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How does ebay decide on a calculated shipping price in my listing?

When I have the buyer pay shipping I always use the shipping calculator and check off the "Ebay rates" to see what it would be. I most often use USPS Ground Advantage and the calculator gives me the range for New York, Chicago, LA. Then when I list the item and chose my shipping policy for USPS Ground Adv., calculated shipping, Ebay lists the item with one amount for shipping. I have noticed that the buyer is overpaying; the amount Ebay picks is not within the "Ebay rates" range that I saw. So my question is: Does Ebay use "Ebay rates" or retail rates when they list the item? If they are using "retail" rates how do I get them to use the "Ebay rates" that I see?

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Re: How does ebay decide on a calculated shipping price in my listing?

Although nice of you to offer the buyer the commercial ("EBay") rate, many sellers charge the retail rate. You pay FVF fees on the shipping just as you do on the item. You're also paying for packaging material (box, padded envelope, bubble wrap, tape, labels, paper, ink) ... don't forget the time to pack, time to go to post office, gas and mileage on your car.

 

This cushion between retail rate (what buyer pays) and commercial rate (what you pay) helps compensate you for the FVF fees you pay and the little extra for your shipping materials.

 

I personally used to charge flat rate shipping. I charged $5 for all First Class Mail. Some packages I paid more and some I paid less. Let's take the cheaper labels for example... I paid like $3.75-$3.85, buyer paid $5.

 

Right off the top I paid 12% in FVF/Ad Fee on the $5. So that's $0.60, now I'm down to $4.40. Then $0.25 for my padded envelope, down to $4.15. My tape, thermal labels, those cost me a few pennies. Down to $4.10. Now the buyer "overpaid" by $0.25-$0.35, and thats if they lived close. That rest goes to my gas and mileage on my car. If they lived further, they overpaid by less and if the package was heavier I "paid out of pocket". (The listing cost a little extra).

 

Either way the illustration shows the retail rates "padding" helps cover your padding and materials (see what I did there 😉) so you can offer buyers your at cost rate, but your 100% justified to keep it the way it is.

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Re: How does ebay decide on a calculated shipping price in my listing?

You (Seller) determine what your buyers pay (rate) for shipping....

 

 

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

 

 

Message 2 of 10
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Re: How does ebay decide on a calculated shipping price in my listing?

The shipping calculator in eBay listings defaults to show the retail pricing for shipping the item from your ZIP Code to the ZIP Code of any member who looks at your listing. When you look at your own listing, you see the (retail) price to ship to your own ZIP Code.

 

You can change your shipping preferences so that buyers are charged the online (eBay) rate, under "Offer discounts to buyers."  Many sellers choose to leave the shipping calculator at retail, so the online savings becomes a built-in handling fee to cover expenses such as shipping supplies and eBay fees.  But for GA, the price difference is sometimes significant.

 
https://www.ebay.com/ship/prf

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Re: How does ebay decide on a calculated shipping price in my listing?

The Ebay discounts from the retail rate are 20% for some classes of mail.

 

Given the Ebay FVFs on shipping charges, that makes it kinda like breakeven to charge the buyer the retail rate.

 

 

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Re: How does ebay decide on a calculated shipping price in my listing?

Although nice of you to offer the buyer the commercial ("EBay") rate, many sellers charge the retail rate. You pay FVF fees on the shipping just as you do on the item. You're also paying for packaging material (box, padded envelope, bubble wrap, tape, labels, paper, ink) ... don't forget the time to pack, time to go to post office, gas and mileage on your car.

 

This cushion between retail rate (what buyer pays) and commercial rate (what you pay) helps compensate you for the FVF fees you pay and the little extra for your shipping materials.

 

I personally used to charge flat rate shipping. I charged $5 for all First Class Mail. Some packages I paid more and some I paid less. Let's take the cheaper labels for example... I paid like $3.75-$3.85, buyer paid $5.

 

Right off the top I paid 12% in FVF/Ad Fee on the $5. So that's $0.60, now I'm down to $4.40. Then $0.25 for my padded envelope, down to $4.15. My tape, thermal labels, those cost me a few pennies. Down to $4.10. Now the buyer "overpaid" by $0.25-$0.35, and thats if they lived close. That rest goes to my gas and mileage on my car. If they lived further, they overpaid by less and if the package was heavier I "paid out of pocket". (The listing cost a little extra).

 

Either way the illustration shows the retail rates "padding" helps cover your padding and materials (see what I did there 😉) so you can offer buyers your at cost rate, but your 100% justified to keep it the way it is.

Message 5 of 10
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Re: How does ebay decide on a calculated shipping price in my listing?

Pre GA when we used "Parcel Select" there was no need to use the "offer discounts to buyers" as there "was no discount".  It was only an "online" amount. Now as posted, with GA there is, in some instances, quite the difference in cost where distance is involved between buyer charge, and seller "online label" cost.

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Re: How does ebay decide on a calculated shipping price in my listing?

too late to edit

 

1st Class vs GA. There before GA I tried to list "flat rate" at an amount that would cover shipping cost to zone 8. Now with GA I still do the same. My "flat" cost does not look that "out of line" when compared to "retail". Of course, there will always be buyers that think anything except for.......... "free shipping" ..........is out of line.

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Re: How does ebay decide on a calculated shipping price in my listing?

You are absolutely correct. I already thought of that so I decided to go with the ebay discounted rate for the buyer and then I tacked on a handling charge of $2.00. I roughly calculated my packaging materials per order and the handling charge covers it. As for gas to the post office, no issue. The post office is 4 blocks from my house. But the way you say to use the retail rate is also a good idea so I will try one way for a while and then decide to switch maybe. Thank you for your insight!!

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Re: How does ebay decide on a calculated shipping price in my listing?

I figure most people who offer free shipping probably add at least some of it to the item's cost.

Message 9 of 10
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Re: How does ebay decide on a calculated shipping price in my listing?

You are very late commenting on this thread from August 2023.

When I used free shipping the entire shipping costs went into the price of the item so my buyers paid it.

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