Best shipping scenario
Seems the best case on selling on eBay is to get the total cost down, item and shipping. So free shipping would be best because any other shipping method would be charged 14.9% to the seller on shipping. Is this correct?
4 comments
nobody*s_perfect
·2 years agoThe final value fee in most categories is 13.25%, not 14.9%.
The final value fee is a percentage of the buyer's total payment, including item price, shipping and handling, and sales tax if any. Generally if a seller offers "Free" shipping in the listing, they are adding an estimated shipping cost onto the item price. As noted in the other post, eBay's final value fee is the same whether the seller charges $20 with $10 shipping, or $30 with free shipping.
The seller ships the package, so the seller always pays for the postage whether they charge the buyer for it or not.
soh.maryl
·2 years agoYou may be misinterpreting something. eBay's final value fee to sellers is calculated on the total amount paid by the buyer to the seller, regardless of how it's broken down.
Example: I sell my widget for $20 plus $10 shipping. The buyer pays me $30 plus state sales tax if any.
Or: I sell my widget for $30 with free shipping. The buyer pays me $30 plus state sales tax if any.
And, in both cases, I pay approximately 13.5% in final value fees on the total paid me by the buyer.
tobaccocardyahoo
·2 years agoFree shipping simply means the cost of shipping is part of the cost of the item.
You pay the same FVF if you show the shipping cost separately or the shipping cost as part of the price.
In many states, the shipping charge is not charged sales tax, though the item price is. It could be cheaper in those states to breakout the shipping charge.
mtgraves7984
·2 years agoYou are correct in that FVFs are charged on the Order's total... Item + s&h + sales tax (where applicable). How you choose to arrange the first two numbers is up to you. The buyer's sales tax % is out of your hands.
'Free Shipping' is not best or worst... it's just a choice. You'll have selling fees on the total either way. Good luck.