Selling fees

[richd860]

Is it just me,or does anyone else feel that eBay is ripping people off? Whenever I sell an item,I always charge actual shipping fees.Ebay then bases its selling fees on the total amount of the order( selling price of the item,AND shipping fees).In my opinion,they should only base their selling fees on the actual selling price of the item. They should not include shipping fees,to calculate the final selling fees.  When doing so,we are getting ripped off!!  I just sold an item for $555.00. The actual shipping fee is $120.00. Instead of charging selling fees for $555.00,they are charging selling fees on $675.00!!!!! How in hell,can that be fair to sellers??? I don't use ebay shipping,so they should not even consider adding actual shipping fees,to calculate their final selling fees. What a scam they have going.

[soh.maryl]

This is not the first time this question has been asked here.

eBay actually started out charging the final value fee on only the actual price of the sold item.

Then they discovered that there were sellers who charged $10 for their $100 item and $90 for shipping so they changed the FVF to be charged on the total amount the buyer pays the seller.  This was a long, long time ago.  

BTW, did you know that the FVF is also calculated on the state sales tax the buyer pays to the seller? So, to recap, the FVF is charged basically on the item price, the shipping fee and the state sales tax, as well as on any extra add-ons.

The fee schedule is published in several locations on eBay.  

[inhawaii]

Ebay discloses exactly how they charge their fees up front.

You agree to it when you sell here.

How is that a scam?

[nobody*s_perfect]

eBay has been charging FVF as a percentage of the buyer's entire payment, including shipping, since 2011.

As noted above, sellers had been evading fees by undercharging on item price and overcharging for shipping. Another reason for the change in policy was because eBay wanted to encourage sellers to offer Free shipping, so eBay eliminated the penalty inherent in adding the shipping cost to the asking price.

The shipping price is called "shipping and handling".  The shipping calculator defaults to charge the retail price for postage, so sellers who purchase their postage online have a built-in handling fee, or you can add a suitable increment to cover your costs.

[pickermall]

I'm not sure why and Ebay member since 2001 is now concerned with this? It's been this way for years, as @nobody*s_perfect mentioned

[luckythewinner]

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Is it just me,or does anyone else feel that eBay is ripping people off?
In my opinion,they should only base their selling fees on the actual selling price of the item. 

It is not just you. There have been thousands and thousands and thousands of posts on this subject since 2011 when eBay began doing this. 

I don't use ebay shipping,so they should not even consider adding actual shipping fees,to calculate their final selling fees.

I am not sure why using eBay shipping would have anything to do with this. 

When doing so,we are getting ripped off!! 

eBay did this to prevent sellers from cheating, to encourage sellers to offer free shipping (by removing the financial penalty for doing so), and to make more money. 

What a scam they have going.

They announced it in advance, publicized it, and continue to be open about it on the fee page before you list. Not sure of that qualifies as a "scam". 

I recognized a decade ago that items with high shipping costs were more expensive to sell, and transitioned my inventory to items under a pound or items that can ship by media mail. 

[monica-sells]

The primary reasoning is what @soh.maryl pointed out.

Let's look at this another way. ...

Your item sold for 675.00 (that is what your client paid)

You charged 120.00 for shipping knowing it really only cost you 20.00.

(paid through an employee discount, your employers account, you neighbors charitable foundation....whatever)

Should that $100.00 "overcharge" be fee free?

[glenvonnie]

The buyer should be paying those fees, they need to be included in the cost of the item or the cost of shipping, just like the rest of your costs.

It's not going to change and, it was caused by sellers manipulating the system to begin with.

The boxes I buy from Ebay shipping supplies cost an average of 1.80 each, that cost is included in the shipping or item cost along with the 13.25% fee on shipping, and the 13.25% fee on the sales tax the buyer paid.

It's hard to stay in business by giving away $$

[mybigsale]

@richd860 

Is eBay ripping people off with the total fees they charge (just talking about the $$$ not the fee breakdown)? Not ripping people. I would say overcharging fees as they collect a processing fee AND COMMSSION on shipping and state tax rolled into their Final Value Fee (processing fee portion is fair).

Is it ethical to make sellers pay commission on shipping and state tax? No (in my opinion).

With PayPal and when managed payments began, there was only a processing fee charge on State Tax.

eBay and (some other vendors) charge a processing fee AND commission (eBay has combined the two as many sellers think a fee is a fee and don't understand the importance of separate processing fees and commission) on shipping charges. Mainly because at one time sellers would charge $1 for an item and $60 for shipping.

eBay is entitled to a usually low processing fee (1-3%) on the State Tax. I do not believe they are entitled to the additional COMMISSION on shipping and state tax. Not to mention the full Ad Rate% charged on shipping and state tax (previous to June of last year Ad Fees were only charged on the item price).

Many vocal sellers feel eBay has grandfathered in to earning commissions on Shipping Fees because long long ago eBay could not determine seller shipping costs (now they can determine shipping costs). 

Most online shipping providers like Pirateship and others exchange information with eBay and could easily provide actual shipping paid for an order to eBay. eBay already knows the actual shipping costs sellers pay for sellers using eBay shipping.

Apparently, since for a long time eBay didn't know actual shipping costs paid by sellers, now that they do (or could) know they are somehow grandfathered in to overcharging commission.

As for State Sales tax, many sellers will say everybody has always charged a fee for processing.  Yes, everybody has always charged a 1-3% processing fee for state tax. However, eBay is the only one that charges the 1-3% processing fee PLUS ~10% COMMISSION (~13% Final value fee) on state tax.

