Buy postage online quickly

nickz

custardy wrote: »

Where does the profit come from?
I alluded to it,but seems it needs laid out.

Company X provides a system where you simply "get £1.26 in postage" paid by Paypal.
How are they paying Royal Mail? How is the correct postage printed?
Who pays the Paypal fees?
Who pays for the hosting/website etc?

From the same place as any other business: the difference between the buying and selling prices. If you buy stamps from Sainsbury's or online from Staples, you don't pay more than the face value, because the stamps are bought wholesale*. Why should it be different if I buy virtual stamps and print them out myself?

That's what happens on eBay ("see eBay" is the answer to all your other questions) but of course is restricted to items on their site. Royal Mail accepts PayPal. eBay and PayPal are separate companies now so presumably there's enough profit flowing.

I'll widen the question. Apart from the Royal Mail and eBay, does anyone know of any other online postage-printing services?



* This from the CAB:

"Any trader who sells stamps officially must be approved by the Royal Mail and has to follow a set of rules. Traders buy stamps from the Royal Mail at a discounted rate, then sell on for a profit."

See citizensadvice.org.uk/consumer/post/post/complaining-about-post/you-ve-been-charged-more-than-the-face-value-for-stamps/