Calculated shipping cost higher for buyer than for me.

[totallytubular80s]

Whenever I use the Calculated shipping option (USPS), it always charges the buyer more than it ends up costing me. I can only assume it's because the buyer's cost does not include my ebay shipping discount. Is that correct?

I wish I could easily pass the discount on, as sometimes it's significant and may be the make/break whether someone purchases my item.

[buyselljack2016]

You have it correct. Buyer pays "retail" while you pay "online" label prices.

You can choose to pass the discount along.

Many sellers use the difference to offset fees. If the difference is big I give the buyer a little refund.

[tobaccocardyahoo]

The calculated rate is the Retail Rate.

You buy from Ebay at the commercial rate which is about 20% less BUT Ebay charges you a final value fee on the amount the customer pays up to about 15% so the customer is not paying much more than it really costs you.

Given the fact that Ebay also charges you a final value fee on the sales tax as well, there is no reason to waste your time trying to reduce what the customer pays, that will just come out of your pocket.

[nobody*s_perfect · Accepted solution]

The shipping calculator in eBay listings defaults to show the retail pricing, but you can change it in your site preferences (under "Shipping discount settings").

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

As noted above, many sellers choose to leave the setting at "retail" so the listing has a built-in handling fee to help cover expenses like packaging and eBay fees. If you charge the buyer only the online rate, then those other expenses come out of your pocket.