Understanding Fees

[kvanhoy]

New to ebay so forgive me for asking what has probably been answered a thousand times. I sold a camera for 100.00. Same day sold a cymbal for 60.00. On the camera it says they took 13.62 for their fees which leaves me a net of 86.38. Then on the cymbal somehow the price went from 60.00 to 69.05 and it says they took 9.42 for their fees which leaves a net of 59.63. If you add those net prices together you get 146.01. Now when i check what they say they are depositing it dont add up. They say they are depositing 126.32. If they took their fees why does it seem like they took more off the total amount as well??

[mtgraves7984]

Learning the hard way i guess.

@kvanhoy 

At least you are learning. Hang in there and good luck.

[kvanhoy]

@house*of*paws 

I mean it says print shipping label so i hit print. Isnt that what the buyer pays for because they are paying for shipping? Or am i paying for the label and shipping cost is something different?

[titipeo]

You need to stop and think what you are doing. 

You should price your items in a matter that covers all fees applicable and leaves you with a profit, while at the same time appealing to buyers. eBay will have its fees, they are not a non-for-profit organization. 12.55, why, they charge you at least 12.55% (which is not the same as 12.55) of total buyer cost, on top of the .30 listing fee.

The key is to source your inventory cheaply. If you are just getting rid of stuff that you have, no problem, but if you are reselling, that is different. No sense spending $10 on an item, sell it for $12 and getting $9.50 in return, this is just an example.

[albertabrightalberta]

Then on the cymbal somehow the price went from 60.00 to 69.05 

It looks like you accepted a b.o. of $60 but the price of $69.05 includes the shipping charge that was added. 

For both items, the price you paid for the shipping labels (for which buyers paid) came out of your proceeds so the amount you net will be lower than just price PLUS shipping MINUS FVF. You also have to deduct the cost of the labels.

[albertabrightalberta]

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@kvanhoy wrote:

@house*of*paws 

I mean it says print shipping label so i hit print. Isnt that what the buyer pays for because they are paying for shipping? Or am i paying for the label and shipping cost is something different?

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The buyer paid for the shipping (since you charged separately for it) and then, you pay for the label from the money you received from the buyer. 

[kvanhoy]

@albertabrightalberta 

You are correct. I forgot I did accept a lower bid. Making more sense to me now. Thank you.

[kvanhoy]

@titipeo 

Sorry i meant that as 12.55%

You are correct. I will def be paying more attention to what im doing.

[dbfolks166mt]

     Don't feel alone it takes some time to get used to the fees and costs associated with selling on eBay. While I do not see the camera or the cymbal in your sold listings under this account I will use the camera as an example. 

If you had the camera listed at $100 and you use calculated shipping (based on your other postings) and the camera sold to a buyer in a state that has 7% sales tax and your shipping cost to the buyer was $20 then the math works out as follows. 

Camera price - $100

Shipping cost - $20

Sales Tax - $8.40

Ebay .30 fee. 

Total basis for eBay Fee calculation $128.70

EBay Fee, used 13% for rounding purposes - $16.73

Your net = $120 - ($16.73 + $20 + $.30) which would be $82.97

[albertabrightalberta]

@kvanhoy 

I'm commenting on this publicly because if you aren't understanding how buyer payments work, there are other lurkers who can learn too. 

In answer to your question wondering why you have to pay for the shipping label, you're forgetting that the buyer paid you for it when they paid for the items. 

Example (using random approximate amounts) but loosely based on the cymbal listing: 
Your item = $60

Your shipping charge = $10

Buyer's sales tax = $5

Based on above, buyer paid $75, on all of which ebay charges FVF. You don't receive payment of the sales tax because ebay takes and remits that to the buyer's state. 

So now you have $70 minus whatever the FVF was (which includes the buyer's payment for shipping). Of that balance, you purchase a shipping label but it's from the payment you received from the buyer.

[certifiedcitynet]

Ebay fees eat up a good portion of the profits on very inexpensive items. But we once sold an item on Ebay for more than $1 million yet paid Ebay merely $350 plus 2.5% for the credit card fee (and $800 shipping/insurance), which is a lower total than we would have paid had the buyer bought it in our physical store. 

Ebay is a great platform for selling pricey items but not so much for cheap ones. 

[dbfolks166mt]

I don't see the $1 million dollar item in your sold listings but curious what it was. 

[titipeo]

@kvanhoy  here is something for you to think on pricing, and this is just a suggestion. Average out that you will be paying around 13% on fees/commissions. This should cover the 12.55% eBay minimum on its Final Value, that includes shipping charges, as well as buyers state tax if applicable, and the .30 listing fee. So markup your item around 13%. Good luck.  

[kvanhoy]

Will do. Thank you.

[soh.maryl]

There's no reason in the world for any eBay seller to have to learn about fees the hard way.

The fee schedule is clearly explained under "Selling", bottom of any eBay page.

When anyone begins a new venture, it's a good idea for him to understand the costs BEFORE he starts on his journey.  

[dogofwar777]

So glad I stopped selling on ebay years ago. I just buy now and let the seller worry about how they are getting ripped off.