We're getting KILLED on fees -- after 20 years, here are a few things I just learned this week...

[findsandfounds]

I had a lengthy talk with a very knowledgeable sales rep this week, and have finally figured out why my fees are sometimes up to 57% ... how can this be?  Let's talk SMALL businesses, where we are retired, and just need to make some extra money to EAT.  For example, IF I find an item for $3 that I KNOWI can sell for $10, that sounds good, right?  If I sell enough of these items, $7 profit per sale is good by me!  WRONG!  

I have 250 FREE, so -- so far, I haven't paid any fees... and then it begins.  EVERY TRANSACTION THAT I make or is made on my behalf, will cost me 30-cents PLUS whatever fee/percentage is charged. 

Let's say I charge $13.75 for postage on a Medium Flat Rate Box.   You think eBay postage is cheaper than the post office?  On a flat-rate Medium box, your $13.75 becomes $15.78 after 12.55% ebay fee + $.30 transaction fee.  On the same box, the post office charges $15.50 (no additional fees).   For every box that I checked, the post office rate is LOWER than the eBay rate after $.30 + Fees.

Here are the number of times that eBay can (and does) charge you that extra $.30 per "transaction", even if you don't pay an initial listing fee:

- Final Transaction Fee ($.30 +  12.55% on sale price)

- Print Label ($3.0 + 12.55% cost of label)

- Pay your Bank Account ($.30 for transaction)

- If you don't have funds in your Paypal Acct, obtain money from bank to cover Label/Postage ($.30)

On my (sample) sale, here's how my "profit breaks down:

$10.00 - sale price

$13.75 - postage charged

$23.75 - buyer pays (plus gov. tax) 

MINUS:

$ 1.26 - final value fee @ 12.55%

$  .30 - final transaction fee 

$ 1.73 - fee on postage charged @ 12.55%

$15.78 - actual postage after 12.55% and $.30 "transaction fee" to print label

$  .30 - transfer money to my bank account

$3.00 - initial cost of item

$1.38 - profit??

I'm not sure there's not ANOTHER $.30 deduction for eBay to "ask" Paypal to pay for the postage on the label, or if they get it out of your bank account.   Good thing I don't pay listing fees, or I would have nothing.    Did anyone else NOT KNOW about this $.30 per transaction fee, and that the post office postage is actually cheaper in the long run??

[maxine*j]

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@angiel2773 wrote:

Profit is made at the time of purchase

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Yes.  As an old firned used to put it:  "You make your money when you buy, not when you sell."

=

[halestormblades]

People that advocate for eBay or ebay themselves can come on here and debate the math and what and when a seller gets charged all day long. 

Here's my simple example:

Sold an item for $200.00

Final payout was $157.00 and change. Ebay took $43.00 and change out of that deal. I may have paid the $3.00 to $5.00 for a promoted listing but the total they take still hovers around that 20% mark. 

No matter how you slice it, eBay is hitting me ( and many others) with +/- 20% in fees every time I've sold something lately. 

I'm out.  

[downunder-61]

May 2021 thread

[kh-vince]

Hi everyone,

Due to the age of this thread, it has been closed to further replies. Please feel free to start a new thread if you wish to continue to discuss this topic.

Thank you for understanding.