eBay

beautiful_unique_stuff · ‎01-04-2023

Hi, I'm relatively new here. I am trying to understand the final value fee I was charged under collectibles. I was charged a variable percentage based on the item - which I understand. What I don't understand is how eBay can shipping and tax in the fee.

Additionally, even though I will get my payout, they often charge me for shipping after they deposit my payout. I feel as if I lose control in understand what they are doing here.

Here is a breakdown of a recent transaction that sold for $130:

Transaction summary

Amount

$186.93

Fees

-$25.83

Net proceeds

$161.10

Fees based on

$197.90

Total fees for item
- Final Value Fee
  -$25.53
  Variable percentage • Collectibles category
  
  Rate for $0.00 - $7,500.00
  $197.90 × 12.9% =-$25.53

Final Value Fee

-$0.30

Per order fixed amount

Total fees

-$25.83

I find this incredibly hard to understand but the issue remains that they take value based on shipping and tax, which does not seem right. What am I missing here?

pburn · ‎01-04-2023

eBay's final value fees (FVF) are based on the total amount the buyer pays. That means the item cost + shipping (if applicable) + sales tax (if applicable).

eBay is very clear about how FVFs are calculated. The explanation is in the User Agreement and splashed all over the appropriate help pages. It's no secret and should come as no surprise to any seller who has bothered to read any of the information regarding the costs involved in selling on eBay.

soh.maryl · ‎01-04-2023

Yes, eBay's final value fee charged to the seller is calculated on the total of the item price, the shipping cost and the state sales tax, if applicable. Not sure why it "does not seem right". If you mean it doesn't seem legal, wouldn't you imagine that eBay has a few (hundred) attorneys on staff who have determined that it is, indeed, legal.

Your buyer, when he pays you, pays YOU the shipping fee along with the item price and state sales tax. YOU, then use the shipping fee funds to pay for the shipping.

Example: I buy your widget for $40 plus $10 shipping. YOU then use that $10 to pay for shipping.

coolections · ‎01-04-2023

You are not missing a thing. Thankfully you now know the fees are based on the TOTAL amount of the transaction. It has been discussed over and over in the last year.

fern*wood · ‎01-04-2023

I can't see what you are missing, since you posted the breakdown of the fees. Even though you don't think it seems right for ebay to charge final value fees on the shipping & sales tax, that is how it works.

As far as when your postage cost comes out of your money, it works out. I get my payouts every Tuesday, so if I print my postage on Monday, it will be deducted immediately and lower my Tuesday's payout. The money the buyer paid me will clear too late to be in that payout, but I get it just fine the next Tuesday.

heckofagame · ‎01-04-2023

ALL payment processors charge fees based on the TOTAL amount of the sale, including shipping and sales tax.

aprilmoviebuf2000 · ‎01-04-2023

Since the fee calculation has been addressed, I will address this
"Additionally, even though I will get my payout, they often charge me for shipping after they deposit my payout"

The carrier is doing this, not eBay. FedEx later adds additional surcharges often ..... really often.

tdrake · ‎01-04-2023

@fern*wood wrote:

As far as when your postage cost comes out of your money, it works out. I get my payouts every Tuesday, so if I print my postage on Monday, it will be deducted immediately and lower my Tuesday's payout. The money the buyer paid me will clear too late to be in that payout, but I get it just fine the next Tuesday.

UPS shipping bills sometimes a week or more after you buy a label, which could be what this poster is experiencing. I have always been on weekly so rarely have had a zero balance in Payments. BUT in late October I switched to daily payouts because I was using my (cashback) bank card for all Christmas expenses as well as gas and hotel for Thanksgiving travel and I wanted to keep that bank account loaded up. During the 2nd week UPS billed a half dozen labels LOL and because of daily payouts I went neg. No big deal, I had sales and eBay nipped some from my bank account and even that account is backed up with my personal bank account.

This is off topic, but for the reasons stated above, I think it would be good to have the *OPTION* to keep a certain amount in your MP account and only Payout the amount above that.

Anyways, thats what I think the OP is seeing, re: " they often charge me for shipping after they deposit my payout"

714ricki · ‎01-04-2023

You're correct. The ebay fees are based on the final sold value of the item + shipping/handling + any sales tax. It's a standard practice by all financial institutions, including the credit card companies, to collect fees using that formula.

Hang in there!!

fern*wood · ‎01-04-2023

You are absolutely correct. I misread which way they were experiencing the issue. Since I use USPS, mine happens the other way around sometimes depending on when I get my payout.

monroe67 · ‎01-04-2023

"I find this incredibly hard to understand but the issue remains that they take value based on shipping and tax, which does not seem right. What am I missing here?"

It is very common for new sellers not to understand eBay's fee structure. It may not "seem right" to impose a fee on shipping and sales tax paid by buyers, but it is eBay's published policy on how their final value fees are calculated. If you are missing anything, it is the reading and acceptance of eBay's policies. This is eBay's field and when we want to play on this field, we must know what eBay is going to charge us.

Take a look at the User Agreement, Item 5, Fees and Taxes, Final Value Fees. This is what it says, with some additional bolding by me:

"We charge one final value fee when your item sells, and you don't have to worry about third-party payment processing fees. This fee is calculated as a percentage of the total amount of the sale, plus $0.30 per order.

The total amount of the sale includes the item price, any handling charges, the shipping service the buyer selects, sales tax, and any other applicable fees."

Successful eBay sellers accept the terms and conditions of selling on this platform.

ittybitnot · ‎01-04-2023

ALL payment processors charge fees based on the TOTAL amount of the sale, including shipping and sales tax.

@heckofagame

Yes, as far as payment processors go most will charge on the "total" amount they handled. eBay's take is pretty high in comparison, however, with their average in the 12.9% range. My online merchant account is 2.9% to collect the money.

reallynicestamps · ‎01-04-2023

We were paying payment processing fees to our CC machine provider , Moneris, from the early 80s when we first got our merchant card account until we retired and closed the account.

It is Standard Practice in the payment processing industry to charge fees based on the TOTAL AMOUNT PROCESSED without bothering to break down how the amount is made up.