Final value shipping fees

[jewel-linn]

Does anyone know what this charge is on our invoices?

[jacbarcollectibles · Accepted solution]

eBay charges their final value fee (FVF) the same way that PayPal does based on the total amount paid by the buyer. This includes the item price plus the shipping charge.

PayPal knows the total amount paid so they charge their fee once and it is taken out of the payment that was made so you only see the net amount placed into your PayPal account.

eBay bills you once a month for their fees so things are a little different. When the item is sold eBay only knows the price of the item so they charge their FVF on the item price at that time. Unless you are selling the item with free shipping the shipping charge is not known until the buyer pays for the item. Buyers can choose the address they want the item sent to so it may not be their registered address. Once the buyer pays, eBay will know the amount paid for the shipping and then charges the FVF for the shipping. This results in two separate charges showing on your invoice for the same transaction.

eBay has been charging this fee since 2011 and it is nothing new. eBay began charging the fee because some sellers were charging a very small amount for the item and charging a very large fee for shipping thus cutting eBay out of their rightful fees. At the same time they instituted the shipping FVF they added free insertions and lowered the FVF percentage.