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.