I believe ethically, eBay should earn an approximate 10% Commission on the item you are selling and an approximate 1-3% processing fee on the total transaction (Item+Shipping+State Tax).

Why is eBay entitled to a COMMISSION (not talking about a processing fee) on SHIPPING and STATE TAX?

From what I have gathered from my fellow sellers, there are several reasons:

1). eBay has been overcharging on shipping for a long time (with reason) and now that the reason has gone away, they have been grandfathered in to earning this bonus commission.

2). eBays commission on State Tax comes to just a little bit of the total sale, not really concerned.

3). I don't care if eBay earns a commission on State Tax (even though they are obligated by law to process State Tax).  Whatever they charge, I am thankful I don't have to deal with it.

4). I am looking at the bottom line, not at the details of paying commission on Shipping and State Tax). Total fees paid to eBay are comparable to total fees paid to other online services.

5). eBay tells you beforehand they will earn a commission on Shipping and State tax, therefore you shouldn't talk about it.

I am just a seller with a small voice. Most vocal sellers consider this a dead issue and not worth discussion. I can still profit on eBay with their current fees. I am a little old school and feel commissions should be earned from the item you are selling and not include seller and buyer expenses (transaction fee yes, commission no).

[monroe67]

"Is it just me, or does anyone else feel that eBay is ripping people off?"

Well -- I can't speak to whether eBay is ripping "people" off.  All people?  Impossible to know.  Some people?  Maybe, but I doubt it.  As for myself, however, I neither believe nor feel that eBay has ripped me off.  

"Whenever I sell an item,I always charge actual shipping fees."

Good for you!  My selling ID also charges actual shipping fees.  I think most eBay sellers ask their buyers to pay the precise USPS postage costs that are charged through eBay, which are slightly discounted from USPS retail costs.  --

OH!  reading your rant a little further, you are saying that you charge actual USPS retail costs to your buyers.  That costs your buyers more than if you were to buy postage through eBay.  So, in a sense, with that choice, you are allowing eBay to charge you more than they really neeeeed to.   OK, if that's your choice . . . . . . . 

"Ebay then bases its selling fees on the total amount of the order( selling price of the item, AND shipping fees)."

Yes!  Yes, eBay does include shipping fees/postage costs in the amount that is subject to eBay's fees.  
You seem quite surprised and concerned about this, but it has been eBay's policy to charge their fees on postage for, oh, many many years.  I don't know -- at least a decade -- 10 years, maybe 15, maybe 18 years.  A long time.  

I hesitate to be the one to tell you this, out of concern for your health, BUT eBay also charges its fees on any sales taxes paid by your buyers.  

"In my opinion, they should only base their selling fees on the actual selling price of the item. They should not include shipping fees, to calculate the final selling fees.  When doing so, we are getting ripped off!!"

Unfortunately for many sellers who post here, their opinions on eBay's policies have no weight. 
Simply put, your opinion does not matter to eBay.  

"I just sold an item for $555.00. The actual shipping fee is $120.00. Instead of charging selling fees for $555.00,they are charging selling fees on $675.00!!!!! How in hell, can that be fair to sellers???"

"That" is fair to sellers because it applies to all sellers.  It is spelled out in eBay's User Agreement.
In the listing form, there is a link just slightly above the button that says "List It" that says "Selling Fees Apply" or words to that effect.  Click on that link -- before you click "List It" and read about eBay's fee structure.

"I don't use ebay shipping,so they should not even consider adding actual shipping fees,to calculate their final selling fees. What a scam they have going."

Perhaps you should learn a little more about shipping your items through eBay.  As I mentioned above, the prices are less than they would be when you pay for postage at the counter of your local post office.  

[monroe67]

"The buyer should be paying those fees, they need to be included in the cost of the item or the cost of shipping, just like the rest of your costs."

Indeed.  Many sellers who post here -- including me -- believe that our buyers do, in true fact, pay the eBay fees.

[buyselljack2016]

OH!  reading your rant a little further, you are saying that you charge actual USPS retail costs to your buyers.  That costs your buyers more than if you were to buy postage through eBay.  So, in a sense, with that choice, you are allowing eBay to charge you more than they really neeeeed to.   OK, if that's your choice . . . . . . . 

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and why in the world would a seller ship a remote control in a "medium flat rate box" causing the buyer to overpay, and the seller to incur more "fees".  I suppose because it will not fit in a "small FRB", but many less costly options other than MFRB such as $6-7 1st Class are available. 

[monica-sells]

Try to search out better rates...

I assume that this is the Yamaha A-S2100

I have a similar one in the box here.

I "guessed" 59.0 lbs, and 24 X 20 X 8

UPS Ground can ship that for around $85.00 (comm. rate)

Since it is for parts/not working, insurance would be minimal.....

maybe research that for your future sales......

and add a nominal percentage to the shipping costs/sale price to accommodate the "fee"

[umoraski]

All the Money that comes into your account handled by Ebay  is charged with a Final Value Fee - even the tax they collect for the individual  state.  When you do your taxes all the fees Ebay charges and the shipping price is deductible from you gross money . 

[dbfolks166mt]

     There are hundreds of postings regarding why eBay charges FVF on shipping so I won't rehash those. However, I have never felt eBay is "ripping people off". Do I think their fees are high" Of course maybe a bit but I know how they are applied and have my cost model setup to factor those in to determine what starting price I need to list an item at to make a reasonable ROI. 

     As a side note I factor all costs into the pricing of an item to include Federal and State income taxes. My model is simple compared to what eBay's must look like but like me eBay is a business and their sole reason for existing is to maximize their value to their shareholders and that means making money that meets their investors ROI expectations.