Seller fees as usual

[hwhoward]

It has been a long time since i sold on this platform but i recently sold a watch for $425. They took 15 percent of the total including shipping and tax, even consignment shops don’t do that. I will never sell on this platform again

[sakic92710]

Tomorrow I will be on my 8th straight day of sales on Marketplace.  People can manage without eBay.

[lakefor94]

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@sakic92710 wrote:

Tomorrow I will be on my 8th straight day of sales on Marketplace.  People can manage without eBay.

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@sakic92710 

Hustle hustle, you sound like you are killin' it out there. 

[dbfolks166mt]

That's real good spin.   eBay relies on sellers who think that way and who are content with paying way more than the advertised percentage, sellers who think they're paying 13.35% fees on an item for example that they sell for $10 with $5 shipping charges and they end up with $7.70 which means for anyone who does the math that they are paying 23% fees for that particular item, not 13.35%.  At least that's the way it is for those sellers who realize that your actual fee percentage is based on dividing the price you net by your final selling price and subtracting the result from 100, and that your fee percentage for that item was 23% not 13.35%.   

     So spin it this way. What are the eBay FVF's on an item in a category that has a 13.25% FVF as listed in the fee schedule for a $15 item that has free shipping? For simplicity lets assume the item sold to a buyer in a state that has no sales tax. 

     What does your math calculation show as the eBay fees in that scenario? 

[dbfolks166mt]

I wish it was 13.25% !!!!!

     Mine for the quarter. 

[dbfolks166mt]

lol, you're acting like I don't realize they're charging for shipping and sales tax when I'm well aware of that.  All you're doing is evading the fact that the fees advertised for each category are almost always significantly lower than the fees you actually pay in the end because of how they charge for shipping and sales tax, so instead of arguing over something everyone already knows, like shipping and sales tax fees, maybe try figuring out the math of it all instead of making a point that adds nothing new to the conversation.

     I actually have a model that will calculate the FVF effective rate which is, as you stated, always a bit more because of the FVF's applied to shipping (if it is separate revenue) and sales tax. Simple Excel spreadsheet just have to change the Red Areas for the individual sales. The effective rate is always a bit more mostly due to sales tax but it's not significantly more. 

[dbfolks166mt]

Tomorrow I will be on my 8th straight day of sales on Marketplace.  People can manage without eBay.

     Yes they can. While I still list and sell here I diversified across multiple venues and platforms long ago. In some cases I was forced to by eBay's ever expanding list of prohibited items and the VERO program. EBay now only accounts for about 20% of my sales. Local platforms and venues seem to be really strong these days probably because I can list at a price of 15-20% less due to lower or now fees and neither the buyers or the sellers have to worry about shipping costs or issues. 

[adkhighker]

"So spin it this way. What are the eBay FVF's on an item in a category that has a 13.25% FVF as listed in the fee schedule for a $15 item that has free shipping? For simplicity lets assume the item sold to a buyer in a state that has no sales tax. 

     What does your math calculation show as the eBay fees in that scenario?"

Only if you refuse to enter into the fees calculator the shipping cost you had to pay in your "free" shipping example can you get your fees to look like they're closer to what eBay wants you to think they are. 

Free Shipping, even where anyone can roll their shipping cost into the what the buyer pays, still remains to be one of the best ways that eBay continues to fool sellers into thinking that they're only paying close to 13.25% in fees because some sellers still think they don't have to add the 13.25% on the shipping fees to the amount they lose from their net profit, which is the amount that raises their true eBay fee percentage significantly. 

Free Shipping = Fee Shipping.

[soh.maryl]

Sorry to hear that the fees were a surprise to you.  If you had not sold for quite awhile, then it probably would have been a good idea to check out the fees, as well as check for any other changes, before listing an item for sale.  

Depending on how recently your sale was, you might find that your funds will be held for awhile.  When a seller has been dormant for awhile, eBay usually treats him like a new kid on the block, meaning you might not get your payment for 30 days or so.  Had you signed up for Managed Payments?  

As well, hope you find a venue to sell where the fees are less, but you will need to realize that some of those venues do not offer the worldwide exposure that eBay does.  

[adkhighker]

Sorry I didn't finish answering the actual question you asked me but I'm halfway out the door now. My bad. If you tell me how much the shipping cost was in your free shipping example, I'll be glad to answer it when I get back in a few hours. 

[dbfolks166mt]

"So spin it this way. What are the eBay FVF's on an item in a category that has a 13.25% FVF as listed in the fee schedule for a $15 item that has free shipping? For simplicity lets assume the item sold to a buyer in a state that has no sales tax. 

     What does your math calculation show as the eBay fees in that scenario?"

Only if you refuse to enter into the fees calculator the shipping cost you had to pay in your "free" shipping example can you get your fees to look like they're closer to what eBay wants you to think they are. 

Free Shipping, even where anyone can roll their shipping cost into the what the buyer pays, still remains to be one of the best ways that eBay continues to fool sellers into thinking that they're only paying close to 13.25% in fees because some sellers still think they don't have to add the 13.25% on the shipping fees to the amount they lose from their net profit, which is the amount that raises their true eBay fee percentage significantly. 

     Exactly if the shipping cost is baked into the price of the item and they are offering free shipping and there is no sales tax the 13.25% is applied to the cost of the item which includes shipping and it is exactly as eBay states 13.25%. The shipping cost is an expense not a fee. There is no difference between the fees on the following two items. 

1. A $20 item with free shipping.

2. A $15 item with $5 shipping. 

Free Shipping = Fee Shipping.

[dbfolks166mt]

Sorry I didn't finish answering the actual question you asked me but I'm halfway out the door now. My bad. If you tell me how much the shipping cost was in your free shipping example, I'll be glad to answer it when I get back in a few hours. 

     It doesn't really matter what the shipping cost was with regards to the fees. The shipping cost the seller pays to ship the item for a listing with free shipping is a selling expense not an eBay fee. 

[stainlessenginecovers]

There are states that charge THEIR sales tax on the Shipping as well as the item

So, if you buy an item for $1 but shipping is $10- you pay tax on $11.

Nothing really new. The 13.25% is just the 'number used' and is clearly transparent BEFORE you push the Blue 'List It' button so you can figure and decide if it's right for you. 

[yellow-snapdragon]

Consignment shops take somewhere in the neighborhood of 40-60%. 

[reallynicestamps]

@adkhighker I charge my buyers the actual cost to ship, period,

You probably don't  because:

@yuzuha Shipping costs include more than just the amount you pay for the postage itself. You have to account for packing materials, fees, paper and ink, the gas it takes to get the item to the PO if you're driving it there, etc.

If the buyer is not covering your costs, your profit margin is.

[jerseyboymusic]

Before ANYONE lists on Ebay, it is up to them to know the fee schedule. 

FWIW, this is at least the 10th post about this THIS WEEK. Sorry you weren't aware. Kind of like renting a place and then realizing you have to pay for water, sewer, trash, electric and gas... everything is pretty up front