eBay

auctionsco · ‎09-22-2022

Recent sale cost breakdpwn

sold item for $!50 12.9% fee $19.30 We have learned to accept

shipping cost $241 12.9% fee $31.25 We don't mark up shipping Should we? We agree with

eBay to make buying a positive reoccurring experience

Would telling a client we want an additional $31.25 do

that?

Or deceive them or not disclose true costs. A savvy buyer investigates calls us crooks. potentially leaves negative feedback. Does eBay suffer?

Nope Pierre said eBay is based on honestly and trust

at least it was when We started 22 years ago

sales tax $39.12 12.9% fee $4.46 How is that even legal? Total fees $44.25

I paid $100 for the item and marked it for sale and sold for 50% profit of $50. Seems sound.

Wait that's $6.75 I made Or minus interest. storing and labor. So I lost $10 following the same good business practices from 22 years ago. We all know what's changed. Corporate greed.

Here"s what I have learn to continue selling on eBay successfully. Only sell items with huge mark ups, sell

all my item for way too much and lie and deceive members to assure eBay profits.

At least we know them are concerned for our well being.

Another seller kicked to the curb.

mam98031 · ‎09-23-2022

Ebay charges the 12.9% on whatever amount your Buyer Pays. Plus a 30 cent per transaction fee.

"We don't mark up shipping Should we?" That is up to you. A bit late in asking, but completely up to you. Sellers have been paying FVFs on shipping for over ELEVEN years. So yes, it is a cost of sale and it should be considered when you are developing your price you want to sell something for.

"Would telling a client we want an additional $31.25 do that? " What, why would you even consider ever doing that? First after a sale you aren't allowed to ask for more money for shipping. That would get you in trouble as a seller. It is too late on this sale for you to get any more money for it. As are all the sales you had before it, because like I said above, we have paid FVFs on shipping for 11+ years.

" Or deceive them or not disclose true costs." What? You disclose your costs to your buyers? Why would you do that? They have no right to that information. I'm sorry I don't understand your reasoning behind this at all.

I simply don't understand why this is coming up now!! Are you telling us you have been dealing with upset buyers for over a decade on this subject????

mam98031 • Volunteer Community Member • Buyer/Seller since 1999

laststopgeneralstore · ‎09-23-2022

I still don't understand why sellers are charging the exact amount for shipping when we know we have to pay fee's on it. Not to mention that shipping is not cheap it takes time, boxes, mailers, tape, label, fuel etc... and you should be charging accordingly. The discounts that us sellers get is for us. Charging the customer retail is not wrong and you should be doing so. When I used to sell electronics I always did calculated shipping +4-7 dollar handling fee to insure all of my shipping costs were covered. I don't know what you sold for only $50.00 but cost almost 5x as much to ship but you should have porbably sold it locally or charge more for both the item and shipping.

dnasilver · ‎09-23-2022

Confused on calculations: Individual fees listed 19.30, 31.25, 4.46 yet then end saying total fees 44.25. So what were your fees 55.01 or 44.25?

Sold item for 150 and your shipping cost were 241? Was the 150 including shipping or did the buyer pay 241 extra for shipping? If so item sold for with shipping is 391.00 assumed sales tax 10% 39.10 = 430.10 is what buyer paid. Fees on that at 12.9% = 55.48 Looks like you lost money on the deal.

If it was the bike that shows 150 for bike and 150 for shipping buyer paid 330 w/tax at 12.9% fees of 42.57. So if bike cost you 100 plus 247 you paid for shipping plus fees you certainly miscalculated what the item should be sold for. Looks like you really lost on this scenario.

You might want to go back over your numbers since they do not add up on what you show for fees individually vs total.

Buyers do not care about sellers cost. They would assume seller knows what their costs will be.

inhawaii · ‎09-23-2022

Should you mark up the shipping?

Yes.

You mark up the item so that you make a profit right?

So whjy not mark up the shipping too?

If the actual shipping cost $10.

Ebay is going to take $1.30 of that.

Charge them $12 to $15 for shipping.

Why not make money on the item AND make money on the shipping too?

Telephone Line - Electric Light Orchestra

mam98031 · ‎09-23-2022

@inhawaii wrote:
Should you mark up the shipping?
Yes.

You mark up the item so that you make a profit right?
So whjy not mark up the shipping too?

If the actual shipping cost $10.
Ebay is going to take $1.30 of that.
Charge them $12 to $15 for shipping.

Why not make money on the item AND make money on the shipping too?

That would be about breaking even once you tally in your materials for shipping many times. Which if fine and what I strive to be close to. Personally I don't think sellers should make a profit off shipping, but they absolutely need to make sure they break even.

mam98031 • Volunteer Community Member • Buyer/Seller since 1999

ms.rodriguez* · ‎09-23-2022

Forget about the past. You need to figure out your price and today's expenses with the transaction when you set your price. If you ship at exact cost, then you need to raise your starting price by 12.9% of the shipping. Storage fees? I don't pay that. I store all of my ebay stuff in my dining room . I rarely used it. I am sure that you rarely sit down with the entire family. Start storing your stuff there . Anyway, if you owned a brick and mortar store, your fees would be alot higher than 12.9%.

Postal rates go up again in Oct.2. It's every seller's responsibility to adjust their prices (if they are smart) as the postal rates increase. There is no choice. It's dumb to sell at a loss.

motortown_inc · ‎09-23-2022

My approach is to consider all of my costs and then add margin.

