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Never had a good Explanation of Final Value Fees...

  Seems like I could never find a good explanation in eBay of all of the ways the Final Value Fees are calculated ...

  But I think I have finally figured it out...  Please correct Me if I am wrong!

  On doing Many calculations on various scenarios, here is what I have 

  Looks like the final value fee is a percentage, at a minimum, based on the Item Listed Price (plus $0.30).

  If You accept an offer that is lower than the Listed Price, it still is calculated on the original listed price!

  Example:  Listed at $200.00, and You accept $100.00, Your final value fee is still calculated based on $200.00!

(And always $0.30 transaction fee (You will ALWAYS pay the $0.30 transaction fee))

Then the states that charge sales tax is the next curve!

  If sales tax is collected, that increases the total of the final value fee by the the amount of tax that the Buyers

State and local entities charges!  

Example:  WV charges 6% state and 1% City tax (7% total) which is also added to Your final value fee!

So the first and second example are compounded... 

The final value fee accessed value would be calculated as $200.00 + $7.00 (7% of $100.00 actual tax collected from the buyer )= $207.00..  That is the base number that is used for the final fee value.!

  eBay automatically deducts their final value fee about ~ 12.3% (in the above examples about $25.50)

and also the tax that was temporarily added in is also removed.  Again, don't forget about the $0.30 fee! 

So...  The "Make Offer" price You thought you were getting, from the examples above has netted You a

payout of $100.00 - $25.50 - $0.30 = $74.20.  This is why it seems like You sometimes are paying a LOT more in fees than You think You should.

  Then comes the dreaded "International Currency Exchange" fee...  it would also be compounded into the above examples (about 1.5 to 2.0 %) if the buyer uses a currency that is not United States Dollars!  The Buyer can reside in the US, have a US shipping address, but use a non - US currency for payment and the Seller is again liable for the exchange fee!  I have sold a lot of items to non - US Buyers and have had the exchange fee also calculated in the total fees at closings...

  Please feel free to correct Me or simply add Your observations on "Final Value Fees"!!

 

Message 1 of 5
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4 REPLIES 4

Re: Never had a good Explanation of Final Value Fees...

That pretty much sums it up. Except I can't quite fathom this one:  Listed at $200.00, and You accept $100.00, Your final value fee is still calculated based on $200.00!  Do you have a source for that?


____________________________________________________________
Never sell anything on eBay that you can't afford to lose.
Message 2 of 5
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Re: Never had a good Explanation of Final Value Fees...

Just used the $200 / $100 values as an example..

A "Real" sale of mine is $139.00 is listed price and I accepted $130.00.

$16.81 was the actual final value fee...

  If calculated on $130.00 the final value percentage would be 12.93% (Excessive)

  If calculated on $139.00 the final value percentage would be 12.09% (closer to where it percentage should be)

  Don't forget the $0.30 that is added on later to the $16.81 to make a total of $17.11 total fees!

Again, I am not complaining...  Just trying to understand the actual fee structure!

Message 3 of 5
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Re: Never had a good Explanation of Final Value Fees...

Was there any sales tax paid by the buyer.

 

12.35% (14% if international funds) of entire transaction + 30 cents.

 

 

A $139 sale FVF would have been 17.47

 

 

Message 4 of 5
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Re: Never had a good Explanation of Final Value Fees...

Again, I am only trying to find out what all of the definitive final value fees are, so I can keep track of My transactions!  I am not trying to complain, or to make anyone upset...

Just trying to understand the current fee structures!

 

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