Why does Ebay take its 13% cut BEFORE the cost of shipping is withdrawn?

[allivin71]

The subject line states the question. 

If the buyer pays for shipping, Ebay takes its cut BEFORE the cost of shipping is withdrawn, in effect taking more than is promised (I wonder if there's possibility for litigation there).  Sold an item for $75? You take home $45. 

Just a greedy move that leaves a poor taste in the mouth. 

[kensgiftshop]

@allivin71 

Their fee's are based on the total amount the buyer pays.

[mtgraves7984]

The FVFs are based on the total sale... Item + s&h + sales tax (where applicable). It's in the TOS... it's what's  promised.

[monica-sells]

litigation ..... LOL

and, even though previously PayPal did the same...the reason it even got this way was idiot sellers selling an item for $1.00 and charging $10.00 shipping for a total of $11.00, with the FVF being calculated ONLY on the $1.00, so, sellers ruined any possibility of the former idea of charging only on the sale price....

litigation......

[casuallyattractive]

Part of it is because you can just say whatever shipping price you want {e.x. 300$} and not have to pay any fees (if you list it as #1 for the item and $300 for the shipping)

You could then potentially escape eBay fees.

It would be helpful to just make it so that you can either select free shipping or the buyer pays the exact estimated amount and then they could discard the shipping fees. (although since they are raising fees they couldn't lose the 100 million they make off the shipping fees 😞)

[luckythewinner]

Why does Ebay take its 13% cut BEFORE the cost of shipping is withdrawn?

For three reasons:

1) To encourage sellers to use "Free Shipping" by removing the financial penalty for doing so;

2) To prevent sellers from avoiding final value fees by reducing their prices and inflating their shipping costs; and

3) To make more money for eBay.

[downunder-61]

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@allivin71 wrote:

The subject line states the question. 

If the buyer pays for shipping, Ebay takes its cut BEFORE the cost of shipping is withdrawn, in effect taking more than is promised (I wonder if there's possibility for litigation there).  Sold an item for $75? You take home $45. 

Just a greedy move that leaves a poor taste in the mouth. 

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If that calculation is correct, you are doing something very wrong.

Shipping has been subjct to FVF since 2011 and it is clearly outlined in the TOS that you pay for FVF on the total buyer pays - Item Price + Shipping + Sales Tax

[luckythewinner]

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@allivin71 wrote:

I wonder if there's possibility for litigation there

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There is always possibility for litigation over anything.

The trick is to recognize when that litigation will be long, costly and unsuccessful.

You can pay a lawyer to explain why that would be the case if you really want to.

[chesterandsara]

It's funny, because now when you sell on eBay and you select buyer pays shipment you CAN NOT select whatever you want for shipping cost, it's at a preset rate set by EBAY. So to take the fees from the overall total and not separate the different two (as Ebay does for collecting the money from the buyer)  is double taxing shipment, meaning the buyer pays shipping (Ebay charges the buyer for the money they paid for the item and the shipping) and the seller pays the shipping again because Ebay took the shipping money for fees not related to the item sold. This sounds super illegal, I have legal insurance and will be making calls on Tuesday, maybe turn this into a class action lawsuit. Let's not forget what wellsfargo was doing with overdraft fees like 5 years ago and they got suited.

[redmodelt]

 "paid for the item and the shipping) and the seller pays the shipping again"

No, the buyer paid you to buy the shipping, they didn't buy the shipping and you buy it again. 

[mam98031]

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What?  Why?  Did you read the User Agreement you agreed to before you could start selling here?  If you didn't, you really should.

https://www.ebay.com/help/policies/member-behaviour-policies/user-agreement?id=4259

It is the seller's responsibility to know what the selling fees are here.  Ebay doesn't hide them, they are easily seen if the seller is paying attention to them account details.  

https://www.ebay.com/help/selling/fees-credits-invoices/selling-fees?id=4822

As to how you price your items, that is on the seller completely, not Ebay.  If you aren't pricing your shipping correctly or the product price, you should revisit the structure you are using to develop your pricing.

I always find it interesting when a seller calls Ebay "greedy" because they want to be paid for service rendered.

Sellers are selling on this site to make money too.  So are sellers also "greedy" because they want to make money.

[mam98031]

I'm not sure what you are doing as a seller.  But when I create a listing I'm able to set up whatever amount I deem appropriate for the shipping charge.  

Cost of shipping is always determined by the carrier.  But the amount you charge your buyer is completely up to you.

All sites like Ebay charge fees on shipping and have for more years than Ebay has done it.  Here on Ebay it is about the last 12 years.  Ebay fees are NOT taxes.

Not everything is a law suit.

[chesterandsara]

The buyer paid shipping and the item total. When you look at the money pulled from the buyer on Ebays side you can see that. Then once ebay takes the money they add the shipping and item total together on my side. Then they takes fees from the payment made on shipping. Then for me to get the shipping label that was just purchased from the buyer because they paid shipping I have to pay again for the shipping because I lost payment for shipping due to fees. 

[chesterandsara]

Shipping costs are regulated by the Federal Trade Commission (FTC). The FTC Act prohibits unfair or deceptive trade practices, which include overcharging customers for shipping. If a seller overcharges a customer for shipping, the customer can file a complaint with the FTC

[worldcoinauctions]

Whoa, not correct. All my items are flat rate shipping. No calculated shipping under any of my IDs.

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@chesterandsara wrote:

It's funny, because now when you sell on eBay and you select buyer pays shipment you CAN NOT select whatever you want for shipping cost, it's at a preset rate set by EBAY. So to take the fees from the overall total and not separate the different two (as Ebay does for collecting the money from the buyer)  is double taxing shipment, meaning the buyer pays shipping (Ebay charges the buyer for the money they paid for the item and the shipping) and the seller pays the shipping again because Ebay took the shipping money for fees not related to the item sold. This sounds super illegal, I have legal insurance and will be making calls on Tuesday, maybe turn this into a class action lawsuit. Let's not forget what wellsfargo was doing with overdraft fees like 5 years ago and they got suited.

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