05-22-2023 01:18 AM
So it’s an odd question. How does EBay charge a fee on product/item sold, but also on shipping cost.. and on the taxes charged to the buyer. Example .. item sells for a hundred ..
$100x 13.25% = 13.25 (fee) .. then eBay charges tax of lets say $15.00 then they charge BUYER and then charge SELER 13.25% on that charge. 15x13.25% =$1.98 .. wait also if you charge shipping to buyer .. let’s say you have to pay USPS $10, but eBay wants 13.25% out of that.. you pay postage and then eBay robs you net 13.25% more 10x13.25%=$1.32. Also a .30 cent fee on top. Chow do they get away with this.. does this make sense to anyone??
05-24-2023 08:28 AM
Have you added up all these charges yet. I got 16.00 + on a 100 sale? Almost 20%. And I think it is closer to 25% if you promote.
05-24-2023 08:30 AM
Just curious...If you were the administrator of this platform, how would you have deterred the "1%" who list a $50.00 item for $30.00 with $20.00 shipping to lower or even avoid the selling fee?
EASY Solution (technology has changed):
Charge the processing fee on the total transaction.
Charge the FVF on: (Item Cost + Shipping Cost) - Actual Shipping Seller Paid
Item cost+Shipping Cost= $50 free shipping, $40+ $10 shipping, $1+$49 shipping all equal $50
If actual shipping paid was $8, the FVF would be charged on $42 ($50 - $8)
eBay already knows the actual shipping paid for transactions using eBay Shipping.
Pirateship and other online shipping services already exchange data with eBay on sold items and update eBay Tracking automatically. If eBay requested shipping paid by seller for a transaction, it would be provided. eBay could have the actual shipping sellers paid using other online shipping services.
eBay would only need a solution for sellers who paid at a physical location. Not too big a challenge
When the 1% of sellers were "robbing" eBay of their fees eBay had to have a solution. Now that eBay is taking the fees they don't earn there is no interest in correcting this injustice.
And most sellers seem to defend eBay:
"eBay has been overcharging us for a long time, it is a dead issue"
Why not consider a fair solution? I don't understand the logic. I do pay the extra fees.
05-24-2023 08:34 AM
Same example:
How do you know it did NOT cost $20.00 to ship, and you suspend the seller when in reality, the buyer wanted overnight shipping.
05-24-2023 09:00 AM
With my solution, it doesn't matter what sellers charge.
$50 free shipping, $40 + $10 shipping, $1 + $49 shipping
For every case, eBay earns their FVF on $50 - actual shipping paid by seller
No one needs to be punished
No one is cheating eBay out of their fees
Re: Fees- EBay charging seller on taxes they charg... - Page 5 - The eBay Community
05-24-2023 09:09 AM
@mybigsale wrote:
No one needs to be punished
No one is cheating eBay out of their fees
Sellers offering “free” shipping would be punished if the amount for shipping is folded in with the item price, so these sellers would still be paying FVF on item + shipping under your scheme.
I don’t think “So don’t offer ‘free’ shipping” is a practical solution given what a powerful draw “free” shipping is for online sales.
05-24-2023 09:22 AM
Sellers offering “free” shipping would be punished if the amount for shipping is folded in with the item price, so these sellers would still be paying FVF on item + shipping under your scheme.
Why would that be?
Why would $50 with free shipping - Actual shipping seller paid
come up with a different result then:
$40 Item + $10 shipping - Actual shipping seller paid
They way I do math in both cases $50 - $8 actual shipping results in $42 (amount to charge FVF).
Sellers that charge Free Shipping, or any combination of item cost and shipping end up paying eBay the FVF on Total item+Shipping charge - actual shipping paid by seller.
05-24-2023 09:51 AM
@marnotom! wrote:Sellers offering “free” shipping would be punished if the amount for shipping is folded in with the item price, so these sellers would still be paying FVF on item + shipping under your scheme
FYI: For sellers offering a $50 item with free shipping, folding in the $0 shipping charge, adds up to $50. Adding the $0 shipping charge does not increase the amount for items with free shipping.
Results for any combination of Item and shipping charges are the same. Free shipping is NOT punished.
05-24-2023 10:11 AM
Okay, my brain must be a bit mushy this morning, then. I'm just having a tough time following your math, I guess.
What I don't get is what's so "unfair" about the current system. Not all categories are subject to the same FVF percentages, and in some categories that percentage drops for sales over a certain dollar amount. Sellers in categories where items tend to be heavier pay very low FVF, while sellers in categories where items tend to be lightweight or where shipping is cheaper pay a little more than the standard 13.25%.
No, the current system isn't perfect, but nothing is.
