Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Wed Apr 17 2024 17:03:25

What eBay Should Do to Make New Shipping Policy Palatable

By: Ina Steiner

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Even as some marketplaces have begun reducing selling fees or even shifted fees from sellers to buyers, eBay is doing what is, in effect, the opposite. It sent an email to sellers on Wednesday, April 17, informing them it would be passing along shipping discounts it currently offers sellers to buyers instead.

The new policy impacts only sellers who use Calculated Shipping, and eBay said sellers who use Calculated Shipping can opt out of the new policy, which goes into effect on May 15, 2024.

eBay's email to sellers on Wednesday read as follows:

Hi (REDACTED),
We're reaching out to let you know that, starting May 15, your listings that display calculated shipping will default to showing eBay Labels discounted shipping rates. The new default rates will apply to all of your active and future listings that offer calculated shipping; listings with free or flat rate shipping won't be affected.

We're making this change to help your listings attract more buyers by offering a lower shipping cost. To get the discounted rate that will be displayed on your listings, make sure to purchase your shipping labels through eBay Labels.

If you want to opt out of this change, just let us know here by May 13 and we won't make any changes to your current shipping rates. You can also switch back to showing standard rates at any time after May 15 through your shipping discount settings.

Please note that this change will only apply to sellers receiving this email.

Thanks for being part of the eBay community.

Sellers don't view the savings from the Calculated Shipping discount as 100% profit, since eBay charges sellers a commission on the total shipping amount that buyers pay. For example, one seller who asked for clarification wrote the following: 

"Question: A hypothetical case - at present, buyer pays $5 for postage but discounted postage is $3. eBay takes their cut on the $5 and I pay $3 so I am still in the black. However, if the buyer is offered the $3 discounted rate AND eBay still takes their cut, I will be in the red if I purchase the label for $3. Do I have this correct?"

An eBay moderator didn't respond to that seller directly, but responded to another seller who raised a different issue in the discussion thread; the eBay moderator replied:

The Shipping team wanted to reach out and share the following: 

"Thank you for your response. We are aware of the limitation of cubic rates being applied for combined shipments - we will implement a solution that will prevent cubic rates from being applied at checkout for combined orders with calculated shipping before May 15."

Some excerpts of the reaction from EcommerceBytes readers to the new policy included the following:

"This could only make sense to an MBA living west of the Rocky Mountains."

"eBay has finally totally lost its mind."

"WTH is eBay trying to pull now? Taking away our 'show retail rates' shipping?? No freaking way jose."

If eBay wants to incentivize sellers to stay in once it rolls out the policy next month, it should stop charging sellers commission fees for items shipped using Calculated Shipping where sellers are willing to pass on the discount to buyers. eBay would no longer profit from shipping costs on such items, but its justification for rolling out the new policy is to "attract more buyers by offering a lower shipping cost." Some sellers might actually embrace the policy instead of renouncing it.

For those unfamiliar with eBay Calculated Shipping, check out this YouTube video posted by online seller Vickie of Avante Avenue.



Comments (57) | Leave Comment | Permalink

Readers Comments

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by: Vigilant Eye On eBay This user has validated their user name.

Wed Apr 17 18:12:39 2024

As all of my shipping labels are purchased through Pirate Ship, I never received a copy of the referenced shipping discounts email.

Nevertheless, I will keep a close eye on any changes to my eBay seller policy settings.

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by: lancecorp This user has validated their user name.

Wed Apr 17 18:32:36 2024

I did receive this letter and opted out. My prices are more than competitive. For the little I receive with an Ebay label - I probably break even when considering Ebay's take and the fact they are charging me fees that include shipping. I do use Pirateship if it's cheaper. I use other venues and only started to resell again after our move - if they give me too much grief - I'll leave again.

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by: Overthere This user has validated their user name.

Wed Apr 17 18:35:02 2024

I have 4 ebay accounts for selling different items. I got an email on 2 of the accounts. I use pirate ship. No way am I going to give a buyer my shipping discount. I already opted out for one of my accounts.
I tried to do the other one and it popped up saying you are only allowed to do one a day.

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by: ebayout This user has validated their user name.

Wed Apr 17 18:43:44 2024

I do fine using Pirate Ship and reasonable fixed shipping. And it's a moot point with low cost, low weight items when offering free shipping.

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by: Shanna This user has validated their user name.

Wed Apr 17 21:07:47 2024

"eBay would no longer profit from shipping costs on such items,"

eBay profits plenty on their shipping labels, anywhere from 25 to 80%. They just double dip by charging a FVF on shipping.

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by: terry55 This user has validated their user name.

