Ebay fees

[aerob12-7]

Could someone please explain to my why I am charged a fee on the postage?  If I sell a $10 item and the postage is $10 I am charged on $20.   So I end up with around $7 instead of $10.

And if I promote an item only about $5 or less. 

[fern*wood]

Fees are charged on the total payment paid by your buyer---item cost + shipping charged + sales tax (if applicable).   The promotion fee is optional---you are not required to sign up for that.

[maxine*j]

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@aerob12-7 wrote:

Could someone please explain to my why I am charged a fee on the postage?

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Because if you were not, you'd avoid fees by charging $1.00 for an item and $19.00 to ship it, which is what sellers did in the past.

And, of course, payment processors always assess their fee on the TOTAL charge to the customer for the merchandise, shipping, and sales tax.  (And they do so partly for the same reason, to prevent fee avoidance.)

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[tobaccocardyahoo]

It helps to think hard about whether to sell low priced items, particularly low priced items which cost over $5 to ship.

It is potentially a lot of work, for very little profit.

[sapphire_studio]

Not only do you pay final value fees on the shipping and the taxes they pay, the promoted listing fee you pay is also calculated based on the shipping and taxes they pay.

My life has greatly improved because eBay exists and I have extra income. I try to focus more on that. ❤️

[inhawaii]

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@aerob12-7 wrote:

Could someone please explain to my why I am charged a fee on the postage?  If I sell a $10 item and the postage is $10 I am charged on $20.   So I end up with around $7 instead of $10.

And if I promote an item only about $5 or less. 

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Why?

Because they want to.

Because they can.

Because you agreed to it.

[soh.maryl]

According to your FB, this was not your first eBay sale.  And eBay has had this same fee schedule for at least 10 years.  So what made you suddenly notice that the FVF is calculated on the item price, the shipping cost and the state sales tax if applicable? 

Plus there is also the fact that the fee schedule is clearly available for you to read, is  not and never has been a secret.  

[luckythewinner]

Could someone please explain to my why I am charged a fee on the postage?

You are charged a fee on the total payment because that is how eBay decided to calculate it. Why they did it is because they make more money than they would if they did not.

And if I promote an item only about $5 or less

Promotion is optional. In that case you are CHOOSING to get less.

[bennotbill]

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@aerob12-7 wrote:

Could someone please explain to my why I am charged a fee on the postage?

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It's all about the bottom line. This decision boosted eBay profits cheering up shareholders. No other reason.

The very idea that this was the fault of a few naughty sellers who profited from postage is nonsense.

Few sellers profiting from postage bad. eBay profiting from every sellers postage good.

[caldreamer]

EBAY selling fees charged on total sale (purchase price + shipping + sales tax) plus 30 cent handling charge.   

EBAY negotiates contracts with USPS, FedEx and UPS on your behalf (to save money on your shipping costs).  EBAY always collects "sales tax" and distributes to all the States on your behalf (otherwise you would be required to file 50 different "sales tax" forms).

You have to understand EBAY is the business of making money (just like you).   If you are not making enough profit when selling your items (you should bundle items together to get your "average sale" higher or raise prices on your existing listings).

[iamalwaysright]

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@aerob12-7 wrote:

Could someone please explain to my why I am charged a fee on the postage?

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Yes, hundreds of other previous threads here can. Wait'll you realize you're being charged fees on the sales tax too. 

[erikstuff]

If Ebay's profit on the postage bothers you... just give "Free Shipping" and add $5-10 to your price.  Sure, it comes out the same but maybe you'll feel better.  I could be wrong... but hasn't this "postage fee" topic come up in the past?

I don't like the fee on the postage either.... BUT you do get a discounted rate than if you hauled your package to the Post Office and mailed it there.  Nobody ever mentions the Postage Discount for some reason.

There were people (before Ebay's postage fee) who were charging $1 for an item with $20 postage.  Some were even boasting in their ads as they (stupidly) explained how they were beating the Ebay selling fees.

[dbfolks166mt]

     The first question I would ask is whether your buyers are paying full retail shipping or the actual eBay discounted rate? If you sell an item for $10 and the postage charge to the buyer is $10 but you only pay$6 for the actual label the extra $4 you received from the buyer should be more than covering your FVF's on the shipping as well as your packing materials. 

     If you are promoting an item as others mentioned that is a self inflicted charge. 

[baangell]

Simply put, it is to prevent sellers from gaming the fees by selling an item for $1 and charging $100 to ship.

[erikstuff]

I took a look at your ads and noticed a $15 tennis racket...with $81 shipping from SC to Florida.   This is Ground Advantage.  I gotta ask... how does that make any sense?