Ebays "Final Value Fee" why does it include shipping paid by buyer?
Why does eBay include shipping in the final value of an item? I sell inherited and pre-owned items, not as a store. When buyers pay for shipping, eBay allocates those funds directly to the shipping label cost.
The money goes straight to shipping expenses, not my profit.
Any information on this topic would be appreciated.
8 comments
kensgiftshop
·1 year agoSame reason sales tax is included in the % of the fee's, it's the way they decided to figure the fee's.
youn2240
·1 year agoI think they made that policy just to confuse a very small percentage of the population that doesn't understand how anything works. you should always use free shipping so this doesn't make you think too hard about why ebay would charge you what they said they would.
chapeau-noir
·1 year agoAn almost inexhaustible amount of info on this topic can be found with the simplest search on these boards.
youn2240
·1 year agoyuck. new thread 4 life
luckythewinner
·1 year agoAny information on this topic would be appreciated.
The simple answer is "because eBay chose to calculate fees this way".
The more complicated answer is that eBay does it for three reasons:
simba6
·1 year agoSellers had discovered they could list items for a penny and add the item's cost to the shipping. That way they only paid the fee on the penny. eBay got wise to that fast and that is why it's now on the shipping too.
doc-holmes
·1 year agoIt makes it so people who offer free shipping by rolling the shipping cost into their item cost don't pay more in fees than someone who charges for shipping. Also it prevents people from charging $1 for the item and $99 for shipping to avoid fees. Also eBay makes more money this way.
albertabrightalberta
·1 year agoIt's outlined in ebay's TOS to which you agreed:
https://www.ebay.com/help/selling/fees-credits-invoices/selling-fees?id=4822&st=3&pos=1&query=Selling%20fees&intent=seller%20fees&lucenceai=lucenceai&docId=HELP1456
And from that page:
Final value fees
We charge one final value fee when your item sells, and you don't have to worry about third-party payment processing fees. This fee is calculated as a percentage of the total amount of the sale, plus a per order fee. For orders $10.00 or less the per order fee is $0.30, for orders over $10.00 the per order fee is $0.40.
The total amount of the sale includes the item price, any handling charges, any shipping costs collected from the buyer (some exceptions apply), sales tax, and any other applicable fees.