FEES

[ruinedpalace]

eBay takes a % of the cost to mail an item to the Buyer as part of  its fee system. This isn't so bad if the item is small but if it's a large item that requires more money to mail it, then it becomes a problem. Now that USPS has raised its rates again, the problem has been exacerbated.  It's not fair to the Sellers: we only charge the Buyer what we need to mail the item to them, so we don't get this money. Why then should it be included in the Fee calculations?

[fern*wood]

No one likes fees, but you aren’t new to selling, so I’m sure you know it’s been this way for years.  Also, the fees are charged on the sales tax.  All sellers have to work the fees into their pricing.  I find the easiest way to cover the ones on shipping is to charge the retail rates and buy my labels online.

[rosszonebricks]

In case you didn't notice, fees are also charged on the sales tax a buyer paid as well.  🙂  Fair? Not really either.  

I don't like it either, but the fees are clearly stated before you list an item.

Keep in mind, this is NOT just an eBay thing.  'Fees charged on the entire transaction' will literally be *anywhere* else you try and sell too.

[tobaccocardyahoo]

When Ebay did not charge a fee on the shipping, sellers sold for tiny prices with huge shipping.

We reap what past cheating sellers sowed.

Shipping costs have continually risen and will continue to rise as shipping market changes and energy costs are forced up by the government. Every seller needs to constantly reevaluate what they sell in light of the real cost of shipping which includes the Ebay fee.

[sakic92710]

eBay found a 'money grab' long ago & they have never cared if it is fair to sellers.  It started long before the current excuse of it being 'a fee on the entire transaction.'  They had a choice - punish sellers who were trying to screw the FVF system or punish everyone but gain more $ for shareholders.  They decided on the latter.  Of course, you have the whiners going on about, "Why should I have to pay more of % when I offer free shipping?"  Simple - don't offer the bogus 'free' S/H.    🙂

[retro_entertainment_collectibles]

---

@tobaccocardyahoo wrote:

When Ebay did not charge a fee on the shipping, sellers sold for tiny prices with huge shipping.

We reap what past cheating sellers sowed.

Shipping costs have continually risen and will continue to rise as shipping market changes and energy costs are forced up by the government. Every seller needs to constantly reevaluate what they sell in light of the real cost of shipping which includes the Ebay fee.

---

I might add strangely enough the OP's ID...  Those sellers who gouge the shipping "Ruined The Palace."

"Rapunzel!  Rapunzel!  Let down they hair!"

"Uh uh mista!  Not till' ya be payin' me 'n' I settlin' for no dowry!  Cash only!"

[retro_entertainment_collectibles]

---

@sakic92710 wrote:

eBay found a 'money grab' long ago & they have never cared if it is fair to sellers.  It started long before the current excuse of it being 'a fee on the entire transaction.'  They had a choice - punish sellers who were trying to screw the FVF system or punish everyone but gain more $ for shareholders.  They decided on the latter.  Of course, you have the whiners going on about, "Why should I have to pay more of % when I offer free shipping?"  Simple - don't offer the bogus 'free' S/H.    🙂

---

Shouldn't be called Free Shipping actually it should be called Umm... Hmmm...  Should be called "Ummm Hmmm" LOL.  I don't know something.  Really when you stink about it those peddlers who add ship cost to base price are doing a disservice to those who actually do ship for free and do their line item write off.  It's sorta freefrauding the consumer... New terminology!  I ROCK IT!

[12345jamesstamps]

I agree. I used to sell toys and switched to stamps. Too expensive for shipping...especially International shipping.

The problem came from past sellers...sellers selling something for one dollar and shipping would be like twenty dollars for the item...while the item was worth more than twenty bucks....so the fee would come out of the sale but not the shipping. eBay realized they were getting burned.

And then the item would only cost one dollar to mail it.

It's a past seller problem giving to us newer sellers.

I remember when sellers in China were selling a stamp for one penny with free shipping...just to obtain feedbacks. Now we can't sell something for less than .99 except on auctions.

[soh.maryl]

eBay's final value fee has been calculated on the item price, the shipping cost and the state sales tax if applicable for quite a few years now.  All buyers and sellers need to read the fee information which is not at all hidden.

