Fees are too high

[superior.outlet]

Selling fees are far too high now on eBay. How is it that 19.4% of my total sales are going to fees, eBay is responsible for 65.3% of those fees and 34.7% for shipping. I completely understand shipping fees, but eBay's fees are far too high. For example; I sold an item for $99.99 ($116.36 after taxes and shipping), my total net after eBay fees and shipping (which the buyer paid for) was $64.44. How is that one item being charged nearly a 36% fee?

[coffeebean832]

You're trying to figure out a total of $44.05 in fees. Did you check your transactions to see the breakdown of fees?

$116.36 x 12.55% + $0.30 = $14.90 FVF

Shipping- $8.96

Total- $23.86

You need to account for a difference of $20.19.  Make sure you didn't unknowingly use promoted listings (ad fee). Look on this page- https://www.ebay.com/sh/fin/transactions. Find the item and all associated fees- don't forget to add shipping cost to those fees.

[donsdetour]

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@superior.outlet wrote:

This is from the report. I don't have any extra fees coming out (subscriptions, upgrades, etc). The big ticket item I had sold recently had 12.5% fees, so that's expected. Here's what the report shows for the one I'm questioning (screenshot).  

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Report shows me nothing I can use.

Go to ebay and the transaction reports there. What final value fees and so on, possible transaction fee on total being out of country also......

Using some report from some other company is not helping..

116.36 minus 8.50 shipping leaves tax at 7.87 for tax. I have no idea what the 44.05 charges are.

[mybigsale]

With managed payment eBay decided to make it simple for sellers by charging fee covering the complete transaction. Say 12.55% (varies by category). The problem is that eBays fee combines the transaction fee with the fee that covers their commission.  Lets say for ease of discussion 10% commission + 2.55% transaction (eBay also gets another 30 cents).

What should be charged is the 2.55% on the total transaction and then an additional 10% commission on just the item (there is a simple way to account for shipping above actual shipping costs to also be charge commission).

eBays policy to make it simple with one fee costs sellers an additional 10% charged on taxes and shipping.  For low cost items with say $15 Shipping+Taxes that additional $1.50 for the commission portion on shipping and taxes can be quite significant. Why is eBay earning a commission (and not just transaction fee) on seller pass-through costs?

[duffy4444]

   I see that you are honestly looking for an answer to the 36% fee, and not ripping Ebay, which a lot of us seasoned sellers are used to seeing on this forum. Thank you for calmly looking for an answer and not threatening to leave or sue Ebay!

   You will need to drill down deeper at the fees that you are charged, to see the bottom-line breakdown. It could be something that includes a few charges like an international monetary exchange charge if your buyer is international and is using a freight forwarder in the US, for example, and other charges you may not be aware of that are being included.

   I am more in tune with dispelling misunderstandings and trying to keep irate sellers from jumping ship over things they don't understand or haven't had the time or inclination to research. I'm sure someone here can tell you how to drill down to see all the fees broken out.... I haven't had the need to do that yet, so someone else should be able to help you with it here. Or get hold of Ebay on Facebook, and someone here can give you the link.

Cheers, Duffy 

[superior.outlet]

Yeah, I've sold on and off with eBay for years, so I'm not ripping into them, it's a service that we have to pay for. I was just confused about the extra fees. I think I figured out what the problem was. They charged me for shipping twice. I went back and tried to void the charge for one of them and it said that I don't need to void it, it would only get charged if it gets used. I never used that one, so I'm sure I'll get a refund... if not I'll contact eBay support.

Thanks for your help!

[coffeebean832]

If the first unused label was USPS then you were charged and need to void it.

If it was UPS/FedEx then you won't be billed unless it's used.

[katzrul15]

Glad you figured it out. 

We try to check transaction fees daily to avoid any surprises.  If it is USPS, takes about 30 days to see that credit.

[duffy4444]

   If you had promotion ad placement fees, that could also substantially add to the fees %. Just another possibility.

 - Duffy

[soh.maryl]

Just another small note here:  Assuming that you price your items to cover that free shipping, it makes no difference.

If your item is priced at $10 plus $5 shipping, your buyer pays you $15 and you pay the FVF on that $15.

If you offer your item for $15 with free shipping, your buyer pays you $15 and you pay the FVF on that $15.

What's the difference?  

[donsdetour]

What percentage is fees on shipping??? Some categories lately that could make a big difference depending on item size and weight....

[nobody*s_perfect]

The final value fee percentage is applied to the buyer's whole payment. So it's the same percentage rate (based on category, store type, etc.) for the item price, shipping, and sales tax.

[quiltgeek]

"free shipping" is NOT free -- you have to pay the carrier anyway, so you take it out of the price. As the seller, you pay for the listing costs and for the money processing fees on the price, shipping cost and State sales tax (if any).

Every penny you spend to list, ship and pay fees has to come out of the money the buyer pays you.

[candacea12]

So if you go to your Payments page, then All Transactions there is an option for Fees. From that page you can see the Transaction Details for each individual item you've sold. This has the complete breakdown of the total price, final value fee, percentage and additional fees if any. 

[psycheme]

WOW! eBay fees are way way too high. 14.55% for books and 12.55% for recordLPs?????

plus .30 cents on each transaction. Not out of my pocket.

Buyers getting ripped as sellers have no choice but to raise their price 15% to cover these outrageous fees. Do you really think MP is better? And please don't give the price of gas/milk/groceries story.

Ebay has lost its financial mind. I don't even buy here any longer.

 Shocking 

[psycheme]

WOW you just talked out of MP. That's an outrage.