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Question why am I paying a fee for taxes and shipping?

I'm feeling discouraged trying to sell on Ebay anymore I know there are fees but it just feels like it never ends there's a fee for everything and it's not just Ebay, maybe there's a good reason Ebay is charging a fee on taxes and shipping but I'm just not feeling it 😞

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Question why am I paying a fee for taxes and shipping?

I’ve been selling on eBay for a very long time and had a variety of items. Since eBay came up with processing payment, I’ve heard a lot of eBay sellers complaining about not getting paid for awhile, I didn’t want to be stuck with them so I decided not to join and deleted all of my listings and went somewhere else. Just a few months ago I decided to give it a try to see, but I am really disappointed of the results with the payout.

I have my own warehouse with a lot of inventory. I also ship, and purchased labels directly from eBay. It seems like eBay takes almost  40% of the sale. I try to contact them but no response. That’s why I decided to join the conversation of the sellers that having the same issue like me. 

Message 61 of 129
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Question why am I paying a fee for taxes and shipping?


@best*fragrances2016 wrote:

I am not even making the money that I paid for the item. That’s what I’m comfortable about. Other sites that I sell the same item for, I ended up making the money and a little profits. How as a seller ended up paying fees on shipping I don’t make anything at of? I even pay extra on some of my listings for shipping. Bottom line is, eBay is ripping me off big time. 


You are holding Ebay responsible for the price you pay for the products you sell when they have absolutely nothing to do with that.  That is on you.  You rarely can purchase something at retail prices and expect to sell them here or anywhere for a profit.

 

You will pay fees on shipping on all other sites like Ebay that I'm aware of.  If you found one that does not do that, please tell us.

 

Ebay is NOT "ripping" you off.  You are not sourcing or pricing your inventory correctly.


mam98031  •  Volunteer Community Member  •  Buyer/Seller since 1999
Message 62 of 129
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Question why am I paying a fee for taxes and shipping?


@best*fragrances2016 wrote:

I’ve been selling on eBay for a very long time and had a variety of items. Since eBay came up with processing payment, I’ve heard a lot of eBay sellers complaining about not getting paid for awhile, I didn’t want to be stuck with them so I decided not to join and deleted all of my listings and went somewhere else. Just a few months ago I decided to give it a try to see, but I am really disappointed of the results with the payout.

I have my own warehouse with a lot of inventory. I also ship, and purchased labels directly from eBay. It seems like eBay takes almost  40% of the sale. I try to contact them but no response. That’s why I decided to join the conversation of the sellers that having the same issue like me. 


Prove that!!!  Ebay does not charge ANYONE 40%.  Not a sole pays that on Ebay.  

 

If you need to contact Ebay, it isn't hard.  There is a link at the top of every page and at the bottom for customer service.

 

FYI if you are including your cost of shipping in with your Ebay fees, that is inappropriate.  Ebay does not set carrier fees nor do they keep them, they are paid out to the carriers.  Your shipping is a cost of sale [COGS] just like the price you pay for the product is.


mam98031  •  Volunteer Community Member  •  Buyer/Seller since 1999
Message 63 of 129
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Question why am I paying a fee for taxes and shipping?

Like I said before, I didn’t have any complaints until  eBay started processing payments. I’ve noticed that eBay charging me more than 13.25% you are claiming. It doesn’t take a genius to figure this out. VS doesn’t sell bulk items/wholesale.  The items that I have were purchased and  accumulated over the years, it was so much that I ended up renting a warehouse to store them. Furthermore, selling  stuff online is not my only source of income as I have my other priorities. Being said that, if you are comfortable and making a lot of profits selling on eBay? Good for you. But stop defending eBay like it is your company. Have a wonderful day! 
 

Message 64 of 129
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Question why am I paying a fee for taxes and shipping?

I’ve been selling on eBay for a very long time and had a variety of items. Since eBay came up with processing payment, I’ve heard a lot of eBay sellers complaining about not getting paid for awhile, I didn’t want to be stuck with them so I decided not to join and deleted all of my listings and went somewhere else. Just a few months ago I decided to give it a try to see, but I am really disappointed of the results with the payout.

