What is Paypals shipping not competitive?

[osjewel]

I have a small online business and I use Paypal web standard. Shipping within Canada I find using a 3rd party like Eshipper the cheapest in Ontario but shipping outside I am using Canada Post. 

What frustrates me is that I cannot use the shipping vehicle within Paypal as their costs are higher. Somtimes Paypal is close using Canada Post but never with UPS. I can actually get cheaper shipping from Canada Post than what I pay through Paypal. I know its convenient to do it all within Paypal but it sure ticks me off

You would think Paypal would have negotiated a better price with Canada Post and UPS than I could ever get. Or are they just taking the middle for themselves?

Has anyone found a better cheaper, shipping method?

thanks for your advice!

[rolandma]

But sometimes PayPal shipping tools is so much cheaper.

[osjewel]

 Paypal expedited is cheaper then regular parcel post

I thought selecting regular parcel post (3 to 9 days) would be the cheapest option to ship by. However selecting expedited (1-7 days) is the cheapest option.  It is this option where you really see Paypal saving discounts kick in.

I never thought better service would be the cheapest option!