How does eBay Calculate Shipping for Buyer? Seems to high. eBay Capitalizes on FVF.

[3064jean]

How does eBay calculate shipping?  Printing label based on their price vs. using stamps is significantly different. How to avoid this without offering free shipping? And they take the 12.9% FVF on this amount too. Seems wrong. Any work-arounds I am not thinking of?

thank you. 

[soh.maryl]

You have been selling here for a very long time.  

eBay has calculated their final value fee on both the shipping and the item price for a very long time also.

Currently, the final value fee is calculated on the shipping, the item price AND the state sales tax, if applicable.  

And offering free shipping is not going to change the way the final value fee is calculated. 

Can offer no suggestions for any "word-arounds" without breaking rules.

[donsdetour]

final value fee variable is on final value of item, Plus Shipping if any, Plus Tax if any and then it is calculated...

Of course then the fixed FVF of .30 is added to that.

Dont forget if the transaction is involved with out of country user you get the international fee as well.

Oh and shipping lately is crazy costly: and you can expect it to go higher.

One can find one self using eBay's shipping to have corrected  cost down the road as it is  not for some shippers accurate....

As for work around: Well not really many.  Know your costs before listing is good advice.

[donsdetour]

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@3064jean wrote:

How does eBay calculate shipping?  Printing label based on their price vs. using stamps is significantly different. How to avoid this without offering free shipping? And they take the 12.9% FVF on this amount too. Seems wrong. Any work-arounds I am not thinking of?

thank you. 

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Oh and should be less than using stamps by the way>

If you are making mistake using stamps your item may show up with postage due which of course is a no no.....

[shipscript]

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@3064jean wrote:

How does eBay calculate shipping? 

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@3064jean 

eBay uses the package dimensions, weight, and service level that you enter, and then pulls in the shipping cost from the carrier's site using an API program, and, as you know, rates are currently climbing.  As a high volume account holder, eBay has access to lower commercial rates for some of the different service levels, which are passed to the seller.

https://www.ebay.com/shp/Calculator

You, the seller, will have the option to pass those lower rates to the buyer or to display higher retail rates in the listing.

https://www.ebay.com/ship/prf

When eBay started applying a FVF to shipping, about 15 years ago, they pointed out that the carrier discount from eBay labels would likely make up for most of that fee (if your listing displayed retail rates).

One of the reasons to provide accurate weight and dimensions is to avoid surprise charges due to oversize or underweight "dimensional weight".  Using calculated shipping should help your listing keep up with any recent rate changes.

I see that you are selling mostly patterns. The thin patterns could ship as first class letter if they are under 3 ounces and less than 1/4 inch thick. If they are a little too stiff,  a non-machinable surcharge must be added.  But there is no tracking. Otherwise, the patterns could ship as first class package with calculated shipping and tracking if under one pound, and prices start around $4 and up based on shipping zone.

[mybigsale]

I usually ship USPS with eBay shipping.  I have found no other shipping service with a lower shipping cost.

The FVF is based on the total cost to the buyer - you determine the shipping charge your buyer pays.  Shipping can be free, $1.00, eBay calculated shipping (based on size, weight, shipping method and shipping and handling you choose), whatever cost you choose (for your buyer). FVF will be charged on the total that the buyer pays. eBay credits you the Item Cost and Shipping (you determined) after eBay fees. Those funds need to cover the cost of your shipping however you want it purchased.

When you go to purchase your postage there is no further fee.  Whether you purchase from eBay, Post Office, or other source - the FVF on the total purchase price (including shipping) has already been collected by eBay.

[flomantiques54]

You can see the worst case shipping cost in the shipping method, Domestic and International, when creating the listing.  Then you can calculate 20% or 30%, depending on Dom. vs. Int., and add that as a handling fee.  That way, when the sale occurs, you can deduct the FVF percentage from what they pay for shipping and refund any overage to them.  And the FVF varies greatly when you consider items that sell for a low price.  The $.30 FVF is much larger percentage when the item sold for $1.  So, add a handling fee that will cover the worst case FVF ebay will take from shipping charges.  This only works when you have things packed at the time of listing, which most sellers don't do. That way you know exactly what the package weighs.  The irony is that the FVF on shipping is causing sellers to do exactly what the FVF on shipping was supposed to preclude.