mam98031 • Volunteer Community Member • Buyer/Seller since 1999
@isaiah53-57 wrote:
@dbfolks166mt wrote:"Half of those eBay cheerleaders don't even know themselves that 13.25% in fees often ends up costing sellers twice as much as 13.25% or more."
This must be some of that "new math" that I don't understand.
You are 1/2 correct. There is an effective FVF percentage that is slightly higher than the 13.25% stated by eBay. This is due to the FVF's being applied to the sales tax, which eBay clearly states.
And you are only 1/2 correct, because you want so desperately for the shipping cost the buyer paid $36.90 for in this transaction to be true revenue, which it isnt. Was shipping revenue before we didnt get charged a fee on it? No - There was a line item for it on our tax form, now it is artificially built into the gross revenue.
The seller did not come here to sell his $71.90 item artificially inflated in value due to the shipping cost, he came here to sell his $35.00 item - If someone did a "local pickup" on the item, would it still be a $71.90 item? Of course not, because it NEVER WAS a $71.90 item.
Your "ebay effective fee" is based on a percentage of a figure with sales tax taken out because the seller never sees that money - But in truth, the seller never "SEES" the shipping cost the buyer paid $36.90 for - A seller retains NONE OF IT as profit - In your example above, you show the buyer paid $36.90 and the actual cost to ship was $36.90. And in reality, when you account for "shipping related costs" such as shipping material, gas, and most importantly YOUR TIME, shipping is ALWAYS a wash or a loss.
So since you willingly base your effective rate on a number minus dollars you never see by taking sales tax out, when doing a quick accounting for profit, (not formal end of year accounting, which we have no choice but to do), you can just as easily base the effective rate on a dollar amount minus other costs ebay has their fingers in that you never see, such as the shipping cost...Especially when considering the ONLY profit bearing figure in this transaction is the items price.
The true "ebay effective fee" of $10.40 against the item is 30%.
isaiah, you are correct that the "ebay effective fee" is 30% as far as using the numbers in dbfolk's line item numbers where they have the seller/revenue payout as $24.60. But the OP has their payout after fees as being $21.40, not $24.60, which means they ended up with $13.60 less than their selling price, not $10.40 less, right? So if the OP is correct that their payout was only $21.40 shouldn't the "true ebay effective fee", as you call it, be 38.8% in their case? Your calculations are correct for the numbers in dbfolk's line item spread, but I'm just wondering if the "$24.60" should have been "$21.40" since that's what the OP said their payout was.
@sextons-sweet-deals wrote:The FVF can be complicated, over exaugurated, confusing, and possibly misleading.
I stand at a current 25.2% selling fee cost with eBay fees and shipping labels I purchase on eBay, and I don't do any charity donations.
Your total costs isn't what this thread is about. Many are confusing that with what the FVFs are that Ebay charges. Those are simple. Some want to complicate that. The title of this thread is "Final Value Fees are Insane", not that the total costs for selling on the internet are insane. Because no matter what site you sell from you will have the same type of costs.
Your shipping costs are NOT an Ebay fee, they are a carrier fee, Ebay doesn't keep the money, it is remitted to the proper carrier.
I understand that your selling costs aka COGS [costs of sale] are about 25.2% not to be confused with Ebay's FVFs charged. They are two different things. Both important numbers for all sellers to know so they can stay profitable here or anywhere they may sell.
"Nobody is trying to complicate anything. Everyone knows that eBay's FVF calculation is exactly what they say it is..."
No they don't and that is clear from some of the posts. I get it that you do, but others do not. Some feel all their costs incurred to sell something here is an Ebay fee..
Please take a step back and be civil if you want to converse with me. Statements like 'There's no reason for you to flip out..." are not acceptable. Be civil please.
@adkhighker wrote:
@mam98031 wrote:"Nobody is trying to complicate anything. Everyone knows that eBay's FVF calculation is exactly what they say it is..."
No they don't and that is clear from some of the posts. I get it that you do, but others do not. Some feel all their costs incurred to sell something here is an Ebay fee..
Please take a step back and be civil if you want to converse with me. Statements like 'There's no reason for you to flip out..." are not acceptable. Be civil please.
Nitpicking posts just because you don't agree with their opinion even when they happen to be right, and then going on to spin different meanings into what someone was actually saying should not be acceptable either.
Oh because I disagree with someone, I'm "nitpicking". Please. I have every right to my point of view as you do. The title of this thread is "Final Value Fees are Insane" not the COGS of selling on this site.