Wed Apr 17 22:42:28 2024

I never got the email, about 20% of my items are calculated, good thing I seen the threads about it. I did click on a copy of a email sent posted on the thread and opted out
If ebay wants the sellers to take a huge cut, they should STOP charging FVF's on shipping. They charge me 13% on my shipping, if a large item cost $30 to ship, they want me to eat their almost $4 bucks please the cost of the box and packing material. NOPE

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This user has validated their user name. by: Bill

Wed Apr 17 23:17:16 2024

I got the email and immediately opted out. I only use Pirate Ship for GA and I use eBay for small items but that will soon be ending since all items are not selling unless you are giving them away.
They are obviously having problems with the amount that is being sold on eBay and our trying to figure out ways to get more sales.
The problem is that eBay is old and the system is broken so the buyers are leaving are leaving.
The more that they keep fooling with everything soon the sellers will be leaving and it will be a shell of its self.

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by: None Such This user has validated their user name.

Thu Apr 18 00:42:22 2024

I received the email notification and promptly opted out.   No freakin’ way.  Bad enough that eBay already takes a commission from us on shipping,  And now this.  Keep your hands off my shipping costs and how I manage them, eBay.  

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by: Plain1 This user has validated their user name.

Thu Apr 18 00:43:17 2024

I still think it's illegal to charge FVFs on Shipping.
Just leave it alone, one what or the other, I will add a handling fee, I make money on shipping thru ebay as it stands, now they want to take that away.
Stupid. Boxes and packing cost me a fortune and labels cost me too.
If a buyer really wants an item bad, the don't really care about shipping.

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by: my2cents This user has validated their user name.

Thu Apr 18 01:57:49 2024

I got the email today too and I did as many here have.  I opt'd out of the program right away.  I don't like the program, so I won't be participating in it.  Thank goodness it is optional and we don't have to use it.  This change could have been worse.

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This user has validated their user name. by: COVID-19

Thu Apr 18 02:14:13 2024

Just one of the many eBay "Magical Innovations". More to come. Bet.

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by: wrslss1222 This user has validated their user name.

Thu Apr 18 05:05:53 2024

I have been selling on eBay for about 12 years and have been a member for 23 years.  I used to charge buyers for shipping but about 7 years ago I changed to absorbing the shipping cost.  I have found that my sales did increase.  

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by: Chicago48 This user has validated their user name.

Thu Apr 18 05:28:41 2024

Is EB the ONLY site that takes a cut of the shipping fees?  I think AMZ does too; right?

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by: Chicago48 This user has validated their user name.

Thu Apr 18 05:31:16 2024

Anyway, I don't use the calculated rates.  I use the shipping policy and setup various categories with shipping prices.  However, I will say this:  I've had several high bids that didn't pay and just walked away from the sale.  And I suspect that it's because when they go to the checkout cart the final amount is almost double what they bid.  
I know for me, a consumer, I've done that.  Once I went to buy a "widget" that cost $32 and in checkout there were shipping and taxes that totaled $46.  I walked away from the checkout cart.

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by: HappyOne This user has validated their user name.

Thu Apr 18 06:16:26 2024

What start date changed to April 16? This was as top of my HUB page this morning: We’re updating the default rates shown for calculated shippingWe’re updating the default rates shown for calculated shipping
Starting April 16, buyers will be offered eBay discounted shipping rates by default on your listings with calculated shipping.

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by: I_Fix_Dolls This user has validated their user name.

Thu Apr 18 06:28:44 2024

I am pretty sure all sites take a cut of the shipping fees. This is due to the old days when some stupid sellers put up items for $1 and then charged $50 shipping for some inexpensive item on an auction.

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by: Surplus This user has validated their user name.

Thu Apr 18 07:00:22 2024

These Ebay morons have yet to figure out shipping cost is more than the the postage cost.  We pay for boxes, packing materials, tape, labor, etc.  This stuff isn't free.   This is part of the cost of the shipping and we CHARGE for it.  We won't apologize for running a business professionally at a profit.  Our shipping costs are non-negotiable period end of discussion.  If you don't like the shipping price take your business elsewhere we got stuff you can't get anywhere else so you'll be back.  

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by: clu3 This user has validated their user name.

Thu Apr 18 07:14:26 2024

I guess eBay thinks the boxes, envelopes and packing material sellers use to ship are free?

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by: mrbooshay This user has validated their user name.

Thu Apr 18 07:49:09 2024

I didn't receive the email and have a lot of calculated shipping items. Where can I opt out of this?

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This user has validated their user name. by: Rexford

Thu Apr 18 08:16:38 2024

So eBay is giving the buyers a discount on the shipping label that the buyer doesn't even purchase?   I see the so called magical innovation team at eBay has gotten together once again and come up with more ideas to bleed the sellers.

I'll stick with Pirateship thank you very much.

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