eBay

relicanthology63 · ‎05-16-2018

I am fairly new to Ebay as a seller, but I am finding that the fees are far more than stated in Selling Fees in Customer Service page of eBay. I have one item that was 23% in fees and that was before the PayPal fee (35% after that was taken). Now this was a low cost item and I thought, wow, since I made less than $3 on that sale, I need to check my fee percentages. It looks like they are running 12% on most items that I checked. The article on eBay Selling Fees states 10% maximum.

Wondering what is up with the difference and yes I included the Final Value Fee on shipping in my cost.

I realize everyone is here to make money, but after the cost of item, handling cost (a lot more than people think!) and the fees, there is not much incentive. I mean you have a lot of competition and you have to price to sell. Thank you for any help on this and for keeping it classy.

rktoyandhobby · ‎05-17-2018

Your effective FVF is as follows:

((Item + Shipping) * (0.1 + (0.03 | 0.04))) + 0.29

What really creams you is when you sell a low-dollar item like a $15 toy, sold to a Chinese buyer (higher PP rate), that goes to a reshipper cross country in CA for another $12. Since you don't see any of the shipping (it costs what it costs), you're effectively paying almost double on the item. The $4.07 in fees works out to over 27% and that's _if_ there wasn't a listing fee.

rktoyandhobby · ‎05-17-2018

And if you think that's bad, just try it somewhere that forces you to charge a flat shipping fee. There's one venue that everything from feathers to cannonballs rings up as $4.49 shipping. If you don't protect yourself, that 27% could turn into 57% in a hurry.

relicanthology63 · ‎05-21-2018

Thank you for your response. If the fee would be the same either way then what is the point of offering free shipping? Also, I have offered free shipping on some items, but find unless it is really small or can be sent flat rate so you know what to mark it up, you can really get screwed on some free shipping deals. The real question is the inconsistency in the percentages, so I can price accordingly ( the Ebay site does state different from what I am experiencing % wise) and yes, I feel the percentages on some items are very excessive. That being said it's been better than Etsy, where the shipping calculations are often far off the mark.

femmefan1946 · ‎05-21-2018

If the fee would be the same either way then what is the point of offering free shipping?.... unless it is really small or can be sent flat rate

Because buyers hate to pay for things they percieve as useless- like shipping.

They don't know how much shipping costs, since they don't do it themselves.

There is sticker shock.

We use "Free" Shipping because buyers love it. And that means we make more sales.

I sell small items on dotCOM, where (as a Canadian seller) I am forced to use Flat Rate Shipping.

By only selling items here that are under 500 grams and 2cm thick, I can use Canada Post LetterMail service, with its fixed rates*.

Then I make that Fixed Rate $0.00 for Canada and the USA.

International gets a 'surcharge'.

If the domestic rate is $1.80 /US rate $2.95/ International rate $5.90- I show the International rate as $2.99 , because my asking price allows $2 for shipping to Canada or the USA.

But if the item needs parcel rates, I use Calculated Shipping which is only available to me on the dotCA (eBay Canada) site.

My last 10 sales were 5 to Canada, 4 to the USA and one to France. So I think what I lose on the coconuts I win on the roundabouts.

*Even so those rates run from 85 cents to $20.60 depending on weight and destination.

relicanthology63 · ‎05-22-2018

I do not make money off of actual shipping charges, this is a cost to me not a profit. I guess eBay cannot figure out a solution. Even though there is a record of the exact amount of shipping. I realize they are not going to change this policy, it was just surprising to see the fees so much higher and very inconsistant. I can see some items are 12%, some 16%, etc...The seller fees article is pretty clear to me what they should be charging. It just isn't working out that way.

For everyone asking , I am above standard seller and my seller account is less than a year old. I hope to build on my store and to be able to price items where they will be worth selling.

relicanthology63 · ‎05-22-2018

https://www.ebay.com/help/selling/fees-credits-invoices/selling-fees?id=4364

This is the one that I read. Notice that 10% maximum. There is a section for FVF on Shipping, but no mention as to what the charge is.

Category Insertion fee Final value fee:
% of total amount of sale Standard fees for most categories, including Motors Parts & Accessories and Automotive Tools and Supplies. For vehicles, see our Motors fees. First 50 listings free per month, then $0.35 after those are used up* 10% (maximum fee $750**) Select Business & Industrial categories:

Healthcare, Lab & Life Science > Imaging & Aesthetics Equipment
Heavy Equipment
Printing & Graphic Arts > Commercial Printing Presses
Restaurant & Catering > Food Trucks, Trailers & Carts

$20 4% Musical Instruments & Gear > Guitars & Basses Free 3.5% (maximum fee $350**)

nobody*s_perfect · ‎05-22-2018

@relicanthology63 wrote:
... . I can see some items are 12%, some 16%, etc...The seller fees article is pretty clear to me what they should be charging. It just isn't working out that way. ....

They are all 10% of the buyer's total payment.

That amount will always be at least 10% of the selling price, sometimes considerably more if the buyer's shipping payment is high relative to the value of the item.

nobody*s_perfect · ‎05-22-2018

@relicanthology63 wrote:
.... Notice that 10% maximum. There is a section for FVF on Shipping, but no mention as to what the charge is....

It's the same percentage as the rest of the transaction (i.e., 10% in almost all categories). The older version of the Help page was clearer about this:

10% FVF.png

orangehound · ‎05-22-2018

@relicanthology63 wrote:
Thank you for your response. If the fee would be the same either way then what is the point of offering free shipping?

eBay claims that Free Shipping will get you higher up in search rankings, so on competitive items this could mean the difference to get the sale.

@relicanthology63 wrote:
Also, I have offered free shipping on some items, but find unless it is really small or can be sent flat rate so you know what to mark it up, you can really get screwed on some free shipping deals.

One strategy you could use to protect yourself against those inflated prices in far-away zones is to employ eBay's Rate Tables. By setting up rate tables, you can effectively restrict the sale of your item to close zones, or give free shipping in nearby zones with some other shipping amount in further out zones.

One of the shipping tables I created for Priority Mail for 2 or 3 pound packages, will give Free Shipping to Zones 1-4, charge $4.95 to Zones 5 & 6, and charge 9.95 to Zones 7-9.

relicanthology63 · ‎05-22-2018

Thank you, I will probably just stop putting small cost items on there. My profit would be the same if I had free shipping on this or not according to these post and sorry but for all of the protestors on my math. Math is an exact science. The fees cost me $1.26 to sell a $5.50 item and that does equal to 23% of the total sell price for the item. I even double checked it with a percentage calulator online to make sure I was not making a mistake.

The shipping is a seperate issue. It is a cost item. FVF on shipping is charging me a fee on a cost not profit. Which is crazy. All because some people sell and item for 99 cents and $15 on shipping. I think they should find a solution to that problem and not punish every one else.

nobody*s_perfect · ‎05-22-2018

@relicanthology63 wrote:
... sorry but for all of the protestors on my math. Math is an exact science. The fees cost me $1.26 to sell a $5.50 item and that does equal to 23% of the total sell price for the item. I even double checked it with a percentage calulator online to make sure I was not making a mistake.....

Nobody is questioning your math. Nobody is questioning whether 126 is 23% of 550. They are questioning your choice of denominator.