Understanding USPS Shipping Discounts on eBay
Summary: The discussion revolves around inconsistencies in the discount rates for USPS Ground Advantage shipping labels purchased through eBay, as experienced by a_happyhoarder. Other participants explain that the variations are due to location-related surcharges, especially for rural or non-continental addresses. There are suggestions to use calculated shipping to better manage these costs. Some participants express dissatisfaction with eBay's handling of shipping charges and discuss alternative shipping platforms and strategies. The overarching sentiment is frustration with the increased costs and perceived lack of support from eBay.
Why am I only 10% discount on USPS Ground Advantage shipping labels purchased through eBay on SOME of my items?
I've noticed that the discount percentage I receive when purchasing USPS Ground Advantage shipping labels through eBay varies significantly between items. Recently, some of my USPS labels were only a 10% discount, while others have a 30% +/- discount, even when the details are similar.
Has anyone else experienced this inconsistency?
steel-city-stitches2007
·1 week agoUSPS rates vs Ebay rates for Ground Advantage are very different. If I use Ebay shipping labels, approximately 60 - 75% of my shipments show higher ground advantage rates with Ebay shipping. The same dimensions, address, weight and zip are $1.50 to $1.75+ cheaper for EACH parcel weighing between 4 to 12 ounces when using USPS click n' ship directly on the USPS site. Often, Ebay will show a HIGHER "rural" zip code rate for the same zip code that USPS charges the non-rural rate (for Ground Advantage Service when I purchase labels directly on the USPS website). The USPS shipping labels are significantly cheaper than the Ebay shipping labels saving approximately $1.50 to $1.75 PER PARCEL. These savings ARE SIGNIFICANT for sellers and buyers. It would be great if Ebay would match those rates for everyone. It sure looks as though Ebay is generating a profit when sellers purchase shipping labels through Ebay shipping. Let's not forget that Ebay is also taking a portion of the shipping cost paid by the buyer in the form of a percentage fee on every transaction which also drives the shipping costs higher for the buyer. Will Ebay match the shipping rates offered by the USPS to small business????
a_happyhoarder
OP2 weeks agoThere is NO excuse for a 10% discount when eBay already takes 12.7 of the shipping amount.
I just had another sale where I am in the negative!
Time to start donating!
a_happyhoarder
OP2 weeks agoI was today years old...
If a seller uses calculated shipping, buyers living in rural areas will automatically see higher shipping rates. This happens because carriers like USPS charge more to deliver to rural zones.
But what does this mean as far as eBay discounts? And should I look for other shipping options?
christworks
·2 weeks ago@a_happyhoarder The discount has always varied depending on the size of the package and the destination zip code. It is more notable now because the discount for some zip codes and package sizes is less than what it was previously. This in combination with the new rate structure is what is giving sellers some sticker shock.
Make no mistake. The sticker shock is by design. eBay's long-term goal is to likely offer a managed shipping program, similar to other reselling platforms. To make it work, they will need as many sellers to sign up as possible. What better way to encourage that than to strees out sellers with USPS's higher rates and eBay's reduced discounts. Sellers will then be primed to get any relief possible, including signing up to let eBay handle their shipments.
eBay knows what they are doing. Sellers have not yet caught on.
a_happyhoarder
OP2 weeks ago@christworks I have added a comment about the labels I bought tonight. Its the one with the screenshot. Apparently it's not really a RURAL thing. If eBay wants to start their own shipping company, fine! I hope they do save buyers some money on shipping! I've been with them through rain and shine since 1998 but this is getting way to stormy if I lose money on every third sale due to random label prices not correlating with the shipping eBay is calculating on my behalf.
a_happyhoarder
OP2 weeks agoTHIS IS GOING TO KILL MY EBAY SALES!!!
tobaccocardyahoo
·2 weeks agoThe things that make the discount percentages appear inconsistent and meaningless include:
Surcharged zip codes
The fact that the lower of Commercial and Cubic rates applies.
a_happyhoarder
OP2 weeks agoI have switched all of my listings to calculated based on what I found on other Internet post.
