One of the problems with PayPal's shipping label service is that its international options were limited to the most expensive options - global priority mail (overnight mail) and priority mail flat rate services. Those generally cost a minimum of $11.95. If you were able to convince buyers to use those high-cost services, then PayPal would print your shipping label and customs forms as a single item (actually, a 4-page form printed on two sheets of paper). This is printed on regular paper, and the post office clerk signs and separates the forms and the clerk puts it in a special clear envelope to adhere to the package. The post office keeps a paper copy of one of the pages. You must always take your package to the post office for final processing (you cannot drop international packages into a mail box - they must be handed to a clerk).

EBay has introduced its own shipping system. Even though eBay and PayPal are owned by the same company, these run as two different systems. Under the eBay system, you can print labels through eBay, and it automatically charges the cost to your PayPal account. It appears it offers the same discounts as the PayPal system (for example, a discounted rate for delivery confirmation on first class packages, and free confirmation for priority mail).

One thing I discovered recently, though, was that the eBay system offers the lower-cost international services that PayPal has avoided. In other words, you can print first class international mail labels and customs forms through the eBay system. First class mail is available for packages weighing less than 4 pounds, and it is far cheaper than priority mail. For example, a 4-ounce package to Canada might cost around $2.50 to ship to Canada by first class international mail, about $12 via priority mail flat rate service, and $27 by global priority mail (overnight mail). Again, the PayPal system only offers the $12 and $27 options.

The eBay system takes your information from your auction listing to create a customs form. That information can be edited (for example, the auction listing title is seldom an appropriate description for customs purposes - customs would want "1 expired casino chip" rather than "rare Hard Rock limited edition Sheryl Crow mint chip"). It prints a one-sheet document that has the customs form and mailing label (with postage paid) on the top and a receipt on the bottom. EBay recommends you print this on label paper - no more 4-part forms (the PayPal system) or 3-part handwritten forms (the current format of the "small" green customs form PS-2976 the post office currently uses). You adhere the top portion to the package, and sign and date its certification of contents. You keep the receipt.

Again, it must be taken to the post office for final processing - you still cannot drop it in a mailbox. The clerk scans the completed form, and doesn't need paper copies of anything because all the data is stored electronically at the time you created the label.

This system from eBay automates the preparation of customs forms and mailing labels, while also offering the most affordable shipping options - something PayPal has failed to do for years. You still need a PayPal account (to pay for the labels), but you don't even have to open PayPal to perform these functions. Everything is available on the eBay site. You get convenience of a single site, automation of customs forms, cheaper postal options, and electronic storage of information rather than paper slips kept in the post office.

A lingering question: Why would eBay set up its own system, dependent on PayPal only for purposes of paying for the labels? My theory: PayPal has been wildly successful as an on-line payment system for more than just eBay transactions. EBay has been in steady decline for a couple years. As a company, PayPal's profits have been more than enough to sustain eBay as a profitable company. I think eBay is preparing for a future in which it spins off or sells PayPal for a massive cash infusion, while eBay retains for itself the ability to assist its sellers with the necessary process of shipping winning auction items.