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why does eBay take 10 percent of the shipping? They're ripping people off!

I can understand if eBay charges 10 percent of your transaction in fees.  But charging a fee of 10 percent on the shipping charge is a rip off.  

Accepted Solutions (1)

Accepted Solutions (1)

Hi @mnoodle76

 

Here's the full story on eBay's charging fees on shipping:

 

Sellers are charged 10% of the TOTAL amount the buyer pays.  It is charged in two separate invoices (unless you offer 'free shipping).

 

eBay knows what the item sold for as soon as the listing ends ... so is able to invoice for that immediately.

 

eBay doesn't know what the cost of shipping is until the buyer pays ... so it invoices separately for shipping amount.  It's been doing it for about 5 years now.

 

 The reason eBay started including the shipping cost in their fee structure is that some sellers had developed a scheme to avoid paying eBay fees.  For example, they would list a $100 item for $1 ... and charge $99 for shipping ... reducing the fees to 10 cents.

 

eBay couldn't find a way to stop the fee-avoidance ... and more and more sellers were doing it ... so began charging fees on the ENTIRE payment the buyer made.  Honest sellers suffered along with the sketchy ones.

 

PayPal charges 2.9% (plus 30 cents) on the TOTAL amount the buyer pays. [That also includes the shipping cost.]  It is taken BEFORE the money is put into the seller's account.

 

Answers (2)

Answers (2)

Generally they been doing it for 5 years.  In the old days you would see a laptop for $1 and $199 shipping.  eBay made adjustments for you pay the same fee as if the laptop were $199 and the shipping $1

Ebay implemented this fee structure in July, 2011.  They finally caught on to the fact that there were sellers selling items for $1 with $99 shipping, making eBay's share of that particular pie, 10 cents.