I have my own warehouse with a lot of inventory. I also ship, and purchased labels directly from eBay. It seems like eBay takes almost  40% of the sale. I try to contact them but no response. That’s why I decided to join the conversation of the sellers that having the same issue like me. 

 

     Can you provide an example of where eBay "took" 40% of the sale. Generally, unless you are using promoted listings, the effective eBay fees are 14-16%. Conversely eBay "selling costs" can be considerably higher depending on what you are selling, the price and the shipping costs. Many sellers look at the shipping cost as an eBay fee/expense when in fact it is not. That is money the carrier took for providing the shipping service. As an example for the following item the eBay fees are going to be approximately $4.93 which is (13.25% * $34.99) + $.30. It will be a bit more based on the sales tax rate of where the buyer lives. 

     Your shipping cost % is shipping cost/$34.99. Lets say the shipping was $6 then it would be 17%. Your total eBay selling costs would be $10.93 which is about 32%.  

 

dbfolks166mt_0-1703192481127.png

 

Message 65 of 129
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Question why am I paying a fee for taxes and shipping?

I am not even making the money that I paid for the item. That’s what I’m comfortable about. Other sites that I sell the same item for, I ended up making the money and a little profits. How as a seller ended up paying fees on shipping I don’t make anything at of? I even pay extra on some of my listings for shipping. Bottom line is, eBay is ripping me off big time. 

 

     You need to adjust your pricing model based on the terms and conditions of the sites you sell on. I list on eBay but I also list on other sites that have different fee structures. Some of the local sites I sell on have no fees and there is no shipping. I can list on those sites for 15-20% less than I list for on eBay plus  the buyers do not have to worry about shipping costs or issues. 

     With regards to shipping if you are using calculated shipping with the correct dims and weights in the listing and the buyer is paying full retail shipping costs then there is usually a net gain between what the buyer paid for shipping and what you paid for the actual label. That net usually covers the fees as well as your packing materials. 

Message 66 of 129
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Question why am I paying a fee for taxes and shipping?


 

Paypal also charged their fee on the entire amount received from the buyer plus a transaction fee.


Was I talking about paypal? 

 

I'll answer for you.

 

No, I was not.

 

I accept your apology.

 

 

Message 67 of 129
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Question why am I paying a fee for taxes and shipping?

Ebay began collecting fees on shipping as a reaction to fee avoidance by sellers who had low prices and outrageously high shipping fees.

 

Are you sure you're not giving eBay too much credit for being smart enough to figure that out?  Personally I wouldn't be surprised if eBay only started charging fees on shipping for the simple reason to put more money in their pockets at the expense of sellers by charging extra fees on anything they could, and they only inadvertently discovered, after the fact, that it just happened to cut down on obscene shipping costs at the same time.  This is probably the way it really went down:

 

eBay president to the staff:  "Let's start charging fees not just on final values but also on shipping and sales tax, too.  Then we can advertise a fee  for example of 13.25% where sellers will still think that's all they're paying on the final price of their item, but in reality they'll be paying anywhere from 14.5% to 25%  on average and even higher, and they might not even realize it because everything here is so confusing, even to us."

 

2 weeks later: "OMG, by charging fees on shipping and sales tax, not only are we getting way more in fees than the percentage we're advertising, but this has also put an end to sellers charging such high shipping rates, and we didn't even know that would happen!  People are going to think we're really smart!"

 

Message 68 of 129
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Question why am I paying a fee for taxes and shipping?

Like I said before, I didn’t have any complaints until  eBay started processing payments. I’ve noticed that eBay charging me more than 13.25% you are claiming. It doesn’t take a genius to figure this out. VS doesn’t sell bulk items/wholesale.  The items that I have were purchased and  accumulated over the years, it was so much that I ended up renting a warehouse to store them. Furthermore, selling  stuff online is not my only source of income as I have my other priorities. Being said that, if you are comfortable and making a lot of profits selling on eBay? Good for you. But stop defending eBay like it is your company. Have a wonderful day! 

 

     You are correct there is an effective rate due to the FVF's being applied to the sales tax and shipping if you are using calculated shipping. Looking at one of your sold items had I purchased this item the numbers would look like the following. Not exactly sure what you paid for shipping but estimated a 14 ounce package from your location in Florida to my location in Virginia using Priority Mail since it was the only option you had specified for the listing. 

