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Mon June 6 2016 22:30:07

eBay and PayPal Charge Different Rates for Online Postage

By: Reader

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Dear Ina,
For at least the last 4 months there has been a difference in the cost of shipping USPS priority mail depending on whether the shipping process is begun on eBay or PayPal.    

If one goes to one's eBay sold page and clicks on ship now it, the cost of shipping is less than if you begin the process of ship now on PayPal. For instance, this morning I had a package that cost $10.04 when the process is begun on eBay or $10.35 when begun on PayPal.  

I discovered this a few months ago when I was receiving "System Unavailable" messages when attempting to print labels from PayPal. I was told by a PayPal rep that they were aware of the error message and it was suggested that I start the process from my eBay page. It was then that I discovered the price difference. It has been consistent. 

Oh, and now, occasionally when I attempt to print the lower cost label from eBay, I get the same "System Unavailable" message that I previously got when originating the transaction on PayPal.

This all sounds rather confusing....but please, just try to originate "Ship Now" from eBay and also from PayPal and you will see the difference which is quite costly and patently unfair!
D.




Comments (23) | Permalink

Readers Comments

eBay and PayPal Charge Different Rates for Online   eBay and PayPal Charge Different Rates for Online

This user has validated their user name. by: Philip Cohen
Web Site

Tue Jun 7 00:08:43 2016

Could the difference between the eBay cost and the higher PayPal cost be the 30c base fee that "PreyPal" charges on all transactions?

Regardless, contrary to what "PreyPal" claims, and some naive sellers believe, PayPal's merchant discount fees are the highest of all payments processors ...

eBay and PayPal Charge Different Rates for Online   eBay and PayPal Charge Different Rates for Online

This user has validated their user name. by: Marie

Tue Jun 7 02:23:44 2016

Ebay and PP now are separate companies, therefore they each are responsible for negotiating rates with USPS and other carriers.  Priority mail is one of those rates that can be negotiated and therefore will vary from site to site.

USPS FCP rates remain the same between the two sites because these rates are not negotiable and are just the commercial rates offered to all online postage providers.

eBay and PayPal Charge Different Rates for Online   eBay and PayPal Charge Different Rates for Online

This user has validated their user name. by: toolguy

Tue Jun 7 09:34:27 2016

$10.35 - $10.04 = .31 cents

Paypal doesn't charge .31 cents on transactions!

So much for that theory. . .

eBay and PayPal Charge Different Rates for Online   eBay and PayPal Charge Different Rates for Online

This user has validated their user name. by: Marie

Tue Jun 7 12:54:27 2016

@Phil

PP does not have an additional fee on shipping labels.  What you are referring to is the transaction fee for receiving money from a customer.

I have not experienced PP claiming to be the lowest fees in the land for payment processing.  However they are for the choices we have on Ebay.  But that isn't why I use them primarily.  I do so because most sellers prefer PP.  To not accept PP would only further reduce my sales.  I have no intention to create such and intentional hardship on myself.

@toolguy

PP most certainly does charge a 30 cent transaction fee.  Phil just had that mixed up with a possible fee on shipping labels.  PP use to charge a 7 cent label fee, but they dropped that many years ago.  Amazon still charges a label fee.

eBay and PayPal Charge Different Rates for Online   eBay and PayPal Charge Different Rates for Online

This user has validated their user name. by: Rexford

Tue Jun 7 14:14:01 2016

Marie says "I do so because most sellers prefer PP".

Did you mean most buyers prefer PP?  I don't know of many sellers who prefer PayPal. Unfortunately we are stuck with it.

eBay and PayPal Charge Different Rates for Online   eBay and PayPal Charge Different Rates for Online

This user has validated their user name. by: Marie

Tue Jun 7 14:17:05 2016

@rexford

Yes, thank you for pointing that out.  I certainly meant buyers. As a seller, I've been fine with PP as well, however I know there are horror stories out there that are real.  

eBay and PayPal Charge Different Rates for Online   eBay and PayPal Charge Different Rates for Online

This user has validated their user name. by: toolguy

Tue Jun 7 14:46:10 2016

@ Marie

I know Paypal charges .30 cents, I've been using it for 15 years!

