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FEES ON POSTAGE

I know that if I ask the buyer to pay me say $25 for postage, that E-bay will take about 13% of that in fees along with the item sale price.  But if I spend the $25 buying the postage THROUGH E-bay, were they can see the $25 is not profit for me, will they still take away a 13% fee from that $25 I spent for postage????

Message 1 of 18
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FEES ON POSTAGE

Ebay charges the fee on your total payment including item price, postage & tax (if applicable).   That is the same regardless of where you buy your label.

Message 2 of 18
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FEES ON POSTAGE

     Yes. As fern*wood noted the FVF is charged on the entire amount of the order. I looked at a couple of your items and a few are shipping USPS Priority mail but I am not sure why you would use that class of mail as opposed to ground advantage. 

     You also appear to have a flat rate shipping cost on most of your items which has a number of issues due to the cost of shipping to different zones. You may want to look at your shipping settings on your listings and make some adjustments to make the items more attractive to the east coast and mid-west buyer base. 

Message 3 of 18
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FEES ON POSTAGE

Yes, you pay the fee on the total amount received from the buyer, but that $25 was never profit in the first place. It is money given to you as part of the payment to buy postage. Buying postage thru eBay, the discount helps cover the difference after paying fees. 

Message 4 of 18
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FEES ON POSTAGE

Ebay started  charging  fee's  on  shipping  since 2009  under former Ceo  John  Donahue  be we sellers  would not do  free shipping  on all listings .    when you are dealing  with  carriers   that  charge by shipping  zone   and  parcel size  and  surcharges   it doesn't   make since  to charge  all buyers the same .   majored  sellers  are second market  private  none retail  .  And   ebay  doesn't have  Wearhouse's   like   the other online sites   in  every buyers location , because it isn't  in the business model  .  

Message 5 of 18
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FEES ON POSTAGE

  "be we sellers  would not do  free shipping  on all listings" Fees charged on shipping was because too many people were selling things for a dime and charging $99 for shipping and only paying fees on the dime.  

Message 6 of 18
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FEES ON POSTAGE

Yes    the sellers that  did  the fee avoidance  was  given reason  for the fee's  .  I had talked  with  a Coo for seller relations   by chance  at the San Jose  Ca. office  by phone,  about several days  after  eBay start charging fee's on  shipping and I was told fee's where started because none of seller's did 100% free shipping  on all items  ,that the Ceo at the time wanted.  and that the Fee avoidance  reason was just a cover story. 

Message 7 of 18
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FEES ON POSTAGE

     Yes they will still charge the 13.25% on the amount of postage the buyer paid you it does not matter what you actually pay for the label.  If you are paying the same amount for the actual label that the buyer paid you then your seller settings may be set to pass the discounted shipping rate along to the buyer. EBay made this unilateral change sometime back in June I believe. It's a money looser for the seller unless you are covering the FVF's on the postage in some other way. 

Message 8 of 18
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FEES ON POSTAGE

Answer: Yes.

Long Train Runnin' - The Doobie Brothers
Message 9 of 18
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FEES ON POSTAGE

No where is it written that seller have to pay there actual cost  of the shipping label.  Always sold at the  full price of USPS postage and added a bit for handling costs.  Always made certain all my selling costs and my expecte  profit margin were paid by the buyer.  Never did the "free shipping" routine.

"I have the right to remain silent but I didn't have the ability." Ron White, Fritch, Texas
"Stay away from negative people, they have a problem for every solution." A. Einstein
"The Devil made me do it!" - Flip Wilson
"If the band can only play loud - they ain't no good - peps too!" J.R. Johnson
Message 10 of 18
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FEES ON POSTAGE

eBays FVF  on a  separate  shipping/handling started in  mid year 2011.  Sold my first item Jan  2010.(started buying Dec.  2008

BTW If a seller had  free shipping and the embedded the S/H cost in the  item price they were  paying the eBay FVF on it.  So eBay killed two birds with one stone by  eliminating the sellers  that  had a down and dirty item price with a great big S/H charged and leveled the playing field  for those  that opted for "free shipping" for their items.  Seems fair  from here

"I have the right to remain silent but I didn't have the ability." Ron White, Fritch, Texas
"Stay away from negative people, they have a problem for every solution." A. Einstein
"The Devil made me do it!" - Flip Wilson
"If the band can only play loud - they ain't no good - peps too!" J.R. Johnson
Message 11 of 18
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FEES ON POSTAGE


@carlmarxx wrote: ... I was told fee's where started because none of seller's did 100% free shipping  on all items  ,that the Ceo at the time wanted.  and that the Fee avoidance  reason was just a cover story. 

eBay claimed that the new FVF structure was all about wanting to encourage sellers to offer free shipping, by eliminating the penalty implicit in adding shipping to their asking price; the Spring 2011 explained, "Final Value Fees updated to reward low-cost shipping for all sellers."

 

https://pages.ebay.com.sg/sellerinformation/2011news/FirstSellerUpdate2011.html

 

In an associated video, "Todd Lutwak, VP of Selling Experience for eBay, sat down to discuss the latest release and explain the free auction listings and new Final Value Fee structure to eBay Ink readers. He attributes buyer expectations – particularly with regard to free or low-cost shipping – as a primary reason for the change".

https://www.ebayinc.com/stories/news/video-post-ebay-seller-release-spring-2011-ebaynews-ebaysr11/

 

I'd be willing to consider the possibility that the truth is the other way around -- eBay claimed that they wanted to encourage free shipping, but what they really wanted was to stop losing fees from sellers who charged inflated shipping.

Message 12 of 18
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FEES ON POSTAGE

EBay has discounted prices for many shipping services.

  • EBay Canada has negotiated a 53% discount for Canada Post's Tracked Packet USA, although most discounts are closer to 5%.

Some sellers buy discounted postage stamps here on eBay. Discounts on mint never hinged postage ranges from 20% to 50% . Be aware that discounts over 50% are likely to be Chinese counterfeits.
Discounted postage is also available from some large big box stores like CostCo.

You can use postage stamps to send tracked mail.

 

If you are using Flat Rate Shipping, you will be making a little on shipping to nearby destinations, and losing of distant destinations.  The eBay fee on the Flat Rate, whether too high, too low, or just right, will be 13.25% (usually).

On $25 Flat Rate that would be $3.32.

If your actual cost is $20, you make $1.68 one shipping after fees.

If your actual cost is $25, you lose $3.32 after fees.

 

If you use Calculated Shipping, your buyer will see and you will charge the exact amount the shipper does.

You can add a (flat) Handling Fee to cover that eBay fee.

The Calculated amount the buyer pays may be higher than the discounted eBay shipping label.

Message 13 of 18
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FEES ON POSTAGE

eBays FVF on a separate shipping/handling started in mid year 2011.

 

When Jon Donahue was CEO of eBay, recently fired from Nike as CEO.  Just want everyone to remember where the FVF came from and who did it.

Message 14 of 18
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FEES ON POSTAGE


@femmefan1946 wrote:... If you use Calculated Shipping, your buyer will see and you will charge the exact amount the shipper does.

You can add a (flat) Handling Fee to cover that eBay fee.

The Calculated amount the buyer pays may be higher than the discounted eBay shipping label.


Sellers can choose to set up their listings to charge buyers either the retail rate or the discounted eBay postage rate.

 

If they choose the latter, then the cost of the postage label will always be less than what the buyer paid, except for Media Mail which costs the same. Many sellers choose to set up their listings to charge the retail rate, so that the difference between retail and eBay prices serves as a built-in handling fee.

Message 15 of 18
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