2019 USPS Rate Summary for Priority Mail and First Class Mail

[mangorunner]

Here is my 2019 USPS Priority Mail and First Class Mail summary.  I created this for my own use and it is an incredibly helpful tool for me.  I'm sharing it here with anyone else who wants it.

Break-even amounts are calculated by dividing the Seller's cost by 0.871.  It ignores PayPal's $0.30 fee.

Ebay continues to charge buyers less than seller's cost for the flat-rate shipping amounts shown in the top box.  I have updated my flat rates to the purple amounts (break-even amounts).   You may wish to do the same. 

Enjoy!

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[the*dog*ate*my*tablecloth]

Just for clarification where does the .871 number come from?

[sam9876]

eBay and PayPal fees.

[the*dog*ate*my*tablecloth]

OIC but the Ebay fee is a Final Value Fee and should probably be expensed against the item not the shipping and handling. 

If Ebay didn't break it out to allow multiple shipping options this would never have been considered a shipping fee by sellers.

[flipper2flipper2]

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@the*dog*ate*my*tablecloth wrote:

Just for clarification where does the .871 number come from?

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I believe that the OP's formula is correct in that:

Ebay charges a 10% fee of the S&H that the buyer pays.

Paypal charges a 2.9% fee on the S&H that the buyer pays ( ignoring the 30 cent transaction charge ).

10% + 2.9% = 12.9%

100% = The seller's actual postage cost

100% - 12.9% = 87.1%

So for a seller break even on a $5.00 actual postage cost, he has to divide his actual cost by 87.1%.

$5.00 divided by .871 = $5.74

The seller has to charge $5.74 in order to net his $5.00 actual cost.

Mathematically proved as follows:

$5.74 - .57 Ebay Fee - .17 Paypal Fee = $5.00 Net S&H that seller gets after fees.

[sam9876]

This is a break even analysis. 

[mangorunner]

Yes, exactly. This is a break-even analysis done by me (a seller) to make sure an adequate amount is charged for shipping. Because eBay ain't doing it!

[the*dog*ate*my*tablecloth]

Not trying to be annoying, just have an different perspective.

It makes sense to me  to consider break even between the different shipping services.  I printed the sheet with thanks!

It just doesn't make sense to me using FVF as part of break even on shipping. If you're using the shipping charged to the buyer, what happens when you're a "free" shipping seller? 

I understand why some people put it there. I personally don't see it as part of shipping and wouldn't include it in a break even for shipping.  Now if you were paying a fee to print labels, that would be different.

[mangorunner · Accepted solution]

My table is NOT for TSR (top-rated sellers) or anyone who is eligible for USPS Commerical-Plus rates.  My table is for the novice or casual eBay seller who is paying USPS Commercial rates.

Here is a quick and dirty example of why the table is important for a novice seller:

[the*dog*ate*my*tablecloth]

I just wanted to add @mangorunner I am absolutely not questioning your choice to include the FVF in your calculation. You are entitled to break down your numbers in a way that makes sense to your business. I just wanted to understand your methods and calculations for anyone who may want to use your sheet.

[mangorunner]

You're right - in a way. If you push your shipping cost into your selling price and give "Free" shipping, then the table doesn't apply - as much. However, you darn well better be sure that you add in the *PURPLE* amount to your selling price to cover your shipping cost. If you are thinking that it only costs you the blue/green amount, you are shorting yourself.

[colorful*things]

Sellers not receiving TRS discounts should use PirateShip. Anyone can get the cheapest rates with them, no TRS needed. You'll just need to measure your packaging. Pirateship imports your sales/shipping data from eBay and other marketplaces.

[nobody*s_perfect]

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@colorful*things wrote:
Sellers not receiving TRS discounts should use PirateShip. Anyone can get the cheapest rates with them, no TRS needed....

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Have you done a price comparison since the USPS rates went up yesterday?   

[mangorunner]

Here's the table for USPS Media Mail: