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.

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Readers Comments

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by: RMA49311 This user has validated their user name.

Thu Apr 18 08:32:06 2024

I think this is why you always pad your weights and/or dimensions when you create your calculated shipping listings.  

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This user has validated their user name. by: cfrphoto

Thu Apr 18 09:33:32 2024

Shipping costs are already unsustainably spiraling out of control at rates that exceed inflation. Ebay has failed to apply the eBay Standard Envelope to low-cost lightweight items selling for less than $80 and more than $20, effectively excluding many sellers in the Stamp and other categories from Top-Rated status FVF discount. How can calculated rates be justified for anyone who values their time? I suppose that sellers of fungible, commodity items could benefit, but what is the value for sellers of unique items? Is this policy change another tempest in a teapot for sellers of unique items or is it yet another way for eBay to divide the seller community and pit factions against each other? In any case, residents of San Francisco in 1906 had other things on their mind on this day.

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by: Snapped This user has validated their user name.

Thu Apr 18 09:43:57 2024

“Free Ship” before - seller using eBay ‘service’ (supposedly) gets some discount on the part of THEIR shipping costs that are not, you know, ‘free’.

“Free Ship after - buyer’s ‘share’ of discount becomes moot.  Seller’s (invisible) eBay ‘partnership’ costs no longer discounted.  eBay’s profit increases by keeping their discounts all for themselves.

Meanwhile, they feign magnanimity and trumpet more buyer ‘savings’ in using their ‘service’, with its chorus a typical siren song for the newbie seller - who is the real target demographic here.  That’s why you must be aware enough to opt OUT.

Diabolical.

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by: OnlyPollyPocket This user has validated their user name.

Thu Apr 18 10:00:13 2024

What others have said:  this discount is used to cover my time and materials for shipping.  Opted out, thank you very much!

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by: CBW This user has validated their user name.

Thu Apr 18 10:02:26 2024

I opted out. If I wanted to pass on my discount I would have already done it and priced my items accordingly. All smart sellers will opt out. New sellers won't know and will get shafted until they figure it out. If they force it then item prices go up or handling is added. Both will make Ebay uncompetitive in the online market.  

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by: railady This user has validated their user name.

Thu Apr 18 10:20:50 2024

Would someone please tell me HOW TO FIND the "Opt out" link in my eBay deller account?   I want to check to make sure I am not "opted in."  Where would I go to Opt out ?? is it in Seller preferences ?  (THANK YOU in advance)

I never received any email from eBay.  I use Pirate Ship but twice in the past yea used eBay labels in an emergency.  

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by: railady This user has validated their user name.

Thu Apr 18 10:21:13 2024

Sorry, "Seller" account ....  

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This user has validated their user name. by: toolguy

Thu Apr 18 10:25:45 2024

I charge $10 for most of my items.

I ship mostly Ground Advantage these days but still use a lot of Small Flat Rate boxes and Padded Envelopes.

$10 always me to make up the 15% eBay charges on shipping.

Maybe eBay should give up it's cut of the shipping "profit" instead of asking us to do so.  

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by: cathy This user has validated their user name.

Thu Apr 18 10:28:25 2024

I got the email for 2 of my accounts and only one opt out was allowed, so I used their link for changing your shipping discount settings.  I was surprised to discover that I had already been opted into this program - on both accounts! And opting out on the one account did not change that setting to the standard rates - it was still set to offer the discounted rates to buyers!  I strongly recommend that sellers check out their shipping discount settings if they want to make sure they have opted out. The link is in the email after the opt out link.  

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This user has validated their user name. by: toolguy

Thu Apr 18 10:29:28 2024

The use of eBay labels could become mandatory on it's site.

I see the writing on the wall.

Sellers like myself who charge a flat fee or sellers who use Pirate Ship are going to lose our freedom of choice.

There's more profit in it for eBay if they force everyone to use "eBay Labels"  

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by: railady This user has validated their user name.

Thu Apr 18 10:42:55 2024

To add to the above  - I just looked at the Avante Avenue video by Vickie - and am more confused than ever, because I have never even SEEN, let alone USED, the ''form'' she shows where there is a place to click to choose ''Calculated Shipping.''

Is this in ''Seller Preferences'' or ''Shipping Preferences'' somewhere ??? (that I've not been able to find)  I'm in MP but do not have a store; I don't list enough to pay listing fees because I do not list the 250/month, even. I was so hoping the video would apply to me, but it apparently doesn't !!!  

Is this in the ''new'' listing form we're supposed to be using, EXCEPT (I'm not shouting, just trying to emphasize) I am not using that form - I'm mostly clicking on an already created active listing to ''SELL SIMILAR.''  This lets me in weight and dimensions,and choose up to 3 shipping choices.  IMHO this is ''calculated'' shipping, because I've plugged in the numbers for the Ebay system to show in my active listings and then use to charge buyers.  

I know many of you are doing FAR more volume selling than I am, but i greatly appreciate the help and suggestions here !!!  I use PirateShip and am grateful for the discounted postage because it helps significantly with buying shipping supplies.  

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by: OnlyPollyPocket This user has validated their user name.

Thu Apr 18 10:51:15 2024

@railady

I didn’t get the email either but this is where I found to opt-out:

Seller Hub>Overview>Shortcuts>Site Preferences>Shipping Preferences>Shipping Discount Settings and click on “edit” to the right. Select “Standard Rates Without Discount” and then Save

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by: mazelgirl This user has validated their user name.

Thu Apr 18 10:52:23 2024

At first I got excited thinking I wasn't included but I went into my messages and there it was.

eBay could improve sales if they just stopped messing with search.  Just list the items in order and trust the buyers to find what suits them.

Then they could just stop messing with the fees such as this one.  I use the overage to cover shipping supplies to pay eBay their percentage of the fee. I don't keep one penny of the shipping amount.

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by: BlueDenim This user has validated their user name.

Thu Apr 18 11:15:22 2024

@Chicago48 Etsy also takes a cut of the shipping.  

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by: ThebigR This user has validated their user name.

Thu Apr 18 12:51:19 2024

ebay could make it mandatory for any sales made on their site then you just inflate the weight easy peasy...  

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by: my2cents This user has validated their user name.

Thu Apr 18 13:27:33 2024

@Happyone
That was a mistake they made stating the April date.  They are in the process of updating everything to the May date that was in the email.

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by: my2cents This user has validated their user name.

Thu Apr 18 13:29:20 2024

All sites that offer shipping labels, whether it is Ebay, Amazon, Pirateship, Stamps.com, etc make money from offering this service.  I've never been able to locate anything that tells us how much they make, but the ALL make money off of offering the service.

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by: my2cents This user has validated their user name.

Thu Apr 18 13:37:51 2024

Ebay understand that there is more costs to shipping than just the actual carrier cost.  That is why for years there has been a spot in the Calculated Shipping program to enter an amount for a handling fee.  

Many have likely heard of or seen shipping being called S&H, which stands for shipping and handling.

While I personally won't use this new option / tool, it is just that.  We are not forced to use it, you can opt out.  There is a link in the email to allow you to do just that.

Its like Promoted Listings, it is a tool.  Use it or don't use it, it is your decision.  Some seller like this new options, others don't.  Some like Promoted listings, some don't.

FYI, this upcoming new option has NOTHING to do if you use Ebay for shipping labels or some other site.  If you use Calculated shipping and do not opt out of this program, you will be giving the buyers the discounted rate.  It is NOT predicated on that you have to use Ebay shipping services.  At least not that I've read anywhere.

Ebay leaves it to each seller to decide if they want to tack on a reasonable handling fee or roll the costs of shipping into the price of the product.  Lots of sellers do it by adding it to the costs of the product and lots of sellers charge a handling fee.  It is just a personal preference on how they want to do it.  As long as it is reasonable, it usually works.

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by: my2cents This user has validated their user name.

Thu Apr 18 13:45:12 2024

@Tool

That is not true.  This new tool ONLY affects sellers that use Calculated Shipping.  It has nothing to do with who you buy your shipping labels from nor does it affect any seller that offers Free Shipping or stated shipping.  It is strictly those using Calculated shipping.

This new tool has NOTHING to do with forcing sellers to use Ebay labels.  You can still use anyone you want.  This tool is all about how much the buyer will be charged and therefore pay the seller.  Where the seller purchases the label is still up to the seller.

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by: ScottLBrown This user has validated their user name.

Thu Apr 18 14:28:51 2024

I was finally thinking of changing from including my s/h in the price to using ebays Calculated Shipping system.  

Remember, calculated shipping is how we tell the customer how much he's paying and what carrier/method we're using.  That rate very rarely matches what we're actually spending on shipping.  

Ebay offers the ability to Discount the rate, but not to RAISE the rate for smaller sellers above rack rates.  Either way, they charge the seller so who cares right?

This new math makes me remember that ebay is notorious for not thinking things through before releasing them.... and not using sellers from different verticals as a test bed for viability.

very sad

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