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Why return shipping labels through eBay sometimes cost more

I always wondered why eBay labels through the returns flow often charge rates higher than the online First Class rate for lightweight items. Never bothered to check the policy pages before today - now I know. Posting this for others who may not be aware.

 

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.

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Re: Why return shipping labels through eBay sometimes cost more

I was prompted to look this up when a friend asked me why they were charged 20 cents higher for a return label than the published online rate.

- Charge was $4.75 for a return label while the current online rate is $4.55.
- Listing form was set at 8 oz and it was shipping to zone 8.
- They purchased the original outbound label from a 3rd party.

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Re: Why return shipping labels through eBay sometimes cost more

Useful information.

How much time, priced at his local minimum wage, did he save by allowing eBay to send the label?

In BC, the minimum wage is 25c a minute, so if he saved at least one minute, he was ahead paying the extra 25 cents.

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