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.

[firesteel_surplus]

@pwil-23 

Just real quick before I head to bed. It's almost 12:30am here.

I took a look at your sales. You had a 100% sell rate. I mean I looked at your completed listings and out of the 20 items listed, 20 items sold. I'd be pretty dang happy with that as long as you are happy with your returns....which you aren't...since you're on here pointing out the high cost of doing business here.

Someone mentioned about adding how you are shipping your item since you are charging the shipping. If you already know the shipping, do you know how you are going to ship it? If so, I'd change your standard shipping to the actual shipper you are using.

I got rattled on that in a post because I use "Standard Shipping" on my free shipping. Well...I'm paying for shipping. I'm going to make the determination on how I'm going to ship.

That was about all I noticed.

But dang...wish I had that 100% sell rate....

Mike

Firesteel Surplus

[pwil-23]

Thank you Mike for the honest and informative feedback.  And sorry about the "condescending" remark.  I get a bit defensive when I'm at a disadvantage.  Glad you found those fees no one had ever heard of. But I was charged a subscription fee for the store AND an account level fee and adjustment. Go figure. I posed a question to another seller.  If I am paying for the shipping label from the money the buyer pays me to ship the item, then why am I being charged for shipping labels again?  Am I missing something?

[pwil-23]

Thanks Mike.  Good night!

[firesteel_surplus]

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@pwil-23 wrote:

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! 

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OK...You make a $10 sale. You charge a separate $5 shipping fee. The buyer pays you $15. You ship the item for $5. Ebay is going to take the $5 out of your outstanding funds PLUS around a 12% selling fee across the board for:

The item you sold ($10)

The shipping ($5)

The sales tax (that is an adjustable amount depending on locality...1000s of percentages...)

This will get you your total in fees.

How are you with spreadsheets? Build a simple one to track your fees. Go to your Seller Hub. Hover over Payments and go to All Transactions. When you sell something, all your fees will show up here. You can click the view over on the right hand side to see a better breakdown of everything. I practically live on the All Transaction page if I am not posting or selling something...or buying.

I don't look at that Performance tab too often. That is why I wasn't familiar with ebay calling the Store Subscription the account level fee. Dumb. I'm more interested in my individual sales. I have a custom build Access Database that tracks my longer term data.

Mike

Firesteel Surplus

[chapeau-noir]

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@pwil-23 wrote:

Thank you Mike for the honest and informative feedback.  And sorry about the "condescending" remark.  I get a bit defensive when I'm at a disadvantage.  Glad you found those fees no one had ever heard of. But I was charged a subscription fee for the store AND an account level fee and adjustment. Go figure. I posed a question to another seller.  If I am paying for the shipping label from the money the buyer pays me to ship the item, then why am I being charged for shipping labels again?  Am I missing something?

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I think I see the confusion - you aren't being charged again for shipping labels, it's just that the report breaks out the shipping flow, i.e., it shows what you charged the buyer for shipping (i.e., what the buyer paid) as one item and then what you paid for the shipping label as another item - but it's all the same transaction - what the buyer pays you, and how much of that you use to purchase the label.

eBay has the most byzantine and confusing fee structure and reporting of any place I've ever sold, and I've sold on a ton.

[firesteel_surplus]

@pwil-23 

I don't think you are being charged both the subscription bee and the account level fee. I think it is the same thing but it is one of ebay's stupid little quirks. If you look, I think what ebay is trying to do is the Account Level fee is the Total line and the Subscription Fee is the breakout line since the subscription fee is slightly indented to the Account level fee. I am guessing if there were any adjustments, that would be on another line below Subscription...but I'm only guessing.

I don't think you are being charged for the shipping labels twice. Can you explain where you are seeing this in your ebay pages? I'll have to track it down somewhere. You aren't being charged for the shipping label until you buy it....and you are only buying one....unless I'm not tracking...

I went through a run-around with ebay last year or the year before because I thought I was being charged twice for shipping labels. It was a **bleep** nightmare. I suspended my own sales for two weeks until I could figure it out. Even then, no one at ebay could explain it to me. All they could tell me was that I was NOT being charged twice but they could not tell me why it appeared like I was being charged twice. That was so frustrating. All I wanted was someone to tell me WHY it appeared that I was being charged twice. I finally gave up.

