Of Course, of course its a higher percentage when you take fees as a percentage of the selling price. Which sellers should not be doing. The fee percentage off the entire sale is smoke and mirror and a large amount of sellers dont even realize it - I answered the question in a way that represents the true fees we are paying to the site - the only percentage that matters - the percentage of fees in relation to the item's sale price. That percentage only matters from the buyers cost model and their accounting related to their business. Smart sellers have factored in the FVF costs into their pricing models and are not surprised or shocked when they see the FVF's. there are a lot of sellers here who say ohhhh 12.9% isnt that bad(I personally say its ridiculous) thinking thats the amount coming off the top of their item price - unaware that the way that percentage is figured equates to close to 20% of their gross in a true profit model. This I won't argue but as described before smart sellers are aware of this and have factored it into their pricing so the 20%, if it works out to that, is not a problem. The sellers only concern should be their ROI and whether they are making an acceptable rate of return.
As for the 12.9%, or whatever it is now based on the item category, I am in no position to judge whether that is good or bad from eBay's perspective they are a business and their ONLY concern is maximizing value to their shareholders. You are basically buying eBay's service just as customers are buying your product. Try listing a few of your items and in the description state that your gross profit on the item is 80% and see if you get any feedback from potential buyers.
The OP is at least smart enough to see through the sleight of hand. In answering, I am giving credence to his/her concern concern that the amount of profit ebay is eating is FAR greater than the sites bloated method of accounting fees that adds shipping and sales tax into the transaction, at best, as though they were sources of profit, and at worst, as though they are part of the item price. On occasion the shipping IS a source of profit. In the OP's example the buyer paid $21.97 in shipping but the seller cost for the ACTUAL shipping was $14.74 a gross revenue difference of $7.23 for the seller.
In short, ebay IS NOT taking 12.9% OF YOUR GROSS in fees - Gross does not include things like tax and shipping that the customer is paying for - They are not profit generators - The amount they take these days equates to closing in on 20% of your gross and then even much more if you for some reason you decide to reward them(and for what reason?) with an additional 8%-10% of the entire sale by using the "recommended rate" of their Promoted Listings Program - which actually equates to an additional estimated 10% to 15% of your gross. That I won't argue with one bit that is seller self inflicted cost/damage.
Because of this, we receive 1099's from the company that show our gross sales as inflated by 30% or even more. They are NOT inflated the gross represents exactly that the total gross amount of funds processed by the financial processor similar to the gross that is reflected on your W-2 if you have ever received one. Out of that comes the eBay fees, shipping cost, operating costs, shipping supplies, POV, income taxes, SE taxes and all the other business operating expenses.
Smart sellers have well developed cost models that factor in all costs in determining a selling price. Other sellers just guess.
