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Why does eBay still take a cut from the shipping cost even when labels are purchased through eBay?

I get that people were abusing the system to avoid fees back in the day.  But if you buy a label through eBay, they know exactly how much you're paying, so why is eBay still taking fees on the amount of the label cost?  With the latest USPS rate hikes, eBay is just making more and more from the sellers.

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Re: Why does eBay still take a cut from the shipping cost even when labels are purchased through eBa

Because they want to.

Because they can.

Because you agreed to it.

Copperline - James Taylor
Message 2 of 42
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Re: Why does eBay still take a cut from the shipping cost even when labels are purchased through eBa

They are charging us for the cost of money and the cost of the service.  An alternative could be they don't pass along the eBay discount at all and we pay full retail on shipping.  The fees might be high, but the alternative might be even higher.   In reality we all should be charging buyers a handling fee for cost of boxes , packing marterials and the eBay fees on taxes and shipping...but we don't in order to keep our cost competitive.  Same with postage, we want the lowest shipping cost we can provide, and that unfortunately comes at a cost.

 

Interesting question, lets say to avoid paying fees on shipping cost, we forego the eBay shipping discounts and charge full over the counter shipping costs, how many of us would go the more expensive route for buyers in order to save our portion of the FVF?

Message 3 of 42
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Re: Why does eBay still take a cut from the shipping cost even when labels are purchased through eBa

 

 

They need to pay themselves salaries to afford the lifestyles promised by the American dream.

 

How is the Ebay opportunity for wealth creation doing for you these days ?

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Re: Why does eBay still take a cut from the shipping cost even when labels are purchased through eBa

could be they don't pass along the eBay discount at all and we pay full retail on shipping

 

@ryry-jj 

Then everybody would just to go PirateShip.   The "discount" ebay provides is available other places. 

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Re: Why does eBay still take a cut from the shipping cost even when labels are purchased through eBa

I get that people were abusing the system to avoid fees back in the day.

 

You are not being punished for the past abuses of other sellers.

 

eBay has determined that to be profitable, eBay needs a certain amount of income in the form of fees. The way that eBay calculates the fee is a percentage of the total amount the buyer pays. eBay then decides what percentage the fee has to be to get that amount of income for each sale.

 

eBay does not pick the percentage first and then decide what portion of the sale the percentage applies to. The percentage is specifically chosen so that the amount eBay gets in fees is the amount eBay needs to get.

 

If eBay calculated the fee differently, the percentage would have to change to bring in the same income per sale.

 

Ultimately eBay is not going to let you pay a lower fee amount just because you chose to offer a different shipping method. eBay does not care how much you actually pay for shipping; eBay only cares how much the buyer pays in total.

 

The current fee percentage is predicated on the total amount the buyer pays; it is not based on just your item price, or just your profit, or any other number. It is set based on the total amount the buyer pays.

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Re: Why does eBay still take a cut from the shipping cost even when labels are purchased through eBa

OMG you do realize that we have been paying this fee now for about 13 years, right?!?!?!  It is standard in the industry that the FVFs are calculated on the shipping a buyer pays to the seller.  Other sites have been doing it longer than Ebay has.  

 

Ebay does NOT take a fee on the cost of the label.  Ebay has never done that and they don't do it now.

 

Ebay's FVF is on the TOTAL amount the buyer pays to the seller, period.

 

Keep in mind that if Ebay did not charge the FVF on the shipping when stated separately, it would be very unfair to sellers with Free Shipping that have to roll the cost into the price of their product.  They would be unfairly paying more in fees than those that stated shipping separately.  


mam98031  •  Volunteer Community Member  •  Buyer/Seller since 1999
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Re: Why does eBay still take a cut from the shipping cost even when labels are purchased through eBa


@ed8108 wrote:

 

 

They need to pay themselves salaries to afford the lifestyles promised by the American dream.

 

How is the Ebay opportunity for wealth creation doing for you these days ?


Are you of the opinion that this is an Ebay specific / only type of fee?


mam98031  •  Volunteer Community Member  •  Buyer/Seller since 1999
Message 8 of 42
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Re: Why does eBay still take a cut from the shipping cost even when labels are purchased through eBa



@ryry-jj 

 

"An alternative could be they don't pass along the eBay discount at all and we pay full retail on shipping."  Unlikely they would do that as Ebay is not the only site we can purchase electronic shipping from.  There are plenty of places we can purchase labels.  But lets remember Ebay does NOT charge their fees on the amount WE as sellers pay for shipping.  We are charged on the amount a BUYER pays us for shipping.  Often those amounts are different.

