What % of your sales do you actually get

[mystic283]

Am I reading my sales report right.  Total sales in April = $998.69.  Taxes and Gov fees= $44.22.  Selling cost = $254.12 or 25.4% which gives me only $700.35 out of my $998.69 sales.   If I am reading this right I am only getting about 70% of  the items I sell and it's costing me almost 30%.  It wasn't no where near that before they changed the way they do it.  Please correct me or explain it if I am wrong.

[katzrul15]

So the $44.22 (taxes and govt fees) e-bay never gave to you.  They collect and remit on your behalf.

Fees are based on categories - did not look to see if you have a store.  Does your selling cost number include your shipping?  MP is the category fee (most of mine are 12.55%) of the total sale (item + shipping + tax) + .30 per transaction fee.  On average, mine = about 13.8 to 14.4% total fees.  But it really depends if you sell internationally and get hit with the addl fees there, do add-ons to your listings or promoted listings, and the sales tax for each order's destination.  

Unfortunately with all these changes, e-bay raised category fees and Sellers assumed it would be less since they were not paying Paypal fees.  It is similar, but my fees over all are higher than before I switched to MP last fall.

[bbravo65]

...I got 86.5% for my payout after 13.5% eBay fee + $0.30 fee for buyers from no state sales tax and up to 14.5% plus that 30cents for total sales included sales tax...

...from that 86.5% payout, I have to spare shipping cost (I offer free shipping to all my listings), can not forget to count my time in preparing package and cost of shipping supplies...due to lately technical issues with USPS in processing and delivery time manners, I have to boost my shipping level to Priority, so my profits is significantly shrinking...I can't increase my price as my items are non-essentials, people can live without them...just a matter of time if owning isn't worth anymore then I will fade out...

...I earned little bit better with PayPal than Manage Payment...

[slippinjimmy]

To make a proper comparison...

Does that 998.69 include shipping charges paid by the buyers?

Is the 44.22  the amount eBay collected from buyers for Sales Tax?

What is your average transaction value?

What Categories do you sell in ?

Do you have a Store?

Do you ship International?

My fees average 13.5 - 14% under Managed Payments, PayPal overall was very close, so close that I'd have to look at a full year of data to make sure which was definitely higher. It's probably MP at a couple of tenths of a percent higher.

One thing for sure the difference in fees is a smaller problem than the annual shipping rate increases.

[gjs_16]

In addition to what you describe I've gotten quite a few "free" returns to what I can only describe as buyer entitlement and either sheer laziness or outright ignorance... Even with instructional videos and printed-out instructions I get returns because the buyer simply couldn't figure out how to install something (and we're talking basic stuff here) but also buyers who just can't seem to be bothered to look up part numbers (I even put it in the title HELLO!)... Oh dear, I'm sorry, I feel like getting upset because it just ...

Eaby constantly raising fees, USPS has no issues raising costs of shipping every year (seems like twice a year sometimes but definitely every year), and now these buyers who somehow seem to think they can just buy whatever and order willy nilly because hey, if somehow it's wrong they can return it "for free!"

So between fees and this "window shopping" issue with buyers ordering, then returning what they just didn't want...

I found unfortunately I just can't do that...

I can't lose money only to satisfy these people, there has to be something in it for me.

I had no choice, I ended up raising my prices, for some items prices went up a lot...
There are even a few items that, once the last one is gone I'm not restocking.
I just can't do it like this any other way.

[toysaver]

EBay includes the cost of shipping and any taxes paid in the 'Total Sales' number you see.  This allows them to offer inflated numbers in annual reports to stockholders. 

[dhbookds]

Inflate the numbers for stockholders?

They, just like we, are required to account for the money taken in....which includes shipping....and I, imagine, frankly, that they make a bit off  $$ on selling shipping to us (as some of us do)...  The costs would be expensed out, resulting in a "bottom line".......it's called accounting.....not some nefarious, arbitrary scheme. 

[farmalljr]

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@bbravo65 wrote:

...I got 86.5% for my payout after 13.5% eBay fee + $0.30 fee for buyers from no state sales tax and up to 14.5% plus that 30cents for total sales included sales tax...

...from that 86.5% payout, I have to spare shipping cost (I offer free shipping to all my listings), can not forget to count my time in preparing package and cost of shipping supplies...due to lately technical issues with USPS in processing and delivery time manners, I have to boost my shipping level to Priority, so my profits is significantly shrinking...I can't increase my price as my items are non-essentials, people can live without them...just a matter of time if owning isn't worth anymore then I will fade out...

...I earned little bit better with PayPal than Manage Payment...

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Your total sales, includes what was charged to the buyer for shipping. eBay charges fees on the item AND the shipping. 

As a matter of proper accounting, your shipping charges are INCLUDED in the total of sales. That cost of shipping is also a direct expense, so it (properly) comes out of your sales record and is recorded as an expense. 

So yes, the report is correct, but no, you are interpreting it wrong. Depending on where your item shipped, you are pay between 12.55-15% in fees, over the total of each sale. And that's not considering if you are doing any paid promotions. 

[toysaver]

"Inflate the numbers for stockholders?"

Yes, 10 years ago eBay's gross receipts did not include shipping.  This was on your invidiual sales and in their annual report as a business.  The year they decided to include it, the bottom line dollar amount they reported skyrocketed. Now they include sales tax as well, offering another boost to stockholders who aren't savvy enough to figure it out.

[farmalljr]

eBay's fees are based on the sale price + shipping + sales tax. They get a fee on ALL of that. 

We as sellers, are to report the whole of the sale ( price paid + shipping + sales tax).  We deduct all those expenses involved at tax time. 

Yes, eBay may be reporting all of that, but they should be too. Their fees are based upon all of that. NOT an incorrect way to calculate their evaluation, IMO. 

A "sale" is more than just what was paid for the product. 

[releasethekraken_1]

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@toysaver wrote:

EBay includes the cost of shipping and any taxes paid in the 'Total Sales' number you see.  This allows them to offer inflated numbers in annual reports to stockholders. 

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Why wouldn’t they include shipping, when they’re charging FVF on it?

[releasethekraken_1]

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@mystic283 wrote:

Am I reading my sales report right.  Total sales in April = $998.69.  Taxes and Gov fees= $44.22.  Selling cost = $254.12 or 25.4% which gives me only $700.35 out of my $998.69 sales.   If I am reading this right I am only getting about 70% of  the items I sell and it's costing me almost 30%.  It wasn't no where near that before they changed the way they do it.  Please correct me or explain it if I am wrong.

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What’s in the “selling cost” figure?

Fees are virtually the same as they were under PayPal.

[toysaver]

They didn't used to.

[luckythewinner]

What % of your sales do you actually get Am I reading my sales report right.

I would never rely on eBay to calculate my numbers for me. I always do my own math my own way so that I know it is done the same way each time. 

Taxes and Gov fees= $44.22.

Are you counting the sales tax collected and remitted by eBay as "lost income"? If so, why? 

If I am reading this right I am only getting about 70% of  the items I sell and it's costing me almost 30%.

If you consider almost 75% to be almost 70%, then you are reading it right. If you consider almost 75% to be almost 75%, you are reading it wrong. 

It wasn't no where near that before they changed the way they do it.

What was it before? Almost 75%?

I spent two months under Managed Payments last year. For 2020 my net income after all costs except COGS was 76.6% of my selling price. For 2019 it was 72%, and for 2018 it was 78%. 

[bbravo65]

@farmalljr 

...huh...???

...sometimes no needs to correct between "right" and "wrong"...

...greatly appreciate that...

...no more confrontation please...!!!