Ebay fees getting out of hand...

[basstactical]

I don't know about anyone else, but these eBay/PayPal fees are getting out of hand. I'm a small startup business and barely getting by, I can't afford to pay all these added fees! I can't afford to pay monthly and annual subscription fees to a store so I can list all of my products on ebay so I just don't. Meanwhile, I'm selling on Etsy and they're half the fees (7.2% to be specific)! Ebay is charging me 13.6% off the top of every sale and they don't even advertise for us in google unless we pay some ridiculous additional marketing charges!

EBAY, YOU ARE LOSING BUSINESS BECAUSE YOU PRICE GOUGE

[my_boston_baked_beans]

There are other services out there, but they all charge varying fees. None are free so that still adds to your overall cost of doing business. I sell on etsy, but the sales are almost non-existent for me anyhow.

[kariandlarrysales]

---

@basstactical wrote:

ebay and paypal are the same company and they both take a cut. Combined, this is 13.6%. Gotta look at the whole picture. 

---

@the*dog*ate*my*tablecloth wrote:

Why are you paying 13.6% in fees to Ebay? Most sellers are paying 10% or less.

---

---

eBay & PayPal split in 2015 but you're still welcome to open a merchant account (assuming you qualify) & pay more than 30¢ + 2.9% per domestic transaction or offer local pickup & accept cash.

If monies to the venue/place of business & payment processing fees are so high you can't make profit, perhaps your selling model needs some work.

I doubt I could make money opening a hot dog kiosk in the Cherry Creek mall but suspect I could with a cart at the local Home Depot or the once a month Niwot auction. Of course, both of those spots are already taken because the people who locked them up make money.

[crescent_vinyl]

You have to break that down a bit more though.

Because you aren't using PayPal at Etsy, you are using their own personal money transfer service.  So on top of the fees that you are paying Etsy, you are paying the money transfer fee. 

This is a comparison of two items I sell - same on eBay and Etsy and their breakdown:

Date / Site / Item / Sale Price / Shipping / Seller fee / money fee  /  Total Profit

02/04/16	Etsy		Starry Princess	$5.04	$2.54	$0.29	$0.42	$1.79
04/05/16	eBay		Starry Princess	$5.00	$2.54	$0.50	$0.30	$1.66

It's very very similar.  

Note:  This is with having a micropayments account through PayPal

Note 2: That also includes the restock fee on Etsy that you pay for having multiple quantities; they charge it for every list and sale

[basstactical]

ha... "perhaps your selling model needs some work."

Wish I thought of that... Thanks for that genius solution... *shakes head*

[the*dog*ate*my*tablecloth]

Most of my sales on Etsy came through Paypal so the fees were the same.

[basstactical]

This is the formula for Etsy:

=(Sale Price*0.035+0.2)+((Sale Price+Shipping Price)*0.03+0.25)

First part of the formula is seller fee, the second part of the formula is merchant service fees.

Ebay is =(Sale Price+Shipping Price)*10% + (paypal fees)

[the*dog*ate*my*tablecloth]

Regardless, Ebay obviously has a lot of sellers who are willing to pay the fees. They are pretty reasonable to me given the audience Ebay provides.

Fees are not going down any time soon.

[basstactical]

but they're choking out businesses like mine that could be doing more if their fees weren't so high. its a choke point for my business growth.

[kariandlarrysales]

---

@basstactical wrote:
but they're choking out businesses like mine that could be doing more if their fees weren't so high. its a choke point for my business growth.

---

(shakes head in amusement)

So what?

You obviously understand the problem so find a solution (or just complain as you wish)

[twnpopcards]

---

@basstactical wrote:
but they're choking out businesses like mine that could be doing more if their fees weren't so high. its a choke point for my business growth.

---

So you know your problem and need to find the solution.  Either raise your prices, find a different web site to sell on or find a different mix of products to sell.  There is a lot about Ebay that I don't like and agree on, but overall their fees for sold items are reasonable.  Try a brick and morter store and see how much you wind up paying for everything each month.

Maybe don't offer 70% discounts for  flash sale, make it 60% so that you offset Ebays FVF and thats an additional 10% in your pocket.  Maybe that is the maximum you can sell your item for as that is the market price, then try other websites where the cost to sell is not as high, but neither is the traffic.

You control your own future, not Ebay.  

David

Twnpopcards

[roadking-rick]

Final value fees have not changed but Store fees are going up.

[fuzzface50]

"but they're choking out businesses like mine that could be doing more if their fees weren't so high. its a choke point for my business growth. "

ebay has way too many sellers already and they need to thin the herd some. best way is higher fees and this should eliminate the ones selling that make no or little profit. Who would you rather have if you owned ebay? Seller that make nice profits so you make a nice profit too or sellers that make no profits?

Already mentioned above, alot of us don't have the problem with the fees here.

Did you ever try selling locally at an auction?  it cost more than ebay and you earn less

Don't like ebay fees, sell on those other sites that have lower fees then.

[1heidar]

Sold my first item, had no idea Ebay would take 10% and item sold at low price. I ended up loosing a lot of money. But I learned my lesson and I will not be selling anything in the future on Ebay.

[zeave3210i36]

I noticed that as well, I am not sure why it happening, it have been changed last year I was able to tipe a title of one of my item into

Google search and the link to my store come up , not it not happening.

Not sure if google is pulling the plug on e-bay or...

[double2trouble]

They are also cutting into the shipping 10%. Depending on the shipping price, it averages 15% to 20% total fees for me. I just think 20% off the top if I'm selling on ebay. So, if I'm buying something that I can sell for $100 free shipping, it fits in a med flat rate box, which is 11.60, so that's $88.40 sale price, 13.60 total fees, for a fee percentage of 15.4% of the actual sale price between ebay and Paypal. With a minimum profit margin of 5 times the profit for me to risk selling on ebay, I can pay $15 for that item. I've kept that formula, and consistantly make a profit with it.