eBay Fees

[oroax-corporation]

Hello,

Hope everyone having a good day!
I want to know whether a 36% deduction in monthly eBay fees (including shipping costs) is high or reasonable, how can I evaluate this? We purchase shipping labels through eBay, which adds to the cost. Is this percentage typical for overall sales, or are we paying too much?

Please Help me on this matter.

[dbfolks166mt]

My eBay selling costs vary by month from 27% to 36%.

Sometimes I use eBay postage, other times, I do not.

So your number seems to be in the ballpark. 

     Mine tend to flux also mostly because of the shipping costs but most of those costs are paid by the buyer or factored into the price. I tend to focus more on my ROI. From the big picture  perspective my total selling costs are usually in the 70% range. This is after you factor in the eBay selling costs, COGS, operating expenses. supplies and Federal and State income taxes. 

[funfactorychannel]

If you change the word fee..

And use Cost or Cost of Selling it wouldnt feel as bad. 

We all have cost except some good and law abiding people who sell at the lowest cost.

[buyselljack2016]

Shipping costs can be a variable that makes the average fees "selling costs" a bit higher, or a bit lower than expected.

[mam98031]

---

@oroax-corporation wrote:

Hello,

My total number of orders monthly are 150 to 180  for me it's seems like it is expensive from my opinion it should be around 30% to 33%. 

---

As has been previously explain, Ebay does not have any category in which they charge a seller 30-36% in selling fees.

You are clearly talking about your COST OF SALES from items you sell on Ebay and maybe elsewhere.

Ebay fees are a PORTION of your COGS, but not all of it.

The cost of shipping is NOT an Ebay fee.  It is a cost charged by the Carrier you select.  And the buyer has PAID YOU for the shipping of what they purchased.  So NOT part of any Ebay fee, but definitely a COGS.

It is just in how you worded things.  Your title says Ebay Fees, shipping costs are NOT an Ebay fee.

[janet9988]

---

@oroax-corporation wrote:

Hello,

My total number of orders monthly are 150 to 180  for me it's seems like it is expensive from my opinion it should be around 30% to 33%. 

---

Are you  NOW talking about your store subscription compared to how many items you sell?

[reallynicestamps]

@mustang707 you have free shipping and therefore you are paying for the shipping,

Well, again, a matter of semantics.

Free shipping is not free. The buyer pays for it.

You are including your cost for shipping in your asking price, whether you realize it or not.

If an item costs you $25 and shipping will be $10 (as  in Post #2), your cost will be $35.
If the buyer pays $100, your profit before fees is $65, not as the OP seems to be thinking, $75.

But the fees are charged on the ENTIRE amount of the buyer's payment.

So 13.5% of $100.

Reducing the "profit" to $51.50.

The OP seems to think it should be $86.50, but that is not how any payment processor works, including Paypal.

For that matter any shop, whether WalMart or a local consignment shop, pays their credit/debit card processor fees based on the ENTIRE customer payment,  and this has  been Standard Practice since Diner's Club invented the credit card in the early 1950's.

Details left out.

There are also costs such as packaging materials, storage units, wages, not mentioned.

And of course the ENTIRE payment includes applicable sales taxes.

Our credit card processor was Moneris. Most businesses which have had merchant accounts will recognize the name.

[ulfesharpe]

When you sell from abroad, apart from charging around 30% in fees for each item (including charging you VAT which they don't have to and that they don't give back to the OG country), even nicer are Ebay exchange rates. They have two! One for when they're charging you and another when they're giving you your money back in your currency:

 

[mam98031]

The OP's issues have nothing to do with the Exchange rate.