I think it is RIDICULOUS for USPS to charge rural fees since they are delivering envelopes anyway.
tobaccocardyahoo
·2 weeks agoMany of the rural carriers are "contract carriers" not USPS employees. I have no clue how they are compensated.
a_happyhoarder
OP2 weeks agoI was not aware of that. Thanks for sharing!
a_happyhoarder
OP2 weeks agoWhy can't eBay collect money from the buyer to cover those surcharges?
bonanza125
·2 weeks agoWhen you use calculated shipping the buyer pays the exact shipping charge. The issue is if seller offers free shipping and figures a cost of $6.24 but the actual cost to a particular rural location is $8.40 that creates the problem. Eventually Ebay will have to look into that but the charge is a carrier charge.
a_happyhoarder
OP2 weeks agoI purchased a label tonight that was amost $2 higher so I assumed it was rural. It was not.
a_happyhoarder
OP2 weeks agoSo far, this has only happened on fixed rate shipping like variations, etc.
Does eBay adjust the shipping price so that includes the rural fees?
oregon_bins
·2 weeks ago · EditedeBay doesn't create those discount percentages and eat the cost. USPS decides what the savings they will give commercial versus retail and eBay just passes it along. Recently they decided to give much less of a discount on rural and non-continental addresses, in the form of charging for a full pound No matter how many ounces it is. So USPS is charging eBay for a full pound if the address is rural (or in Alaska Hawaii Puerto Rico etc) and that higher price is ending up giving you less of a discount compared to retail.
a_happyhoarder
OP2 weeks agoSo, how do I fix this?
oregon_bins
·2 weeks ago · EditedEveryone is equally affected by this awful change. So it will be hard for your competition as well. USPS is still usually the cheapest for under a pound (barely now) and so they can demand more of the profit on your items without much you can really do about it.
I personally will adjust by lotting more of my product together so they weigh over 2 lbs (to take advantage of the promotion they have right now on that weight tier). I will probably focus more on Pokémon cards because they ship eBay standard envelope instead of sourcing more beauty products that are under $20. I also just changed everything from free shipping to calculated and lowered the price by $5 on everything. So I'm making slightly more and I'm still actually making sales even though I'm on vacation mode because I had a C-section 4 days ago.
They are trying to crush small sellers and entrepreneurs and so you just have to try to survive.
a_happyhoarder
OP2 weeks agoI offer combined shipping and even offer volume discounts. But my lots are doing much lately.
sassykzt
·2 weeks agoThose labels only receiving a 10% discount are USPS rural zip codes. The elimination of tiered shipping by ounces to these rural zip codes, AK, HI, US protectorates, and APO/FPO was announced on 7 /12 . All packages shipping to these locations will have the min. base cost of 15.99 oz. USPS is just catching up to Fed Ex & UPS who have had these delivery surcharges for years.
If you want to be able to catch these rural zip codes, switch to calculated shipping -- based on location and weight. You can do this in your business policies and then do a bulk edit.
a_happyhoarder
OP2 weeks agoDoes USPS charge more for delivery of envelopes to rural areas?
theteamsetguy
·2 weeks ago@a_happyhoarder ,
No they can't. Only for packages. UPS, Fedex and DHL has charged more for deliveries to rural areas for years. Actually it was about time the USPS caught up.
a_happyhoarder
OP2 weeks agoI was charged a higher price for a label that was NOT a rural address!
bonanza125
·2 weeks agoUSPS considered it rural though.
a_happyhoarder
OP2 weeks agobonanza125
·1 week ago · EditedWell then there has to be a reason why that particular area costs more than others. There has to be a specific reason which all they come up with right now is rural area.
sassykzt
·2 weeks ago · EditedNo, just all packages -- buyers who live in these rural zip codes are well aware of where they live and are used to these delivery surcharges.
Delivery of envelopes depends on what types of envelope. I'm assuming you are referring to reg. domestic mail / first class envelopes? No extra charge
a_happyhoarder
OP2 weeks agoIt is not just rural addresses. See my other comment with the screenshot.
sassykzt
·1 week agoThis is terrible if it's not just the rural zip codes getting the 10%. Try pirateship . Have been using them for 7 yrs. Wonderful customer service and great prices! They have much better UPS rates than eBay. One can reprint labels after 24 hrs ( something eBay won't allow) and reprint SCAN sheets for USPS and easy label refunds. Also easy accounting and actual alerts for tech problems.
eBay has made it obvious they have no desire to help sellers through all these increases at USPS . Their sellers provide USPS with a large number of packages-- why couldn't they negotiate on our behalf? And negotiate to get us free ground advantage shipping boxes for free as they do on another platform where I sell?