USPS and FedEx responded to our inquiries about reports of eBay packages being “seized” due to a policy change. Previously, sellers using eBay’s shipping label program to print FedEx Ground Economy packages (formerly called FedEx SmartPost) could give their packages to either shipping carrier – the labels showed both FedEx and USPS tracking numbers, as they had for many years. But the policy changed in July 2024, with enforcement ramping up through 2025.
As we reported last month, some sellers continued to place their packages into the postal stream even though it ran counter to the new policy that required FedEx Ground Economy packages to be handed off to FedEx only. Some sellers said postal carriers continued to pick up their dual-label packages, others said the Postal Service accepted them at their local post offices.
But once the FedEx Ground Economy dual-label packages entered the USPS stream from shippers instead of FedEx, sellers ended up in a vicious circle, with USPS refusing to return, forward, or release the packages because they hadn’t been paid; and FedEx and eBay claims also proving unfruitful.
As recently as July 3rd, a seller on Amazon had the same problem. “Purchased Fed-Ex Economy Ground label and shipped the item on time. Item was picked up and scanned by postal carrier as has been done 1,000’s of times.” The seller said their shipping labels had both FedEx and USPS tracking numbers. Unfortunately, the seller advised their buyer to file an Amazon A-Z claim for the Item Not Received claim thinking they would be covered, since USPS tracking showed they had shipped the item.
“I WAS NOT!!!! Amazon hit my metrics (ODR) and charged me for the item,” the seller said. “Amazon was well aware that the POST OFFICE was no longer delivering these Parcel post packages that had traveled for days through the Post Office system, but chose not to tell its 3rd party SELLERS, (Ebay posted a notice about this well over 1 month ago).”
We asked a USPS spokesperson if the USPS did anything to educate clerks and carriers about the fact they shouldn’t accept packages with dual labels. The spokesperson told me it is educating its employees on this issue and provided the following statement:
“Federal Express owns the labels they distribute, their policies and procedures, and the relationship they have, as well as the labels they provide, to online marketplaces, third party sellers, and their other customers. All questions regarding their labels and policies should be directed to them. Individual customers should tender Fed Ex packages with Fed Ex and not enter them in the postal network.”
We asked FedEx about the issue, which provided the following statement:
“A small number of packages generated on the eBay platform are being affected by sellers paying for FedEx Ground Economy service but not tendering their packages to FedEx. We encourage customers to follow the instructions provided by eBay when shipping their items.”
Sellers on industry boards and in the comments section of the June 6th AuctionBytes Blog said eBay had displayed a warning on at the top of the shipping label page last July when the policy changed and that their specific post offices had large signs warning people not to drop off UPS and FedEx parcels.
Sellers shared communications they had received from USPS customer service where they were told there was no way to get their package back from USPS. However, the USPS spokesperson pointed us to the Domestic Mail Manual (DMM), which states the following:
10.0 Dual Shipping Labels
[1-19-2025] Mailers must not use dual-shipping labels, which are used by private shippers to identify both the Postal Service and a private carrier as possible delivery agents. Postal Service Post Offices must not accept items bearing dual-shipping labels and may return such items to the sender. More information can be found at the USPS Parcel Labeling Guide.
Note line where it says post offices must not accept packages with dual-shipping labels “and may return such items to the sender.”
Anyone trying to get the USPS to return their dual-label FedEx Ground Economy packages to them may wish to cite that section of the USPS Domestic Mail Manual when speaking to customer service.
The following is an image of a redacted FedEx Ground Economy dual shipping label provided by USPS slightly edited to blur numbers.
