Does Simple Delivery Profit Ebay?
Summary: beauty557 expressed frustration about eBay's shipping options for an item weighing 2.5 kg, as eBay lacks an intermediate weight category up to 5 kg, causing the buyer to overpay for shipping by £5. boundarycoins and sml192 explained that eBay's insurance and protection policies account for the higher costs, while papso22 noted the influence of eBay’s contractual arrangements with couriers. sml192 clarified that Royal Mail no longer has separate weight categories between 2 kg and 10 kg. c_of_e84 suggested eBay might be using averaged pricing based on parcel volumes and weights.
When listing an item weighing 2.5kgs and needing a Royal mail Medium Box (61cm x 46cms x 41cms) to post uk to UK,I was directed to "Simple Delivery" and Tracking 48.
EBAY Options were up to 2kgs with next band being up to 10kgs. I had to choose the latter of course and Ebay charge of £12.36 came up automatically.
The item sold,was packed and posted and the Buyer paid the £12.36.
Not surprisingly,when I went directly onto Royal Mail's website,they list an intermediate weight band of up to 5kg,which Ebay do not??
This band incurs a fee of only £7.35,would have suited my sold item,so my buyer has actually paid £5 more than necessary.
Ebay do not ask for exact weight,the Seller chooses the appropriate weight band,so Ebay does NOT actually profit from the transaction,but the Buyer
suffers by paying an extra £5 because Ebay choose not to show the "up to 5kg category". WHY???
c_of_e84
·1 week agoEbay will probably be paying an averaging price based on how many parcels and what the average weight and size is, also the modern hubs have the ability to zap the barcodes, measure and weigh each parcel so ebay would pay RM based on cubic size and weight, anything above that ebay keeps.
beauty557
OP1 week agoMany thanks.
sml192
·1 week ago · EditedFirstly, Royal Mail no longer has separate weight bands for 2-5Kg and 5-10Kg, only 2-10Kg. Although there may still be references to those old weight bands on the Royal Mail website the price is now the same for each.
The reason for the higher price with Simple Delivery is, as has already been stated, because eBay provides protection for the full amount sold for whereas Royal Mail only provides cover for what they term as the 'Actual loss' (the amount you originally paid for the item not the amount it was sold for) up to a maximum of £75. You would need to use Royal Mail Special Delivery, which is much more expensive, to get the same level of protection as Simple Delivery provides.
beauty557
OP1 week agoThankyou for this information which explains the cost differential. Very helpful.
papso22
·1 week agoIf course simple delivery favours ebay, they have special arrangements and contracts with the various couriers. The bands that are set out in those contracts are particular to the agreements and will not necessarily follow the bands if you go direct to the couriers concerned. Same goes for prices.
beauty557
OP1 week agoThanks for the info.
boundarycoins
·1 week agoLikely due to the value. Looking at it, I think it’s fair enough as to be properly insured sending it yourself you would have had to use Special Delivery.
beauty557
OP1 week agoI understand.Thanks.