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Final value fee on shipping

Would like some clarification on how this works.  Suppose a buyer wins several of my items and I send a combined invoice with a reduced shipping cost.  Am I paying the final value based on this reduced shipping cost, or on the cost stated in the listings?

Message 1 of 43
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42 REPLIES 42

Re: Final value fee on shipping

So if you are just charging the actual amount for shipping you are losing money on every sale.Then if you add the eBay FVF of shipping to the shipping amount the buyer can say you overcharge on shipping and give you a lower star rating . How is that fair. Given that  Ebay can monitor each message separately of it's members I don't see why they can't monitor the shipping charges as you described to just penalize the sellers that are not being honest with their rates.As opposed to having the rest of the sellers  who are not doing anything wrong suffer. 

Message 16 of 43
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Re: Final value fee on shipping

If I offer free shipping am I still paying the fee???
Message 17 of 43
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Re: Final value fee on shipping

No

Message 18 of 43
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Re: Final value fee on shipping


@tcor wrote:
If I offer free shipping am I still paying the fee???

Yes, because your shipping is inluded in your item price.

 

_____________________________
"Nothing is obvious to the oblivious"
Message 19 of 43
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Re: Final value fee on shipping

I agree. I think I will look for a different selling place

 

Message 20 of 43
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Re: Final value fee on shipping


@vikingstwinsman wrote:

Question: Why does Ebay charge a Final Value Fee on Shipping? I understand the final value fee on the item I am selling.  If I figure what the shipping is going to cost me (postage, packaging, toploader, envelop, box etc.) and I charge the customer a S&H amount, why would Ebay charge me a fee for the shipping?  If I have to add Ebay's cut on the shipping cost I should raise my shipping costs to break even on MY SHIPPING COST???)  It seems to me that Ebay is double dipping (Charging me twice) on the item I am selling.  I have no problem with Ebay's final value fee on the item is sell. I do have a problem with Ebay charging me on MY shipping costs **bleep**????

What do my fellow Ebay Sellers think??

 

Joe Flo


What do we think ?

 

We think former CEO Donahoe kept the Titanic from sinking to the bottom of the sea when he came up with the bright idea of taking 10% of the shipping volume for eBay.

 

In other words eBay would have been showing negative growth under Donahoe unless he did the dirty deed for Wall Street investors.

Message 21 of 43
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Re: Final value fee on shipping

This was put into  effect about 6 years ago.  many sellers on Ebay would put a low price on an expensive item but put an astronomical price on shipping. To stop this, Ebay started the shipping fees. This stopped, for the most part, the bad sellers who were trying to get around Ebay Final fees.  I do disagree with it. It hurts the honest sellers like myself who sells watches. They should write a program that woiuld pick up sellers who do put up high shipping costs. Give them one warning and then after that a 6 month suspension. INSTEAD, Ebay decided to penalize all sellers which is rediculious !!!

Message 22 of 43
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Re: Final value fee on shipping

@timepiecesinternational

 

You disagree with it? If you're selling a 2000 watch and someone else is selling the same watch for the same amount who should pay less in fees? Should it matter whether you charge actual shipping, shipping and handling or "free" shipping if the total is the same?

 

i think the fees should be the same and that's why using the total sale for fee calculations makes sense. Would you rather pay 15% on the sale price only?

 

The fees stayed pretty much the same. The method of ALLOCATING fees is what changed. EBay is not going to reduce the fees.

Message 23 of 43
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Re: Final value fee on shipping

ebay will tell you that people were charging too much for shipping so they added the fee on the shipping to keep people from avoiding the fee.  

 

here is the thing!

 

ebay now makes more money than ever from this fee on shipping. They have become what they said the seller was. It is all about making money for ebay . In my opinion they have destroyed there own mission which was to provide a fair marketplace for all goods and sellers

 

do the math and base it on 2,000,000 transactions per day and a minimum fee charged of 25 cents which is pretty much the minimum shipping and run it out over a quarter ( 90 days).

that would be 500,000 per day or 45,000,000 per quarter.

In reality the amount of tranactions could be much higher and obviously the shipping fees total much more because many things are much heavier to ship.

