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??

[findsandfounds]

I wanted to add -- you CAN improve your $.30 per transaction fee a little by changing the way they send your funds to your bank.  Instead of paying you every time a transaction is made (that can add up quickly) ... change your payments to once a week (on Tuesdays), so you only pay $.30 ONCE each week, and not for every item that is sold!

[inhawaii]

---

@findsandfounds wrote:

I wanted to add -- you CAN improve your $.30 per transaction fee a little by changing the way they send your funds to your bank.  Instead of paying you every time a transaction is made (that can add up quickly) ... change your payments to once a week (on Tuesdays), so you only pay $.30 ONCE each week, and not for every item that is sold!

---

.... or get a checking account that doesn't charge a fee for a transfer.  Mine doesn't. 

[tools*]

Your understanding of eBay's fees is just so disastrously wrong.

And about those flat rate boxes: Are the items you sell small enough yet heavy enough to justify the cost, or would weight-based Priority Mail cost considerably less?

[forward-motion]

Crazy thought here. Raise your prices? If I can’t make money I’m not doing it. When it is all said and done from listing to shipping it cost me about 33% to sell on here. For me, I have enough profit margin to do it. If not, I would find something else to sell, raise my prices, or simply not do it. 

[wastingtime101]

You've got a lot wrong in there. Let's break down the numbers for that one transaction.

$10.00 + $13.75 charged to buyer - you didn't mention how much sales tax they paid so let's assume 10% on total cost to make it easy. Buyer paid: $26.13

Your fees will include 12.55% (depending on category that rate can vary) on the total amount the buyer pays plus a single $0.30 transaction fee for eBay to process the financial transaction. Postage, item cost, shipping supplies, etc.

Breakdown:

12.55% Final Value Fee on total amount buyer paid ($26.13) = $3.28

Transaction fee = $0.30

Shipping label = $13.75

Item cost= $3.00
No mention of packing materials, so assuming those were free to you.

Total = $20.33

You don't see the buyer's sales tax so $23.75 minus $20.33 in fees/expenses leaves you $3.42

• There is not a separate 30 cent fee to transfer funds to your bank or to purchase a shipping label.
• You should be charging buyers the retail cost of shipping, not the online rate. The difference in price will help cover the 12.55% fee.
• Buying an item for $3.00 and flipping it for $10 is not going to yield enough profit to be worth your time and risk.

[popblox]

---

@findsandfounds wrote:

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??

---

 eBay charges a FVF on the total price you charge for an item (including S&H) on eBay (and sales tax where required by law), plus $.30. It doesn't matter what you charge for shipping, or if you offer free shipping. Total price. A single $.30 fee is charged per transaction - it's all right there in black and white in your payments reports.

When you purchase a shipping label through eBay, you don't get charged a FVF on the label when you purchase it. I don't understand why people keep saying that when you can just look at your transaction report.

[wastingtime101]

I looked at your listings. $10 to ship 4 pairs of jeans, boots, and other heavy stuff? $8.00 to ship high heels? Dude, ditch the flat rate charges. It's not working for you. Switch to calculated shipping.

You say you've been on eBay for 20 years. Just a year ago when PayPal was processing your payments you paid roughly 10% final value fee to eBay on both item and shipping, and you paid PayPal 2.9% on the total cost, plus a  $0.30 transaction fee.

Current: 12.55%  + $0.30 to eBay

Past: combined 12.9% + $0.30 to eBay and PayPal

Did you know that some categories have a much higher rate? The books category has a 14.55% fee. Learn the fees and expenses before you list anything else.

[fern*wood]

Buying postage at the retail rate at the post office will always cost you more than printing a label online.  The fee you are charged on postage is based on what the buyer pays you--it isn't avoided by going to a post office, so you need to pay the online rate to save the difference in those costs.

[katzrul15]

---

@findsandfounds wrote:

I wanted to add -- you CAN improve your $.30 per transaction fee a little by changing the way they send your funds to your bank.  Instead of paying you every time a transaction is made (that can add up quickly) ... change your payments to once a week (on Tuesdays), so you only pay $.30 ONCE each week, and not for every item that is sold!

---

Have no idea where you got this idea.

We are not charged by our bank or e-Bay to ACH to us daily.  You will pay the PER transaction fee on each TRANSACTION, not each ACH.  if your bank is charging per ACH, you need to find a different back.  My bank allows UNLIMITED ACHs IN each month.  

You can impact your overall fees if you sell multiples to one customer in 1 transaction (5 items, checked out together is 1 transaction fee), store owners can have lesser fees in some categories and TRS+ if compliant and you meet the criteria can net you savings as well.

[tdumonde2014]

You have sold about 10,000 items on ebay, enough to figure where you need to be to be profitable. Ebay has been charging the same fees for about 10 years now, the only difference is a FVF on the tax the buyer pays. This probably adds 25 to 50 cents if the buyer's tax is over 6%. The 30 cent transaction fee is the same fee that paypal charged forever.

[shado-x]

Let's say I charge $13.75 for postage on a Medium Flat Rate Box.

So charge $14.95 then, from which the eBay label is $13.34.  You know, just manipulate the math in your favor, why don't cha?

[onlinecentral]

You can't beat First Class Mail for items weighing less than a pound.
Take a closer look at alternatives to Flat Rate Boxes.
USPS Padded Flat Rate Envelope $7.76.
USPS Priority Mail Regional Rate Box A $8.09
USPS Priority Mail Regional Rate Box B $9.28
FedEx and UPS are sometimes cheaper depending upon the dimensions, weight and zone.

The $3.00 dollar item you sell for $10.00 should be priced at $13.29 or more to cover your fees.

Postage is 21% for me versus 58% for your example.

[stainlessenginecovers]

You are showing three .30c transaction fees. There is only One.

[kathieskorner]

I would say the "knowledgable" sales rep you talked to - hasn't been an eBay seller.  I have never paid a transaction fee for printing a shipping label or transferring money to my checking account. 

Priority mail and first class mail are zoned so use calculated shipping and print your labels on ebay.  The savings will usually cover the 12.55% on shipping.   I use flat rate on media mail which is not zoned and add 50 cents to the rate to cover the fee.   My fees are between 15% and 20% on most items - higher FVFs for books.