Fees

[pwil-23]

Well, I've been selling on Ebay for about 3-4 months now. And each month I am shocked at what Ebay takes in selling costs.  For the month of November, I sold $397 worth of items. Between taxes/government fees, Ebay fees (final value), account level fees and adjustments, and the real shocker, shipping labels, coming in at a whopping 113.00, I was left with $197.00!!  44% of my total sales went to COSTS!  I posted on Mercari two large Christmas dolls, also posted on Ebay, which sold today for $104 for both, including shipping.  My net will be approximately $86!  I made a decent profit with minimal COST!! Does ANYONE know how to mitigate these outrageous fees?  Especially with regard to the labels. For what I've been shelling out for labels I could have bought one of those high-end label printers so many of you suggested I not purchase. I don't know what to do. I've got over 200 new items I'd like to post, but if I'm going to keep getting hit like this, I think Mercari will serve me better.

[mtgraves7984]

Silly question... I've never visited Mercari. Do they offer you a better shipping label discount than we get here?

[coolections]

Fees are a little high (average cost of 15%), but nowhere near what you are calculating. The BUYER pays the shipping cost so you have to subtract that cost from your calculations on profit. Please don't say you do not charge shipping even if the listing states free shipping.

[monica-sells]

"...I posted on Mercari two large Christmas dolls, also posted on Ebay, which sold today for $104 for both, including shipping.  My net will be approximately $86!..."

Is it possible to see this calculation? It probably costs 18 to ship those items....

[dbfolks166mt]

     I took a look at several of your listings and notice that no shipping method was specified when you created the listing. I am not sure how this works when you actually make a sale do you add the shipping cost into the invoice you send the customer? It would be best to select the shipping method up front when you create the listing for a couple of reasons. First the buyer knows in advance when they purchase the item what the shipping cost is going to be and second the buyer is the one paying the shipping cost. You can of course offer free shipping, which is maybe what is happening here, but you should adjust your price to include the shipping cost and note the free shipping on the listing when you create it. 

     Not sure what your reference is to the label printer but that is just another way by which you have to pay for and print the labels it does not reduce your shipping cost. 

[inhawaii]

You've been selling for 3-4 months without knowing what the fees are???

That's like ordering food in a restaurant without looking at the prices

then being surprised when you get the bill.

[bonjourami]

Whats a government fee,account level fees, and adjustments? Been here many,many, years and never heard of any of those. As mentioned, stop figuring in your shipping fees as part of your expenses, your buyer pays for those...not you.Ebays discounted shipping labels were a real shocker? How so?

[fashunu4eeuh]

The following process helps me build a retailing framework for my eBaying:

Prior to listing, i add up all the costs associated with selling my item. The ultimate goal is for such expenses to be covered by my pricing (while not eating up profit).

Along these lines, I research what the current competition is selling theirs for. This includes looking at completed listings to see what similar items sold for, or didn't sell for.

After this evaluation process, then i have an idea of whether or not it makes sense to list my item, factoring in free shipping and free returns as well.  This way there are few unwitting surprises.

[chapeau-noir]

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@mtgraves7984 wrote:

Silly question... I've never visited Mercari. Do they offer you a better shipping label discount than we get here?

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Mercari has its own shipping scheme.  Some of it is a little odd.  It is not, however, mandatory to use it, just if you want Mercari "protection".

Oops forgot to tag - @mtgraves7984

[firesteel_surplus]

@pwil-23 

My secret has been to buy low and sell high. That has seemed to work pretty well.

Once in awhile though I buy high and sell low. I don't like those.

You're getting too wrapped up in shipping costs. Since you are not offering "free" shipping, your buyers are paying for the shipping if you have your shipping figured correctly. If you offer "free" shipping (like I do) then you need to pad your sale price a bit. Since I switched to the free shipping model, I have not offered calculated or a set shipping since (or very very rarely).

Everytime I think I've had enough of ebay, I go look at Mercari and Amazon and then I come back to my cozy little store here on ebay and snuggle up with my teddy bear and then I am happy again.

But like @bonjourami asked...what is the account level fee? I get hit with a store fee every month but that is voluntary and that is the only thing that I can figure out as a level. Other than that I would really like to know what you are paying for as far as an account level fee "and adjustments".

I hear a lot on here...but that's a new one on me.

Mike

Firesteel Surplus

[firesteel_surplus]

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@bonjourami wrote:

Whats a government fee,account level fees, and adjustments? Been here many,many, years and never heard of any of those. As mentioned, stop figuring in your shipping fees as part of your expenses, your buyer pays for those...not you.Ebays discounted shipping labels were a real shocker? How so?

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They have a store. I'm guessing the "account level fees" are the store monthly subscription plan. Of which is a voluntary thing. And...I wonder if @pwil-23 knows they get a quarterly allowance for ebay shipping supplies that pays for just about a month of the store at the Basic level?

