Ebay 'cheap' postage labels not so cheap

[pnc75]

So much for the save money on ebay postage labels spiel; their 'cheap' postage for a parcel under 1 kg is $18.91! Not real cheap when over the counter at the PO it's $15.25 (and that's without any discount). And no, I didn't have the real dimensions of the box in the ad, I had it reduced to 20 x 20 x 15 and clearly stated the weight as 980g. 

I hate to think how 'cheap' their postage label would have been if I'd put the correct dimensions of 28 x 23 x 14! Would have needed a bank loan!

[purplemon18]

This is because you are using your own packaging and have not hit Auspost's threshold for increasing the price based on size, so they are only charging you for the weight.

Whereas eBay are only really set up to charge by the standard flat rate parcel prices. While your item weighs less than 1kg, it is so big it only fits in an large box.

Base rates:

$9.70 250gram = extra small

$11.15 500gram = small

$15.25 1kg = medium

$19.30 3kg = large

$23.30 5kg = extra large.

So the options are the medium parcel price on Auspost and the large parcel price on eBay.

some other notes

If it is heavier than 5kg then Auspost start charging by "cubic weight" or "volumetric weight" which is a formula that accounts for both weight and size. I get sticker shock at cubic weight prices sometimes.

There are also limits to how big a parcel can be before they start charging by cubic weight, but you are unlikely to encounter anything that big that weighs less than 3kg.

You can always use Auspost's postage calculator on their website to check the cost compared to eBay.

Generally speaking though, when items under 1kg are actually small enough to fit into a small or extra small parcel, eBay are a little bit cheaper than Auspost. This is because of the volume discount that they have managed to negotiate with Auspost.

Aside from that, It stops being cheaper on eBay when you ship enough items to qualify for a Mypost Business discount.

[purplemon18]

Btw, eBay discounts match Mypost Business's band 2 discount rates, so you have to spend more than $500 a month on postage to get a better rate.

[davewil1964]

But eBay gives the discount to the buyer as well as the seller. Nett zero - except for the fees on postage.

In which case AP Band 2 is definitely better for those who are prepared to manage their accounts themselves.

Even Band 1, as the minimal discount helps offset fees. eBay labels do not offset fees.

[pnc75]

Whereas eBay are only really set up to charge by the standard flat rate parcel prices. While your item weighs less than 1kg, it is so big it only fits in an large box.

I hardly think 20 x 20 x 15 cm is large! 

[brickworksmarket]

Thanks to chatgpt I did the numbers on a xsmall satchel and it said you would be better off profit wise using a fixed rate postage charge and then pocketing the savings from a set number of buyers. I used band 4 discounts in the calculation. 

This is its answer. 

"Because most buyers fall into the 19% discount zone but you can’t know their location in advance, charging a flat $9.70 postage gives you slightly more profit per sale on average, but it can reduce how many items you sell because buyers dislike high shipping costs. Charging actual postage and recovering the cost in the item price usually leads to more sales, and even though the profit per item is slightly lower, the higher sales volume typically results in greater overall profit."

[purplemon18]

" eBay labels do not offset fees."

They do if you are not using calculated shipping.

[pnc75]

No, I'm afraid they don't. They're often more expensive, because unlike Ap, ebay insist on cubing all parcels under 1 kg as well as catering to the zone charges. That's what is causing the problems. 

[purplemon18]

"I hardly think 20 x 20 x 15 cm is large!"

This isn't really relevant. An item with those dimensions wont fit into anything smaller than the boxes/satchels that Auspost have called large. However, Auspost only charge you the medium price if you use your own packaging.

[pnc75]

To quote you directly: 'Whereas eBay are only really set up to charge by the standard flat rate parcel prices. While your item weighs less than 1kg, it is so big it only fits in an large box.'

So you made it relevant. with your reply.