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.

[mam98031]

@richd860 

Have you ever taken a moment and read through the Seller Fee policy page?  I ask because you have some real misunderstandings as to how it works.  It would be time well spent.

Seller Fees

Ebay does NOT charge a FVF [final value fee] on what it COSTs you to ship a package, they charge us a FVF on the amount of Shipping we charge our buyers.  The two are not necessarily the same.

If you separately charge for shipping, that IS part of the actual selling price for the item.  Charging FVFs on shipping is a VERY OLD subject.  Some act as if this is something new when the fact is Ebay has been charging it for almost 13 years just like most other similar sites.  There is nothing new in this at all.

No one is getting "ripped off".  Ebay does not and has not kept this a secret or somehow hid this from sellers.  

You don't have to use Ebay shipping.  There are lots of sellers that don't use it, but do make sure your tracking numbers get uploaded to Ebay ASAP or you will lose your Seller Protection on the site.  That you don't want to do.

You keep using the words "actual shipping fees", Ebay does NOT charge a fee on what you pay for shipping.  Ebay charges you a FVF on the amount you charged your buyer for shipping.

OMG, not a "scam" either.  Read the darn policies and learn what this site does instead of assuming.

[mam98031]

@mybigsale 

I may have read something incorrectly in your post, but when we were with PayPal, they charged their fee on the total amount of money they received to be processed for the seller.

I agree with much of what you posted.

I know lots of seller say that this is OK to charge the full FVF on sales tax and I just don't get it.  Ebay is the ONLY site that charges their FULL fee on the entire price paid by the buyer.  I'd understand it if it were like PayPal did, their fee, which for the money processing was 2.9% for most of us.  But Ebay doesn't do that. 

They changed their fee structure to the Simplified Fee so that there is only one fee that is charged on the entire amount that the buyer pays.  So currently most sellers pay 12.9%.  We are all use to paying 2.9% on the sales tax portion, but Ebay collects an extra 10% on taxes that was never done before and NO other site does.

All Marketplaces have the same responsibility to the states with MFLs [Marketplace Facilitator Laws] as Ebay does, but Ebay is the only site that structures their fees like this and it simply is not necessary or warranted.

First states would never get rid of the MFLs in order to go after individual sellers for sales taxes owed to their respective states.  Second, most of us would not even meet their minimum thresholds for collecting and remitting sales tax for their states.  So most of us would never even owe sales tax to most states, which is exactly why they created the MFLs.

Besides the cost of processing the sales taxes that should fall on the shoulders of sellers but the states that are requiring Ebay to collect and remit it.  And let us keep in mind that for the couple of years BEFORE most of us went into MP Ebay did NOT charge us the entire FVF on sales tax.  They ONLY did that AFTER we all went into MP.

But back to the states, it is the states that should compensate the marketplaces for collecting and remitting and they do.

[femmefan1946]

The "actual shipping fee" is less than  you pay for shipping.

You are forgetting your packaging costs, plus taxes (in some jurisdictions), your labour, insurance if any, and your costs for delivering to the carrier.

EBay gives you a discount on shipping labels which does cover some of these costs.

But don't cheat yourself by thinking that the "actual" shipping fee is anything like your shipping costs.

As for eBay fees, I normally use "Free Shipping" which means that my shipping costs are part of my asking price.

Which is cheaper : your  $10 item with $5 shipping or my b$15 item with Free Shipping?

If eBay charged FVF only on selling price, you would pay less in fees than I would although our costs were the same and our customers paid the same. 

How is that fair?

FVF have been charged on shipping since 2008.

With Managed Payments, our fees are more transparent and many sellers who never understood their fees when they were split between Paypal and eBay have had a sudden realization.

[gabe101907]

Every single a$$-pect of ebay sucks now.

[mam98031]

It is difficult for sellers that sell year round to keep up on all the changes on Ebay, for a casual sellers it is even more difficult, so I understand your frustration.

With that said, what aspects of Ebay are giving you the most heartburn.  Some of us may be able to tell you what we do in those situations that may be able to help.

[mybigsale]

@mam98031 

I may have read something incorrectly in your post, but when we were with PayPal, they charged their fee on the total amount of money they received to be processed for the seller.

Agree, PayPal charged what amounted to a 2.9% processing fee (they did not earn nor charge a commission on top of that). When eBay Managed Payments began eBay started charging a processing fee and a separate commission fee (FVF without the processing fee included) before they came up with "One Fee".

I agree with much of what you posted.