 

"The fees might be high, but the alternative might be even higher."  Higher than what exactly?  What are you comparing them to in order to judge them as higher fees?

 

"In reality we all should be charging buyers a handling fee for cost of boxes , packing marterials and the eBay fees on taxes and shipping...but we don't in order to keep our cost competitive. "  I do and I have for years.  A small handling fee that sometimes doesn't cover all the costs you outline, so I have to throw that in the price of the product.  But I do account for those costs in my pricing.

 

"Interesting question, lets say to avoid paying fees on shipping cost, we forego the eBay shipping discounts and charge full over the counter shipping costs, how many of us would go the more expensive route for buyers in order to save our portion of the FVF?"  I do not pass the shipping savings onto the buyer.  That discount and the small handling fee I have on the shipping is what covers me on those fees you mention in the previous paragraph.


mam98031  •  Volunteer Community Member  •  Buyer/Seller since 1999
Message 9 of 42
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Re: Why does eBay still take a cut from the shipping cost even when labels are purchased through eBa

Simply because they are just another greedy corp. who, long ago, found a loophole to take more money from people without having to provide any service to "earn" that profit.  They will not change it no matter what.  It is the same way with the Canadian PO.  To make up for lost income, they wanted to charge people for sending emails.  Instead, they worked it out by adding fuel charges to your cost.  

Message 10 of 42
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Re: Why does eBay still take a cut from the shipping cost even when labels are purchased through eBa

There is no such thing as free shipping.  Buyers are still paying for it.  Don't want to pay more fees than others?  Add a shipping cost instead of trying to hide it in the price.    🙂

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Re: Why does eBay still take a cut from the shipping cost even when labels are purchased through eBa

@misterskullhead 

Because too many people were selling their items at .99 cents and charging $24.99 for shipping or what ever price.  They were trying not just to avoid fees, but circumvent how eBay is actually supposed to work when there is a sale involved.  

 

Happy Selling

Message 12 of 42
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Re: Why does eBay still take a cut from the shipping cost even when labels are purchased through eBa

Because, before you, seller's would list the item for pennies & shipping for hundreds & ebay did not tax the shipping - as a way to get around the ebay taxes of a sale. Once noticed, ebay expanded it's money making scheme.

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Re: Why does eBay still take a cut from the shipping cost even when labels are purchased through eBa


@misterskullhead wrote:

I get that people were abusing the system to avoid fees back in the day.  But if you buy a label through eBay, they know exactly how much you're paying, so why is eBay still taking fees on the amount of the label cost?  With the latest USPS rate hikes, eBay is just making more and more from the sellers.


Sorry, but I find such commentary amusing. 

 

You make money on eBay when you invest in an item to resell. 

 

All your fees should be paid by the buyer.   

 

As for  "eBay is just making more and more from the sellers" -- that is eBay's raison d'être.  Always has been.  

 

I don't mind; it keeps me on my toes and helps me make smart decisions.  

eBay seller since 1999. This is a posting ID.
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Re: Why does eBay still take a cut from the shipping cost even when labels are purchased through eBa


@sakic92710 wrote:

Simply because they are just another greedy corp. who, long ago, found a loophole to take more money from people without having to provide any service to "earn" that profit.  They will not change it no matter what.  It is the same way with the Canadian PO.  To make up for lost income, they wanted to charge people for sending emails.  Instead, they worked it out by adding fuel charges to your cost.  


No one found a "loophole".  All or most sites like Ebay charge their FVF on the shipping charged to the buyer.  This isn't a new conversation.  You are correct, they aren't going to change it.

 

I always find it odd that some sellers call Ebay "greedy".  They are a for profit corporation.  It is why they exist.  It is the American way, we are a Capitalist country.  Now what is odd here to me is that Sellers come to Ebay for the very same reason.  To make a profit.  So that would mean Sellers are "greedy" too.  It is the same thing.


mam98031  •  Volunteer Community Member  •  Buyer/Seller since 1999
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