It seems like eBay consistently overcharges for USPS shipping?

[juicydrupes]

If I use, for example the USPS Shoebox - and prepack the item at listing - it seems its always charging a few dollars more than what the actual shipping charge is?

I notice this difference when I print a label. You have to click the "Show More" on the right to show the shipping charges paid by buyer.

Recent example - seller pays $10.20 in shipping  - actual cost $7.64.

Im essentially pre-packing items, that only take days to sell.

I'm not changing anything when I print the label.

So - are my customers are considering my products with exaggerated shipping costs?

[redmodelt]

Printing your label through eBay, you get discounts on postage cost. Those discounts help cover fees, packing materials and time etc. The buyers see the postage cost when they buy so would have been ok with it. When making a listing, if you wish, you can offer those discounts to the buyer. Should be in the shipping section when you do the listing. 

[juicydrupes]

I have never seen any place to offer these "discounts" to the buyer? I know I can charge extra for handling and packaging. But a quick glance - and I see no place to pass these discounts on to buyer.

I find it hard to believe that either ebay or USPS has intentionally created a situation where we sellers are making 3 bucks off a shipping label?

[sapphire_studio]

You might find it hard to believe that it's set up to where you make a slight profit on all those shipping labels but that doesn't mean it's not true. It's just the way it is.  Those that don't buy their postage online and just take it into the USPS counter are paying the same retail prices that the buyers are paying.  So if eBay only charged the buyers the commercial rates for shipping than those sellers would not have enough money to cover the shipping costs they pay.  So eBay just has decided to charge everybody retail prices for calculated shipping and if you decide you're going to take advantage of the commercial rates eBay offers then you get to keep that discount.

 You can always lower the cost of your item by a few dollars. What's really important in the buyer's mind is the total cost that they pay. 

[aprilmoviebuf2000 · Accepted solution]

Buyers are shown the retail rates.
If you wish to offer your discounted rate to buyers, go to
Site Preferences - Shipping Preferences - Scroll down to "offer carrier-specific discounts for buyers"
 click the edit button - under Offer eBay negotiated discount rates - check the box for USPS discounted.  
 Hit Save

[juicydrupes]

When did this happen?

I've always labored under the assumption the USPS discount offered to sellers is passed on to buyers...and that was it sole purpose - to allow sellers to offer cheaper shipping...so you can charge a few dollars more for your item.

And - I have never seen away to pass the USPS discount on to buyers - how is this done?

I'm not in the shipping business...am I expected to calculate profit from the "shipping product" I sell - as a taxable item?

And its not even a "slight profit"...this is almost 3 bucks...thats over 30%!

[juicydrupes]

Thank you - when did this become an option?

Because I don't recall noticing these differences until somewhat recently - and the cost paid by buyer is hidden under the "Show More" tab (when printing a label) - so this disparity is not always evident.

[kensgiftshop]

---

@juicydrupes wrote:

When did this happen?

I've always labored under the assumption the USPS discount offered to sellers is passed on to buyers...and that was it sole purpose - to allow sellers to offer cheaper shipping...so you can charge a few dollars more for your item.

And - I have never seen away to pass the USPS discount on to buyers - how is this done?

---

It's in your shipping preferences.

You can choose to pass your savings on to your buyer or have them pay regular price.

I've been here since 2011 and it's been that way since then.

[juicydrupes]

So - interestingly, when I went to make the changes suggested by aprilmoviebuf2000  - I found USPS was the only service not checked to "Offer eBay-negotiated discount rates."

I've opted into the UPS and FedEx deals as they came to be...but I never remember being able to keep the USPS shipping discount.

[nobody*s_perfect]

---

@juicydrupes wrote: ... I've always labored under the assumption the USPS discount offered to sellers is passed on to buyers...and that was it sole purpose - to allow sellers to offer cheaper shipping...so you can charge a few dollars more for your item.

And - I have never seen away to pass the USPS discount on to buyers - how is this done?

I'm not in the shipping business...am I expected to calculate profit from the "shipping product" I sell - as a taxable item?

And its not even a "slight profit"...this is almost 3 bucks...thats over 30%!

---

The shipping calculator in eBay listings has always defaulted to charge buyers the retail postage cost. Many sellers choose to leave it that way so that the difference between the retail and eBay prices serves as a built-in handling fee to cover fees and shipping materials. The difference varies a lot, and it's usually far less than 30%. As noted in the other posts, the choice to re-set the shipping calculator is in your site preferences, it's not listing-by-listing.

As far as taxes, your buyer's entire payment for the item plus shipping and handling is counted as income, and then you deduct the amount that you actually paid for postage.

[aprilmoviebuf2000]

---

@juicydrupes wrote:

Thank you - when did this become an option?

---

For as long as I can remember.....
Keep in mind too, you have costs associated with shipping, aside from what the buyer pays.  Packing materials, supplies, fees on the shipping cost (fvf fees are calculated on the total the buyer pays, including sales tax and shipping), and your time.  

Here's another tip....if you have an item that weighs 13oz to 15oz (including packing materials), you can input 13 oz into the listing.  That way the buyer will be charged the first class rate.  
Here's why....since there is no retail rate for FC over 13 oz, the buyer is shown Priority rate by default.  But you can print a FC label via eBay for items up to 15.99 oz.  So the shipping charge shown to the buyer is more attractive, so to speak.  Hope that makes sense.  
I bring this up because I noticed a few of your smaller items showing $11.15 shipping cost to me.  This is the Priority retail rate for a 15 oz package.  Likely those items are under a pound, so you can still ship them First Class via eBay labels....but you would have to go in and revise the listings and input 13 oz as the weight.  Even though the item may weigh 15 oz, the rate shown to the buyer and that you pay will be the First Class rate.  Again, hope this makes sense.  

[juicydrupes]

I'll check - I used to have a bad habit of using "1 pound or less" when setting up First Class items. Instead of entering an actual weight. 

[aprilmoviebuf2000]

---

@juicydrupes wrote:

I'll check - I used to have a bad habit of using "1 pound or less" when setting up First Class items. Instead of entering an actual weight. 

---

Yeah, I get it.  Many do the same.  We always put in weight and dimensions, just to be safe and consistent.  
Your items I peeked at that I mentioned before though, show standard shipping (which is first class usually), but at the Priority rate.  
First class changed to zone-based pricing in 2019, and goes in increments of 1-4 oz, 5-8 oz, 9-12 oz, and 13-15.99 oz.  So it would be best to input weights into your listings.  
Wishing you a successful 2023.  

[juicydrupes]

Now - Despite setting my preferences to "Offer eBay-negotiated discount rates" - it seems I have to go back to each listing - and "Revise" it - by Opening...changing nothing - and Saving. Then - the shipping price goes down - and seems to reflect my new Shipping Preferences.

[ms.rodriguez*]

Actually, it's less. Ebay charged you 12.9% on that shipping fee. Use the change to pay for printer ink, paper, tape, shipping supplies, the cost of a printer, etc.   Believe me, you are barely making an profit on the shipping that buyers paid and now Jan.23, there will be another postal increase so if you don't edit your flat rate shipping listings, you might lose money on them.