What, exactly, is included in ebays final value fees?
I know the items selling price and shipping charges. But do sales tax get included? I ask because last month was horrendous for me in sales. So much, ebay took money out of my bank account to cover their charges.
My gross was a lousy $151.00. My net after they took their share was $39.18. That net does NOT include my cost of goods. Looking back through my records, I have been losing money for the last 8 months.
My bank statement shows, without buying merchandise), has been dropping steadily for 8 months, instead of increasing.
HHHHHHEEEEEEEEELLLLLLLLLLLLLLLP_P_P_P_P_P_P_P_P_P_P_P_P_, I am drowning.
20 comments
redlinear
·2 years agoWhat exactly is included in eBay's final value fees?
Any profit that you hoped to make usually 😊
tjl63
·2 years agoWhen I first started selling, that was the first thing I noticed.
I learned quickly that selling a book for $5 and free shipping is a LOSS....either you gotta cut out the free shipping or build the cost of shipping into the item. SO, how do people charge free shipping on such small items? Well, if they do it in bulk, its not that hard.
I talked to this one seller who was selling books for $2-$3 with free shipping. He worked for his daddy who had a huge business, he was tossing the books in the outgoing mail. I'm not suggesting anyone do this, but you catch my drift.
jfleming101
·2 years agoI just found out today that as a seller I am getting charged the 13.25% for what the item sold for, shipping and TAXES!!! Very upset. I contacted eBay and after almost 20 years, I think it's time I considered closing my account. I don't understand WHY we, as seller have to pay a percentage of taxes that go to the government. As I only found out about this today because saw what eBay charged me, I guess this has been going on for a long time, at least since the sales tax was added. I think this is ridiculous to charge us for something we have have nothing to do with!!! Time to make a new plan!!!😡
dryophelia
·2 years ago@jfleming101
It has been this way forever. It may have just come to light with the more expensive items that recently sold, but it’s not new.
It’s unfortunate it took 20 years.
One has to wonder what else might come as a surprise.
jfleming101
·2 years agoI think eBay only started charging taxes last year because the government wanted a piece of the pie. So thank goodness it wasn’t for all those 20 years.
nobody*s_perfect
·2 years agoThe final value fee on shipping and handling was introduced in 2011. And then was carried over to Sales tax when that became a regular part of the buyers' payments.
reallynicestamps
·2 years agoAnd OP has a Store , so that's another $25 or so every month.
dbfolks166mt
·2 years agoFor someone that has been selling for so long your post seems a bit odd. Others have already addressed the question about what the FVF's are applied to. You need to step back and take a serious look at your business model paying particular attention to your cost model if you have one. If not you need to develop one that you can use to help you figure out what price you set on an item BEFORE you list it in order to make a profit or an acceptable ROI. The model should include ALL expenses including federal and state income taxes. If you are taking a loss just from your eBay expenses it's going to be worse when you factor in other expenses. For example.
luckythewinner
·2 years agoWhat, exactly, is included in ebays final value fees?
The eBay fee schedule explains exactly how fees are calculated.
https://www.ebay.com/help/selling/fees-credits-invoices/selling-fees?id=4822
Teach a man to fish ...
Looking back through my records, I have been losing money for the last 8 months.
It's a shame you did not notice or wonder for 8 months. How did you arrive at your item prices if you did not know what price was profitable?
jameshen1
·2 years agoIf you have been losing money for 8 months and just now noticed that, you need to stop and change everything about your business plan.
bargainbasement101
OP2 years agoI think you are correct. After selling on ebay for more than 20 years, I need to sell somewhere else before ebay finds another way to siphon money out of my sale. Personally, I don't see how shipping and sales tax adds to the value of the item, other than an excuse to charge more. For example, when I first signed up on ebay, the basic store was $9.95 a month, now I am pay 27.95. Did ebay ever send a price increase notice? NO, they sneak stuff like that into your account
anasazirose
·2 years agoI remember well when ebay started charging FVF on shipping. Sellers were selling a $100 item for $5 and charging $110 for shipping. Ebay fees were based on $5. Ebay was getting cheated. I understand their move.
I disagree with charging a FVF on tax.
But, ultimately it's their game and their rules.
soh.maryl
·2 years agoeBay's Final Value Fee (paid by the seller to eBay) is calculated on the item price charged to the buyer, the shipping cost and the state sales tax, if any, and, in most categories, is about 13.25%.
The "cost of goods", by which I assume you mean the amount the seller paid to obtain the item that he then sold to a buyer, has no play at all in eBay's Final Value Fee. The shipping cost paid by the buyer to the seller is used by the seller to pay the cost of shipping the item to the buyer. The state sales tax, based on the buyer's delivery address, is paid by the buyer to the seller and is then remitted by eBay to the treasury department of the appropriate state.
kensgiftshop
·2 years agoOn those cheaper items, when the shipping is almost as much as the item, you're not going to make much if anything.
rosszonebricks
·2 years agoOne example from your store that also doesn't help with 'bleeding money':
https://www.ebay.com/itm/225767281465
$3.99 + free shipping.
3.99 sale price
0.28 sales tax (based on 7%)
----
4.27 is what a buyer would pay.
-4.26 (estimated from WA to NC) 4 oz Ground Advantage
-0.57 FVF
-0.30 per transaction fee.
------
-0.86 LOSS
And that doesn't even include CoGs.
redlinear
·2 years agoWhat's included in eBay final value fees?
mtgraves7984
·2 years ago@redlinear
Very, very good. But let's not confuse the OP... those drain stoppers are NOT included. 🤣
buyselljack2016
·2 years agoper a "help &contact" search
Selling fees | eBay
solidguitar1961
·2 years agoit is charged on the complete sale price . Price + shipping + Tax
mtgraves7984
·2 years agoI know the items selling price and shipping charges. But do sales tax get included?
@bargainbasement101
Yes... FVFs are imposed on the total sale. Item + s&h + sales tax (if applicable).