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Is eBay keeping USPS shipping discounts instead of passing to sellers?

If you’ve been selling online for a while, you know that all major selling sites have worked out a deal with USPS for shipping rates that are lower than the commercial rates. Yet, for some reason, eBay, the 2nd largest online site hasn’t been able to work out a better deal for its sellers. OR HAVE THEY???

 

I have heard a rumor from a credible source (which was told to them by eBay employees), that eBay HAS negotiated a lower shipping rate but they are pocketing the money instead of passing on that lower rate to sellers. 

If this is true, it is beyond awful on the part of eBay. Truly nefarious and scummy. 

 

It’s no secret to any of us who have been here for a while that eBay is going downhill VERY rapidly. Revenue is plummeting. Fees keep going up. Search algorithm is beyond broken. 

I just had my worst 2 weeks in sales since I started selling on eBay 12 years ago. I sold two items in ten days. This is wa outside the normal ebb and flow. And in 2018 my sales dropped by 50% when they rolled out the new algorithm. 

 

I truly believe the terrible management at eBay is destroying this selling platform. It just shows you how desperate they are if they ARE pocketing a shipping discount instead of sharing with sellers in order to drive lower prices and sales and increase competition with Amazon. 

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Re: Is eBay keeping USPS shipping discounts instead of passing to sellers?

USPS hasn't offered discounted postage on its own site for several years now. If you buy postage on USPS.com, you'll pay the same as if you walked into your local post office to buy postage.

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Re: Is eBay keeping USPS shipping discounts instead of passing to sellers?

PirateShip is awesome! I haven't seen any additional discount for First Class Parcel on PS, but have saved $2 or $3 on Priority Mail shipping labels several times. And their customer service can't be beat!
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Re: Is eBay keeping USPS shipping discounts instead of passing to sellers?

Most of what's sold on Amazon is sold by 3rd pparty sellers. I am one of those sellers. Amazon has been offering Commercial postage rates for years, but has recently added Cubic rates.
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Re: Is eBay keeping USPS shipping discounts instead of passing to sellers?

Anyone can get Commercial Base Rates thru PayPal ... without paying a monthly fee, as on Stamps.com.
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Re: Is eBay keeping USPS shipping discounts instead of passing to sellers?

The river has incredible inbound shipping rates for sellers sending merchandise to FBA fulfillment centers!
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Re: Is eBay keeping USPS shipping discounts instead of passing to sellers?

It is an awesome rate when you can buy multiple items from a seller in a bundle up to 5lbs in weight each item weighing 7oz total of 11 items for a single rate of $6.49 less than $0.60 per item, Priority Mail.
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Re: Is eBay keeping USPS shipping discounts instead of passing to sellers?

I'm sure they HAVE negotiated a lower rate. For their Chinese sellers

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Re: Is eBay keeping USPS shipping discounts instead of passing to sellers?


@vintagequeennyc wrote:

If you’ve been selling online for a while, you know that all major selling sites have worked out a deal with USPS for shipping rates that are lower than the commercial rates. Yet, for some reason, eBay, the 2nd largest online site hasn’t been able to work out a better deal for its sellers. OR HAVE THEY???

 

I have heard a rumor from a credible source (which was told to them by eBay employees), that eBay HAS negotiated a lower shipping rate but they are pocketing the money instead of passing on that lower rate to sellers. 

If this is true, it is beyond awful on the part of eBay. Truly nefarious and scummy. 

 

It’s no secret to any of us who have been here for a while that eBay is going downhill VERY rapidly. Revenue is plummeting. Fees keep going up. Search algorithm is beyond broken. 

I just had my worst 2 weeks in sales since I started selling on eBay 12 years ago. I sold two items in ten days. This is wa outside the normal ebb and flow. And in 2018 my sales dropped by 50% when they rolled out the new algorithm. 

 

I truly believe the terrible management at eBay is destroying this selling platform. It just shows you how desperate they are if they ARE pocketing a shipping discount instead of sharing with sellers in order to drive lower prices and sales and increase competition with Amazon. 


They have to be, and they basically confirmed it with some of the recent comments.

 

First off, the prices offered in some cases match Commercial Plus rates, and in other cases are 5 cents more than Commercial Plus. Seeing as they aren't even giving us Commercial Plus when they definitely have the bulk to do so, suggests they are getting better prices.

 

Combine this with the fact that if they are "negotiating" rates, the only time you would have to negotiate is if you want a discount "beyond" Commercial Plus rates. Because Commercial Plus simply requires bulk of shipping to be approved, no negotiation.

 

Furthermore, eBay CEO Devin Wenig was recently in an interview involving these comments:

"With regard to USPS postal changes impacting Chinese imports, it's a little early, we're pretty well positioned if those changes take fruition."

Wenig referred to SpeedPAK a new shipping service eBay rolled out to help Chinese sellers reach US consumers through multiple delivery options that would not be subject to proposed postal changes, a reference to the Trump administration's decision to pull out of the Universal Postal Union and "self-declare" higher rates for goods coming from China.
 
