eBay

fillmores**flea**market · ‎05-23-2023

I have been selling on eBay since 1997 so I've been through plenty of changes and tried to stay on top of things to best maximize my profits. I can remember when eBay began charging fees on shipping. If I remember correctly it was in response to people selling items for a penny and charging $99 for shipping to avoid paying fees.

Fast forward to today and I am charging customers only the rate that I pay for labels on eBay. So in other words I am passing the eBay discounts on to the customer. Not a math genius, nor a business genius, but if I pay tax on for example $5 that the buyer paid for shipping, then I pay $5, I am losing money. I don't really want to use free shipping as it is such a pain with all the different zones. Once upon a time I used to use free shipping and would just use the zip for a city on the other coast to determine the cost. Should I either stop passing along the discount or charge a handling fee of .75 or 1.00 (yes I know I will pay fees on that as well) to cover the fees on the shipping. Thanks in advance

fern*wood · ‎05-23-2023

I would stop passing on the discount. In my mind offering free shipping but adding in the cost to the farthest zone is more unfair to many buyers.

stainlessenginecovers · ‎05-23-2023

It really doesn't matter how you do it.

you can

A.) charge $5 shipping when it costs $5 (do you 'SHOW' what was paid on the label? (I don't; never have) while burying the 'fees' in your profit

B.) charge $6 for a $5 label (don't show 'cost of label' on the label)

C.) Use Free shipping; Again; use worse case distance, bury it in the 'item cost' and be done.

monica-sells · ‎05-23-2023

I 'do' add a mininal handling fee of some 'oddball' number that is insignificant, but covers most of the FVF on shipping. (like $5.00 shipping would be .67 cents on the handling charge)

added to the discount i DO pass on, and my shipping charges visible to the customer are usually lower than most of my competitors (in most categories....I am surprised how many don't pay more attention to shipping costs)....

They get a pile of books and throw it in a Large Flat Rate Box for 22.00 (lazy and a free box to boot)....i can ship that same box for 7.63 with the new cubic rates....huge difference....

caldreamer · ‎05-23-2023

Some of your items are priced TOO LOW and you will be losing money (or bearing breaking even). Do NOT add "handling charge" (customer won't buy from you...just raise your prices).

new Cardinals t-shirt $1.49

shipping $4.44

SUBTOTAL $5.93

sales tax .59

TOTAL $6.52

EBAY fees based on total sale $6.52 (purchase + shipping + sales tax) plus 30 cent handling. Additional fees could apply (international or promotion).

isaiah53-57 · ‎05-23-2023

@fillmores**flea**market wrote:
... if I pay tax on for example $5 that the buyer paid for shipping, then I pay $5, I am losing money. I don't really want to use free shipping as it is such a pain with all the different zones. Once upon a time I used to use free shipping and would just use the zip for a city on the other coast to determine the cost. Should I either stop passing along the discount or charge a handling fee of .75 or 1.00 (yes I know I will pay fees on that as well) to cover the fees on the shipping. Thanks in advance

Shipping is a write off as a cost to the sale - You dont pay tax on it - I'm sure you must be aware of this and wasnt thinking about it as you typed out your thoughts?

Having a low shipping cost can allow you to maximize the selling price of your item, whereas having a loaded shipping cost will likely mean you need to reduce your items selling price - You really cant maximize your item price and load your shipping as the laws of competition dictate you'll struggle in the market... In theory... but then again, anything seems to go on this site, which is why you see the preposterously high pricing you do on many items here.

reallynicestamps · ‎05-23-2023

I am charging customers only the rate that I pay for labels on eBay.

The fair price is what you pay for the label PLUS your costs for packaging PLUS your costs for insurance (including Cookie Jar Insurance) PLUS your costs for labour and transit PLUS your fees on shipping.

That totals your real rate that you pay for shipping.

Many sellers actually charge a little more than that to cover the fees on the sales taxes which the buyer pays but you never see.

Looking at these numbers:

new Cardinals t-shirt $1.49

shipping $4.44

SUBTOTAL $5.93

sales tax .59

TOTAL $6.52

EBAY fees based on total sale $6.52 (purchase + shipping + sales tax) plus 30 cent handling. Additional fees could apply (international or promotion).

I would consider selling that tee at $7.99 with Free Shipping.

Still a cheap shirt and with the added bonus of the "free" shipping.

reallynicestamps · ‎05-23-2023

@isaiah53-57 Shipping is a write off as a cost to the sale - You dont pay tax on it

The buyer pays sales taxes not the seller, so you are right.

But some jurisdictions charge tax on shipping and some do not. Since we sellers don't handle the tax, eBay does that for us and charges fees for the service, we are paying fees on sales taxes.

Sometimes it comes down to squinting and holding your tongue in the right position to understand all the fiddling about.

isaiah53-57 · ‎05-23-2023

@reallynicestamps wrote:
@isaiah53-57 Shipping is a write off as a cost to the sale - You dont pay tax on it

But some jurisdictions charge tax on shipping and some do not. Since we sellers don't handle the tax, eBay does that for us and charges fees for the service, we are paying fees on sales taxes.

Ah yes you are correct @reallynicestamps I was on a track where I was thinking he was referring to Fed & St taxes - Wasnt considering ebay fees on taxes or municipal taxes that might be assessed since shipping is reported as revenue - Thank you for clarifying that - By the way, I am lucky to live in the State of NH where we have no State sales tax or State income tax(higher property taxes though - they are never without avenue).

susanb1872 · ‎05-23-2023

I am making the assumption that you use calculated shipping and I do also. If a customer pays for example, $5.00 in shipping and then I buy my label though ebay, I only pay (approx.) $3.85. I do not pass that savings on to the customer since I want it to cover the other shipping costs. I also do not print the cost on the label. So I guess I am confused how you pass on the discount-do you give a small refund?

yesterdays_treasures_44 · ‎05-23-2023

Since 1997? You're one of the pioneers. You have a resiliency that no one else here has. It's a shame you even have to ask this, as it shows how downhill ebay has gotten. I wish I had been here doing the golden days of ebay. Sounds like it was actually rewarding, and not something that made you want to rage-quit every other day.

fillmores**flea**market · ‎05-23-2023

I should clarify a couple things. When I referred to “tax” I was attempting to be clever by calling the eBay fees on shipping a “tax”. In reference to the Louisville shirt it has been listed for over a year. It’s currently marked down on a sale based on time listed. It’s life is short in my inventory as it will be heading to Goodwill soon.

I do appreciate the different thoughts on how best to list, and preferably sell, stuff. Thanks

slippinjimmy · ‎05-23-2023

I do both, I charge retail rates AND add a handling charge.

I think the concept of charging only exact cost of postage is nothing other than a way to loose money. I make a profit on my items AND I make some sort of "profit" on the shipping (at least enough to cover the eBay fees and packaging cost plus something for my pocket.

Paranoia strikes deep
Into your life it will creep