eBay Double-Dipping on Shipping FVF & Shipping Label

[astart]

Hello,

       This post is to verify my understanding & to know how other sellers feel... 

        Do I understand correcy that eBay's Final Value Fees (charged to seller) on a completed listing include a percentage (12.9%) of both auction final price & shipping charged to customer? Further, does eBay then charge seller the actual cost of the shipping label?

       While the latter obviously makes sense, do you believe it's a double-dip on eBay's part to charge a Final Value Fee on shipping charge in addition to the shipping label? Doesn't this fact (if factual) nearly negate the shipping cost reduction that seller's benifit from by shipping thru eBay?

       Thank you for your time.

eRegards, 

Todd Astarita

[luckythewinner · Accepted solution]

Do I understand correcty that eBay's Final Value Fees (charged to seller) on a completed listing include a percentage (12.9%) of both auction final price & shipping charged to customer?

Yes. It is also charged on any sales tax the buyer pays.

Further, does eBay then charge seller the actual cost of the shipping label?

Of course they do.

do you believe it's a double-dip on eBay's part to charge a Final Value Fee on shipping charge in addition to the shipping label

I believe eBay has a fee schedule and I choose to pay those fees.

Doesn't this fact (if factual) nearly negate the shipping cost reduction that seller's benifit from by shipping thru eBay?

No matter where you buy your shipping, you would still pay that fee to eBay.

[mtgraves7984]

You are correct. The 12.9% is charged on the item + s&h + sales tax (when applicable), and the seller is charged the actual (Commercial rate) price for the shipping label, if the label is bought through eBay.

It's not a 'double dip', as there is no FVF charged for the cost of the label ... if that's what you're asking.

[aeparts1]

On my items that are not free shipping, where the customer pays calculated shipping,  the buyer is charged the "regular" shipping charge. I then  buy a label thru eBay shipping, where I get a discount on the shipping. I do not pass this savings along to the buyer. My savings can be $2-15, depending on what I am shipping. I also charge a handling fee, roughly 13% of what I expect the shipping to be.

By doing this, most of the 12.9% eBay fee is paid for by the buyer.

If the shipping charge the buyer pays is a crazy amount more than the amount I pay for shipping I do send the buyer a refund.

This does not apply to the items sold on the work account, they all have free shipping.

[heckofagame]

ALL payment processors charge fees on the TOTAL.

[redmodelt]

If you had free shipping, how would you expect to separate out the shipping cost so as not to pay fees on the shipping part? If fees were not charged on the calculated shipping part of the money received by seller, free shipping would be worthless as a sales tool because no one would use it. 

Bottom line, all fees are published by eBay, your choice to sell here. 

[house*of*paws]

Hi @astart 

The COMBINED ‘Final Value - Payment Processing fee’ is based on the total amount of buyer’s payment … regardless of what components make up that payment.

No additional fee is charged when the seller purchases a shipping label … if that’s what you mean be ‘double dipping’.

[redmodelt]

Unless the shipping was undercharged by the seller and shipping service bills seller later, the buyer pays shipping either in the cost of the item (free shipping) or calculated. The seller uses those funds to pay for shipping. In either case the fee is based on the total $s paid by the buyers, there are no double charges on the shipping. Sure using the eBay discount for shipping, you are paying a little on the discount amount the seller receives, but that extra helps cover expenses and is what amount to free money. 

[monica-sells]

Your assessment/theory is flawed

the "amount" you pay for postage does not go to ebay, it goes to the entity providing the service (USPS, UPS, FedEx)...so to "includes" that in with your fees that ebay collects is entirely wrong...

some sellers don't even use ebay to ship, they pay the shipper directly (USPS, UPS, FedEx) with their own account, or use stamps.com/pirateship/shipstation/....etc.....

You (seller) are credited with whatever dollar amount you choose to ship your item....this platform charges you a FVF on the total amount of the sale (common)...you then disburse funds to your chosen carrier through any of the multitude of choices.....if the shipping costs 4.50 and you charged a flat fee of 6.00, you made 1.50 extra.....whether you buy the shipping from ebay or anyone else, NO ONE is "double dipping"

[astart]

Thank you for this useful information. Well-worded explanation.

[astart]

Thank you for the easy to understand breakdown.

[astart]

Thank you for your informative reply.

[astart]

Thank you.

[astart]

Good answer. I appreciate your time.

[astart]

Thank you for providing your knowledge on this issue.