Help me understand this financial statement

[liawri-75]

I went to the Payments section of account from Aug 1-8. One week.  See below.  According to my calculations, I was charged 23% fees by Ebay for one week???  $79/18.18.

Is that right?  I never paid attention before, but that's a LOT!  It's more than the P* site and the A* site.

[klhmdg]

Fees are 13 - 15% of the TOTAL sales amount. Percent depends on what you sell.

Has zero to do with payout.

Total sale = item cost+ shipping+ tax. 

It is in Selling Fees on the right of the page.

[monica-sells]

The "payout" is the resulting number from your TOTAL sales less your selling expenses (final value fees, optional fees, labels, listing fees) and your shipping labels if you use ebay labels.

The way you figure your percentage is from the TOTAL sale, not from the "payout"......

In your example, your total sales were (estimate) around $120.00 less 14.74 in mandatory FVF, $3.44 in optional fees. You then paid for the labels from your funds from the sale, resulting in the payout of 78.97.

So, you figure your margins (percentage) from the $120...not the "payout"

[kensgiftshop]

Shipping is not a fee, so you need to subtract it, then see what you get for the fee's.

[buyselljack2016]

Ah, the old creative math misconception😁

Confusing "selling costs" with "fees" 😁

Here 26%  vs  actual 14%

 

 

[liawri-75]

As mentioned b4, no other site except A* has this convoluted way to figure your selling fees.  M* is a no-fee site (doing well), P* is 20%.  EB needs to get with the times.  Confusion as Heck.

[monroe67]

"I  went to the Payments section of account from Aug 1-8. One week.  See below.  According to my calculations, I was charged 23% fees by Ebay for one week???  $79/18.18.

Is that right?  I never paid attention before, but that's a LOT!  It's more than the P* site and the A* site.

"

Oh, my goodness.  
This post shows a misunderstanding of the straightforward and very elementary arithmetic involved in eBay's fee collection and payout system.  

In the screen shot posted by the OP, the payout amount is $78.97.  The OP received $78.97 in his bank account.  
Fees totaling $18.18 had already been taken away (retained by eBay) before  $78.97 was sent to his bank.   

"According to my calculations, I was charged 23% fees by Ebay for one week???  $79/18.18.

Is that right?"

No, that is not right.  Using this chart, figuring out the percentage that the fees represent in relation to the payout -- it's just a mathematical calculation.  It means nothing in the real world.  It means nothing in eBay's accounting.  It means nothing for your 2024 income tax preparation next year.  

Yes -- just using those numbers -- dividing 18.18 by 79 does equal 23% and a few hundredths of a percent.

But on eBay, once the payout money goes from eBay to the seller's bank account, there is no real reason to (try to) compare eBay's fee amount to the payout amount.  It means nothing.  

"I never paid attention before, but that's a LOT!"

Your life on eBay may be a lot better if you start paying attention to the fee schedule(s).  In a nutshell:

eBay's Final Value Fees (FVFs) are calculated on the Total Amount Paid by the Buyer.  FVFs consist of two  parts:  (1) 40 cents per order (only 30 cents per order when the buyer's total paid amount is $10.00 or less) and (2) a percentage of the Total Amount Paid by the Buyer.   That number, the total of those two parts, is shown in the chart as Transaction Fees.  

The percentage portion of the FVF varies depending on the category in which the item is listed.  Guitars and basses carry a 6.35% FVF percentage, jewelry and watches have a 15% FVF, and most other categories have 13.25% FVF.  

[albertabrightalberta]

---

@liawri-75 wrote:

 M* is a no-fee site (doing well)

---

Mercari certainly does have fees and is NOT a "no-fee site." 

Until March 27, 2024, there were seller fees of 10%. 

After March 27, 2024, their fees became the responsibility of the buyer. 

[monica-sells]

convoluted? hahaha

try reconciling a sale on etsy with a variations listing and off-site ads....

now THAT will make you crazy

[wastingtime101]

Hey liawri. I get the impression math and accounting are not your strengths. You've posted numerous questions on these topics with your different IDs over the years. Nothing wrong with that - a lot of people struggle in these areas.

As an online seller, it's important to have a firm grasp on your business financials.

My suggestion is to either work with an accountant or find some online classes or tutorial videos about basic accounting. If you make a dedicated effort I'm sure you can learn what you need to and this aspect of selling will become much easier for you.

eBay displays the breakdown clearly - it's up to you to understand that shipping labels and advertising are business expenses, not selling fees. There's a difference. As others said, take the number before those expenses are subtracted when determining your fees.

[merrymj]

My, how eBay has changed since I sold baby clothes 15 years ago.  I dropped Paypal after having scammers show up on my account page when I was logged in, and I know a number of people who have quit using Paypal over similar concerns.  Paypal was unresponsive when I warned and even screenshot my PP page.  Retired and ready to get rid of things so my kids don't have to deal with it all, I see Paypal has moved beyond where I'm willing to go.  And now that eBay is dropping American Express for payments, I'm with a LOT of buyers who also are moving away from eBay.

[wastingtime101]

PayPal is no longer a option for receiving payments on eBay. You have to register for eBay payments with your bank account and verify your ID and your SSN @merrymj .