eBay Switches to FedEx for Return Shipping Labels

by: Michael in BC

This is a nightmare in waiting for Canadian sellers expecting a return from the US.  It won't matter to FedEx if a package is marked clearly "returned property of addressee" - at the door, they will still demand a "cross-border fee", they will still insist on charging full Canadian (Federal GST plus applicable provincial) sales taxes even when advised that the merchandise is not part of a "sale", they will charge a fee to the seller for "processing" the sales tax collected, and they will charge full Canadian taxes on the amount of their extra fees.  An item returned from the US via USPS, marked "returned property of the addressee" just zips through with NO extra fees or taxes.  Never, never, never use a courier service for cross-border returns.  

by: COVID-19

"Real recognizes real." as they say in my 'hood. Or "It takes one to know one", as suburbanites say in their 'hood. Shady eBay knows exactly how shady the USPS is and that's why eBay won't partner with them no more.

by: CT Bay

Having a return automatically approved is one thing. Forcing me to pay for return shipping that’s from a different carrier than I shipped it with is outrageous. Enormous items I shipped UPS returned USPS that exceed USPS limits.
I don’t like FedEx. I don’t want to do ANY business with FedEx. I don’t want to look at a FedEx driver or have a FedEx truck on my property. I don’t want FedEx to get a dime of my business even if its a return. FedEx is going to have a real hard time delivering returns to my address. When I get something FedEx I don’t give them access to deliver it and have to go pick it up. Why would I pick up an abusive return?
The whole send a huge item UPS and get it back USPS has me doing my best to send return labels myself around the ebay system anyway so it probably won’t be to much of a problem for me.

by: Rexford

Easy fix:  provide your own label to the buyer for the return.  Download the label into a pdf or send a link to the label but be sure to do this within the returns case.  Easy to do on a site like Pirateship and very cost effective.

eBay's likely motivation for this is likely a scheme to place more money in their pocket--literally making {MORE} money on returns.  They probably negotiated a sweet deal with FedEx and naturally they will take a cut on the cost of the label.  FedEx labels tend to be more expensive so even better for eBay's new revenue stream.

in 2023, a buyer opened a SNAD and I allowed eBay to provide the label.  My outbound postage was a bit over $5.00 but eBay provided a label to the buyer that cost over $10.00 for the return.  I no longer trust eBay to provide the label.  I will be providing the buyer a return label going forward if they open a SNAD.

by: ebayout

Thanks for the inconvenience. Depending on your discretion, a package can be left for a USPS carrier at your door or in your mailbox. No hassle.
A Fedex package has to be taken to a Fedex location or contractor, or possibly pay a pick-up fee.
Stop the insanity.
Sidenote: It costs a minimum $24 to ship a golf club (or anything over 2 lbs.+ and a min. 30") via USPS. I recently was sent a USPS return label and was charged $12.
Did somebody at eBay finally catch on?

by: Fruitylovesyou

Wow eBay you really want them to go apesh*t don't you?
Your timing is curious.

I am still amazed

by: toolguy

I got a return coming, customer says ordered by mistake.

The package weighed 2 oz

I'll post what it comes back as. . .There's no way Fedex can ship a 2oz package for as cheap as USPS can.

by: UB

Fed Ex sucks. We do not want them to handle our packages in either direction. Most of their drivers leave them anyone so they can be stolen or get wet etc.

by: pace306

EXACTLY what Rex said.

eBay made some kind of back end deal and it doesnt matter what "the NOISE" says or thinks, it doesnt matter that "we are just a platform that connects sellers and buyers" - we will do what WE want and (as Conan said to Crom) "to hell with you".

by: shut1968

What a JOKE!!  A month ago a single DVD return label from USPS was $3.65, last week I agreed to a return and they tried to make me pay almost $7 !!!   I would up having to mail the customer a pre-paid label printed out.

by: Shanna

As noted by several above, eBay's only motivation for doing this, and for not telling its customers, is the money they make on the back end. At one time, they provided the buyer the exact same shipping label the seller used, 1st Class to 1st Class, Priority to Priority, and Media Mail to Media Mail. But eBay only makes a few cents on Media Mail labels going out or in, so they dropped that from their automated choices. Another reason why they charge a higher FVF in media categories, they know they don't make as much in selling labels in those categories.

In a Congressional hearing several years ago when the Post Office was mandated to cover retirement costs of employees and was losing money, a Congressman asked about the deal the USPS gave to Amazon and if they were losing money in that deal. The Congressman asked if the rumor was true that Amazon was paying 20% of the actual costs of postage, and the Postmaster refused to answer the question, noting the confidentiality of negotiation.

If Amazon got such a great deal, then surely eBay, which has to be the number 1 user of the USPS after Amazon created their own fleet to deliver packages, got a similar one. If you sell a $20 item, standard FVF of 12.35% nets eBay $2.47, but if you buy a Priority Mail label for $8, they are making at least $4. If they can convince the buyer to return the item, they lose the $2.47, but gain another $4. This is why they push returns so much.

by: toolguy

@Shanna

"but if you buy a Priority Mail label for $8, they are making at least $4"

You think eBay gets 50% of the shipping cost? I highly doubt that.

by: Old School Seller

@Shanna is absolutely correct!  They are also profiting in a big way with their new Global shipping program.  I stopped selling Internationally when Covid entered the picture.  Prior, and for 23 years, I had always offered it and did great business.  Had a message from an Australian, two days ago, wondering if I could please offer a cheaper shipping method than the $75 eBay calculated. This was for a 1-pound package mind you!  When I politely answered that I don't sell Internationally, they reported that all of my of listings offered Global Shipping. Without warning I had been opted into the program.  Been busy this week and wasn't checking my account because I knew this was going to happen eventually and I wanted to opt out immediately when it happened.  Needless, I promptly did so.  Went to USPS site to check the cost of a 1st Class International one pound to Australia.  It is $37.10 for an item $20 in value.  This means eBay is pocketing $37.90 on the deal, probably to cover their butt IF there is a return.  No wonder they are pushing this new program with a vengence!  What a joke.

by: Snapped

Disregarding the codependency, what is the difference between negotiating an ‘off site’ raw shipping cost - either way - and an ‘off site’ total sale?  Sure eBay still gets their ‘fee’ for nothing (and they say nothing is ever free), but it’s less than if they get to pick the carrier.

by: Casmige

“All-in-All?, It’s just another brick in the wall….”

by: smallstuff

My returns address is a PO Box.  I can't wait for Fedex to try delivering to that.  I know UPS will not.

by: Marie

If this happens on one of my returns, I would never allow Ebay to issue a label again.  I could create and supply my own return label to my buyer.  Fedex is way to rich for what I sell.

by: Sierra

@OldSchoolSeller - eBay international shipping adds on import fees & taxes; that's the majority of the $75 price your customer saw. There may be some profit in it for eBay too, but know that it's not as much as you were assuming.  

by: Chicago48

I will be providing the buyer a return label going forward if they open a SNAD.
^^
How do you do that?  If the buyer wants a return, doesn't EB automatically generate a postage to the buyer?  How can the seller send the buyer a postage, unless they go through EB message system.  We don't have the buyer's email.

by: pace306

This AGAIN demonstrates why eBay should not be involved AT ALL in what sellers do.

"We are just a platform that connects sellers and buyers" ....

That my friends is fraud and theft be deception.

But sure, try spending a few million to drag eBay into court.

They know and we know - most times, bullies get their way.