 

it is conceivable based on the real numbers of transactions and actual shipping costs that ebay brings in 200 to 400 million per quarter. (many shipping fees are several dollars and ebay says themselves that they have 160 million buyers) Now anyone with a brain can see that this is not fair or beneficial to anyone but ebay. The fact is when ebay started doing this the fvf on the things i sell were 15% and didn't change for a significant period of time.

 

The other thing is if you have noticed all the fees on listing upgrades have increased dramatically , the discounts have dropped or dropped completely while demands on selling have increased to nearly impossible levels assuring that many will not receive any discounts at all.   I believe some of the rules are designed to destroy small sellers because they cannot be complied with or people don't want to be forced into compliance which what ebays uses(coercian) to eventually pay to promote their listings. for example: tracking numbers--many items if they can ship as a letter have no tracking, international shipments have no tracking and when it started there was no 1st class tracking unless you did ebay labels

 

the result of this and many other things ebay has done in the last few years to destroy small sellers (because they can make just as much from fees and coercian than they can from actual selling fees)is this:

 

My sales haves plummeted to where i cannot restock or pay my fees or my bills or have a comcast account , 800 a month to nearly zero--40-60 sales a month to nearly zero--two sales a day to nearly zero.

 

today is the 12th--no sales yet this month and only a few last month.

 

I am so sick of ebay blaming sellers for bad sales or telling about bots which are fake views

I have three accounta and none of them are doing much of anything and the one that i used to do very well on gets sometimes zero views or watchers when the same listings used to avg 20-40 views and 20 watchers during similar listing durations.

 

pay closer attention to your listings folks and you will see what i mean

 

Of course the man on the phone will tell you ebay is doing fine and their last quarterly was great and seen an increase. It is because they have suckered most of their sellers into higher fees that have nothing to do with fvf.--- when there is no exposure sales go down and so does your dream of making money on line

 

 

Message 24 of 43
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Re: Final value fee on shipping

There is a set final fee for selling and Ebay gets over 10% of the gross; NOT the net. Plus you are paying 5.25% to Paypal for the buyer using a Visa to pay for your item. You could add shipping fees to an item andf have free shipping but you will not be competitive with others selling the same item. Ebay has nothing to do with shipping. The seller does all the work. It was just another way for Ebay to make milliuons of dollars from sellers.  It was always included ijn the 10+ % . You might think this is a small amount but it adds up big for Ebay for doing absolutely nothing for it. I don't what you sell but on a $500 watch, they make over $50.  Thats not bad. Now the watch is $450. Though to be competitive especially on Ebay for specialty items.

Message 25 of 43
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Re: Final value fee on shipping


@timepiecesinternational wrote:

There is a set final fee for selling and Ebay gets over 10% of the gross;

Wrong; they get 10%, not "over" 10%

 

Plus you are paying 5.25% to Paypal for the buyer using a Visa to pay for your item.

Wrong; you pay 2.9% plus 30 cents, regardless of how the buyer pays

 

 You could add shipping fees to an item andf have free shipping

What difference would that make? You still pay 10% of the total.

 

It was always included ijn the 10+ % .

It was included in the 10% starting in 2011, not "always"

 

I don't what you sell but on a $500 watch, they make over $50.

They make 10%. You know that when you list, so what's the problem?


 

Message 26 of 43
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Re: Final value fee on shipping

It has absolutely NOTHING to do with whether Ebay does anything to help with the shipping. It is merely the most equitable way to allocate fees.

 

I've been buying and selling on here since 1999. I'm not a newbie. I know how fees work and I know that Paypal charges .30 plus 2.9%

 

If your items are not competitive it's not the fees, it's what you're buying. Fees are not going down and to try to wrap the fact that the fees are too high for you in charging on the total is silly. You need to admit the fees are too high for you and the way they allocate them is a red herring.

 

 

Message 27 of 43
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Re: Final value fee on shipping

16% in final value fees? Yea, I just got zinged by this shipping value fee krud - I'm just an occasional little guy seller - bite me eBay.
Message 28 of 43
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Re: Final value fee on shipping


@jerryrocks007 wrote:
16% in final value fees? Yea, I just got zinged by this shipping value fee krud - I'm just an occasional little guy seller - bite me eBay.

They've been charging it for 6 years, so if you haven't learned to build it into your shipping charge by now, it's a lost cause.

Message 29 of 43
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Re: Final value fee on shipping

I think you nailed it.  Its insane.

Message 30 of 43
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