38% off to $8.65
2.1 lb (I didn't check higher) costs $15.25 retail, eBay label 43% off to $8.65
Comes out to costing about the same for the shipping label- at least up until 3 lbs.
stainlessenginecovers
·6 months ago1 great reason.
Because.
That would be a USPS question which you will NEVER get an answer to.