Just got back into Selling and I have questions
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‎04-12-2021 09:51 AM
I've just gotten back into selling in the last month, after several years of not doing it, and I'm having a hard time figuring out some aspects of this new Payout system. I keep reading that eBay only takes 10% of the sale cost as a Final Value Fee on most items, but on my recent payouts it looks more like 13.5 percent...AND they appear to be taking a cut of the shipping charges collected, as well. But if I refund somebody for excess shipping charges that they have paid, I get 100% of that refund deducted from my next Payout. Do you understand what they're doing? I like the new Payout system, and I'm getting the payouts in a timely manner, but I just don't understand certain aspects of it.
Re: Just got back into Selling and I have questions
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‎04-12-2021 10:05 AM
Ebay now takes 12.35 % +30cents of all funds paid by the buyer.
Try to make sure that the shipping cost are as close as possible.
Re: Just got back into Selling and I have questions
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‎04-12-2021 10:13 AM - edited ‎04-12-2021 10:13 AM
eBay has been charging a final value fee on the buyer's entire payment, including shipping, since 2011. They also have a long history of not givin partial credit for FVF's when sellers issue partial refunds (such as for overpaid postage).
The 10% rate is obsolete -- that was back when payments went through PayPal which charged an additional 2.9%. Now when Sellers are in Managed Payments, there is no PayPal fee, but a higher FVF rate for eBay. In most categories it's 12.55%.
Non-store: https://www.ebay.com/help/selling/fees-credits-invoices/selling-fees?id=4822
Store: https://www.ebay.com/help/selling/fees-credits-invoices/store-fees?id=4809
Re: Just got back into Selling and I have questions
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‎04-12-2021 10:39 AM
On top of the final value fee you have to pay processing fees (that is what you use to pay Paypal) That is about 3% plus .30 per item (paypal was per transaction) that makes it 13% to 14% for most categories. It is about the same as when on Paypal they try to say you save but you do not. Plus if you promote your listing you will get charged for that extra % (that only shows up on you invoice at this point which is going away so I am not sure where it will show up next month)
Shipping, several years ago they started to collect on shipping because people would try and get out of paying fees by lowing the price of an item but charging huge shipping fees. Some people like to ship free and build it into price, partly because it is easier on accounting. If you charge for shipping here are some suggestions you can implement.
1. make sure you do not pass discounted shipping savings on to customer (it is a check box under preferences I believe). The customer will pay retail, but you will get a discount on shipping. Some classes of you get a minimal savings (as low as 1%) but most you will save enough to pay for most if not all of the fees.
2. You can add a handling charge when setting up your shipping profiles. you can add .25 or .5 to cover first class fees or the cost a mailer or $10 if the item is going to take a lot of extra packing or you want to add insurance or a signature This will be added on top of what ever shipping is charged. This only works on calculated shipping, not free or fixed shipping. You can also set domestic and international separately.
3. You can use a fixed shipping charge, this can be formulated how ever you want, enough to cover expenses and shipping or partial cost to reduce shipping for customer and build the rest into price of item (this is an option many sellers use instead of free shipping).
4. When listing items under a pound, up the weight to the next level to increase shipping cost to customers to make sure you cover your cost I.e. if it weights 6 oz. enter 9 oz. (breaks are at 5. 9. 13 oz. it adds a minimal to customers cost but varies to location like shipping. It should be enough to cover your fees and then some (on average)
Just be sure you account for this, a $10 shipping charge is approximately $1.3 in fees. And if you sell internationally where shipping can be $20 to $30 that can add up quickly if the margins are not accounted for somewhere.
Re: Just got back into Selling and I have questions
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‎04-13-2021 12:41 PM
lol e bay don't know either . they just want there fees up-front soon as sale is made. then they hand it over to ADYEN manage comp to process takes days ,so they can collect interest on your item your money you sold .no more PayPal. no more monthly bill. so they say .I'm still getting backed charged from months ago. from shipping insert fees .i wouldn't sale unless its a few items …..and its more like 20% sometimes .e bay is sinking fast . find a new platform to sale.........
Re: Just got back into Selling and I have questions
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‎04-13-2021 01:50 PM
I have been selling on ebay since 1998 my dads account and 2003 my own account. Recently was forced into managed payments and realize my true selling costs are nearer to the 30% mark. Will be phasing out of ebay into other auction sites. I do not feel they should take a percentage of shipping fees paid or sales tax paid when those are both pass thru figures to other entitities - USPS or State Revenue Dept. You are going to be losing me as a seller very soon.
Re: Just got back into Selling and I have questions
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‎09-24-2023 12:40 PM
they are making so much money with these fees. States are also making so much money with all the taxes they are collecting. all on the backs of our hard work.
Re: Just got back into Selling and I have questions
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‎09-24-2023 01:03 PM
