Price discrepancy identified between USPS labels bought via Shopify Shipping (Admin) and customer-paid rates at checkout, with about a $2 higher cost per label via Shopify.
Context: Merchant on the Basic plan says labels they buy use Shopify’s USPS account rates, while checkout rates use their company’s USPS account (no negotiated rates).
Initial hypotheses and options: Concern that Shopify might add a markup; considered upgrading to Shopify Plus to use their own USPS rates or purchasing labels externally via USPS Click-N-Ship.
Resolution/update: Shopify Support clarified—and the merchant confirmed—the $2 difference was caused by a mismatch in package dimensions: the “default” box in settings was smaller than the actual box used when buying labels in Admin. Correcting dimensions resolved the discrepancy.
Additional feedback: Another user reports international shipping (to the Philippines) via Shopify’s USPS rates appears much higher—claiming about 50% less at the USPS counter and costs comparable to DHL through Shopify labels.
Status: Original issue resolved (package size settings). Broader concerns about international rate competitiveness remain open.
UPDATE:
As Shopify Support just explained, and I verified: the difference in price is due to the “default” box I have selected in the settings, is smaller than the actual box I was using when buying the label via the Admin. I found a $2 difference. Thank you Shopify!