Why is there an eBay fee on shipping?

[larries_attic]

I charge what the post office charges for shipping and then get hit with a shipping fee from eBay, so I'm actually losing money. What the heck!! Are you suppose to jack up your shipping costs to cover this? I want my buyer to get the best shipping price. So how are people handling this expense? I find it complete **bleep**.

[nobody*s_perfect]

In 2011, eBay started charging final value fees on the buyer's total payment including shipping because:

(1) They wanted to encourage sellers to offer Free shipping, which realistically means adding the shipping cost to the item price

(2) Sellers had been avoiding FVFs by charging a very low asking price with very inflated shipping, such as offering an item for $1 with $40 shipping.

Yes, you have to cover this fee like you would cover any other overhead expense, by incorporating it into your item price or your handling fee.  The shipping calculator in your listings shows the retail prices by default, so many sellers leave it this way (rather than going to their Site Preferences and switching to online rates) so the price difference between the retail and online rates is a built-in handling fee to cover expenses.

[nuvistors]

If you purchase  anything with a debit or credit card you pay a fee on the Total Transaction.

[powell-memorabilia]

I bump up shipping to cover postage, packaging, eBay fees on the shipping charge.

[caldreamer]

EBAY charges fees on purchase price + shipping + sales tax.     Fees are charged for "sales tax" because EBAY needs to hire extra staff to file sales tax on behalf of Sellers.

[mtgraves7984]

Are you suppose to jack up your shipping costs to cover this?

@larries_attic 

You'll be happier if you do. The term 'jack up' is subjective, though. I charge enough to pay the actual shipping cost and to cover FVFs and supplies... plus, I also put a few quarters in my pocket for my time.

[southern*sweet*tea]

Shipping is what it is and it costs what it costs. Never, ever skimp on shipping.  If you want to charge actual shipping costs, your expenses need to be added into the item price. Stop selling yourself short. 

Buying, selling, shipping are not free. There are costs involved and all those costs need to be covered by someone. If you are a generous soul with deep pockets selling just for fun, you can cover those costs out of your own pocket. 

For the rest of us who are just trying to make a little money or do this for an actual living, the buyer covers ALL costs, including fees, shipping, tape, ink, profit, actual item cost, etc.

[sextons-sweet-deals]

use to be that you could report a seller for excessive shipping fees. I guess eBay did not want to pay staff to handle the issue.

I also believe they (eBay) want to be like Amazon, but that will never happen. Both companies are structured completely different.

There is no such thing as "free shipping", so best to pad some to cover fee and packing materials.

[luckythewinner]

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Why is there an eBay fee on shipping?

Before the eBay fee on shipping, sellers who offered Free Shipping paid more in fees:

• $25 item with $25 shipping = fee on $50 = $5.00
• $50 item with $25 shipping = fee on $25 = $2.50

Adding the eBay fee on shipping accomplished three things:

• It took away the financial penalty for free shipping; 
• It preventd sellers from inflating shipping to save on fees;
• It increased eBay's revenue.

Are you suppose to jack up your shipping costs to cover this?

No, but you should probably consider the fee on the shipping cost when evaluating whether an item is a good fit for eBay or not. 

So how are people handling this expense?

The same way people have been doing it since 2008 when eBay first started doing this - they adapt their business model to account for it. 

[lahsan_91]

appreciated 

[coolections]

Yes, you either have to add $1.00 to your asking price, or add $1.00 to the ship cost. When you make your calculated shipping cost for the label there is a box that lets you add a S&H charge. That is where you can add your $1.00

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[ads.ink]

ebay is so greedy  that if you sell an item for 14.99, it costs 30.00 to ship, ebay wants 12% of the sum. 12% of 45.00 is what $4.90 ? plus the .30 they charge. so 5.20 comes out of your 15.00. not really worth selling is it?

[ads.ink]

report a seller for excessive shipping fees? if you don't like the fee don't buy. simple as that.

[ads.ink]

and ebay takes their percentage from all of it.

[nobody*s_perfect]

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@ads.ink wrote:

ebay is so greedy  that if you sell an item for 14.99, it costs 30.00 to ship, ebay wants 12% of the sum. 12% of 45.00 is what $4.90 ? plus the .30 they charge. so 5.20 comes out of your 15.00. not really worth selling is it?

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Probably not. Every seller has to do their own little cost/benefit analysis before listing any item.

But eBay has been charging the final value fee on the buyer's total payment for over 9 years, so that should be built into each seller's strategy by now. Lower value heavy items often just aren't worth it.