Ebay fees are outrageous and not as transparent as they boast.
I sold a figure on Ebay for $75.18. That includes shipping and sales tax. Ebay charged me $10.62 as a transaction fee. That's 14.12%. Then they took $6.68 AFTER their fee for sales tax. I did use their "Ad Service," which I understood was going to be a percent of the total sale BUT the total of THAT fee was $6.77. That's another 9.01%! That's a grand total of 23.13% that Ebay took from me!! Now, after all Ebay fees and sales tax, I have a grand total of $51.11 and I still have to ship the darned package! This is highway robbery. Do better, Ebay. I'm completely outraged.
16 comments
ryry-jj
·1 year agoToo often, too many sellers think the cost of doing business is free. Often these situations are more buyers remorse for paying for the PL.
kalyoth
·1 year agoI would suggest you "DO BETTER" & understand a web site before using it. ebay only applies an established fee structure based upon the 100% in your control starting point of merchandise & price. Might want to go back to the beginning & actually read all the stuff most responsible adults read before signing a contract: Start Selling on ebay
You paid the closing costs based upon the total transaction - product + shipping + sales tax. There was no special fee only for sales tax & you never handle sales tax, that is all ebay. If you happen to be one of the many duped into paying ebay more for special advertising on their site, that was optional & completely within your control. Shipping is paid from however you established your shipping to be. Another thing 100% within your control.
toysaver
·1 year agoEBay does not hide their fees in any way shape or form. The only variable is the differential in state sales taxes.
Before the internet if you wanted to resell commercial goods you pretty much had to pay up to a 50% commission to a consignment store. EBay is a bargain in comparison.
pastimpressions
·1 year ago@ toysaver said: " Before the internet if you wanted to resell commercial goods you pretty much had to pay up to a 50% commission to a consignment store. EBay is a bargain in comparison."
100% agree. I make this point all the time & people just don't realize.
Consignment/commissions easily range 40-60% often with contractual commitments.
eBay is an extreme bargain by comparison with an infinitely wider scope than any B&M could hope for.
And YOU control your own inventory.
And YOU can give your clientele a much better price & STILL make a wider margin w/o the middleman.
dhbookds
·1 year agoWhat of the fees didn't you expect?
jrkirk
·1 year agoIn the beginning, back in 1995-1996, when we both started, 1) eBay fees were very low, 2) there was no promotional fee options, 3) there was no sales tax collected, and 4) all shipping costs were very low (shipping a small package all the way to Australia cost just a few bucks, for example). Everything worked well for sellers, and sellers who took care of business properly could make a lot of money; there was more buyers than sellers by a large margin. Everything has changed in the 30 years since. All costs have gone up substantially, the number of sellers has mushroomed, and the ratio of buyers to sellers has drastically changed.
If you have been selling here for as long as you say, why did you not recognize what has happened?
reallynicestamps
·1 year ago, 1) eBay fees were very low,
Not really.
We were charged for listing, for photos, for selling .
And there were no discounts on shipping services
4) all shipping costs were very low
Depending then as now on the shipping provider and the service chosen.
Everything worked well for sellers,
Checks bounced.
The "Western Union " scam
Uncashable domestic money orders sent internationally
Slow mailed payments.
soh.maryl
·1 year agoYou appear to be one of eBay's older members in terms of the length of time you have been here.
Fees are currently explained in more than one place. They are calculated on the total amount the buyer pay the seller.
Your buyer pays the state sales tax and eBay forwards it on to the appropriate state treasury.
Your buyer pays the shipping and you use that money to pay for shipping.
Using Promoted Listings is optional, not required.
The above facts are not secrets and most of them have been in effect longer than you've been here.
mam98031
·1 year agoSpending a little time with the Seller Fee policy will likely help you to answer many of your own questions. As for your selling fees, they are COMPLETELY transparent, but you do have to look at them to see them. The total amount appears on the ORDER you have for the item sold plus the detail is seen on your
Payments Summary page on the right side. Every penny deducted from you will show there.
