Transactions Fees

[nasjo]

The transaction fees as we all realize are bordering on unconscionable.   It is becoming useless to sell a small dollar item, items which some buyers are actively looking for.  If you sell a five dollar item, by the time Ebay takes their cut on the selling price, listing fee, postage and apparently sales tax, you might as well just give the item to the buyer for free because you make practically nothing.

[luckythewinner]

It is becoming useless to sell a small dollar item

Becoming? ROTFL. It has been useless to sell dollar items for decades now. Under Managed Payments eBay charges a 30 cent fixed fee on a $1 sale, and before that PayPal did the same thing.

So currently a typical $1 sale carries 43.6% in fees. And 20 years ago, a typical $1 sale carried 42.9% in fees. 

The solution is the same as it was 20 years ago - don't sell dollar items.

[inhawaii]

Did you know you can structure your profit so that you make 100% profit on a $1 item,  a $100 item or a $1,000 item.

[mam98031]

I don't agree with you.  While Ebay is not the cheapest Marketplace on the internet, they also are not the most expensive.  Paying 13.6% in most categories for sellers without a store doesn't seem "unconscionable" to me.  I respect that you feel differently.

Some questions if you don't mind.

Why are you paying a listing fee?

Would you not have to ship the item if you sold the item elsewhere?

You are not paying Sales tax.  The buyer is paying the sales tax.

I think you may have some misunderstandings about what you are paying and why.

It may be that you need to search for items you can sell for a higher price.  Not a great deal higher, just so that it makes it worthwhile for you.

The 99 cent auctions is something that no one should be recommending anymore.  There was a time a a decade ago or so that this was good advice.  But for today's world, no.  On a 99 cent sale if you sold just one item for 99 cents, you will be lucky to may anything but a couple pennies on that transaction.  So you might want to revisit your business model.  This isn't Ebay's fault.  Buyers change over time just like everything else.  You need to move forward and not stay stuck in the past as it will not serve you well.

[12345jamesstamps]

'small dollar item'...I sell some at .99 with free domestic shipping.

Why? My business plan is 'repeat buyers'...and to get potential buyers to my site.

To get these buyers returning over and over while I post new items.

To get a buyer to purchase more than one item.

Should be anyone's business plan who sells similar items in a category.

I usually have 25+ % of repeat buyers every month.

I got that 1099k this year selling cheapo items...LOL

[doc-holmes]

I'm beginning to think people would rail against 1% fees. "That's ludicrous!" Anything more than free is too much. 

[buyselljack2016]

You are correct about no good. If you sell anything for less than about $10, you pretty much have to have no COG.

"Costs of selling"  will eat your profits quickly. Fees are what they are most any place you sell. No free lunch here. Costs can be estimated before choosing products to sell.

[chapeau-noir]

You lost me at "we all realize".  Who is "we"?

[inhawaii]

---

@chapeau-noir wrote:

You lost me at "we all realize".  Who is "we"?

---

Usually in that context, it means - the smart people.    😉