I would like to hear peoples thoughts.
Ebay want's approx. 10% commission on the sale of an item, Paypal wants 3% + $0.30 Transaction fee, and Ebay also wants to charge 10% on any shipping charges you collect, as well as 10% on any Sales Tax you have to collect. and Paypal wants the same amount.
So lets assume you have a $10 sale and it costs you approx. $7 to ship that Item. For Arguments sake I'm assuming 7% sales tax. (Since they try to force you to offer free shiping on everything, Sales tax is included on the shipping amount).
so $17 + 7% = $18.19 total for the sale.
13% + $0.30 Ebay Fees on $18.19 = $2.39
Your commitments out of that $18.19 include the $1.19 sales tax, and the $7 shipping. That have nothing to do with profit from the sale. (Not Including Time, Packing Materials, i.e.: Labels, ink, boxes, envelopes, gas, etc...)
so, $2.39 out of the original $10 is effectively a 24% sales commision rate.
Now in order to get any visibilty on the listings they are asking for more money, which is open to a bidding war. they suggest a starting bid of Approx. 10%. Which of course will gradually increase as the competition increases, so I am going to assume it will rise to more like 15% - 20% over time. (Ebay shows you how much everyone else is paying and lets you know you can't get visibilty unless you bid more than the going rate, forcing the price up everytime a new seller enters the market) So they are creating a Bidding war for Visibilty.
Lets apply that extra 15% to the original $18.19, and that is an additional $2.72. which is an effective rate of 27.2% of the $10 sale.
Now the effective sales commision they are charging has risen to: 51.1% of the original sale.
And that could still go up another 2% sales commision for each 1% the Promoted Listing Cost increases.
at a 20% promoted listing that rises another 9% to 60% of the total sale.
This basically makes it impossible to sell anything for a profit.
Does anyone have any thoughts about this.
I thought charging the %13 + the $0.30 Transaction fee on the shipping was outrageous which raised the commisions on most sales to between 25% - 30%. (They already doubled their fees when they did that, now they are doubling their fees again.)
This new move more than quadrules ( 4x to 5x ), their advertised sales commisions.
They just doubled their fees to %50 - %60 Ebay Commision, and no one is saying that they are outraged. But they are still lying and telling everyone they are only charging 10%, 9% if you have a store.
Isn't there anyone who has any thoughts on this subject. There's nothing you can sell against the Chinese, where if EBAY takes 50% - 60% of your profit right off the top, after you are already paying 10 times the amount to ship an item from the USA than it costs to ship from China, That you can make a profit on.
Is EBAY Planning on shutting down every customer (Seller), they've ever had?