"Then they took $6.68 AFTER their fee for sales tax. " Why would you keep the sales tax. That belongs to the state the buyer is in. They paid it, not you and Ebay forwards it to that state as they are required to by LAW. Would you prefer to have the responsibility to send the money to the buyer's state???
YOU set the percentage you are willing to pay when you use Promoted Listings. YOU set the fee. So getting upset after you have to pay it doesn't make sense. If it is too high, reduce it. YOU are in control of that.
There are costs to selling on this site just as there are on any other site. This is something you should have a good handle on before selling so you aren't upset like you are now because you didn't realize how STATE sales tax works or how when YOU set a percentage you are willing to pay Above regular fees for a sale.
The buyer PAID you 16.50 for shipping. So you have been PAID to package and pay the carrier.
inhawaii
·1 year agoHow are they not transparent?
johnrj1226
·1 year agoIn the future - you need to calculate all your selling costs including those optional features, your expected profit margin before you list your items - some cost items you may need to "guesstimate" a cost - just give it your best SW_G. (Scientific Wild Guess).
Personally never would do a best offer listing - one is inviting a reduction of your expected profit margin and agreed to it. You did it to your self - Be outraged at the person in the mirror...
BTW 3 of your 4 current listings have a "best offer". - your call that's all
Sold stuff (capital equipment - forklifts) for 41.5 years for a career. This approach to selling sure helped me out in my career - from the early 70s thru to 2007 - when I hung up my spurs. It helped me when I sold on eBay for 10 years - always got my price and profit margins.. https://www.youtube.com/watch?v=6UQocU5jTfA
rugerskick
·1 year agoYou are correct on what they took, but they do not keep the sales tax. That has to be collected and its not yours or ebays. Ebay actually doing this for sellers takes this off our plates otherwise we'd have to make sure it got to whatever state the buyer is in.
Also, the extra ad service was your choice to use. I understand for certain items it really is more necessary to do for sales, but you can do the bare minimum and still get a boost.
You can look through my posts, I am not a cheerleader for them by any means, but you have inaccurate views on the two points I mentioned.
albertabrightalberta
·1 year ago@theguywiththeslayerhatandbeard
You've been selling for years.
Did you not realize that fees are based on the total amount paid by the buyer?
"Then they took $6.68 AFTER their fee for sales tax."
They didn't take that from you. That was paid by the buyer and was part of the payment on which ebay's FVF was based. Then they deducted that sales tax to send it to the buyer's state's department of revenue.
"I did use their "Ad Service," which I understood was going to be a percent of the total sale BUT the total of THAT fee was $6.77. That's another 9.01%!"
You're the one who chose to promote your listing(s) at 9%. You could have chosen as low as 2% or as high as 100%.
"I still have to ship the darned package!"
Yes you do need to ship the package but since you charge for shipping, the payment for the shipping label was included in the buyer's payment. You will use that payment toward the purchase of the label. It's not coming out of your pocket.
gator08041971
·1 year agoFor some reason, its quite common that sellers don't realize how this works.
The total of the entire sale which includes what the item sold for, any discounts that may have been applied, any taxes on the item, and any shipping charged to the buyer. ALL of that as a total, is considered a transaction.
Then.
Based on the total of that transaction eBay fees are calculated.
They take that total amount, and subtract the listing percentage for your category that is advertised.
They also take a one time fee of either .30 cents or .40 cents, depending if you are under or over 10 bucks for the entire transaction.
Then they take that total amount again, and subtract the promotional percentage for it. (9% in your case)
Then they pay the taxes that were charged, since they don't belong to you.
Then you have the shipping to pay when you buy a label.
What's left over is yours to keep.
pastimpressions
·1 year agoWhat you describe is completely reasonable.
14 or 15% total commission cost is spot on.
The additional 9% was your choice.
Maybe it paid dividends with a quicker sale, maybe it played no role.
But it was optional & at your discretion.
krazzykats
·1 year agoYou sold the item for a best offer$ with $16.50 shipping.
Your buyer paid the shipping and sales tax. You will pay for shipping from the money your buyer paid, and sales tax will go to the state.
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