Shipping costs are a big deal for both buyers and sellers. Buyers want free shipping or the lowest priced shipping they can find and sellers need to keep their shipping costs as low as possible. For Small Business sellers on eBay, Poshmark and Amazon, managing shipping costs can sometimes mean the difference between profit and loss on a sale.
Today Poshmark increased their flat-rate shipping charge and USPS, FedEx and UPS increase their rates basically every January. Each marketplace has their own way of dealing with shipping charges. This article will focus on Small Business sellers on eBay, Poshmark and Amazon to see which marketplace is offering the best value to sellers for shipping rates.
Let’s start with eBay.
eBay offers discounted rates that they have negotiated with USPS, FedEx,
- Higher placement in search results.
- Highlighted Fast and Free promotions on listings
- Discounted selling fees of up to 20% off
Do these incentives cover the cost of your actual shipping? Only you can make that calculation for your specific situation. See our comparison below for what numbers we used to look at each marketplace shipping charges.
Amazon reimbursement
Amazon’s selling fee structure includes giving sellers a “reimbursement” for shipping charges. These fees are listed below and you can see that some categories are flat-rate and some use a calculated rate of reimbursement. We will use the calculated rate for our comparison below.
If you are a Professional Amazon Marketplace seller, the rates are different and there are more options such as the Fulfilled by Amazon program that makes your items eligible for the Prime 2-day shipping service. We will not be comparing the Pro shipping rates in this article.
Poshmark flat-rate
Today Poshmark announced an increase in their flat-rate shipping program. Unlike eBay and Amazon, the focus is not on free shipping – buyers are expected to pay a flat-rate for most orders. There are shipping discount programs in place for sellers to offer, but for the sake of this article, we’ll be focusing on the standard Poshmark flat-rate shipping.
There’s been lots of comments and complaints about the shipping increase on Poshmark today on social media. Is this flat-rate still a good deal for buyers and sellers on the platform? Let’s jump into the comparison and find out.
Comparison of eBay, Poshmark and Amazon Shipping Charges
The Poshmark flat-rate shipping charge is now $6.79 and covers nationwide shipments up to 5 pounds with no dimension restrictions, using 1-3 day USPS Priority Mail. Since this is the only marketplace rate that is not calculated, let’s start with this one.
Poshmark: 5lbs, nationwide, no dimensions = $6.79
Using the eBay shipping calculator, let’s select a 5-pound package using the standard USPS priority box dimensions of 12” x 12” x 6” and let’s ship the box from California to New York. Here’s what the discounted eBay rates look like:
All rates calculated with the following data: 5lbs, CA to NY, 12 x 12 x 6 box
- USPS Priority (1-3 days) Disc Rate = $20.40
- FedEx SmartPost (2-8 days) Disc Rate = $14.04
- FedEx Exp Saver (1-3 days) Disc Rate = $37.65
- UPS Ground (1-5 days) Disc Rate = $18.84
- UPS 3-Day Select Disc Rate = $45.73
You can run your own eBay shipping calculations here
One nice thing about eBay is you can get discounted rates at all three carriers and quickly view the rates when shipping orders.
Now let’s see how Amazon shipping reimbursement rates compare to eBay and Poshmark. We will use the calculated rate shown in the rate table above for the sake of this comparison at $4.49 + $0.50 per pound.
Amazon shipping reimbursement for a 5lb shipment = $4.49 + $2.50 = $6.99
In this case, you will receive a $6.99 reimbursement from Amazon to cover the shipping charges. Can you ship that 5-pound order from CA to NY for $6.99? Many companies offer discounted USPS
ShippingEasy USPS discounted rate 5lbs, CA to NY, 12 x 12 x 6 = $20.40
Looking at the above comparison, if you’re a Poshmark seller, shipping 5- pound shipments across the country, you’re getting a great deal – actually, your buyers are getting a great deal and you’re being released from the “Free Shipping” trap that so many other marketplaces push you into.
Poshmark = Clear Winner
Of course, there are all kinds of options and details that you can change, such as delivery zones, lower weights, regional and flat-rate packaging for USPS or First Class mail for shipments under 16 ounces. The purpose of this article was to just look at the “worst-case” shipment scenario, the 5-pound box from CA to NY and see which marketplace is offering the best price.
What’s your take? Do you have a better deal on shipping services that you can share with others? Use the comments below to post any tips or tricks you may use to get better shipping rates – we’re all in this together and helping each other is a reward in itself. Cheers!
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