eBay

cheapwer · ‎11-06-2022

Every company is entitled to make money on services rendered. Ebay as decided to charge me 12.9 % on my final selling price, 12.9% on the shipping cost and 12.9% of the tax THEY COLLECT! When shipping a heavy item sometimes the shipping cost is half of the selling price. So now I am paying 19.3% of my selling price. Then I am paying 12.9% of the tax collected. That's 12.9% of the 7% tax collected. That's another .9% of my selling fee. MY TOTAL COST IS 20.2%.

Ex: sold $100-

shipping

farmalljr · ‎11-06-2022

Yes, that's about right. Local auction houses charge MORE, and give you less eyes on your items. Most things typically don't sell as well either. Others, sell better.

Looking at what you sold in the past, you did better here then you would have in a local auction. Which seems like a better deal? 20% fee on a $100 sale, or 30-40% on a $50 sale? You seem to compare apples to pie pans. What selling venue do you think you are going to sell stuff on that is done so with lower fees but keeping the selling price that high? You may find a venue with fees a bit lower, but will you be able to sell at the same price? Doubtful. None of us like seeing the fees get jacked up, but fees are really not the worst part. It's returns and scams, that can kill your profit faster than anything.

calntom · ‎11-06-2022

Good luck on making more money elsewhere.

cambriachick · ‎11-06-2022

Hi cheapwer,

You should charge your buyers enough to cover all shipping fees, including eBay's cut.

maxine*j · ‎11-06-2022

@cheapwer wrote:
... MY TOTAL COST IS 20.2%...

Other venues -- consignment store, auction house, used/antiques "mall" -- would charge you more; in some cases, a lot more.

Your costs to sell at most flea markets/pop-ups/shows would be at least that much. And nowadays unless you accept credit cards, your sales probably won't be robust. (And your payment processor is going to charge its fee based on the total the buyer pays, including the sales tax, by the way.)

Your cost on other on-line venues would be at least that much. And no matter what payment processor they use, that processor charges its fee on the total the buyer pays for goods, handling and shipping, sales tax.

I'm not suggesting that a 20.2% take-out isn't more than you can handle. I'm just suggesting that you will be very hard put to find a place to sell for less, if you can find one at all. So I say, just donate your stuff for whatever income tax advantage that gives you, or have a big yard sale next summer.

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dbfolks166mt · ‎11-06-2022

Yes, that's about right. Local auction houses charge MORE, and give you less eyes on your items. Most things typically don't sell as well either. Others, sell better.

Agree that the consignment auction houses can be a hit and miss and it varies across auction houses. Some of the ones I use charge 25% some charge 15% but also charge the buyer a premium (aka splitting the fees between buyer and consignor), some allow reserves some don't, some charge fees if the reserve is not met, some don't. Almost NONE of them have any type of restrictions on what you can consign including firearms. Some ship, some don't so it's a mix.

I have sold items on consignment for 1.5-2x times what the same items were selling for on eBay. Of course the buyer doesn't have to pay shipping, doesn't have to worry about lost or damage packages, can look at and inspect the item before taking possession. It's just a matter of research in finding the right auction house. I suspect it also depends on what area you are in, things sell VERY well at auction houses in my area.

Looking at what you sold in the past, you did better here then you would have in a local auction. Which seems like a better deal? 20% fee on a $100 sale, or 30-40% on a $50 sale? You seem to compare apples to pie pans. What selling venue do you think you are going to sell stuff on that is done so with lower fees but keeping the selling price that high? You may find a venue with fees a bit lower, but will you be able to sell at the same price? Doubtful. None of us like seeing the fees get jacked up, but fees are really not the worst part. It's returns and scams, that can kill your profit faster than anything.

I sell across multiple venues and adjust my prices according to my expenditures which include the site fees. One site has a 3% fee which is also on the total sale but I can basically reduce my listing price by about 10%. This may have something to do with the fact that about 80% of my items sell on other sites these days. I looked at a couple of you listings and I can find the same items on other sites for up to 50% less.

No argument that the returns and scams can kill your profit faster than anything.

dbfolks166mt · ‎11-06-2022

Other venues -- consignment store, auction house, used/antiques "mall" -- would charge you more; in some cases, a lot more.

