06-09-2017 08:45 AM
I would like to hear peoples thoughts.
Ebay want's approx. 10% commission on the sale of an item, Paypal wants 3% + $0.30 Transaction fee, and Ebay also wants to charge 10% on any shipping charges you collect, as well as 10% on any Sales Tax you have to collect. and Paypal wants the same amount.
So lets assume you have a $10 sale and it costs you approx. $7 to ship that Item. For Arguments sake I'm assuming 7% sales tax. (Since they try to force you to offer free shiping on everything, Sales tax is included on the shipping amount).
so $17 + 7% = $18.19 total for the sale.
13% + $0.30 Ebay Fees on $18.19 = $2.39
Your commitments out of that $18.19 include the $1.19 sales tax, and the $7 shipping. That have nothing to do with profit from the sale. (Not Including Time, Packing Materials, i.e.: Labels, ink, boxes, envelopes, gas, etc...)
so, $2.39 out of the original $10 is effectively a 24% sales commision rate.
Now in order to get any visibilty on the listings they are asking for more money, which is open to a bidding war. they suggest a starting bid of Approx. 10%. Which of course will gradually increase as the competition increases, so I am going to assume it will rise to more like 15% - 20% over time. (Ebay shows you how much everyone else is paying and lets you know you can't get visibilty unless you bid more than the going rate, forcing the price up everytime a new seller enters the market) So they are creating a Bidding war for Visibilty.
Lets apply that extra 15% to the original $18.19, and that is an additional $2.72. which is an effective rate of 27.2% of the $10 sale.
Now the effective sales commision they are charging has risen to: 51.1% of the original sale.
And that could still go up another 2% sales commision for each 1% the Promoted Listing Cost increases.
at a 20% promoted listing that rises another 9% to 60% of the total sale.
This basically makes it impossible to sell anything for a profit.
Does anyone have any thoughts about this.
I thought charging the %13 + the $0.30 Transaction fee on the shipping was outrageous which raised the commisions on most sales to between 25% - 30%. (They already doubled their fees when they did that, now they are doubling their fees again.)
This new move more than quadrules ( 4x to 5x ), their advertised sales commisions.
They just doubled their fees to %50 - %60 Ebay Commision, and no one is saying that they are outraged. But they are still lying and telling everyone they are only charging 10%, 9% if you have a store.
Isn't there anyone who has any thoughts on this subject. There's nothing you can sell against the Chinese, where if EBAY takes 50% - 60% of your profit right off the top, after you are already paying 10 times the amount to ship an item from the USA than it costs to ship from China, That you can make a profit on.
Is EBAY Planning on shutting down every customer (Seller), they've ever had?
06-09-2017 08:52 AM
Yeah, don't get a store, don't buy promoted listings, don't pay to list here.
06-09-2017 08:58 AM
Isn't there anyone who has any thoughts on this subject.
I think many people don't take the time to "do the math."
06-09-2017 09:08 AM
Everyone thinks of changing the world, but no one thinks of changing himself. - L Tolstoy
"You are entitled to your own opinion, you are not however, entitled to your own facts."
06-09-2017 09:12 AM
Of course you can sell for a profit. ALL of your expenses need to be added in to your item price - all Ebay and Paypal fees, item cost, your packaging items, ink, paper, tape, your time, your PROFIT...all of that should be included in your item price. If, by doing this, you find the item is not competitive in price then you paid too much for the item to begin with, or the item is not a good fit for online sales.
06-09-2017 09:15 AM - edited 06-09-2017 09:18 AM
You're so flawed in your thinking I don't know where to start.
1st off sales tax can only be charged on the $10 sale, not shipping or fees.
Taxes on sales have NOTHING to do with your fees or profit. . .
The only fee you would pay on those taxes would be to paypal for the payment.
06-09-2017 09:17 AM
@z50com wrote:
1st off sales tax can only be charged on the $10 sale, not shipping or fees.
That depends on the state. Where I live it's charged on the total amount the buyer pays, item cost plus shipping.
06-09-2017 09:19 AM
When you go to the Post Office do you pay sales taxes on US Postage stamps?
Never heard that one before, what state are you in?
06-09-2017 09:23 AM
Every single thing I sell has all fees accounted for. Yes,I know what I pay; no, it is not cheap, but I do sell a lot more than I used to.
I keep track, I know what I am doing and I know exactly what my profits and losses are.
What I don't know-Is what do you want? You brought this up why? WHAT GOOD DID THIS POST DO FOR YOU?
06-09-2017 09:26 AM
@southern*sweet*tea wrote:Of course you can sell for a profit. ALL of your expenses need to be added in to your item price - all Ebay and Paypal fees, item cost, your packaging items, ink, paper, tape, your time, your PROFIT...all of that should be included in your item price. If, by doing this, you find the item is not competitive in price then you paid too much for the item to begin with, or the item is not a good fit for online sales.
You forgot one...or the venue your on is getting to expensive to do business with.
06-09-2017 09:28 AM - edited 06-09-2017 09:31 AM
@z50com wrote:When you go to the Post Office do you pay sales taxes on US Postage stamps?
Never heard that one before, what state are you in?
Mississippi
http://www.dor.ms.gov/Pages/SalesTax-FAQs.aspx#142
Are transportation, freight or delivery charges in connection with the sale of goods taxable?
Yes, tangible personal property is subject to sales tax on the gross proceeds of the sale including, but not limited to, charges for shipping, handling and delivery.
https://trustfile.avalara.com/guides/state/mississippi/shipping-handling/
06-09-2017 09:36 AM
This is simple, if you don't get a store, you don't pay to list here, you don't use promoted listings, then the most you will pay is 10% which is your final value fee when an item is sold, that way you always make money when you ship something.
06-09-2017 09:37 AM
06-09-2017 09:38 AM
I read it.
Makes my head hurt to do the math.
I do not list anything at a price lower than I am willing to sell it for.
I do not go upside down on a sale
With the rare exception, I don't sell things that I can not make a 100% profit on after expenses.
I have been known to occasionally think something is worth more than it is
I get a $30 invoice credit for the few things that fall into a category that I can promote.
06-09-2017 09:42 AM
z50com: What are you even talking about? What does buying stamps at the post office have to do with EBAY Fees?