Etsy Sellers Confused By USPS Priority Flat Rate Variations Due To Zip Code Based Rate Hike
Sellers are confused by apparent discrepancies in USPS Priority Mail rates to some areas as Etsy failed to advise them of recent zip code based changes to negotiated shipping rates available through the platform.
One seller raised their concerns in the Etsy community forum today, believing they were being overcharged for some flat rate labels.
NaturalBodyComfort
As I am trying to purchase my USPS Flat Rate Shipping labels this morning I am noticing that prices are as much as .81 more on some labels and not others! Happening on more than one label!
My shipping profiles are set for flat rate. Etsy please take a peek as I want to ship today but certainly DO NOT am not willing to pay this overage!!! This is WHY I choose Flat Rate so there are no surprises in shipping!!!
...USPS flat rate for a medium box ships anywhere for the exact same price. $15.19 and it is trying to charge 16 on several orders.
What's most likely occurring is that Etsy has implemented the same zip code based rate changes as other marketplaces like eBay and service providers like PirateShip and Stamps.com announced on September 16th - but Etsy does not appear to have warned sellers or provided any public advanced notice.
The change affects negotiated discounted rates these service providers receive from USPS, but unlike the zone based rates shippers are typically used to, this one targets 17,000+ zip codes across the US - mostly in rural or less populated areas.
Liz Morton
The increase is for weight-based and cubic packages up to 20 lbs. using Priority Mail, Priority Mail Flat Rate, and Ground Advantage for delivery to these zip codes.
List of zip codes as an Excel file:
List of zip codes as a searchable PDF:
Unlike Etsy, eBay did put out a public announcement about 12 days before the change, though at the time they did not provide details about the amount of the increase.
A savvy eBay seller worked out that it appears for impacted zip codes, the rates are now the commercial base rate from USPS with no discount for purchasing through marketplace or third party providers.
wastingtime101
A few entries into the eBay shipping calc and we can see how this is working.
- Shipping from any zip code to affected zip codes we are seeing USPS published commercial rates.
- Shipping from affected zip codes to non-affected zip codes we are seeing the deeper merchant rates negotiated between USPS and eBay (that answers the question I asked kyle@ebay upthread).
- Shipping from any zip code to non-affected zip codes we are seeing the deeper merchant rates negotiated between USPS and eBay.
Here are a few specific examples:
90210 CA to 01005 MA (affected zip)
Dm 10x10x10
Wt 5 lb
Ground Adv $14.16 = commercial rate90210 CA to 02108 Boston
Dm 10x10x10
Wt 5lb
Ground Adv $13.44 = discounted merchant rate01005 MA (affected zip) to 90210 CA
Dm 10x10x10
Wt 5lb
Ground Adv $13.44 = discounted merchant rateEdit to add: I ran some tests to see if affected zips have the benefit of cubic rates. They do, but they are the USPS published commercial cubic rates. Ex: dm 6x4x4 wt 10 lb Bev Hills to MA = 0.10 cu Grnd Adv to zone 8 = $8.47 vs non-cubic $19.76
Etsy is very likely also now using the commercial rates for shipments sent to the affected zip codes.
In the example above, the Etsy seller said she is seeing different prices for a Priority Mail Medium Flat Rate box - $15.19 for some orders and $16 for others.
$16 just happens to be the commercial rate price for Priority Medium Flat Rate, according to USPS.
Because this increases only impacts negotiated rates for labels purchased through third party providers not to direct retail or commercial rates from the Post Office, they don't require the same level of authorization or scrutiny from the Postal Regulatory Committee and USPS does not typically make any announcements, leaving it up to the service providers themselves to communicate the new rates to their respective customers.
If Etsy failed to do so, they must put out a public announcement immediately to clear up the confusion - and an apology and credit for the perceived overages wouldn't hurt either.
Have you been caught off guard by this zip code based rate change to shipping prices offered when purchasing labels from Etsy? Let us know in the comments below!