Maybe but maybe not. I use a couple of auction houses to move items that I cannot sell on eBay, mostly firearms and ammunition. Fees are based on how much the total consignment sells for. I have not found a consignment store or a antique mall that is cheaper.

Your costs to sell at most flea markets/pop-ups/shows would be at least that much. And nowadays unless you accept credit cards, your sales probably won't be robust. (And your payment processor is going to charge its fee based on the total the buyer pays, including the sales tax, by the way.)

A lot of people use a third party financial processor like PayPal or Venmo these days. I sell and get paid for a number of things in that manner. People don't even ask if I take CC's.

Your cost on other on-line venues would be at least that much. And no matter what payment processor they use, that processor charges its fee on the total the buyer pays for goods, handling and shipping, sales tax.

Agree that most other venues charge the fee on the total sale but I list on several venues that have a lot lower fees than eBay.

I'm not suggesting that a 20.2% take-out isn't more than you can handle. I'm just suggesting that you will be very hard put to find a place to sell for less, if you can find one at all. So I say, just donate your stuff for whatever income tax advantage that gives you, or have a big yard sale next summer.

There are a LOT of alternatives out there you just have to do a little research to find them.

One final note don't forget that your net is going to be pre-tax so factor in income tax you are going to have to pay into your pricing.

dbfolks166mt · ‎11-06-2022

Good luck on making more money elsewhere.

It's really not all that difficult. 😀

shado-x · ‎11-06-2022

12.9% of the tax THEY COLLECT!

But you didn't have to pay a nickel to report that collection from the majority of States that have different Sales Tax laws. You would likely complain 10x more if you had to do that reporting on your own to The State that collected it, and then transfer those funds to the State. eBay, thank goodness, does it without a hitch for every transaction. And then you have an additional expense calculation in your favor on your own Federal tax and State tax returns. Gawd, the complaints are never ending.

coolections · ‎11-06-2022

Heavier items have always been a problem when selling on line. You have to ask yourself can you get the same amount selling locally or is the fee of 20% of your asking price easier to sell on line and worth the trouble.

theteamsetguy · ‎11-06-2022

Ding Ding Ding!! I don’t understand the sellers that complain about the eBay fees. Like all other businesses sellers have to take into account there fees and include them in the costs of the item or in the handling fees. The buyers should be paying the eBay fees not the sellers if you are doing this right.

varebelrose · ‎11-06-2022

As DBFolks pointed out, there *are* other venues that are far, far better for some sales. You just have to figure out what works where. I miss selling here (I'm still on the forums, right?), but I am glad to be away from being involved in what this site has become. Don't be afraid to expand your horizons.

dbfolks166mt · ‎11-06-2022

12.9% of the tax THEY COLLECT!

But you didn't have to pay a nickel to report that collection from the majority of States that have different Sales Tax laws. You would likely complain 10x more if you had to do that reporting on your own to The State that collected it, and then transfer those funds to the State. eBay, thank goodness, does it without a hitch for every transaction. And then you have an additional expense calculation in your favor on your own Federal tax and State tax returns. Gawd, the complaints are never ending.

Totally agree with you 100% on this one. The eBay fees on the sales tax on a $100 item with a 7% sales tax amounts to $.90. I will gladly pay that to avoid the headache of potentially remitting sales tax to up to 45 states, counties, cities, municipalities........... on a periodic basis. I also don't really want to sort through the 10,000 various tax laws to figure out what the sales tax rate would be for every item I sold based on the buyers location.

soh.maryl · ‎11-06-2022

First of all, good luck on whatever site you decide to use.

However, your math is flawed. Your eBay FVF on your sale is 12.9% in most categories. Add the item price, the shipping cost and the state sales tax. Your buyer paid you the total of these items. eBay's FVF would have been 12.9% of that total, regardless of how much shipping was. The shipping cost that the buyer pays you, and that you, in turn, pay the carrier, is NOT part of the final value fee.

Would really appreciate it if you'd return and show us the invoice where you paid 20.2% in final value fees.