I know lots of seller say that this is OK to charge the full FVF on sales tax and I just don't get it.  Ebay is the ONLY site that charges their FULL fee on the entire price paid by the buyer.

Agree, how is eBay entitled to charging sellers a COMMISSION on state tax?

 I'd understand it if it were like PayPal did, their fee, which for the money processing was 2.9% for most of us.  But Ebay doesn't do that. 
Agree.
They changed their fee structure to the Simplified Fee so that there is only one fee that is charged on the entire amount that the buyer pays.  So currently most sellers pay 12.9%.  We are all use to paying 2.9% on the sales tax portion, but Ebay collects an extra 10% on taxes that was never done before and NO other site does.

Agree, except eBay has increased final value fees for US sellers in most categories from 12.9% to 13.25%.

All Marketplaces have the same responsibility to the states with MFLs [Marketplace Facilitator Laws] as Ebay does, but Ebay is the only site that structures their fees like this and it simply is not necessary or warranted.
Agree.
First states would never get rid of the MFLs in order to go after individual sellers for sales taxes owed to their respective states.  Second, most of us would not even meet their minimum thresholds for collecting and remitting sales tax for their states.  So most of us would never even owe sales tax to most states, which is exactly why they created the MFLs.

Agree.

Besides the cost of processing the sales taxes that should fall on the shoulders of sellers but the states that are requiring Ebay to collect and remit it.  And let us keep in mind that for the couple of years BEFORE most of us went into MP Ebay did NOT charge us the entire FVF on sales tax.  They ONLY did that AFTER we all went into MP.

Agree. When MP first started, eBay had a separate low processing fee. The eBay simplified One Fee that combined the processing fee and commission (original FVF) was created after the start of MP. Creation of the One Fee eliminated correct math and guaranteed eBay would earn a COMMISSION on top of the processing fee for state tax and any other future charge added to a transaction.

But back to the states, it is the states that should compensate the marketplaces for collecting and remitting and they do.

Agree. I believe eBay does get a state collection allowance (percentage of the tax collected for the state) plus the extra gravy they get from sellers.

Just a side note: Up until last June, Promoted Ad rates were only charged on the price of the item being sold. After last June eBay began charging the promoted ad rate on the whole transaction including Item+Shipping+State Tax. With eBay accepting 100% promoted ad rates, that is beyond ridiculous.

[mam98031]

Oh yes, I need to change that FVF rate to the current one, thank you.

This link will show you some of the states that give discounts on filing sales tax reports.  I have a better link, but it is on my other computer.  

Vendor discounts for filing sales tax on time, a state-by-state guide - Avalara

[pickermall]

Seems like this has become one of those rant posts... LOL... don't see the OP replied back

[ten_o_nine]

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.  

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Well, that doesn't make it right! 

eBay charges a commission for the sale of an item, the problem here is that they applied shipping, taxes, and promoted fees to that commission at the same rate. Most payment processors charge a fee on taxes and shipping charges paid by the customer, but it's around 2.9% or 3.9%, not a whopping 25% to 30% on taxes and shipping paid by customer.

You can open a store and write on the door "if you come in, I'll rip you off" and tell me it is legal because it is published.

eBay need to separate their commission from the tax and shipping processing fees.

[ten_o_nine]

And if anyone cares to remember how eBay encouraged us to write to our legislators to vote against this tax, now eBay is using it against their sellers.

[richd860]

I have decided to change my tactics. I will sell my items on ebay, but shipping arrangements,and payment,will be made off ebay. They get enough of my money.

[dbfolks166mt]

I have decided to change my tactics. I will sell my items on ebay, but shipping arrangements,and payment,will be made off ebay. They get enough of my money.

     You do realize of course that buying your postage and paying for it off eBay will do nothing to change the fact that they are going to apply the FVF to the postage costs associated with the transaction? Not purchasing your shipping labels through eBay is probably meaningless to eBay since the money from those purchases goes to the carrier(s) not eBay. 

[mam98031 · Accepted solution]

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@richd860 wrote:

I have decided to change my tactics. I will sell my items on ebay, but shipping arrangements,and payment,will be made off ebay. They get enough of my money.

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@richd860   Well good luck with that.  You can't sell on Ebay unless Ebay is your Money Processor.  No one has a choice in that.

[mam98031]

Like any other site that sells postage / carrier costs, they do make a little money on each of them on the back end.  If they didn't, there would be no reason for sites to exists that only sell postage/carrier costs. 

[richd860]

wrong.I list my stuff as local pickup,however,I do give the option to ship at buyers cost.