Confused by this...

[grandmabessie]

I'm new to selling. Can someone explain to me why the buyer was charged over twice the amount on the shipping fee via Ground Advantage that I calculated correctly? (Scroll down to see full attachment). Does that amount come out of my earnings? Please enlighten me. Thanks!  

 

[stuff4divas]

@grandmabessie   like it says, your buyer paid $12.30 which had to be on your listing as a shipping option. r u sure they did not choose priority or some other higher cost shipping method?

u were charged $7.67, so u made a profit of $4.63 (12.30 minus 7.67) on the shipping cost

[kandf_vintage_finds]

looks like in lieu of passing on the eBay discount for shipping labels you are keeping it for yourself

[gurlcat]

The difference between the commercial rate and counter rate isn't THAT much.  There is something else going on here.  

[wastingtime101]

$12.30 is the retail cost for a 2 lb Ground Advantage package to zone 5.

$7.67 is the online discounted eBay rate for a 2 lb Ground Advantage package to zone 5.

@grandmabessie 

The question is whether you want to charge buyers retail rates or discounted rates. Keep in mind you have access to discounted rates when you purchase labels on eBay regardless of how much you charge the buyer.

The setting to offer buyers discounted rates can be found on your shipping preferences page under carrier specific discounts: https://www.ebay.com/ship/prf

Since eBay charges a fee on total amount buyer pays (item + ship + tax), by charging discounted rates you would be losing money on every single package. If you want to make up for that you can add a handling fee or increase your item costs - or simply charge retail rates for a built in cushion instead of passing on the discounts as you're already doing.

[grandmabessie]

No, I checked with Ebay and they said that it was going Ground Advantage, and the girl said I calculated the charge correctly.   Can I ask you, when you are setting a price, how does the range of possible shipping costs affect your thinking? THanks!

[grandmabessie]

Hmmm.  When I look at my shipping preference, it says "ebay discounted rates" - and I bought the label from them. 

[grandmabessie]

No, I'm not! I called Ebay and asked them to explain and she said I got a shipping discount and that I could "keep the extra money if you want. Or pass it along to the buyer" (which I don't know how to do now that she has bought it - I will figure it out.)  Does Ebay give discounted shipping sometimes? Why? I would like buyers to see exactly what they will be paying in shipping. Does this mean it actually cost  $12+  to ship but  ebay discounted me for some reason? 

I checked and I entered in "Ground Advantage" and "Ebay discount" pricing and used Ebay to create the label.  The buyer did NOT request a faster service, according to Ebay.

[grandmabessie]

It is set at "Discounted rates." 

[grandmabessie]

I called Ebay and they said she didn't select a different shipping method other than Ground. I'm just trying to figure out if I messed up somehow.   

[dhbookds]

@grandmabessie   you didn't mess up.........

It's just confusing when you first start selling..........  The $12+ rate is what anyone will pay for the label at the Post office Window or the Post office website.  Because sellers on Ebay ship such a large number, they get a discount from USPS ......that's what the $7+ is....and what you, as a seller, actually pay when you buy the label on Ebay......  Other large shippers get the same discounted rates.

There has always been a question (between sellers) as to whether the seller should keep the difference or whether they should refund to the buyer.  It's up to the individual seller to chose.  Many think that, because sellers have to pay final value fees on shipping, they are entitled to some, if not all, of the difference.

For years I refunded the difference......and not one buyer ever thanked me.  I now keep it....but that's just my decision.......

[wastingtime101]

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@grandmabessie wrote:

Hmmm.  When I look at my shipping preference, it says "ebay discounted rates"

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I checked many of your listings and all are charging the retail rate, not the discounted rate.

Either you are mistaken about your settings, or there is a tech error involved.

Can you go to this page and post a screenshot of what you're seeing?

https://www.ebay.com/ship/prf/carrier

---------------

Edit to add @grandmabessie - make sure you check the setting for all shipping carriers. eBay very obnoxiously hides the carrier list behind an extra click. You have to click on the "rates applied to" link to check the setting for carriers.

You may be seeing a generic message about discounted rates applied, however it could be you are only offering discounted rates for UPS and/or FedEx, and not USPS which is the service advertised in your listings.

Breaking down the costs from your original post:

Buyer paid: $12.30

Label cost: $7.67

eBay fees on amount buyer paid: $1.67

Balance: $2.96

That balance can be used to pay for packing materials, to cover fees on sales tax, and even cover part of the fee on the item cost so you can offer discounted item prices. Up to you how you want to set it up.

[nyr134]

You also need to consider if charging a higher price for shipping might dissuade a potential buyer from purchasing your item - assuming there are more of the same items available.  Of course, a seller/competitor who is a shorter distance away from that buyer can offer a lower shipping cost.

[gator08041971]

@grandmabessie 

Go here and review your settings:

https://www.ebay.com/ship/prf

 

Click edit on that part of the page:

https://www.ebay.com/ship/prf/carrier

Personally,  you want to charge the buyer the retail rate, then you pay the discounted rate. It does help offset the costs of selling items.  But its up to you.

Otherwise, adjust your pricing to account for shipping costs and set it for free shipping instead.

[kensgiftshop]

When you look at your listings, the price you see is if the item was being shipped to your zip code.

If you're using calculated shipping, there's no way to figure the shipping until you know where the buyer is located.