Of  course, since the fee calculated is a percentage of the total money received by the seller, the amount of the fee will be higher on an item that has higher priced shipping.  If I sell an item for $100 and the shipping is $20, my final value fee will be higher than when you sell an item for $100 with shipping of only $10.  How does that not make sense?

If I buy a sweeper at WalMart for $175, my state sales tax on that purchase will be higher than yours, because you bought an iron that cost $25.  

As for why eBay's FVF is calculated on shipping as well as the item price, feel free to ask eBay.

It's PERCENTAGES. 

[soh.maryl]

Can you explain how this is defrauding anyone?

I sell an item for $25 plus $5 shipping.  

You sell an item for $30 with free shipping.

My final value fee and your final fee will be the same (except for some possible variation due to shipping fee).

[hartungcards]

If you "only charge the Buyer what [you] need to mail the item to them," then you have much to learn about selling on-line.  You've sold 3.7K items and this is just something you became aware of recently?

[retro_entertainment_collectibles]

---

@soh.maryl wrote:

Can you explain how this is defrauding anyone?

I sell an item for $25 plus $5 shipping.  

You sell an item for $30 with free shipping.

My final value fee and your final fee will be the same (except for some possible variation due to shipping fee).

---

Simple.  Free means free at no additional cost to the consumer.  Don't believe it just ask any State Attorney General. 

For example I can go to Staples in Store or online, same price.  Staples online ship it free to me, no additional cost.  That's free no additional cost.  Free shipping is promotional and is afforded an immediate line item write off for the exact shipping amount an thus the reportable revenues are lessened yielding the competitive advantage.

If you were to go before a Judge lets say and said, "I've this item for $25 plus $5 shipping" and then were to tell him, "I've this item for $25 and added $5 to cover shipping and I call that Free Shipping" obviously its not free and he would tell you, "That's not free."

Now lets say Target Merchandise has this TV Set at MSRP of $399 and say it costs $40 to ship, actual cost. If Target went and said price is $439 + Free Shipping, I call the State Attorney General and they are required by law to respond to my claim.  "The shipping wasn't free" The State AG will find in my favor, Target will refund the difference and get a nice fine atop it.  Free means free, not "I added" and its free.

Now Target take that $40 and its an immediate line item write off, that $399 just turned into $359 as declared revenue.  John Q. Seller however lets say does that $439, there sits an $80 difference in revenue.  This is why the "big boys" in online commerce do free shipping.  Its consumer friendly, it really is free and affords them that line item write off.

[mustang707]

@retro_entertainment_collectibles   

You can’t compare Target to ebay sellers. I agree that Target cannot add shipping and then claim it’s free and therefore have 2 different pricing systems. But we on ebay are all independent sellers. So if I want to sell something for $25 + $5 shipping and you want to sell the same item for $30 with free shipping, then it doesn’t violate any laws. You can justify the increase as additional profit margin and no mention of shipping costs needs to be disclosed.

[stainlessenginecovers]

---

@ruinedpalace wrote:

eBay takes a % of the cost to mail an item to the Buyer as part of  its fee system. This isn't so bad if the item is small but if it's a large item that requires more money to mail it, then it becomes a problem. Now that USPS has raised its rates again, the problem has been exacerbated.  It's not fair to the Sellers: we only charge the Buyer what we need to mail the item to them, so we don't get this money. Why then should it be included in the Fee calculations?

---

Where did THAT come from? Rates have been REDUCED- twice in the last 6 months. 

First; with Ground Advantage going over 16 oz (vs HAVING to use Priority) 

Difference for me in what was a $19 package now $11 (West Coast to East Coast)...

and 2nd- Cubic Pricing (what was $11 is now $9 (West Coast to East Coast)..

[mtgraves7984]

It's not fair to the Sellers: we only charge the Buyer what we need to mail the item to them, so we don't get this money.

@ruinedpalace 

I sell here and charge the buyer more than the actual postage cost  to mail an item, because "what we need" costs money, too... and I do get that money from my buyers. I even profit a bit with most shipments.

I'd suggest you raise your s&h to cover your supplies, fees, time, etc. Set your listings to show 'Retail rates' and purchase your labels here at the discounted rate. Update your listings if there are price increases.

After all, your buyer is shopping overall price. Don't be scared to tell them what your service costs. Good luck.