In fact, Wenig said he thinks eBay is better positioned than other companies when it comes to US government action regarding China:
 
"I wouldn't say there is no impact, but actually, in some ways, if the changes happen for everyone importing China inventory, we think we're about the best positioned given that we've been in this business for a long time, and we've taken a lot of changes to shrink time and distance and costs for Chinese sellers and build diversity at the last-mile."

 

Regarding those comments, the offerings of SpeedPAK, and considering those offerings wouldn't be possible without cheaper rates than US sellers are getting... it's basically confirmed eBay is not passing the same discounts to US sellers.

 

Devin went as far as saying this in addition:

"A majority of our China inventory is now warehoused in the United States," he explained in response to a question about tariffs. "Obviously they're not our warehouses, but we've helped our Chinese sellers with warehousing domestically, so that wouldn't be subject to those quarters."

 

You can interpret that one as you will...

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Re: Is eBay keeping USPS shipping discounts instead of passing to sellers?


@vintagequeennyc wrote:

Agreed. But no one is saying for them to do it exactly like Posh. It’s just an example that online retailers ARE negotiating lower rates with USPS yet eBay has strangely stayed silent on this issue.

But a percentage discount per weight class would almost certainly be welcome by everyone. It’s hard to imagine that USPS would offer volume pricing the 2nd largest online retailer (even if it is still 40% below Amazon volume.)


I believe a Blue stated in Chat that they are negotiating this.

Message 39 of 50
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Re: Is eBay keeping USPS shipping discounts instead of passing to sellers?

The fact they charge us FVF on shipping = all you need to know about how they feel about sellers.

 

This isn't uncommon; Amazon started charging this before Ebay did.

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Re: Is eBay keeping USPS shipping discounts instead of passing to sellers?


@castlemagicmemories wrote:

@vintagequeennyc wrote:

Agreed. But no one is saying for them to do it exactly like Posh. It’s just an example that online retailers ARE negotiating lower rates with USPS yet eBay has strangely stayed silent on this issue.

But a percentage discount per weight class would almost certainly be welcome by everyone. It’s hard to imagine that USPS would offer volume pricing the 2nd largest online retailer (even if it is still 40% below Amazon volume.)


I believe a Blue stated in Chat that they are negotiating this.


 
Re: Community Chat, Jan 23 from 1:00 pm PT - General Topics
in reply to 01-23-2019 01:13:49 PM
brian.t@ebay
 
@my-cottage-books-and-antiques wrote:
New shipping rates will be going into effect very soon. I suppose ebay has at least been trying to negotiate preferred rates for ebay sellers (at least TRS sellers). Any word on that? Or should we assume we are just out of luck?

Hi @my-cottage-books-and-antiques ! We released an announcement earlier this month with some information on this topic. I'm working on getting more details about the Top Rated USPS discount. I'll update this thread when I have more info to share. 

 
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Re: Is eBay keeping USPS shipping discounts instead of passing to sellers?

Brian did reply to that thread; in post #4, he said, "I've heard back about this. Top Rated Sellers will continue receiving their discounts off of Priority Mail rates when they purchase their labels on eBay." When pressed for details, he replied "Top Rated Sellers and sellers who ship 300+ items per month on eBay will continue to receive an additional discount on Priority USPS labels, as they do today," and, "Despite Commercial Plus changing, we (eBay) are going to ensure that the discount Top Rated and volume sellers received will remain. Sellers will not be getting a Commercial Plus discount, they will be getting a discount provided by eBay. Ultimately, these sellers will get the same amount / percentage off and will not see a difference in the discount percentage they receive."

 

eBay TRS have been reporting prices that are roughly  a 3% discount off of the current Commercial Plus rate.

 

  https://community.ebay.com/t5/Selling/USPS-Commercial-Plus-Rates-2019-eBay-Labels/m-p/29394313

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Re: Is eBay keeping USPS shipping discounts instead of passing to sellers?

Amazon charged me $11 to ship 67 lbs over 3 states to them. They charged me $22.50 to send me inventory in 3 boxes weighing over 180lbs.

Ebay charges me $3.22 to send 1 coin 300 miles. $9.46 to send 1lb 2 oz 3 states away and $24.96 to send 3lbs from Ga to colorado. All very small packages.

One of these things is not like the other. Guess which site that charges fees on shipping charged to buyers also is more than happy to share their deeply discounted shipping rates with their sellers? One of them realizes sharing those discounts helps buyers and sellers and in turn themselves. The other has yet to consider helping their sellers might also help them.
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Re: Is eBay keeping USPS shipping discounts instead of passing to sellers?

I'm going to be very lazy and not even read the posts (hey, I got photos to take today...).

 

Short answer to your title:  Yes.

Sherry

=^.^= =^.^=
( ) ( )
" " =^.^= " "
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Re: Is eBay keeping USPS shipping discounts instead of passing to sellers?

I wish I had your ability to give simple answers. Would save so much time and blood pressure.
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