05-24-2023 11:04 AM - edited 05-24-2023 11:07 AM
The majority portion of the FVF is the commission we owe eBay for helping us sell our item. eBay earns the lower processing fee for processing the total transaction (now eBay mixes everything together with one FVF).
In my opinion it is unfair to earn the high commission for the act of processing the shipping and tax.
A long time eBay started charging commission on Shipping because some sellers charged $1 Item Cost plus $29 shipping in an attempt cheat eBay out of their FVF. eBay was charging the fee because they assumed ALL sellers are cheating eBay on shipping fee.
At the time, eBay did not know the actual shipping charges sellers paid. With today's technology they do (or can) know actual shipping paid to correctly charge FVF only on the item (with adjustments as suggested that would prevent sellers from "cheating" on shipping charges).
I, like many other sellers can adjust pricing so buyers end up paying. I don't like having to make my buyers pay inflated prices on item and/or shipping so I can pay eBay their unearned commission on shipping and State Tax.
Re: Fees- EBay charging seller on taxes they charg... - Page 5 - The eBay Community
05-24-2023 11:22 AM
@sakic92710 wrote:You tell me, if I charge $30 for S/H & eBay takes $4.00 of that money, what service are they providing me for that $4.00. Go ahead.......... lol
The ability to print your shipping label from home at a discount over retail pricing. I'm not saying I like the FVF on shipping anymore than you do. It is just an old dead subject. Ebay isn't going to change it otherwise they would have over a decade ago.
Your question in your post I responded to was "They do not have an answer for why the fee attached to the shipping is justified." I shared with you that they did when they made the change some eleven years ago. You may not like their reasoning or what they said, but that doesn't mean they didn't say anything. And they sure aren't going to keep defending their position every time someone on the threads ask the question after all this time. That is an unrealistic thing to expect. Clearly you do expect them to do that, but also clearly they aren't going to do it.
05-24-2023 11:26 AM - edited 05-24-2023 11:28 AM
@sakic92710 wrote:I know why they started taking a % of the shipping money. Instead of punishing the 1% who were trying the scam, they decided it was in their best interest to punish the other 99% & make more money off of everyone.
Yes and no. That was part of it. This is one of those things that Ebay said they did it because it is industry standard, which it is. Other similar sites to ebay had been charging the fee for a long time before Ebay did.
Then there is also that if they did not make this change it would punish all those seller that do Free Shipping because they are paying FVFs on the shipping because it is in the price of the product.
They pull this industry standard reasoning out when it suits them. But they haven't made that statement regarding the full FVF on sales tax because it is not industry standard. The argument could be made if they charged just the money processing portion of the fee on the sales tax, but no other site charges their full money processing fees and their selling fees on sales tax.
05-24-2023 11:30 AM
@boomersbiz46 wrote:Have you added up all these charges yet. I got 16.00 + on a 100 sale? Almost 20%. And I think it is closer to 25% if you promote.
Using Promoted listings is a choice as it the additional FVF percentage a seller is willing to pay for a sale.
05-24-2023 11:35 AM
"EASY Solution (technology has changed):
Charge the processing fee on the total transaction.
Charge the FVF on: (Item Cost + Shipping Cost) - Actual Shipping Seller Paid"
Not all sellers purchase their shipping on Ebay, so Ebay doesn't always have access to what the seller pays. And as strange as it sounds, there are sellers that still take their stuff to the PO to ship out and they pay Full Retail pricing.
Some online providers of shipping do provide Ebay with the tracking number for a particular order and others do not. To my knowledge the ones that do communicate to Ebay with the tracking number don't provide Ebay with the costs as they would have no need for that info at this time. That is likely something they could change relatively easily.
05-24-2023 12:44 PM
Yes - if you read my original message those issues were all addressed. eBay doesn't have the information because they don't want it, not because they can't have it.
eBay doesn't want to charge a fair price and eBay sellers are indifferent as long as they can up the price on buyers. I can also adjust my pricing and deal with it. Life goes on... back to listing.
Re: Fees- EBay charging seller on taxes they charg... - Page 5 - The eBay Community
05-24-2023 12:46 PM
In reading this post it seems like the original issue has gotten lost. I havent found any replies that directly address the issue you have raised (though I must confess I did not read them all, got kind of redundant), but I would like to just say that I agree with you that ebay charging tax to the buyer (which the seller never sees) and then charging a fee to the seller based on that fee is really over the top, even for Ebay. I still can't seem to get my head around ebay taking a percentage of handling fees, when I don't see ebay here in my living room where I sometimes literally spend hours packing things so that they arrive safely. Their piece of the pie just keeps getting bigger and bigger and bigger. Just my two cents.