How Many times Do We See This

[traditonalproducts]

"After my fees etc. I have a loss or Ebay is taking 30% out for everything". These posts are killing me. I guess I need another drink. 

Get real, did they account for the shipping cost to ship an item if its free shipping? Did they account for the deduction of shipping supplies, mileage to and from a shipping center? What about the Ebay fees? My suggestion is to read up on business deductions or talk to your CPA. 

The so called 30% is really not 30% once the deductions are claimed. 

The final net sales are not final until you file your quarterly or year-end tax return thus providing a final net percentage.

[wes-4507]

When I account for profit and how much of it ebay took, I dont need to add shipping in to just turn around and subtract it back out.

Yes, you do, because the shipping charge paid by the buyer doesn’t usually match your actual cost to ship.

[soh.maryl]

One of the bigger surprises to me is that there are sellers who offer FREE SHIPPING and don't take that fact into account when pricing the item for sale.  And some of these are not new kids on the block. 

[coolections]

Good luck with that. Please do not return saying Ebay is hiding your stuff when you see zero views.

[rosszonebricks]

"But... but... but... I checked FREE SHIPPING!  Why am I having to pay for the shipping labels when I sell something?!"

How many times have we for real seen this on the seller message boards?  So sad.

[isaiah53-57]

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@wes-4507 wrote:

When I account for profit and how much of it ebay took, I dont need to add shipping in to just turn around and subtract it back out.

Yes, you do, because the shipping charge paid by the buyer doesn’t usually match your actual cost to ship.

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No I dont - I use calculated shipping w/ a small handling fee - Any amount I am paid over the actual shipping cost is eaten by the time I put forth performing the act of shipping - I'm not selling shipping - Since my time is valuable, it can never pay me back, but since I do not lose money on it, I can consider it a break even situation.

[wes-4507]

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@isaiah53-57 wrote:

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@wes-4507 wrote:

When I account for profit and how much of it ebay took, I dont need to add shipping in to just turn around and subtract it back out.

Yes, you do, because the shipping charge paid by the buyer doesn’t usually match your actual cost to ship.

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No I dont - I use calculated shipping w/ a small handling fee - Any amount I am paid over the actual shipping cost is eaten by the time I put forth performing the act of shipping - I'm not selling shipping - Since my time is valuable, it can never pay me back, but since I do not lose money on it, I can consider it a break even situation.

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eBay can’t know that; the IRS can’t know that. That’s why they report the income, and you deduct the expenses.

[ten_o_nine]

@traditonalproducts 

Not sure what the point of this post is. Are you trying to help posters that complain? or are you trying to discourage them from posting a complaint again?

[dbfolks166mt]

@coolections wrote:

Wrong. Ebay takes on average (depending on the weight of the item ) 23%.

I agree with the point of your post by all means - My fees averaged about 18.5% of the items selling price - Thats a big chunk right off the top - Way too high...

     Simple solution raise your price or cut your other costs. 

[dbfolks166mt]

Wrong. Ebay takes on average (depending on the weight of the item ) 23%.

What has the weight have to do with the FVF's eBay applies? Are you by chance including what what USPS, UPS or FedEx takes? 

[isaiah53-57]

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@wes-4507 wrote:

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@isaiah53-57 wrote:

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@wes-4507 wrote:

When I account for profit and how much of it ebay took, I dont need to add shipping in to just turn around and subtract it back out.

Yes, you do, because the shipping charge paid by the buyer doesn’t usually match your actual cost to ship.

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No I dont - I use calculated shipping w/ a small handling fee - Any amount I am paid over the actual shipping cost is eaten by the time I put forth performing the act of shipping - I'm not selling shipping - Since my time is valuable, it can never pay me back, but since I do not lose money on it, I can consider it a break even situation.

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eBay can’t know that; the IRS can’t know that. That’s why they report the income, and you deduct the expenses.

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Cmon' for real? - We are not talking about a final tax prep here - We're not talking pulling a sale at random out of an accounting ledger when someone is complaining their fees were 25% or 30% of their selling price - They are looking at the transaction and making a quick viable, informal determination of what the fee percentage was off the top of their selling price, likely within a percentage point or two.

Now when I posted lower down that my avg fees were 18.5%, that was a true annual average of my last full year of selling, within tenths of a percentage point, that represent the fees paid on the total transactions minus actual cost of shipping using numbers from my accounting ledger.

[isaiah53-57]

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@dbfolks166mt wrote:

@coolections wrote:

Wrong. Ebay takes on average (depending on the weight of the item ) 23%.

I agree with the point of your post by all means - My fees averaged about 18.5% of the items selling price - Thats a big chunk right off the top - Way too high...

     Simple solution raise your price or cut your other costs. 

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Huh? What does cutting my other expenses have to do with ebay fees percentage?... hint: nothing...

And when there is a true value of an item and thats what you are selling it for, how do you figure you can just arbitrarily raise the price?... hint: you can't...

[traditonalproducts]

Help posters that complain. Basically, is called understanding business 101 & Ebay's T&C's.

[ten_o_nine]

No problem here, I just didn't understand 101 & Ebay's T&C's

[mam98031]

@traditonalproducts 

I agree with you.  And I've explained this on so many threads as well.  Ebay does not have ANY category that they charge a 30% fee in.

What sellers are doing is not paying attention to the details when they look at their Performance Summary Report.  They just see that percentage in the middle and run with Ebay is charging them that fee.  But if they would actually READ the information in front of them, they would likely learn some new information.  

The orange part of that circle represents your Ebay fees.  ALL your Ebay fees.  The purple portion of that circle is what you have paid for in shipping labels in Ebay label system.  That cost is NOT part of Ebay's fees.  That money goes to the carriers that are going to deliver what you are shipping.

If sellers would just slow down a little and spend some time with these Performance reports they would likely come away with a better understanding.

[laststopgeneralstore]

I absolutely love when people say "you can write that off", like okay but that still doesn't mean I'm making money lol. Not to mention you can't write of 100% of every single thing; which most people assume as well as assuming that what ever we write off we get back in the form of a check from the government lol. That would be great!