My point is .31 cents is NOT .30 cents

eBay and PayPal Charge Different Rates for Online   eBay and PayPal Charge Different Rates for Online

by: XebayX This user has validated their user name.

Tue Jun 7 15:58:40 2016

In my opinion, the BIG issue here is that eBay labels is so frequently unavailable when needed, and most of the time PayPal Multi Order Shipping  won't import eBay orders of 2 or more items, never imports orders generated through eBay's promotion tool, forcing me to either print the label through eBay (which doesn't function 70% of the time), or print a single label through PayPal shipping, which does not print correctly for me (the F (for first class) on the label displays properly, but prints upside down) unless I open the actual Adobe Reader (instead of PayPal's default pdf program) by using the ''open in different reader'' button.
Some orders take me 10 minutes to find whatever happens to be working when it used to take me less than 30 seconds.
New label ''Experience''. Aren't we lucky.
BTW- All of the 1st class rates seem to line up.

eBay and PayPal Charge Different Rates for Online   eBay and PayPal Charge Different Rates for Online

This user has validated their user name. by: Marie

Tue Jun 7 17:01:58 2016

FCP [first class parcel] lines up because those are NOT negotiable rates.  USPS offers what they offer period.  There is no additional discount available for ANY online provider of postage.

But for Priority mail, those prices can be negotiated, which is why you will see some sites with different rates.  Those sites however have to be careful as Amazon learned the hard way.  When they do negotiate a better rate, their contract with USPS requires them NOT to publicize or advertise the rates.  

Earlier this year Amazon negotiated some very good PM rates.  They then announced those rates and lots of people here and elsewhere were quite upset that Ebay didn't get as good of rates.  A couple weeks later Amazon lost that additional discount because of what they did.  

eBay and PayPal Charge Different Rates for Online   eBay and PayPal Charge Different Rates for Online

by: exdwh This user has validated their user name.

Tue Jun 7 17:28:37 2016

Why doesn't the OP mention actual weight, service and postal codes?

eBay currently has the best rates for First Class Package International. It's worth making an international buyer purchase a $0.99 item so that I can print the shipping label on eBay.

--David

eBay and PayPal Charge Different Rates for Online   eBay and PayPal Charge Different Rates for Online

This user has validated their user name. by: Marie

Tue Jun 7 17:31:07 2016

@exdwh

The OP was specifically talking about Priority mail.  Weight isn't always a factor depending on which method of PM they are looking at.

I agree with you on FCP International.  Ebay did a terrific job negotiating that rate.  It is about 15% less than other sites.

eBay and PayPal Charge Different Rates for Online   eBay and PayPal Charge Different Rates for Online

by: grumpwell This user has validated their user name.

Wed Jun 8 15:17:42 2016

Ebay offers additional shipping discounts to TRS or PS. This discount is not available for labels printed on PayPal.  

eBay and PayPal Charge Different Rates for Online   eBay and PayPal Charge Different Rates for Online

by: Paul W This user has validated their user name.

Thu Jun 9 01:02:16 2016

eBay's rate for domestic FCP is exactly the same as if you applied stamps to the parcel.  So buy stamps on eBay at a discount, order the #400 tracking label from usps.com, then throw your parcels in the bin.  Or have your carrier pick them up.  This will save money on all parcels up to 13 ounces, and no lines to wait in.  

eBay and PayPal Charge Different Rates for Online   eBay and PayPal Charge Different Rates for Online

by: Paul W This user has validated their user name.

Thu Jun 9 01:02:53 2016

Correction:  Save money on parcels up to 8 ounces.

eBay and PayPal Charge Different Rates for Online   eBay and PayPal Charge Different Rates for Online

by: Lightning This user has validated their user name.

