I got it straightened out now.

Yes, the eBay-PayPal postage-shipping label set-up is accurate! In a wonderful new development, when the USPS raised the rates a few days ago (April 17th), they also approved new special lower FIRST CLASS rates for online postage printing-paying services like eBay-PayPal. That is, you pay less than the general public who use postage stamps!

So for First Class PARCEL rates, if you use the online service (eBay-PayPal), you end up paying the exact same as you did prior to the April 17 rate increase for 3 ounces thru 13 ounces parcels. (For 1 and 2 ounce parcels you pay slightly more than before.)

The postal service always gave online customers discounts regarding:
¶ priority mail
¶ express mail
¶ delivery confirmation

Now they have added First Class mail to the list.

I'll give one example -- an 8-ounce parcel sent first class:
¶ before April 17, 2011: the cost was $2.41 whether you used postage stamps or online labels.
¶ now if you use stamps, it costs $2.56.
¶ but now if you use online postage labels (through eBay-PayPal) it still costs the old $2.41.

Here is a video by eBay explaining how to use eBay-PayPal online postage-shipping labels:
http://pages.ebay.com/sellerinformation/video/shippinglabels.html

Here is my guide:
http://reviews.ebay.com/Introduction-to-Printing-PayPal-Shipping-Postage-Labels_W0QQugidZ10000000004429200

Robert