Why does our eBay system charge the selling & AD fees to the UPS shipping cost

[mythyanlee]

Why does our eBay system charge selling and AD fees to the UPS shipping cost?

For example, the buyer pays $25 UPS-ground shipping-label fee but the system also charged to this part.

Thanks for help.

[hartungcards]

Because the shipping cost (if any) paid by the buyer is part of the total transaction.  So is the sales tax (if any) the buyer pays, if you hadn't noticed.

[mythyanlee]

Thanks, hart.

It is not the sales tax. It is the 10% selling fees and around 20% AD fees applied to the ups shipping fees of this transaction... 

[soh.maryl]

The seller's final value fee is calculated on the TOTAL of the item price, the shipping cost and the state sales tax, if applicable.  In most categories, the FVF is a little over 13%.  

The buyer pays YOU the seller for the shipping cost and you use those funds to buy the label. 

Can you return and show us the breakdown of fees you were charged as you should not have been charged anywhere near 20%.

You've been selling on eBay for quite awhile.  What caused you to suddenly notice the fees? 

[lonebuck-books]

eBay does this because of the sellers years ago would list things for a penny with $500 shipping to skirt around eBay fees.  eBay decided to fix the problem by charging the fee on the total amount of the transaction, not just the item cost.  Honestly, I don't blame eBay for doing it.  As for the fee on sales tax, consider it paying for the service of eBay doing all of the work and taking all of the audit risks complying with all of the different sales tax authorities.  Personally, I think the tiny amount they collect on the fee charged on sales tax for what they provide is the bargain of the century.

[soh.maryl]

What are AD fees? And, again, can you show the breakdown where you were charged 20% final value fees?  

[dhbookds]

I think charging ad fees on the total......including shipping and tax....... was done for one of the same reasons fvf were added to shipping many years ago..........  Sellers began to shift much of price of the item to the shipping cost to avoid the fvf.    If you remember, the ad fee........for the first month ........was only applicable to the item price.   I noticed that there seemed to be higher shipping during that month, sellers were shifting part of the price of the item to shipping to avoid the ad fee.     By the second month, ad fees were applied to shipping and tax........  I postulate (no way of knowing)......that ebay could see that shift and took the action. 

[mythyanlee]

Thanks, dhbook...

Yes, "sellers shifting part of the price of the item to the shipping", that is reasonable.

But my shipping fee is the ups ground and very flat... Usually how does the system judge that "sellers shifting part of the price"? What terms can I pay attention to for the next time?  

[mythyanlee]

Not 20% FVF. It was 20% AD fees...

[mythyanlee]

Thanks, lonebuck-books.

"a penny with $500 shipping to skirt around eBay fees" -- But I did not charge $500 shipping fee...

"paying for the service of eBay doing all of the work and taking all of the audit risks complying with all of the different sales tax authorities" --Reasonable.  Thanks. I remember some items are not taxed, like gift cards and coupons. Maybe it was changed...

[mythyanlee]

"the FVF is a little over 13%"... thanks, my fvf is something like this rate. But the AD fees are to all the UPS fees. That is quite high.

[dhbookds]

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@mythyanlee wrote:

Thanks, dhbook...

Yes, "sellers shifting part of the price of the item to the shipping", that is reasonable.

But my shipping fee is the ups ground and very flat... Usually how does the system judge that "sellers shifting part of the price"? What terms can I pay attention to for the next time?  

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You can't avoid the fee........I didn't mean you were doing that or you could change the fee in any way.......I was trying to explain the REASON, I thought,  ebay added the ad fee on shipping....they were eliminating a loophole that sellers could use to avoid at least a portion of the ad fee......

[mantle1951]

Promoted listings charge.

[mythyanlee]

Thanks, dhbook.

So the current rules are that FVF and AD fees are both charged to the entire price, right? I remember they are usually only to the item value itself? Or maybe it depends on the categories?

[mythyanlee]

Yes, thanks, mantle.