Thu Jun 9 01:36:22 2016

Marie is correct about the reason for the difference. Ebay negotiated a better rate because more volume goes through their site than Paypal.  Both Paypal and Ebay were able to combine their volume in the past, but no longer.  On Paypal, you get about a 5% discount from USPS retail.  Ebay can get to 24% off.  International Priority is around that, too.  Something that costs $70 to ship on Paypal (international) might be around $55 on ebay.  Also, ebay offers Regional Rate labels while Paypal doesn't.  You can insure international packages on ebay past the automatic $200, but on Paypal you can't add any.  That is a recent change, too.  As far as this being ''unfair'', as the OP states, they can do whatever they want.  They have no obligation to be the same. Here's your solution - pick the one that works the best for the least money, like we do in all the other aspects of life.

eBay and PayPal Charge Different Rates for Online   eBay and PayPal Charge Different Rates for Online

This user has validated their user name. by: Marie

Thu Jun 9 02:24:46 2016

@Paul

Ebay's rate for FCP Domestic is not the same as if you were to apply stamps or take it to the post office to purchase postage.  Ebay offers the same rates for FCP Domestic as ALL other online postage providers.  They all get the Commercial Rate, which is cheaper than stamps other than the 1-3 Oz packages.  With that said, currently the PO is trying to get that rate raised [on the 1-3 Oz FCP Domestic] to go into affect in August if it gets approved.

eBay and PayPal Charge Different Rates for Online   eBay and PayPal Charge Different Rates for Online

by: Tiffee Jasso This user has validated their user name.

Thu Jun 9 03:28:33 2016

I think the real problem is "system unavailable" for about a third of the time you want a label using Ebay label system.
The "system unavailable" appears to be  at Paypal's site. However, you can go directly to Paypal and make the label there and pay more.

So my question would be is who is at fault for forcing sellers to go off Ebay and to Paypal to get a shipping label? Maybe someone at Ebay ought to find out.  

eBay and PayPal Charge Different Rates for Online   eBay and PayPal Charge Different Rates for Online

by: GotToGetOut This user has validated their user name.

Thu Jun 9 07:31:20 2016

Tiffee Jasso, I agree -- someone hat Ebay should figure out what's wrong. I KNOW they have to make money on shipping so this is an opportunity for them.. Why would they want to have people go to Paypal to ship even if it is more money?

I have the same problem as Tiffee, my computer sits in buffer zone for a long time before I can process and oftentimes just ends as uncompleted. Other times, it is in the butter zone at the end of the processing and just stalls there but if I go into the label area in My Ebay, the order has been processed and I can print it from there.

I have so few sales now I can actually handle this every few days when I have a sale. Years ago, I used to have 10 sales a day and might have to ship out 20 orders on a Monday. I would have to spend 20 hours just processing those through Ebay with the way the system works now. Now I start my order and walk away to make coffee. Then I have to walk away and do something while I wait for the class of service to pop up. After that, I have to walk away and wait for the weight to pop up. It doesn't seem to take quite as long for the actual price for the requested service to pop up. About half an hour for every label I try to print. That's ridiculous! I thought it was my provider service but now I'm thinking it is Ebay since others are complaining. Either that, or some change in Ebay's system is causing the problem since I can get the labels printed in Paypal. (But others can't get them printed in Paypal).

eBay and PayPal Charge Different Rates for Online   eBay and PayPal Charge Different Rates for Online

by: minnie This user has validated their user name.

Thu Jun 9 12:14:45 2016

I use ebay shipping 99% of the time.  It rarely fails for me, and when it does, I just try again later.  I do prefer ebay because of the Commercial Plus rate I get for being a Top Rated Seller.  I have another seller account that is not top rated.  If both accounts only have first class parcel postage to pay for, I will use Paypal, because my TRP discountdoes apply.  However, the "new" Paypal doesn't appear to have multi-order shipping so I do try to avoid using it if possible, and switch to the Classic Paypal to create my labels.

eBay and PayPal Charge Different Rates for Online   eBay and PayPal Charge Different Rates for Online

by: minnie This user has validated their user name.

Thu Jun 9 12:16:09 2016

my TRP discount does apply.  (sorry about that).

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