Ebay charging the buyer more for shipping than it is costing me.

Hey everyone, im a new seller on eBay selling for about 3 months now.

Just had a quick question about the shipping fees.

Whenever I print a shipping label the cost ends up being around $2 or more less than what ebay has charged my buyer.

Is this normal? Could it be something on my end? I Have a log for all my items with shipping weights, sizes etc. Which gets copied into the ad so the same size/weight is bring entered when I print the label but it's usually less before the discount printing a label thru PayPal.

I'd hate to end up getting negative feedback for a few dollars, so I'd like for my buyer to pay what it costs me to print the label. I have no problem eating the printing/packing cost as I make my boxes from free boxes i pick up.
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Re: Ebay charging the buyer more for shipping than it is costing me.

Whenever I print a shipping label the cost ends up being around $2 or more less than what ebay has charged my buyer.

 

When you print a Paypal shipping label, you get a discount of 5% to 17% off PO counter prices.

When eBay bills your customer, eBay does not know how you will be paying for shipping.

 

The discount is almost enough to cover your packaging costs (bubble wrap ain't free and your labour is worth 17cents a minute at minimum wage) , fuel fee, GST and perhaps even gas to carry your parcels to the nearest PO.

 

In other words, it's the HANDLING  part of the Shipping and Handling fee you are charging your customer.

 

Nothing to feel guilty about.

Message 21 of 27
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Re: Ebay charging the buyer more for shipping than it is costing me.


@femmefan1946 wrote:

Whenever I print a shipping label the cost ends up being around $2 or more less than what ebay has charged my buyer.

 

When you print a PayPal shipping label, you get a discount of 5% to 17% off PO counter prices.

When eBay bills your customer, eBay does not know how you will be paying for shipping.

 

The discount is almost enough to cover your packaging costs (bubble wrap ain't free and your labour is worth 17cents a minute at minimum wage) , fuel fee, GST and perhaps even gas to carry your parcels to the nearest PO.

 

In other words, it's the HANDLING  part of the Shipping and Handling fee you are charging your customer.

 

Nothing to feel guilty about.


Minor correction. The PayPal discount off PO prices ranges from 8 to 18%, not 5 to 17%.

 

Here is a summary of Canada Post shipping options on PayPal.

PayPal Shipping Discounts (verified 2016)

Canada

- Expedited Parcel 18%
- Xpresspost 8%

USA

- Expedited Parcel USA 18%
- Tracked Packet USA 14%
- Xpresspost USA 9%

International (excluding USA)

- Tracked Packet International 14% (available to 31 countries only)
- Xpresspost International 9% (available to many but not all countries, use International Parcel Air when not available)

PayPal discounts are not available for

- Light Packet USA
- Light Packet International
- Small Packet USA Air (surface discontinued Jan 2013)
- Small Packet International Air or Surface

The following parcel services are not available on PayPal Shipping (but are shipping options in eBay Canada listings)

International Parcel Surface
International Parcel Air

The International Parcel shipping options can be purchased at a Canada Post location. If you have a Canada Post Solutions for Small Business discount card (formerly called Venture One), you can get a 5% discount on the International Parcel shipping options. Please note that the 5% Venture One discount is not available for Light Packet or Small Packet but is available for most other services. The PayPal shipping discounts ranging from 8 to 18% is higher than the Venture One fixed discount of 5% so using PayPal shipping is a less expensive.

The following letter services are available in eBay shipping options but are not available on PayPal shipping options.

- Lettermail
- Letterpost USA and Letterpost International

Remarks

PayPal shipping discounts are compared to over the counter Canada Post rates. If you compare to Venture One rates, Venture One has a 5% discount applied so the discount rates mentioned above must be reduced by 5% for a comparison.

For your information, Canada Post Venture One members 5% discount applies to the over the counter rates for the following services: Expedited Parcel, Tracked Packet, Xpresspost, International Parcel.

 

The full % exact discount may not  be applied. Discounts for each service state "up to X%". Please see the link below.

 

PayPal shipping discounts: http://pages.ebay.ca/sellerinformation/ship-smart/ebay-shipping-partners/canadapost/

Message 22 of 27
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Re: Ebay charging the buyer more for shipping than it is costing me.

After a few months of being away from Ebay,  I sold an item today and Ebay invoiced the buyer $50.00  although the buyer paid immediatelyI am sure he will be wary about buying again. The actual cost for shipping was $32.00  so Ebay is generating more commissions for itself and Paypal. I immediately refunded the buyer the $18.00 excess shipping charge. But I don't think I am going to do business with Ebay again, after being a seller for 18years they have forgot we pay their wages, but greed has taken over.

Villagetime

Message 23 of 27
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Re: Ebay charging the buyer more for shipping than it is costing me.

Can you please provide more information about this? What you are saying is illogical. Item number and buyer location plus postal service selected, please. 

Message 24 of 27
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Re: Ebay charging the buyer more for shipping than it is costing me.

If this is about your 'UNUSUAL BLACK FOREST WALL CLOCK' then please also show us how you've set up for shipping to USA. Maybe you entered an extra zero on International Handling fees.

Message 25 of 27
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Re: Ebay charging the buyer more for shipping than it is costing me.


@villagetimewrote:

... I sold an item today and Ebay invoiced the buyer $50.00  although the buyer paid immediately I am sure he will be wary about buying again. The actual cost for shipping was $32.00  so Ebay is generating more commissions for itself and Paypal. I immediately refunded the buyer the $18.00 excess shipping charge...


More eBay commission? Unlikely.

The Final Value Fee on shipping is based on either your domestic shipping rate or the foreign  shipping rate -- whichever is lowest.

...

A more accurate shipping cost depends on proper weight and proper dimensions being used in the listing.

Size matters for parcel services (but not for USA/International packet services).

Length x Width x Depth (in centimetres) divided by 5000 equals volumetric weight in kilograms. Canada Post will then use the higher of volumetric or actual weight for the shipping cost.

Example item weighing 1.2kg:

20x20x12 box = 0.96kg  -- will use 1.2kg for the cost (no change)

20x20x15 box = 1.20kg   -- will use 1.2kg for the cost (no change)

20x20x20 box = 1.60kg   -- will use 1.6kg for the cost (bumped up to a higher weight category)

If the listing overestimated the size of box that what was actually used the cost given can be higher.

...

In any case, the rate eBay is supposed to use is the Canada Post over-the-counter rate for calculated.  The actual cost can be cheaper if the seller has a Canada Post Solutions for Small Business membership or a commercial contract. In can be even cheaper for Expedited Parcel USA if the label  is bought via Shippo with the eBay extra discount.  And even cheaper if the seller uses a cross border bundler (like ChitChatsExpress) to ship using USPS domestic rates.

...

 

You have tacked onto a Zombie thread from 2016 (which has some out of date info) -- you are allowed to start a new discussion for your current issue(s).

 

-..-

Message 26 of 27
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Re: Ebay charging the buyer more for shipping than it is costing me.

ZOMBIE POST FROM 2016

The problem with zombie posts is that the information and advice will often be out of date and inaccurate.

 

For example, Paypal no longer has shipping discounts. Shippo is now the alternate to Canada Post. The name of the Canada Post discount shipping service has changed.

 

It would be best to open your own new thread so that other advice seekers are not misled.

 

@happy_pigeon

Message 27 of 27
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