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Fees are too high

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?

Message 1 of 30
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29 REPLIES 29

Fees are too high

Since I can not see your invoices and costs I as a user can not even begin to say why.

Message 2 of 30
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Fees are too high

It seems like a seller with your experience knows this:  The final value fee is based in the item price, the shipping cost and the state sales tax if applicable.

The buyer pays YOU the shipping cost and you, in turn, use that payment to pay for shipping.  If the buyer pays the state sales tax to YOU, eBay then takes that payment to pay the buyer's state the sales tax money.

Given that knowledge, are you sure you were charged nearly 36%.  I am trying to point out that what you see as the final value fee was, in part, payment to you of shipping and state sales tax.  I just hope I've been clear.

Message 3 of 30
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Fees are too high

Without knowing exactly how much your buyer paid for shipping and you paid for shipping, plus whether you are subject to any additional eBay fees for service metrics, it's hard to give you an actual explanation.

 

I'm assuming that you are getting the numbers from a eBay report and not just what the deposit amount was? There could be other things coming out of the deposit - upgrade fees, monthly subscriptions, etc...

 

You've got some big ticket items you've sold this month - have any others had the same large percentage coming out of the deposit?

Message 4 of 30
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Fees are too high

   First off, an overall 19.4% rate of fees is NOT a bad return... With a lot of my sales - granted with lower overall sales prices than yours - I'm lucky to get only a 35-60% net profit after the quickly-rising cost of shipping is included.

    I notice you have some very healthy sales! What is the breakdown of your fees, for which you are blaming Ebay, of the $99.99 Garmin sale you are most likely talking about?  I wonder if your use of Bravo Pawn Systems on that item is contributing to a % of the cost of the sale... I looked at their website, and I doubt that their services are free.  The true breakdown of fees should show you that Ebay is not charging you 36%, unless you are adding special features somewhere that you are attributing to Ebay, or that the shipping you are paying is much greater that expected.

   I notice that the Garmin sale was to be shipped with only $8.50 standard shipping (to my zip code)... did you send it via something like USPS Priority Mail instead? Insurance added? Signature required? Or via UPS or FedEx, which can come back with extra charges after the fact? Sales tax fee? Shipping fee for any extra upgrades?

   Ebay's fees are pretty much in line with what you had been paying when using the added cost of PayPal's fees. A realistic bottom-line  breakdown of fees should show you that Ebay is not ripping you off, unless there is a glitch somewhere, which is very unlikely.

Cheers, Duffy 

Message 5 of 30
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Fees are too high

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).  Capture.PNG

Message 6 of 30
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Fees are too high

gjs_16
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I use free shipping, that way eaby can't tack their grubby fees onto that portion!

Message 7 of 30
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Fees are too high

Literally makes no difference LMAO they take the same fee whether the shipping is free or additional. 

Message 8 of 30
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Fees are too high

Correct fees on that should be about $15. 12.5% plus like 30 cents or something. 

Message 9 of 30
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Fees are too high

After all said and done from listing to shipping it costs about 34% to sell on here. I have my prices adjusted accordingly as I am aware that the seller does not pay the fees, the buyer does.

Message 10 of 30
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Fees are too high

Thanks Duffy,

 

Yes we are a pawn shop and use Bravo Pawn Systems, they bill me separately from eBay, so the fees are not tied in to the eBay fees. I used USPS Priority Mail, no extras (signature, insurance), which came out to $8.96, so I understand that's a $0.46 loss, I'm just confused about the rest. I'm not using anything else such as promotions, upgrades, subscriptions, etc. 

Message 11 of 30
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Fees are too high

Thanks. It was so helpfully👍

Message 12 of 30
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Fees are too high


@gjs_16 wrote:

I use free shipping, that way eaby can't tack their grubby fees onto that portion!


Would love it if you can explain this one.

Message 13 of 30
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Fees are too high

Me too, I use FS as well, yet somehow I always have to pay to get it shipped LOL (well really my buyer does but you know what I mean)

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Message 14 of 30
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Fees are too high

I don't see any reason that you were charged $45 on a $116 out the door sale. I would get ahold of ebay via facebook. 

Message 15 of 30
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