eBay Shipping Labels 101

[hebninja43]

I have been selling on eBay for quite a bit here and there and am planning on selling even more soon, but so far I have been going to USPS and shipping my own packages, no labels. More and more I am reading that using the eBay shipping labels choice might save me some money in the long run. So…..can anyone give me a brief answer to these questions please:

1.  What are the benefits of using eBay shipping labels versus buying postage at post office? Is there truly a slight discount?
2.  If I choose to set a flat shipping rate (let’s say $8 for every one item sold) how does the difference get deducted? For example, let’s say buyer pays $8, but shipping comes to $9.50? Does the $1.50 extra come from my payout?
3.  On the flip side, if buyer pays $8 and shipping only costs $6.50, what do I do about the $1.50 shipping that was not needed? I don’t think that shipping will be less than what I set, but there is a small chance it could happen?
4.  Instead of a flat shipping rate, should I make it something else, like calculated? 
5.  Would it be beneficial to buy a shipping scale if I intend to sell more items?

6.  Does free shipping come from my payout from eBay?

I probably have other questions, but that’s all I can think of right now. Any insights from the community would be greatly appreciated. Thank you.

[tdumonde2014]

1. Rates are cheaper with eBay.

2. You pay for the extra shipping.

3. You keep the extra money.

4. It would depend on the item. Calculated shipping allows you to charge the buyer for the actual cost.

5. Yes.

6. You pay the cost of "Free Shipping".

[hebninja43]

Thank you for the quick response. When listing the item for the first time, in the delivery section, should I add the box dimensions and estimated weight of the box or should I just wait and add that information when getting ready to print the label?  Most of the time I have no idea what bag or box I am going to use, but it sounds like I can just mark “don’t know the dimensions” and can just add it later when printing the label. 

[nobody*s_perfect]

You can add the dimensions and weight later, BUT if they are not accurate in the listing itself then your buyer might be charged too much (or not enough) for postage. Most sellers know the box dimensions and weight before they list.  This avoids unpleasant surprises at label purchasing time.

[hebninja43]

Thank you for that answer.  That makes sense. 

[muttlymob · Accepted solution]

You don't have to package up and seal the item before listing.  Just find the box/envelope/packaging that will be needed.  Pile it and the item all on the scale.  Measure the outer dimensions of the package.

Use this information either to calculate for yourself what the postage will be so you can set a flat shipping rate the same for all buyers.  Or to plug the dimensions and weight into eBay's shipping calculator so the postage will be automatically calculated for potential buyers.

As for the overall who-pays-what for the postage, you set the total amount the buyer pays for the transaction of item price and Shipping & Handling (either with a flat or calculated rate in the listing).  Then you use money from this total amount to pay for the postage and any other costs of listing and selling.  If you set shipping as Free, you need to account for the postage cost in your selling price.

Anything left over after all costs of selling are paid can be translated into jelly donuts.  Or whatever you want to use your profit for.

[hebninja43]

That makes perfect sense. Thank you for that explanation.