Seller Fees for Shipping Costs
Summary: The discussion revolves around strategies for managing seller fees and shipping costs. fm2000 suggests charging 15-20% above the actual shipping cost to account for final value fees, advising caution as it might reduce competitiveness despite lowering the total buyer cost. fm2000 also recommends using first-class large envelopes for shipping needlepoint patterns without tracking to reduce costs. rudy2828 advises selling related inexpensive items together to save on shipping. The objective is to find effective methods to handle the brutal shipping costs while remaining competitive in the market.
I’m new to selling on eBay and really enjoying the experience so far — I’m learning a lot while cleaning out my closets and listing personal items.
As I’ve been going through the fee structure, I realized something I didn’t fully understand at first: the final value fee is charged on the entire transaction; item price, tax, and shipping. After digging deeper, I see that this is normal, but I wanted to check with more experienced sellers.
Is it typical for the percentage fee to apply to shipping as well?
For example, I sell some low‑cost items like needlepoint patterns. If someone in Florida buys one, the total might be $5.19, but if someone in California buys it, the total jumps to $9.21 because of shipping. That means the fee I’m charged fluctuates based on the buyer’s location, which feels a little strange.
In some cases, eBay ends up taking more of the sale than I do. I’m not complaining — I appreciate the platform and understand these are the rules, but I’m wondering:
Are there any tips or strategies to help sellers of low‑priced items keep more than 50% of the sale, aside from switching to higher‑value items?
Any advice from seasoned sellers would be greatly appreciated.
rudy2828
·2 months agoConsider selling related, inexpensive things as a lot. Buyers will appreciate the savings on shipping costs, which are just brutal. Good luck.
fm2000
·2 months agoThe easiest way with the lowest mental math requirement (and lower possibility for error) is to charge 15-20% above the actual calculated shipping cost you will pay to ship the item, to account for those costly FVFs on the shipping. After all, all costs of doing business are passed onto buyers, directly or indirectly. The only downside is it might make you "look" less competitive, even if your total cost for the buyer is lower than everyone else.
You could probably send your needlepoint patterns first class large envelope if you are ok without not having tracking and can pass the large envelope flex test. Lower shipping means lower FVFs on shipping. FCLE is same price across the country too.
zavy
·3 months agoIts a shame as it is, and has been, driving down one of the Core business models that help eBay grow and flourish since I joined in the 90s. One of the attributes of eBay was to be able to sell, or purchase, small items not commonly found or easy to locate. It was fun back then. Find a small part for that 60 year old model thats missing a bumper or find a perfect trinket to give as a small gift...just because. Those days are gone. Seller fees ate up the incentive to list these lost treasures and now are ending up in dust bins. Most here may not remember, but eBay was truly a community marketplace back then. It had some issues but mostly, the experience was remarkable.
stainlessenginecovers
·5 months agoAlthough already beaten to a pulp- just think this:
What do you think Walmart pays their % on when you use your debit/credit card at the register?
(hint: It's the TOTAL; so even in Cali where you pay $5 a tire, 4 tires will ad $20 to that total, not counting sales tax etc.)
chri824858
OP5 months ago@christworks OMG! I misread your first comment I thought you said Garbage to grab the items, which is probably where my head is at: list, donate or garbage. Haha!
chri824858
OP5 months agoThank you all for your responses! It is what I figured. I have the inventory, so it really boils down to the time spent to list. List the higher items first then I have 1–2-dollar backups. @christworks I can walk to the garbage hahahaha! In my case the garage full of bins. I was hoping for a carrot so close to Easter. LOL!
powell-collectibles
·5 months agoThere isn’t a perfect way to do it. Every suggestion you get will have benefits and detriments. I suppose that the first order of business is for you to figure out how big of an issue this is. If 5% of your orders come from a far flung location in the US, I wouldn’t worry about it. If it is 50%, sure, work on a solution ASAP.
christworks
·5 months ago@chri824858
You have correctly figured it out. I must say I am pleased with how you are handling the realization. Most new sellers flip out when they realize this. Your attitude is refreshing.
Sales over $20 are roughly where you start netting above 50%. It can happen below $20, and you can certainly net below 50% for sales over $20. $25, as suggested by @caldreamer, is a good starting point.
I am not at all opposed to low-dollar items. They pay the bills. What matters is the time involved. A new item, or a used item that is in excellent condition, takes me a little less than 5 minutes to list. If I know I can walk to the garage, retrieve it when it sells, and pack it in roughly 5 minutes, then I'm good with a 50% or less net profit. That's $1/minute of work, which equates to $60/hour.
With low-dollar items, the key is not to let them become time killers. Efficiency is key when listing, and that is especially true with lower-dollar items. If you are slower at listing, you may want to lot some things up to save time. Your gross will be a little less than if you sell things individually, but you will net more—and net is what we want.
caldreamer
·5 months agoYou should try to bundle several items together to get your sale average "over $25". With the high cost of shipping and USPS added an 8% fuel surcharge starting at the end of April, it is hard to make "any profit" on low priced items.
Seller fees charged on total amount (purchase price + shipping + sales tax) plus 40 cent handling fee. Will be additional fees if you "promote" your items.
soh.maryl
·5 months agoMy selling career on eBay ended many years ago, so I'm probably not to be considered a "seasoned seller" so take my advice with a grain of salt.
Yes, you have correctly assessed the way eBay calculates the final value fee for sellers. For that reason, it's not a good idea to list lower-priced items unless you do, as someone advised, sell them in lots.
eBay's FVF and the way it's figured are clearly defined in the information that eBay shows beginning sellers.
If you've not read and studied it thoroughly, now might be a good time to do it, especially the part about eBay's Money Back Guarantee for buyers.
jonathanbrightlight
·5 months agoYes, that's normal, and it's common across marketplaces. Most of us don't sell items that might cause us to lose money after the fees and other costs of selling are taken into account, but those lower value items can often be combined into lots/sets that can raise the value of the sale.