Now I'm interested in hearing back on this.

Mike

Firesteel Surplus

[pwil-23]

When I was just starting out, I got advice from this platform regarding selling, shipping costs/labels, store vs. no store, etc.  I did offer free shipping on most of my items, padding my listing price a bit.  Then a couple of other sellers told me my prices were too high, so I eliminated free shipping, priced my items according to what had SOLD on Ebay.  But a lot of the time those prices were ridiculously low, so I researched other seller platforms also and priced accordingly. I was told that purchasing shipping labels from Ebay is cheaper than if I bought a label printer, so I have continued to purchase my labels from Ebay. $112.77 from Oct. 31st - Nov. 30th.  Is that the norm for most of you? I thought when a buyer pays for shipping, the cost of the label is included, but I guess not.  This whole process has been quite confusing from the jump.  For those of you who have a system, understand the algorithm, are long time sellers.....more power to you. No need for the condescending remarks. I don't know what government fees nor account level fees and adjustments are, only that I am being charged for them.  The subscription fees are for the store, which is yes, optional.  Again, listening to advice from other sellers, a store allows your items to remain "together" instead of "scattered."  I don't know because I'm too afraid to cancel my store subscription and find out. The 44% selling cost calculation was what Ebay listed on my "performance" report. I wish I was tech savvy enough to post my performance report. Probably get banned from Ebay for sharing financial info though.

[mtgraves7984]

@pwil-23 

I was told that purchasing shipping labels from Ebay is cheaper than if I bought a label printer, so I have continued to purchase my labels from Ebay. $112.77 from Oct. 31st - Nov. 30th.
- Purchasing shipping labels from eBay is cheaper than purchasing them (retail price) at the carrier .

I thought when a buyer pays for shipping, the cost of the label is included, but I guess not.
- The buyer pays you  the shipping charge ; you  pay the cost of the shipping label  from those funds. You're correct in that 'included'  doesn't belong in the equation at all. 

[pwil-23]

If I am paying for the shipping label from the funds the buyer pays me to ship the item, then what am I being charged for each month?  I'm really confused! 

[firesteel_surplus]

@pwil-23 

First...I nor anyone else here was being condescending. You have a LOT of help here for you. In some cases you'll find better help here than you'll get going to eBay help. OK?

Now. You posted you were being charged government fees, account level fees, and adjustments. We, or specifically...me...have never heard of them. We need to know where you are getting that fee information from so we can point you in the right direction. To the best of my knowledge, I can tell you right now I have never been charged any of them.  (NOTE....See found answer to this at the last paragraph.)

As far as the store. You need to be careful when you cancel. If you pay month to month, you can cancel anytime. If you signed up for a year subscription and you cancel early, ebay is going to bite you for a certain amount depending on how many months you have left. If you have 10 or 11 months left even on a Basic store...that could cost you hundreds of dollars. Keep that in mind.

The shipping. If you ask 10 sellers their shipping strategy, you are going to get 10 different answers and every one of them will tell you their way is the best way to go and the rest are the worst. I'm here to tell you to figure out what works for you. Sellers can tell you your prices are too high. That's fine. But you are the one that ultimately needs to determine that. I offer free shipping across the board. I find the median price range of the item I am selling. I usually try to go towards the upper middle of the price so as to get the shipping in there. I've shipped enough stuff that I can usually make a pretty good educated guess on what something is going to cost me to get it from South Dakota to either coast or down south. That is one thing great about living almost smack dab in the center of the US. My shipping to either coast is the same. It's to the upper coast of Maine or Miami FL that bites me.

Yes...I buy all my labels through ebay and print them on a label printer. The label printer has no bearing on whether the label is "cheaper." It just makes your life more convenient. A label printer lets you print the label, tear it off, and stick it on the package. If you are printing it on paper, then you have to tape it onto your box. I did that for years. Oh trust me. The label printer is the next best thing to sliced bread. The only thing is...the label printer in another cost to add in. But it is also a deduction for your ebay biz for your tax return. Don't forget that.

I'm not sure I spent 20 bucks on shipping from 31 Oct - 30 Nov. LOL. My biz has been dead. But I haven't had a lot of stuff up until now. But in the past. Yeah....$113 would have been sometimes a weeks worth of shipping. There were some weeks one or two packages ate that up on my shipments.

ALRIGHTY... @bonjourami we got a touchdown! I found where the account level fees, government fees...etc...are! Go to Seller Hub and then Performance....and....do a Summary. Listed in one of those blocks will be all those nice terms. Account level is the store subscription. There is actually one called "Taxes and Government Fees." Huh. Imagine that.

Sorry to write a book. But hit us up. We'll help you. We already figured out one of the issues. 🙂

Mike

Firesteel Surplus