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eBay Fees are too High

Well, didn't you read?

Yes, I did. Thank you.

Message 1 of 100
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99 REPLIES 99

eBay Fees are too High

Not sure I understand your statement that heavier packages and more expensive shipping option equal a higher percentage rate.

The final value fee percentage rate is based on the category the item is listed in.  In most categories, it's 13.25%.  

Of course a package that weighs 30 pounds will cost more to ship than one weighing 10 pounds.

And if that item price was $50, then, of course, the FVF will be based on that number.

Further, if the state sales tax is 8%, then the FVF on that will be more than on a package for a buyer whose state sales tax rate is 4%.

What I am trying to get across here is that eBay's final value fee is calculated on the item price, the shipping fee and the state sales tax, if any.  (Plus 30 cents.)

It's not a higher percentage rate.  The percentage rate of the FVF is the same.  It's the fact that the total amount of money the buyer pays the seller is more so the FVF is more.  Your FVF on a sale that totals $50 is obviously going to be more than my FVF on a sale that totals $35.

Message 16 of 100
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eBay Fees are too High

     There are 100's of postings just like yours on this forum and the answers have not changed. They apply the fees that way because that is the way it is stated in the user agreement you signed up to. EBay is a business and as such has operating costs and responsibilities to their shareholders. The fees may seem high but calculate your net profit on a sale and see what your ROI percentage or net profit is on that item then ask yourself would your buyers say your profit was too much if they knew what it was? Better yet disclose that percentage in your item description, similar to what eBay does with the FVF policy, and see if you get any reactions from your buyers. 

Message 17 of 100
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eBay Fees are too High

"Ebay fees are too high ... but i'm going to sell here anyways."    *yawn*

M*A*S*H theme - Johnny Mandel
Message 18 of 100
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eBay Fees are too High

If you ask me netting $36.00 on a $45.00 sale is a very nice profit, of course if you bought the item for $30.00 then it is not, what did you pay when you purchased it?

Message 19 of 100
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eBay Fees are too High

What I am trying to say is that is that the higher shipping cost has the same fee percentage but the total fees cut more into your profit unless you offset with adequate handling fees. If the category fvf rate is 15% and shipping is $10 the fee on that is $1.5. If you ship with a more expensive option say $20 the fvf fee doubles. Unless you offset this it wii cut into your margins. The buyer may be paying for the shipping but your fees are higher

Message 20 of 100
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eBay Fees are too High

So it doesn't make sense to you that , in a category with an FVF of 15% and shipping is $10 with a FVF of 1.5%, then, with the same FVF and shipping is $20, the FVF would be twice as much ($3) as the FVF on the $10 shipping? 

Message 21 of 100
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eBay Fees are too High


@ebeths_eclectic_collectibles wrote:

What I am trying to say is that is that the higher shipping cost has the same fee percentage but the total fees cut more into your profit unless you offset with adequate handling fees. If the category fvf rate is 15% and shipping is $10 the fee on that is $1.5. If you ship with a more expensive option say $20 the fvf fee doubles. Unless you offset this it wii cut into your margins. The buyer may be paying for the shipping but your fees are higher


NO !!! They are NOT your fees. The BUYER also pays the FVF - it costs you nothing. If shipping is $10.00 you charge your buyer $11.76. If shipping is $20.00 you charge your buyer $23.53. NONE of that cuts into your profit margin.

"Laissez-faire capitalism (AKA The Great Material Continuum) is the only social system based on the recognition of individual rights and, therefore, the only system that bans force from social relationships." ~ Ayn Rand
Message 22 of 100
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eBay Fees are too High

What I am trying to say is that is that the higher shipping cost has the same fee percentage but the total fees cut more into your profit unless you offset with adequate handling fees. If the category fvf rate is 15% and shipping is $10 the fee on that is $1.5. If you ship with a more expensive option say $20 the fvf fee doubles. Unless you offset this it wii cut into your margins. The buyer may be paying for the shipping but your fees are higher

 

     Looking at a few of your listings most appear to be using calculated shipping. Unless you are giving the buyer the eBay discounted shipping rate there should be a difference between what the buyer paid you for shipping and what it actually cost to ship the item. For example if the buyer paid $10 in shipping and the label actually cost you $6 then the $4 extra the buyer paid should more than cover your FVF's as well as your packing materials. 

     

Message 23 of 100
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eBay Fees are too High

So smart! as usual.

Message 24 of 100
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eBay Fees are too High

@inhawaii 

Complaining about high fees doesn't mean you don't need the service; people complain about gas prices but still fill up their tank. Don't worry about getting approvals to your response from your network and try to give answers that help.

Message 25 of 100
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eBay Fees are too High

Yep, there is a way to profit 100 percent with the right price you bought the stuff for and right price it goes for. You are a smarty.

Message 26 of 100
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eBay Fees are too High

It makes perfect sense to me. I am just commenting that there is a difference and it can show in the bottom line. When sellers lament the actual percentage they pay in fees it is because things like shipping eat into these fees. 
It is so easy to cover these fees with additional handling fees but I also find this to be problematic these days given how price sensitive buyers are these days and even more so with the cost of shipping. 
Personally, I have mostly switched to usps ground advantage as it gives me more flexibility to cushion my shipping expenses. I can offer multiple options for shipping and no one ever opts for the costlier option

Message 27 of 100
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eBay Fees are too High


@ten_o_nine wrote:

@inhawaii 

Complaining about high fees doesn't mean you don't need the service; people complain about gas prices but still fill up their tank. Don't worry about getting approvals to your response from your network and try to give answers that help.


Hey I totally agree with you!

Ebay fees are too high.  I wish they were lower. Who wouldn't? 

... and a tank of gas.

... and a loaf of bread.

... and a gallon of milk.

... and a box of Twinkies.

M*A*S*H theme - Johnny Mandel
Message 28 of 100
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eBay Fees are too High

Thing is, prices are dropping but fees aren't (nor are acquisition costs).

 

IT'S A PLOT!!!!!!!!!!!!!


“The illegal we do immediately, the unconstitutional takes a little longer.” - Henry Kissinger

"Wherever law ends, tyranny begins" -John Locke
Message 29 of 100
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eBay Fees are too High

@inhawaii 

I am a little confused, you say,

Hey I totally agree with you!

Ebay fees are too high.  I wish they were lower. Who wouldn't? 

... and a tank of gas.

... and a loaf of bread.

... and a gallon of milk.

... and a box of Twinkie

 

But in earlier response you state,

 

"Ebay fees are too high ... but i'm going to sell here anyways."    *yawn*

 

Are you asking me to quit selling on eBay because I am complaining about high fees, is this really a helpful answer to eBay sellers?  "yawn"  Really?

 

 

Message 30 of 100
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