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Excessive shipping charged to seller by EBAY! 33% markup on a return label?

Why are sellers charged 25-33% above reasonable cost for return labels purchased through eBay? We just accepted a return from a buyer and were charged @$22 for the return label when we were able to send the exact same package to the buyer for @$16. This seems to be a highly questionable practice, given eBay's own stance on reasonable/accurate/excessive shipping costs.

 

Consider this: Sometime in the last couple years, eBay implemented a change that lowered the shipping cost presented to buyers for many items. eBay's explanation to sellers was something along the lines of "we assume you are a volume shipper and are getting a discount from the carrier, so we're passing it on to the buyer." Sure, we might qualify for some very modest discounts as a 'volume' shipper, but eBay is MOST CERTAINLY a volume shipper, which means their rates are even lower than ours. (Just imagine all the return labels being generated with their account number!! It's got to be staggering.) ***So why don't sellers get the same volume shipping discount from eBay on their return labels? Does the same logic not apply??***

 

It's been this way for a while, but I finally decided to post something about it. Usually we upload our own label so we pay actual costs, but our shipping person was gone and the return request needed handled today.

 

velvet@ebay 

tyler@ebay 

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Excessive shipping charged to seller by EBAY! 33% markup on a return label?

Hey @replacementradios. We might be able to help if you could provide a few more details.

 

- Was the original package shipped to the buyer with UPS or USPS? If it was UPS then that would explain the difference in return costs. eBay provides USPS return labels exclusively.

 

- Was the original package shipped before April 3rd and was it over 22" in length? If it was then the original package would have escaped the new USPS surcharges that went into effect 4/3 for non-standard sized packages, but the return label would have been subject to that.

 

If neither of those situations applies, then we would need more details about the package size, weight, if the original label was purchased through eBay, and if the size/weight on the listing was different from the size/weight on the shipping label.

 

P.S. Tyler has left the building (he's no longer at eBay).

Message 2 of 14
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Excessive shipping charged to seller by EBAY! 33% markup on a return label?

Did the buyer send the item back in the same packaging you sent it or sent a different, bigger packaging? You will get charged for what packaging the buyer used. 

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Excessive shipping charged to seller by EBAY! 33% markup on a return label?

Hmm would depend on the shipper and the possible adding costs at the drop of point: Easy to do to some one who is not shipper savvy.... Since you only pay the estamation the final charges can be a bit different these days.

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Excessive shipping charged to seller by EBAY! 33% markup on a return label?


@replacementradios wrote:

Why are sellers charged 25-33% above reasonable cost for return labels purchased through eBay? We just accepted a return from a buyer and were charged @$22 for the return label when we were able to send the exact same package to the buyer for @$16. This seems to be a highly questionable practice, given eBay's own stance on reasonable/accurate/excessive shipping costs.

 

Consider this: Sometime in the last couple years, eBay implemented a change that lowered the shipping cost presented to buyers for many items. eBay's explanation to sellers was something along the lines of "we assume you are a volume shipper and are getting a discount from the carrier, so we're passing it on to the buyer." Sure, we might qualify for some very modest discounts as a 'volume' shipper, but eBay is MOST CERTAINLY a volume shipper, which means their rates are even lower than ours. (Just imagine all the return labels being generated with their account number!! It's got to be staggering.) ***So why don't sellers get the same volume shipping discount from eBay on their return labels? Does the same logic not apply??***

 

It's been this way for a while, but I finally decided to post something about it. Usually we upload our own label so we pay actual costs, but our shipping person was gone and the return request needed handled today.

 

velvet@ebay 

tyler@ebay 


Hi @replacementradios! We try to go off the info originally used to ship the item to figure out the return label. I actually just discussed return shipping in this thread a few weeks ago. We appreciate the feedback though and want to make sure you know that similar to purchasing shipping labels, we never require sellers to use our return labels to get items back. 

Velvet,
eBay
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Excessive shipping charged to seller by EBAY! 33% markup on a return label?

Sorry. We're not open on weekends and Mondays are crazy...

 

7.8 lbs. 14x14x10 box. ZIP codes 71075 and 62401. Sent UPS originally. Shipped after April 3rd. The original label was not purchased through eBay.

 

I understand it's not technically apples to apples comparing UPS to USPS. But there are still questions/issues, because the overriding issue here is cost. 

 

Is eBay getting a discount on USPS labels in return for using them exclusively? If so, should that not be passed on to the sellers, as eBay has done between sellers and buyers?

 

If they are not getting a significant discount, why use USPS exclusively? UPS offers significant volume discounts. If our company can ship this UPS for less than $16 with our volume, why is eBay not leveraging their massive volume to get the best label prices for us? 

 

I feel like there's either an obvious missed opportunity for savings that can be passed on to sellers here... or the opposite: an unacknowledged 'hidden' way for eBay to make some extra profit at the seller's expense. Either way, shouldn't this be addressed?

 

Message 6 of 14
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Excessive shipping charged to seller by EBAY! 33% markup on a return label?

They probably paid for it at the post office.  Why did you not send them a label so you had control over the cost?

Good Moms let you lick the Beaters.