Mike

Firesteel Surplus

[firesteel_surplus]

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@pwil-23 wrote:

Thanks Mike.  Good night!

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LOL. Just after 1am. But I'm done. Been a long haul. I'll check in tomorrow. I posted some questions I'd like a bit of clarification on.

Mike

Firesteel Surplus

[chapeau-noir]

@firesteel_surplus   Because I moved from eBay labels to using another shipping site, it was easy to see how eBay itemizes these costs and the breakdown.  Now I just have 'shipping income"' (as it is on my taxes) but shipping expenses are zero, it's all income.  From this income I purchase shipping labels on Pirateship, for instance.

As I said, eBay's fee structure and reporting is really complex.

[mam98031]

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@coolections wrote:

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.

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Average in most categories is 12.9%

[mam98031]

When you first started selling, did you do any research before you started?  Did you learn about the Selling Fees prior to pricing your items?  That really should be your first step in pricing items, you have to know what your selling fees are and then second to that is how much it is going to cost you to package and ship your item.

The vast majority of what it is costing you to sell here is your shipping costs.  Those are NOT part of your FVFs you pay to Ebay, it is the fee you pay to the CARRIER to ship your item.  Now Ebay does get some discounted rates with various carriers, but Ebay doesn't get to keep that money, it moves on to the CARRIER, therefore it is NOT part of the Ebay fees.

If you feel your shipping is costing you too much, then you either need to find a new carrier or raise your pricing on shipping.  It appears to me that many things you have shipping priced too low.  Many of the items you sell are likely shipping FCP [first class parcel] and those prices when up at the beginning of October.  Did you raise pricing for those increases?

Another hint, some of your shipping seems to be spot on, so you are not allowing for any packaging materials and /or fees.  For example, when you ship Media Mail for that first pound it is $3.49, but on that you have your envelopes, labels, packaging supplies and Ebay FVFs.  So all of that is at least another 50-75 cents.  It is find not to put than in with the price you charge your buyer for shipping as long as you add it to the cost you are charging the buyer for the product as it is a real cost of the item.

And this is the policy you should be completely intimate with.

https://www.ebay.com/help/selling/fees-credits-invoices/frais-pour-les-vendeurs-particuliers?id=4822

The Ebay fees aren't "outrageous", it appears your shipping costs are your issue and not charging enough for the shipping.

[nanomart9]

It is helpful

[fern*wood]

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@pwil-23 wrote:

 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. 

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A label printer merely prints out the paper label that you purchase online.  It will not have any impact on the cost of that postage.    Buying labels online through ebay is much cheaper than buying postage at the post office.

[inhawaii]

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@fashunu4eeuh wrote:

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.

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Figure out what your costs are BEFORE selling/pricing a item?

What a novel idea. Too bad more sellers don't do that.   LOL

[dbfolks166mt]

Figure out what your costs are BEFORE selling/pricing a item?

What a novel idea. Too bad more sellers don't do that.   LOL

     I am really hoping the OP comes back and responds to the question I asked them about their postings not having the shipping specified. I am curious as to what eBay puts in the invoice they send to the buyer and/or what the seller puts in.  The buyer also does not see an estimated delivery date when the shipping has not been specified. 

     Noticing a lot more listings out there where the shipping has not been specified and suspect it has something to do with the new listing tool where specifying the shipping method and basis/cost is not as intuitive as it was with the old listing tool. 

[richardwillardcollection]

That is what they do, they're very good at getting you to buy things on credit and selling just enough of your finer things and taking most of the money. All the time you think your doing good and you have hope when actualy your going into debt. It really is a willing scheme to steal your most prized possessions from you while you rack up thousands in debt, they put out false listings to make you thing what you have bought is worth more than you paid. I tell you its a scam, the whole thing on ebay is a scam, a ponzi scheme. I am sure of it. Now that you know, hows it feel? The worker go home and use their own computers and send you low ball offers because they know your desperate, and then resell your stuff on etsy.