eBay Changes When UPS & FedEx Label Costs Are Charged To Sellers

Liz Morton
Liz Morton


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UPDATE 10-12-23

After yesterday's less than helpful eBay Community chat, eBay staff have provided additional clarification directly from the shipping team indicating this change is still moving ahead as planned in a phased rollout.

A seller posted that they had seen the change take effect on two of their accounts, contrary to what had been shared by staff in yesterday's chat.

Re: When is UPS/FedEx going to start being paid immediately?
wrote: Any thoughts anyone from ebay? Eccommercebytes is reporting that ebay “paused” the program to pay upfront for ups/ fedex..... what does that mean? is it going to happen or not? One of my accounts was switched over within the last couple of weeks, and I checked another account an hour ag…

One of my accounts was switched over within the last couple of weeks, and I checked another account an hour ago when I was purchasing labels and that account has been switched over, too.

So to me it seems eBay is still moving forward with this change despite what elizabeth@ebay said in yesterday's chat on this forum. Perhaps she can come back here to confirm one way or the other?

Elizabeth@eBay responded

The Shipping team reached out with the following clarification:

This is still being ramped to all sellers with an expected full ramp soon

Thank you for touching base on this!

Elizabeth also added that same response in the now closed Monthly Chat thread to correct the answer that was previously provided.

Re: Monthly Chat - October 11th at 1:00 pm PST
wrote: eBay stated at the end of August that: In September 2023, shipping costs for UPS & FedEx would be charged immediately rather than after the package arrives. Why did this never start? We are two weeks into October 2023, and I am only now being charged for packages that were sent in the m…

Are you being charged up front for your UPS and FedEx labels purchased through eBay? Let us know in the comments below!


UPDATE 10-11-23

This change has apparently been put on "pause" with no announcement to sellers and no timeline for when it will actually be rolling out, as revealed in today's eBay Community Chat.

Re: Monthly Chat - October 11th at 1:00 pm PST
eBay stated at the end of August that: In September 2023, shipping costs for UPS & FedEx would be charged immediately rather than after the package arrives. Why did this never start? We are two weeks into October 2023, and I am only now being charged for packages that were sent in the middle or…

A seller asked:

eBay stated at the end of August that: In September 2023, shipping costs for UPS & FedEx would be charged immediately rather than after the package arrives.

Why did this never start? We are two weeks into October 2023, and I am only now being charged for packages that were sent in the middle or near the end of September 2023.

If you are going to announce something like you did with banners all over the site, then you need to actually follow through and have it go into affect in September 2023.

When is this actually going to go into effect? Since the original announcement about it lied about when it was going to start.

eBay staff answered:

We did pause this feature, and are unsure of when it will be coming back officially. However, I'll be sure to get this feedback passed along to that team.


eBay is notifying sellers of a change to how they will be charged for UPS and FedEx labels purchased through the site.

Previously, UPS and FedEx showed an estimated shipping cost when printing the label and actual shipping was charged to the seller after delivery.

Now, sellers will be paying up front as soon as the label is printed, with any cost adjustments handled after the fact.

eBay is simplifying the way we charge for eBay shipping labels

Currently, shipping cost estimates for FedEx and UPS shipping labels are provided at the time of printing, and actual costs are charged after delivery. In the coming weeks, we will begin charging for all shipping labels at the time they are printed.

The amount charged is based on the weight and dimensions entered at the time you print your label. If carrier adjusted weights and dimensions are different, you may receive a cost adjustment.

eBay has charged upfront for USPS labels for years, so this change will bring UPS and FedEx in line to provide a consistent experience.

Some sellers are happy about the change, hoping it will clear up confusion about charges coming days or weeks after the label is printed, while others are concerned about shipping adjustments and whether charges will be taken from their available funds or backup funding source first.

UPS & Fed Ex to be billed when the label is printed
This message just started popping up when I print a label: “Starting in September, FedEx® and UPS® label fees will be charged to your funds at the time of label purchase instead of after the package has been delivered. Learn more about paying for shipping labels on eBay.” That should help to elimi…

This message just started popping up when I print a label: "Starting in September, FedEx® and UPS® label fees will be charged to your funds at the time of label purchase instead of after the package has been delivered. Learn more about paying for shipping labels on eBay."

That should help to eliminate those folks who post angry rants that they are being billed twice when the ship via UPS or Fedex: once when they print the label, then again days later when UPS & Fedex finally get around to billing eBay for the shipping after the package is delivered.

It won't do anything for those who don't enter the correct weight or dimensions & get an upcharge after the fact.

I think this is a great change. It will solve a lot of problems and questions sellers deal with on the delayed UPS/FedEx billing model, and it will provide consistency with the way USPS labels are billed.

It does appear that the Fedex/UPS costs will still be deducted from available funds rather than preferred payment method.

i have not shipped with those options since this change, can anyone confirm?

Makes sense. They get their money sooner and no automatic refunds on unused labels.

But still have to wonder about the "after the fact" numerous "surcharges" that pop up later. Those charges not related to seller weight/dimension errors.


What do you think of eBay changing to upfront billing for UPS and FedEx labels? Let us know in the comments below!

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Liz Morton is a seasoned ecommerce pro with 17 years of online marketplace sales experience, providing commentary, analysis & news about eBay, Etsy, Amazon, Shopify & more at Value Added Resource!