Post Office Retail Rates in Shipping Seetings

[CarriersQAUSShop]

Hello! In Shipping Settings > Rates and Upgrades, there is an option to select Post Office Rates or Etsy Shipping Label Rates. Does anyone know what this means? I don't remember selecting either one.

[GrandmaLaurieThings]

It means the buyer sees, and pays, the USPS rate that you'd get if you go into the Post Office and pay at the window.  I use that.  But I pay a cheaper rate (whether Etsy or Pirate Ship or whatever service you want), and the difference covers my cost for boxes, tape, labels, ink, packing materials, etc.

[GenevaMarketVintage]

As of May 27, 2025, with no warning, Etsy is no longer honor the option to charge the customer the retail shipping rate.  If you use calculated shipping your customers will get the discounted price.  So you better make sure over estimate your package weight and size or raise your prices.  

[TBQSC]

@GenevaMarketVintage -- When/where did you hear about the change?  I still have the option available in my settings.  

[LynnsLittleShop]

Can you tell me where you got this information. please? I just looked at my shipping rates page and I can still click the little circle for retail rate.

[LadyInStitches]

I also still have the option in my shop.

[PotteryUrns]

I sold an item a few minutes ago and ago and the buyer was charged the retail price which is what I have my listings set to. I know it was the retail price as I went to USPS.com to check and see what they showed for delivery date and noticed the price was same as what had been charged.

[TBQSC]

@GenevaMarketVintage — if you could, please come back and elaborate on your comment, it would be greatly appreciated!  Inquiring minds would love to know more info!  Thanks 

[GenevaMarketVintage]

I made a sale on Tuesday and the customer was charged the discounted rate.  I checked my settings and they were set to the retail rate so I contacted Etsy help and was told that they are in the process of eliminating that because sellers shouldn’t charge more than what they pay for the shipping.  This is Etsy move to be more “transparent”. The problem is sometimes I need to ad more insurance or I underestimate the packed weight not to mention the the transaction fee.  I wish Etsy would stop micromanaging and stop nibbling away my small profit.  

[LynnsLittleShop]

Thanks so much for getting back to us, and yes I agree with you. I wish they would quit "knowing" what us sellers need, when it is not.

[swatchoclock]

Wow, I am lucky in a way that I am in Europe and can set my own shipping rates but Etsy is saying that they are fine in taking a fee on my shipping, on top of that an etsy offsite ads fee and they also that that original fee should cover the shipping only so that you should take a potential loss on the shipping of 20%? That is nuts.

[CraftyCornishMaids]

Etsy removed the handling fee from calculated shipping

They don't know if you are going to buy labels from Etsy or USPS, or anywhere else,

I would log an e-mail ticket, you may get a different response

[ModKenneth · Accepted solution]

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