Announcements: USPS Increase and "Negotiated" Lower Rates

[penguins_dont_fly]

I just noticed this in Announcements ...

https://community.ebay.com/t5/Announcements/USPS-Shipping-Rates-are-Changing-and-eBay-Has-Negotiated...

It says "eBay has been able to negotiate with the USPS on behalf of sellers and secure a significant discount for eBay labels. While this still means a slight increase in the average cost of shipping an item using USPS, sellers who use eBay labels can save up to 25% on First Class Package Service and up to 24% on Priority Mail* "

But the fine print says: *Compared to USPS retail rates. Negotiated Commercial Plus pricing is available via eBay Labels to all eBay Top-rated sellers and sellers with an average of 300 or more transactions per month.

So ... it looks like eBay is taking credit for the published ComBase and ComPlus Rates again 🙂

[mr_lincoln]

@penguins_dont_fly

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@penguins_dont_fly wrote:

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@mr_lincoln wrote:

@penguins_dont_fly 

They didn't negotiate anything ... I don't think the percentages have changed, the 24% is a number I seem to remember seeing on a recent Priority label I printed.  They also have failed to negotiate anything with FedEx to clean up that mess on the overcharges Sellers get. 

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I know they didn't 😉 That's sorta my whole point 😉

But eBay's postage provider, Pitney Bowes, most likely has a negotiated contract where they pay the USPS a significant amount less than ComPlus.

ComBase and ComPlus is just what we peons end up with LOL

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I am sure that the rates from USPS - Pitney Bowes were simply issued to eBay and ALL other online vendors, with the discount percentages already on the announcement to them.  They are not going to let a 3rd party negotiate below their desired profit margin.

[penguins_dont_fly]

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@mr_lincoln wrote:

@penguins_dont_fly

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@penguins_dont_fly wrote:

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@mr_lincoln wrote:

@penguins_dont_fly 

They didn't negotiate anything ... I don't think the percentages have changed, the 24% is a number I seem to remember seeing on a recent Priority label I printed.  They also have failed to negotiate anything with FedEx to clean up that mess on the overcharges Sellers get. 

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I know they didn't 😉 That's sorta my whole point 😉

But eBay's postage provider, Pitney Bowes, most likely has a negotiated contract where they pay the USPS a significant amount less than ComPlus.

ComBase and ComPlus is just what we peons end up with LOL

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I am sure that the rates from USPS - Pitney Bowes were simply issued to eBay and ALL other online vendors, with the discount percentages already on the announcement to them.  They are not going to let a 3rd party negotiate below their desired profit margin.

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Are you sure about that???

If you have been paying attention this past week or so, the President has called for Amz to actually pay more because they are paying the USPS a rate that is below cost.

Here's a Fortune article about that (from before the current hubbub):

http://fortune.com/2017/07/16/amazon-postal-service-subsidy/

According the Sandbulte, Congress has barred USPS from setting its parcel prices below its costs, to keep it from unfairly undercutting competitors like FedEx and UPS. But the formula for calculating those costs, set in 2006, hasn’t kept pace as packages have come to make up a higher and higher percentage of USPS volume. The law set the share of infrastructure costs associated with packages at 5.5%, but boxes now make up around 25% of Postal Service revenue.

Sandbulte cites an April analysis by Citigroup that put a price tag on the resulting distortion. If package delivery bore its fair share of Postal Service system costs, each box would cost $1.46 more to deliver. That “subsidy” is systemwide, and the USPS has courted other large e-commerce companies.

[*lonewolf*]

 If you’re not a top-rated seller or sell 300 or more items a month, 

Your shipping costs are going to go up quite a bit.

  I don’t think there has been any requirements like this up until now. 

 Because I Sell about 25 things a month and I still get the discounted rates

[penguins_dont_fly]

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@*lonewolf* wrote:

 If you’re not a top-rated seller or sell 300 or more items a month, 

Your shipping costs are going to go up quite a bit.

  I don’t think there has been any requirements like this up until now. 

 Because I Sell about 25 things a month and I still get the discounted rates

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All non-TRS sellers get CommBase Rates

TRS get CommPlus

Silver Power Sellers and Above (300+ transactions/month) Get CommPlus, whether or not they are TRS

[missjen831]

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@mr_lincoln wrote:

@penguins_dont_fly

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@penguins_dont_fly wrote:

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@mr_lincoln wrote:

@penguins_dont_fly 

They didn't negotiate anything ... I don't think the percentages have changed, the 24% is a number I seem to remember seeing on a recent Priority label I printed.  They also have failed to negotiate anything with FedEx to clean up that mess on the overcharges Sellers get. 

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I know they didn't 😉 That's sorta my whole point 😉

But eBay's postage provider, Pitney Bowes, most likely has a negotiated contract where they pay the USPS a significant amount less than ComPlus.

ComBase and ComPlus is just what we peons end up with LOL

---

I am sure that the rates from USPS - Pitney Bowes were simply issued to eBay and ALL other online vendors, with the discount percentages already on the announcement to them.  They are not going to let a 3rd party negotiate below their desired profit margin.

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I don’t think that’s true. One of my venues has negotiated $6.49 priority flat rate shipping. Can be used on any priority mailer but there is a 5lb limit. 

[partial*eclipse]

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@*lonewolf* wrote:

 If you’re not a top-rated seller or sell 300 or more items a month, 

Your shipping costs are going to go up quite a bit.

  I don’t think there has been any requirements like this up until now. 

 Because I Sell about 25 things a month and I still get the discounted rates

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The requirements haven't changed.  TRS and high-volume powersellers pay the Commerical Plus rate for Priority Mail, and everyone else pays the Commercial Base rate, which is the standard online rate.  The difference betwen them is about 3%.  The difference between Commercial Base and retail prices can be over 20%.

[d-k_treasures]

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@missjen831 wrote:

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@mr_lincoln wrote:

@penguins_dont_fly

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@penguins_dont_fly wrote:

---

@mr_lincoln wrote:

@penguins_dont_fly 

They didn't negotiate anything ... I don't think the percentages have changed, the 24% is a number I seem to remember seeing on a recent Priority label I printed.  They also have failed to negotiate anything with FedEx to clean up that mess on the overcharges Sellers get. 

---

I know they didn't 😉 That's sorta my whole point 😉

But eBay's postage provider, Pitney Bowes, most likely has a negotiated contract where they pay the USPS a significant amount less than ComPlus.

ComBase and ComPlus is just what we peons end up with LOL

---

I am sure that the rates from USPS - Pitney Bowes were simply issued to eBay and ALL other online vendors, with the discount percentages already on the announcement to them.  They are not going to let a 3rd party negotiate below their desired profit margin.

---

I don’t think that’s true. One of my venues has negotiated $6.49 priority flat rate shipping. Can be used on any priority mailer but there is a 5lb limit. 

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That venue probably makes up the difference, since now the USPS can charge back any postage underages to the account holder. I doubt very much they negotiated anything with the USPS, other than to pay the balance.

[pingpong517]

am i reading these posts correctly?  are people complaining and saying ebay isn't do what they say?

when using ebay labels , YOU save on postage correct?  THAT IS THE POINT....you save on going to the post office and buying and sticking the label on and sending it.... YOU SAVE MONEY....

good gosh, what other sites do? who cares..and chineses seller, who cares..YOU save when YOU use ebay labels....CORRECT? yes.... so why would you complain...go elsewhere, use other...I belive you can save on rates using Stamps.com too...but i think there is a fee to have stamps.com right?

find the cheapest shipping cost....that is the bottom line...if it happens that ebay label provides it..

then there you go.... 

[castlemagicmemories]

Thank you for posting this!