Great Moms turn them off first.
Message 7 of 14
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Excessive shipping charged to seller by EBAY! 33% markup on a return label?


@replacementradios wrote:

7.8 lbs. 14x14x10 box. ZIP codes 71075 and 62401. Sent UPS originally. Shipped after April 3rd. The original label was not purchased through eBay.


The problem is that eBay offers USPS return labels exclusively, but you do have a good option here @replacementradios.

 

On your return preferences page you can enable RMA numbers. By doing this, you have the option of issuing your own label instead of using an eBay-generated label. So you could go to your original point of purchase for the UPS label and generate a return service label, or just purchase a regular label reversing the ship from/ship to fields.

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Excessive shipping charged to seller by EBAY! 33% markup on a return label?

We already use our own labels in most instances, as indicated in the original message: "Usually we upload our own label so we pay actual costs, but our shipping person was gone and the return request needed handled today." To further elaborate: The buyer originally acted like the issue was resolved (after we did some tech support), so we asked him to close the return. Then, at the last minute, he decided he wanted to return it anyway, but the shipping person was gone, so I had to use the eBay label or risk eBay stepping in...

 

None of the suggestions/comments I've seen in this thread address the real issue though: Why charge such a large premium on return labels at all? Even if the seller has another, cheaper option (in many cases.) Sure, using the eBay return label is easier for both the seller and the buyer, but that's not a good reason to charge such a large premium. Not when eBay has repeatedly tried to address excessive shipping charges through the years and not when eBay now quotes buyers shipping prices lower than retail themselves. (Telling sellers, in effect, we know you're getting discounts, so they should be passed on. Does the same logic not apply here?)

 

If eBay is charging the large premium because they don't get a discount through USPS, I'd say they need to renegotiate and/or offer another carrier as an option. (Because I know they can negotiate for discounts with UPS and FedEx.) If eBay does get a discount through USPS, but it's not substantial, the same suggestion applies. Because there's an obvious way to save the sellers some money here.

 

If, however, eBay does get a substantial discount but is choosing to charge sellers retail rates anyway, that would be a direct contradiction to the stance they've taken on seller to buyer shipping quotes. eBay could charge a modest premium (that would be more in line with volume rates an average sized seller could qualify for) and make all parties happy. (A little extra profit for eBay and rates roughly the same as what a seller would get if they used their own label.) Then eBay would probably also get more sellers to use eBay return labels, which would get eBay some of that lost revenue back. (Not to mention, generate some good will...)

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Excessive shipping charged to seller by EBAY! 33% markup on a return label?

Actually, eBay's return labels use the weight and dimensions the seller had in the listing in the first place. The label is provided to the buyer without any input from the buyer on weight and dimensions...

 

If the buyer chooses to use different packaging (larger and/or heavier), it would be interesting to see what happens. I wonder if the seller would get a notice they had underpaid for shipping once USPS sent eBay 'the bill'?

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Excessive shipping charged to seller by EBAY! 33% markup on a return label?

velvet@ebay 

The link you gave didn't work for me. Could you repost please. Regardless of the age of the thread, I have the same question, and would like to hear how you could "explain" this.

 

For a return request initiated this week - the same week that I purchased the outbound label, eBay charged MORE for the return label than I paid for the original label. Why? Especially when the commercial rate, the most ebay is paying the USPS for a return label, is LESS.

 

Does eBay charge sellers MORE for return labels for SNAD than it charges sellers who offer free returns whether or not the buyer claimed SNAD?

 

Does eBay charge a seller more for the label than they charge when the buyer pays for the return label?

 

Message 11 of 14
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Excessive shipping charged to seller by EBAY! 33% markup on a return label?

Velvet is no longer here @iamonourside and that link goes to a board accessed exclusively by Mentors.

 

Was your outbound label purchased through eBay? I always thought eBay didn't charge more for the return label than the outbound label as long as the outbound label was purchased through eBay. Regardless, here's the official Policy Page.

 

Return shipping costs when you use an eBay label

 

When the buyer is returning the item to you, the cost of the label will be charged to your account once it’s scanned by the carrier. We may ask you to accept a billing agreement to authorize payment for these kinds of charges. If the buyer doesn’t use the return shipping label, you are not charged for the cost of the label.

 

Any time you use an eBay return shipping label, eBay will automatically select the cheapest return option for your item.

 

In some instances, return shipping charges are estimated rather than based on the actual weight of the package. These charges are based on rates negotiated by eBay, and are typically less than what you would pay the carrier for the same item.

 

If the expected shipping charges exceed the expected refund or the refund value of a replacement or exchange, an eBay return shipping label won’t be available.

 

To avoid this situation you can follow the advice in my above post which says: On your return preferences page you can enable RMA numbers. By doing this, you have the option of issuing your own label instead of using an eBay-generated label.

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Excessive shipping charged to seller by EBAY! 33% markup on a return label?

Thank you @wastingtime101 for picking up the gauntlet in Velvet's absence and for posting the policy.

 

I will definitely be following your advice to supply my own label in future.

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Excessive shipping charged to seller by EBAY! 33% markup on a return label?

.................

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