Not understanding the cost break down

[oli4]

A few days ago I sold an item for $1.95 and the other day $1.32 was deposited in my account. Is this take away amount normal?

[soh.maryl]

eBay's final value fee in most categories is 13.25% and is calculated on the total amount the buyer pays to the seller, that is, the item price, the shipping cost and the state sales tax, if any.

1. Why are you offering free shipping on those less-than-$5 listings? 

2. Most smart sellers have by now figured out that it's fruitless to less anything for less than twenty bucks

3. That FB you got put you down to 95% or so.  Smart buyers don't usually shop with a seller whose rating is less than 98.6%. 

4. Don't know what your level of expertise is, but you might benefit by reading a bit more about how eBay works.  

[iamcara]

id have to agree. better to offer free returns than to offer free shipping

[dbfolks166mt]

     You really need to get a better understanding of the costs before you list an item but looking at the item you sold I am going to have to guess at a couple of things with regard to costs. EBay charges 13.25% in FVF's which is applied to the total cost of your sold items (item price + shipping + sales tax) + $.30. 

     I took a guess at the sales tax percentage, which is based on the buyers location, and used 6%. You are offering free shipping so the buyer is paying you nothing for shipping and it appears you are sending your items using regular postage stamps. So your eBay selling costs would be as follows. 

[chevymontecarlo88]

The .30 fee on low value item will eat your margins. 

Understand your selling costs as @dbfolks166mt has broken down for you. 

Also, there are many eBay calculators online that can help you determine margins/profits if you enter the proper data. 

[bdmh-enterprises]

One glaring problem I see with your listings is you have a number of >$5 stamps that list free Ground Advantage as the shipping method where you could be using ESE(Ebay Standard Envelope) or just an  untracked stamped envelope. GA is about $5 to ship 1oz, so it will COST you about $4(after fees) to sell those $2 stamps. Fixing that should be a top priority, if one is sold like that and you just send in an envelope cause you see the price issue, downgrading from the listed shipping method is grounds for the buyer to both file a not as described case and leave negative feedback.

[roccotacodad54]

Maybe read the Ebay sellers policies?

[powell-collectibles]

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@soh.maryl wrote:

eBay's final value fee in most categories is 13.25% and is calculated on the total amount the buyer pays to the seller, that is, the item price, the shipping cost and the state sales tax, if any.

1. Why are you offering free shipping on those less-than-$5 listings? 

2. Most smart sellers have by now figured out that it's fruitless to less anything for less than twenty bucks

3. That FB you got put you down to 95% or so.  Smart buyers don't usually shop with a seller whose rating is less than 98.6%. 

4. Don't know what your level of expertise is, but you might benefit by reading a bit more about how eBay works.  

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I don’t know why you continue to discourage people from selling anything that is under $20. I know plenty of sellers that do, and make just as much or more money than those that are selling $40, $50,  or $100 items.

What is better – selling $15 items that cost the seller one dollar for the item and four dollars for shipping or a $20 item that cost the seller $10 and $5 shipping?

[oli4]

So what recommendation do you have for some of my items that are $1.00 and for my other items that are selling for much more?

Some one earlier says he offers free shipping for his items that are under $1.00, I guess that was probably not the best route to follow.

[fm2000]

You can't sell items of such low value and make much money, and in some cases you will lose a significant amount of money in the long run. You might be able to sell lots and lots of relatively cheap items and make money doing it (despite what some naysers say), but $1.00 per item is just too low. You need to get at least a few dollars for an item, and charge shipping. And that is only for items you can send in a regular envelope via ESE or with a regular stamp.

People won't buy those stamps for a $1 and pay $4.58 for shipping. You are also paying FVF fees on that 4.58 shipping, not just the $1. Plus there is the 30 cent per transaction fee under $10. That doesn't even factor in the cost of an envelope or the value of your time. Every one of those $1 stamps with 4.58 shipping will result in about an 8 cent loss.

eBay fees are no joke, and it is crucial to understand them before selling. It isn't uncommon for new people to start selling here and actually end up losing money because they don't read and fully understand all of the fees involved before selling.

[krazzykats]

Send them in a Christmas card, untracked.

[mam98031]

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@oli4 wrote:

A few days ago I sold an item for $1.95 and the other day $1.32 was deposited in my account. Is this take away amount normal?

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I'll add my voice to what others are telling you.  You are NOT making any money off of stuff you are selling for 99 cents with free shipping.  Your fees to Ebay alone will be close to half that.  And you still have to pay for the envelope and the shipping.  That leaves no room to pay anything for the items you sell and no money for you either.

[oli4]

So for items that I have listed for $1.00, what should I list it for? Should I include or not 'free shipping'?

If I include 'eBay Standard Envelope for Eligible Items up to $20' will cost me 0.69. Where do I get this eBay Standard Envelope? Isn't it cheaper to use my own envelope?

And for items that are more than $15 what type of shipping?

What items should I offer free shipping?

I appreciate any help.

[bdmh-enterprises]

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@oli4 wrote:

So for items that I have listed for $1.00, what should I list it for? Should I include or not 'free shipping'?

If I include 'eBay Standard Envelope for Eligible Items up to $20' will cost me 0.69. Where do I get this eBay Standard Envelope? Isn't it cheaper to use my own envelope?

And for items that are more than $15 what type of shipping?

What items should I offer free shipping?

I appreciate any help.

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I sell my $0.99 - $1.50 cards in 'variation' listings with a multi item discount and flat 0.80 ship to cover the sleeve, envelope and ESE label. Ideally this encourages multi item sales and repeat customers. I also consider my cost on these cards to be below 0.05 as they would otherwise just be sold in bulk. YMMV

You can read about ESE and the limitation here: ESE Info

If you listed in an eligible category it should be available in the shipping options. It gives you a label, like any other service, that you attach to your own envelope. This has an e-stamp and the Intelligent Mail Barcode that provides limited tracking as it gets sorted, but most importantly will protect you from false not received claims you could fall victim too if just using a stamp without tracking.

ESE is good up to $20 for single item, $50 for combined sales. After that you're stuck with Ground Advantage.

I use free shipping for all my cards and set the overall price accordingly. I believe it helps with search and buyers like it. It also makes combining orders WAY easier. For heavier items I use calculated since I'm in the North East and price variation for distance are too great.

[oli4]

Where are you purchasing your ESE envelopes?