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Why is there an eBay fee on shipping?

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**.

Message 1 of 27
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26 REPLIES 26

Re: Why is there an eBay fee on shipping?


@larries_attic wrote:

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


Yes.  Or jack up the price of your item to cover fees. 

 

Before ebay did this some sellers would sell a $100 item for $1 + $99 shipping to avoid paying fees.

 

This is ebay's way to prevent that from happening. 

Message 16 of 27
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Re: Why is there an eBay fee on shipping?


@ads.ink wrote:

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?


Correct. That is why I would never sell something for $14.99 with a ship cost of $30.00. Expensive shipping will always eat into your profits regardless of which site you sell on. Buyers buy things by total price. They would never purchase a $14.99 item for $45.

Message 17 of 27
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Re: Why is there an eBay fee on shipping?

well said - who has time to bother reporting for that one person you report.... there are 10k others out their doing the same thing...   

 

Message 18 of 27
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Re: Why is there an eBay fee on shipping?

These are all good points, but you also have to consider that increasing shipping or item cost, you could put yourself out of a competitive sale. I'm just a hobby seller so I absorb the fees that eBay charges for shipping. Try to utilize USPS flat rate packages on heavy items and ship large items through UPS. 

The thing that concerns me as an off and on seller is this new managed payments thing I just noticed this morning. This could be a game changer for the small seller in a bad way. Sorry, I know that was off topic.

Message 19 of 27
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Re: Why is there an eBay fee on shipping?

and ebay takes their percentage from all of it.

+++++++++++++++++++

 

So does every credit card and debit card company.

 

Message 20 of 27
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Re: Why is there an eBay fee on shipping?


@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?


I to am "greedy". (aka here to make a profit)

 

Actually 12% of $45 is $5.40.

 

In MP, they would take 12.35% from me.($5.58+ the $0.30)

($0.07 more than with PP)

 

As I am "greedy"(aka here to make a profit),  my buyer pays all of that.

Message 21 of 27
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Re: Why is there an eBay fee on shipping?


@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?


But you're lucky, in this country you don't have to sell on eBay if you decide it's not worth it to you.

Message 22 of 27
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Re: Why is there an eBay fee on shipping?

yes that was an option in the past. 

 

Sellers would price low and jack up shipping because the eBay fee was based on the selling price.

 

 

Message 23 of 27
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Re: Why is there an eBay fee on shipping?

Why is there an eBay fee on shipping ?

 

Answer

Because it benefits ebay, resulting in more $'s for eBay, that's why

Message 24 of 27
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Re: Why is there an eBay fee on shipping?

Maybe I can explain it based on my research.  You are being charged 10% shipping fee for the amount of the shipping cost.  The higher the cost to ship an item = larger shipping fee.

 

I just noticed it myself after reviewing my December invoice.  This is the first time going in depth on my monthly eBay invoice so I can prepare my financial report for taxes.  The invoice lists a final value fee as well as final value fee on shipping.   Example:

 

Nov 19 08: 05:37   Silver Plate Order# *******  Final Price $12.00   Final Value Fee   $1.20 

--------------------------------------------------------------------------------------------------

Nov 19 08:10:07     Silver Plate Order#*******   Shipping                    Final Value Fee on

                                    Shipping and other costs less sales                    *Shipping $0.87  

                                    Tax: *$8.70 (Fixed Price).

*10% shipping fee.  

 

I should have prepared a business plan in May when I first started selling instead of today. 

 

I hope this helps? 

Message 25 of 27
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Re: Why is there an eBay fee on shipping?

You must want to pay ebay fee.It on price + shipping + sales tax.course ebay want to hire extra stuff....

Message 26 of 27
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Re: Why is there an eBay fee on shipping?


@madzon_sellers wrote:

You must want to pay ebay fee.It on price + shipping + sales tax.course ebay want to hire extra stuff....


What?

Message 27 of 27
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