First there is the cost of goods sold. eBay fees are a cost. Shipping is a cost, so are the supplies. Things like fuel and insurance for the auto, inbound shipping, overhead such as equipment and energy for lights, heat etc. Rents, restoration and or cleaning supplies. State and federal tax burdens. To me this is the only way to turn a true profit. All costs must considered when setting a sell price.

mam98031 · ‎09-23-2022

@auctionsco

It should also be noted that per your sold items, this bike sold for $150 and your shipping that you charged the buyer was $150.00. So if your actual cost for shipping the item ended up being $241, that additional $91 you had to pay for shipping is on you and not the responsibility of your buyer, nor is it the amount in which your FVFs are calculated on.

Your FVFs are based on what the buyer PAYS and only what the buyer PAYS you.

So your sale price was $150 and shipping was $150 = $300.00 sale tax. The rate you quoted in your original post was a little over 13% of the amount the buyer paid. I'm not aware of any place that has a sales tax that high. I could be wrong and there may be someplace that has that rate but I can't find one.

So lets say the sales tax was 10% which is one of the highest sales taxes in some states. So that would be $30. So your total sale was around $330 that the buyer paid to you. $330 x 12.9% FVF = 42.57 + 30 cent per transaction fee for a total of $42.87.

You are never charged the FVF on the amount YOU pay for the shipping. Fees are all about what the buyer pays and only the buyer.

mam98031 • Volunteer Community Member • Buyer/Seller since 1999

tkrliquidations · ‎09-23-2022

Maybe don't sell things that cost $241 to ship? Was this literally a pallet of bricks?

Large, heavy things are expensive to ship. eBay charges a fee on shipping cost. If you didn't understand how the fee structure worked before you listed your item, that's your fault for not doing your due diligence and researching first. eBay doesn't hide these fees at all, its a simple Google search away.

donsdetour · ‎09-23-2022

@tkrliquidations wrote:
Maybe don't sell things that cost $241 to ship? Was this literally a pallet of bricks?

Large, heavy things are expensive to ship. eBay charges a fee on shipping cost. If you didn't understand how the fee structure worked before you listed your item, that's your fault for not doing your due diligence and researching first. eBay doesn't hide these fees at all, its a simple Google search away.

Worse "high cost to ship" is also a good target for scammers and the return cost is usually very prohibitive....

Ones shipping cost can well eat up profits...

To the topic: one can always raise the item price to cover fees. Never advisable to do the shipping as the buyer seems not to like such....

Other wise learn, and operate with all fees in mind.

mam98031 · ‎09-23-2022

@donsdetour wrote:
@tkrliquidations wrote:
Maybe don't sell things that cost $241 to ship? Was this literally a pallet of bricks?

Large, heavy things are expensive to ship. eBay charges a fee on shipping cost. If you didn't understand how the fee structure worked before you listed your item, that's your fault for not doing your due diligence and researching first. eBay doesn't hide these fees at all, its a simple Google search away.
Worse "high cost to ship" is also a good target for scammers and the return cost is usually very prohibitive....

Ones shipping cost can well eat up profits...

To the topic: one can always raise the item price to cover fees. Never advisable to do the shipping as the buyer seems not to like such....
Other wise learn, and operate with all fees in mind.

The buyer paid $150, so the seller had it set too low on the listing and had to kick in $90 to get the item shipped. So that hurt too. The OP doesn't yet understand that the FVF is charged on what the Buyer has paid to the seller, but I outlined that in my previous post.

mam98031 • Volunteer Community Member • Buyer/Seller since 1999

monroe67 · ‎09-23-2022

"I still don't understand why sellers are charging the exact amount for shipping when we know we have to pay fee's on it. Not to mention that shipping is not cheap it takes time, boxes, mailers, tape, label, fuel etc... and you should be charging accordingly. The discounts that us sellers get is for us. Charging the customer retail is not wrong and you should be doing so. When I used to sell electronics I always did calculated shipping +4-7 dollar handling fee to insure all of my shipping costs were covered. I don't know what you sold for only $50.00 but cost almost 5x as much to ship but you should have porbably sold it locally or charge more for both the item and shipping."

All Completely True !!!

I have recently begun to add handling charges -- $1.00 or $2.00 or more -- because, it seems to me, even the price of cheap bubble-wrap-lined manila envelopes from Walmart has gone up. I can't "eat" cost that any longer. Plus the cost of gasoline to drive to that Walmart when we were paying close to $6.00 per gallon of unleaded here in Southern California.

(And I don't think I should even mention the fact that my car stopped running, on the freeway, on my drive to that Walmart -- it has been a trying summer for me . . . . .)

When you, the seller, buy USPS shipping labels through eBay, you can choose to have the price you paid printed on that label or not. I choose not to have it printed. I think if my buyer was willing to pay $7.00 for a cross-stitch chart (my most recent sale) that sold originally for $17.00-$18.00, and to pay $3-something for postage, that buyer really wants that cross-stitch chart! Or it might be a pair of sneakers (I have spent the last three mornings watching eBay Open . . . . .) or an ornate sterling silver butter knife or a vintage baseball team fan-shirt. Buyers want The Thing they bought. They're not that worried about whether I, the seller, paid less for postage than they paid, as the buyers.

It seems to come down to working smarter and not necessarily harder.