     There are some things you could do with regards to shipping that would potentially increase you ROI/profit. For example using Ground advantage your shipping cost on this item would have only been $6.09. 

 

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dbfolks166mt_1-1703199519124.png

 

 

Message 69 of 129
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Question why am I paying a fee for taxes and shipping?


@best*fragrances2016 wrote:

Like I said before, I didn’t have any complaints until  eBay started processing payments. I’ve noticed that eBay charging me more than 13.25% you are claiming. It doesn’t take a genius to figure this out. VS doesn’t sell bulk items/wholesale.  The items that I have were purchased and  accumulated over the years, it was so much that I ended up renting a warehouse to store them. Furthermore, selling  stuff online is not my only source of income as I have my other priorities. Being said that, if you are comfortable and making a lot of profits selling on eBay? Good for you. But stop defending eBay like it is your company. Have a wonderful day! 
 


In some categories they do charge a little more, others a little less, but in most categories it is 13.25%.  But the overall fees did NOT change when we switched to MP.

 

Back when PayPal processed our money, we paid them 2.9% and a 30 cent per transaction fee, plus we paid Ebay 10.2% in most categories.  That is a total of 13.10% and a 30 cent per transaction fee.

 

Once we went into MP, we paid 13.25% in most categories.  A slight fee difference when we were with PP.

 

And you are right, it does not take a genius to figure this out.  The numbers speak for themselves.

 

https://www.ebay.com/help/selling/fees-credits-invoices/selling-fees?id=4822

 

I never suggested or even mentioned that selling online might be your only source of income.  Judging from your account activity here on Ebay that wouldn't be possible, but I make no assumptions about what you may sell elsewhere.

 

I am NOT "defending" Ebay.  You just keep saying stuff that is either incorrect or doesn't add up.  Because I don't agree with you does not mean I'm "defending" Ebay, it only means I am trying to give you other information as you have some misunderstandings.

 

 


mam98031  •  Volunteer Community Member  •  Buyer/Seller since 1999
Message 70 of 129
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Question why am I paying a fee for taxes and shipping?


@monster-deals wrote:

 

Paypal also charged their fee on the entire amount received from the buyer plus a transaction fee.


Was I talking about paypal? 

 

I'll answer for you.

 

No, I was not.

 

I accept your apology.

 

 


No need for an apology.  


mam98031  •  Volunteer Community Member  •  Buyer/Seller since 1999
Message 71 of 129
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Question why am I paying a fee for taxes and shipping?

I recently sold an item for $150.00.  The shipping and sales tax on the buyers end was $38.00.  So, I was charged a final value fee on $188.00 which added to  $25.28 that came out of my proceeds.  I ended up with $125.00 from this sale.  A ripoff!  I am done with eBay as a seller.  There are no incentives to sell here anymore.  

Message 72 of 129
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Question why am I paying a fee for taxes and shipping?

I suspect you are confusing the fee on your customer's ENTIRE payment, which is around 13.5% of the total, with the fees IF you are only looking at the selling price of the item.

EBay and Paypal and Managed Payments have charged their fees on both sale and shipping since 2008. Nothing new there. And when eBay lost its lobbying efforts and sales taxes were applied to online sales, the fee also applied to the sales tax the buyer* was paying.

This is Standard Practice in the payment processing industry and has been since Diners Club cards appeared in 1950. We paid fees on the sale, on shipping (if any) and on provincial sales tax when we got our first Moneris card processing account around 1980.

 

Again, the fees are charged on the buyer's ENTIRE payment not on the purchase price only.

 

 

 

 

 

 

*Just as the shipping cost is paid by the buyer, so is the sales tax. But eBay charges their fee on both as part of the payment the buyer makes.

Message 73 of 129
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Question why am I paying a fee for taxes and shipping?

@157th-boomer  Take a look at post #69 and plug in your own numbers.

You may need a calculator.

Message 74 of 129
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Question why am I paying a fee for taxes and shipping?

@157th-boomer  You are correct. You sold something for $150 and the fees were $25.28 and your net cash is about $125. You've been around a while so I don't know why this is a surprise to you. What do you think should have been your net?

Message 75 of 129
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