eBay

shopperclub · ‎07-28-2021

Let's say I sold something for $7.99, but out of that $7.99 I paid $4.00 for shipping which leaves $3.99 profit, more or less. I know eBay is going to take a % of the 7.99, but what is it the percentage? And what then did I actually get from that sale as it stands?

luckythewinner · ‎07-28-2021

@shopperclub wrote:
Let's say I sold something for $7.99, but out of that $7.99 I paid $4.00 for shipping which leaves $3.99 profit, more or less. I know eBay is going to take a % of the 7.99, but what is it the percentage? And what then did I actually get from that sale as it stands?

We cannot accurately answer your question because eBay fees vary by:

the category it is listed in
the sales tax rate in the buyer's state
whether the seller has a store and what level
whether the seller is rated below standard or not
what country the item is shipped to
where the buyer registered his eBay account
whether the seller promotes the listing, and at what level
whether the seller is in managed payments or not
whether the seller's metrics subject him to a penalty fee
etc.

But generally speaking ... for a seller in managed payments who is listing is a typical category, the fees are 30 cents plus 12.55% of hte totla price that the buyer plays (i.e. item cost, shipping cost, and sales tax cost).

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crazystuff4sale · ‎07-28-2021

If there was no sales tax fees should be about $1.30.

7.99 x .1255=1.002745

plus 30 cents.

1.302745

luckythewinner · ‎07-28-2021

@shopperclub wrote:
Let's say I sold something for $7.99, but out of that $7.99 I paid $4.00 for shipping which leaves $3.99 profit, more or less. I know eBay is going to take a % of the 7.99, but what is it the percentage? And what then did I actually get from that sale as it stands?

We cannot accurately answer your question because eBay fees vary by:

the category it is listed in
the sales tax rate in the buyer's state
whether the seller has a store and what level
whether the seller is rated below standard or not
what country the item is shipped to
where the buyer registered his eBay account
whether the seller promotes the listing, and at what level
whether the seller is in managed payments or not
whether the seller's metrics subject him to a penalty fee
etc.

But generally speaking ... for a seller in managed payments who is listing is a typical category, the fees are 30 cents plus 12.55% of hte totla price that the buyer plays (i.e. item cost, shipping cost, and sales tax cost).

caldreamer · ‎07-28-2021

EBAY fees based on (purchase price + shipping costs + sales tax) plus 30 cent handling fee. Additional charges if international shipment or you promoted your items.

dbfolks166mt · ‎07-28-2021

Several people have given you the information regarding what you will/should get from the eBay transaction depending on the factors they indicated. That will give you what you got from the eBay sale but that may not be your profit unless you paid nothing for the item or you don't pay income taxes.

Once you have what you think your eBay profit is subtract the cost of what you paid for the item from that (COGS) and then calculate how much you will pay in Federal and State taxes when you file your returns next year to get your actual "profit" or ROI.

coolections · ‎07-28-2021

The first question that needs answered is: "did the item you sold for $7.99 include FREE shipping", or did the buyer pay you $11.99 ? Always calculate the TOTAL cost the BUYER pays (shipping + sale price + tax). One more thing is unless you got the item for FREE then you should not consider $3.99 a profit.

shopperclub · ‎08-02-2021

Hmm, I was thinking that 12.55% is a lot, but I know eBay has to make money, they're not doing this for free. OTOH, forget now what I paid for an item. OK, don't forget it. But let's say I sell an item for $12.00 and I pay for shipping. So take away let's pretend $8 for shipping that makes 12.55% of $12. which comes to about $1.50. So now since I paid $8 for shipping, that would mean from that $12 I would get (forget what I paid for it originally right now) about $2.50. Wow is all I have to say. Correct me if I'm wrong on this. Ain't worth it. but maybe my math is wrong-ish. (Glad I'm having this conversation.)

downunder-61 · ‎08-02-2021

You don't pay for shipping your buyer does - or should.

You pay TO ship it, but that shipping cost should be either added into the item price (if Free Shipping) or listed as shipping (added to the total the buyer then pays).

Shipping in effect costs you nothing except the FVF on the ship cost.

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dbfolks166mt · ‎08-02-2021

Lots of people have provided you with information. Don't forget to take out the cost of what you paid for the item from the $3.99 to get your initial ROI. Lets say you paid $1 that leaves you with $2.99 or about a 37% ROI. One more tidbit don't forget you are going to pay income tax on the net income from the sale so don't forget to factor that into your net gain on the sale. Worse case lets say you are in the 35% tax bracket so your income tax on that would be $1.04 which makes your bottom line ROI $1.95 or about 24%.

shopperclub · ‎08-02-2021

OK, so why is the shipping cost added into the amount that eBay assesses to take a share of that?

shopperclub · ‎08-02-2021

OK, I'm slow, so I guess people need to be patient with me. I am, for the present time, not factoring in my cost of the item. So let's say I picked up the item for free. Just for this discussion. Is there a difference between me paying for the shipping ("free" shipping) and adding it into the amount of the item as far as eBay final fees are concerned? Maybe I'm not phrasing the question well.

nobody*s_perfect · ‎08-03-2021

The final value fee is a percentage of what the buyer pays to you, including item price, shipping and sales tax if any. It doesn't matter whether it's $10 for item and $5 for shipping or $15 for item and free shipping, the fvf would be a percentage of $15.

slippinjimmy · ‎08-03-2021

@shopperclub wrote:
OK, so why is the shipping cost added into the amount that eBay assesses to take a share of that?

Two reasons.

1 - In the days when shipping did not have fees sellers would list for a very low price with very high shipping in order to avoid fees.

2 - eBay for many years (more than 10 years ago) heavily encouraged "free shipping" (shipping included in the price) this meant higher fees.

In order to enable sellers to choose additional or included shipping without a fee penalty eBay reduced overall fees but included shipping in the calculations. Some sellers paid a bit more, some sellers paid a little less, for many it made very little difference. Sellers particularly hurt were those selling expensive to ship items for very low prices (sound familiar?).

Unless you are capable of high volume (usually means repeatables not one offs) the only way to make much money online is to sell higher value items with relatively low shipping costs.

soh.maryl · ‎08-03-2021

Your fees, in most categories, will be about 12.55% of the total paid to you by the buyer NO MATTER HOW IT'S BROKEN DOWN.

The item you sell for $10 plus $5 shipping, or the item you sell for $5 plus $10 shipping or the item you sell for $15 with free shipping will have the exact same final value fee.

And most sellers here have determined that it is not worth it to list anything for less than twenty dollars.