ebay final value fees on 1 day shipping

[bashort]

According to published ebay policy under "Exceptions to how we calculate the final value fee on shipping"

it states the following

• "If you offer 1-day or international shipping as well as a cheaper or free option (like domestic shipping), the total amount of the sale is calculated based on the cheapest domestic option you offer. If you only offer 1-day or international shipping but no cheaper option like domestic shipping, the total amount of the sale is calculated based on the service the buyer chooses"

I ship with one day shipping a few times a month or so and  had never checked if ebay actually follows their own policy on 1 day shipping and no surprise here I found that they do not.

It was a $20 item that had the first shipping choice USPS ground for around $5 and the second option was UPS next day air that in this case was $37.25, so in typical ebay fashion they added $20 +$37.25 + $3.86 tax for a total of $61.11, the total fees were  35% of the price that the item sold for. 

I am sure that if I were to spend 4 or 5 hours perusing it I could get back the $3.86 that they overcharged me but its not worth it and ebay knows this and it is by design.

[mam98031]

You are quoting the rule for International Shipping.  It has nothing to do with shipping domestically.

On International shipments, Ebay charges the FVF on the lowest Domestic rate you have stated on that listing.  If the listing is Free Shipping for domestic orders, then there will be no FVF charged on an International sale for shipping.

[bashort]

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@mam98031 wrote:

You are quoting the rule for International Shipping.  It has nothing to do with shipping domestically.

On International shipments, Ebay charges the FVF on the lowest Domestic rate you have stated on that listing.  If the listing is Free Shipping for domestic orders, then there will be no FVF charged on an International sale for shipping.

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same applies to domestic 1 day, notice it says 1 day or International

"If you offer 1-day or international shipping as well as a cheaper or free option (like domestic shipping), the total amount of the sale is calculated based on the cheapest domestic option you offer. If you only offer 1-day or international shipping but no cheaper option like domestic shipping, the total amount of the sale is calculated based on the service the buyer chooses"

If you offer 1-day or international shipping 

[stephenmorgan]

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@bashort wrote:

I am sure that if I were to spend 4 or 5 hours perusing it I could get back the $3.86 that they overcharged me but its not worth it and ebay knows this and it is by design.

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I would not count on that.  I had the same issue a while ago for a international sale where International Shipping along with Domestic Shipping was offered. My fees were based on the higher International Shipping rate.  It was futile to even speak with eBay about it.  They made it clear the fees are based on any money that goes thru them regardless of the shipping offered.

[wastingtime101]

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@bashort wrote:

It was a $20 item that had the first shipping choice USPS ground for around $5 and the second option was UPS next day air that in this case was $37.25, so in typical ebay fashion they added $20 +$37.25 + $3.86 tax for a total of $61.11, the total fees were  35% of the price that the item sold for. 

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Yeah, they're supposed to charge the FVF on the ground service.

Do you have any social accounts? If you do, you might want to send a DM to one of eBay's social teams as that could be a quick way to resolve this and also have them check into why the error occurred in the first place.

Is this a one-off or is it happening on all of the items you've shipped with overnight service that also offered a lesser expensive ground service?

[bashort]

I just checked another one and that one the shipping was $83 and they charged me final value fees on it.

If ebay was held to the same standard that sellers are held to they would be MC011 by noon of the first day.

[bashort]

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@stephenmorgan wrote:

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@bashort wrote:

I am sure that if I were to spend 4 or 5 hours perusing it I could get back the $3.86 that they overcharged me but its not worth it and ebay knows this and it is by design.

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I would not count on that.  I had the same issue a while ago for a international sale where International Shipping along with Domestic Shipping was offered. My fees were based on the higher International Shipping rate.  It was futile to even speak with eBay about it.  They made it clear the fees are based on any money that goes thru them regardless of the shipping offered.

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I am going to have to quit the next day shipping, it is already pretty risky because of the loss if you get a snad.   

[stainlessenginecovers]

Don't you get charged a FVF on WHATEVER the buyer pays?? 

[bashort]

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@stainlessenginecovers wrote:

Don't you get charged a FVF on WHATEVER the buyer pays?? 

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Not according to ebay policy, under "final value fee exemptions" it states

"If you offer 1-day or international shipping as well as a cheaper or free option (like domestic shipping), the total amount of the sale is calculated based on the cheapest domestic option you offer. If you only offer 1-day or international shipping but no cheaper option like domestic shipping, the total amount of the sale is calculated based on the service the buyer chooses"

The reality appears to be that while they have this policy in writing they do not follow it.

My guess would be that they could not figure out to code it and seeing how it makes them money not to have it they just did not try very hard.

[wastingtime101]

If I were you @bashort , I'd run a report of all the transactions shipped with overnight shipping, contact eBay CS, and give them a list of all the item numbers, dates, and overcharge amount. Do it all in one shot. I'd probably go through eBay's social CS channels and see if they could help, otherwise I'd go through the help links direct to the payments team since it's about fees.

I'm curious @iamalwaysright - do you still offer overnight shipping, did any buyers take you up on it over the holidays, and are you seeing the same fee discrepancies as the OP?

[iamalwaysright]

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@wastingtime101 wrote:

I'm curious @iamalwaysright - do you still offer overnight shipping, did any buyers take you up on it over the holidays, and are you seeing the same fee discrepancies as the OP?

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Yes I still offer overnight shipping in some listings. I do recall having to call ebay about this FVF adjustment, but that was near back when this policy first came out. But no, no one has ever opted for overnight shipping over the past 1+ years. They keep asking for it, but they never actually buy it. Probably because of two reasons: 1) I have a huuuuuuge premium added to the already expensive overnight shipping price. So much higher that it would probably outrage some of you, but I don't care. Shipping overnight is a big inconvenience for me, but I'll do it for a worthwhile profit. And as someone said it covers any possible returns and other mishaps. And 2) There's been many posts where I said ebay totally messes up the ETA where these overnight shipping services delivery dates coincide with the cheap ground shipping. So no one would choose a more expensive shipping service if the ETAs are exactly the same as a cheaper methods (despite the ETA on the cheaper methods being totally wrong).

I have a handful of buyers choosing Priority Mail services though. I never bothered to check if that "FVF on the cheaper service" was applied correctly or not. My expedited shipping prices are already inflated enough to cover the FVF charge on them if any.

But I'll have to check my international sales though. If someone buys to ship my item internationally, I should get charged FVF on the cheapest domestic shipping according to this policy right? Hm, I have a bad feeling ebay isn't doing this for me.

[wastingtime101]

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@iamalwaysright wrote:

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I have a handful of buyers choosing Priority Mail services though. I never bothered to check if that "FVF on the cheaper service" was applied correctly or not. My expedited shipping prices are already inflated enough to cover the FVF charge on them if any.

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That's not covered by the policy. We are charged fees on Priority even when Ground is offered. The policy is exclusive to 1-day domestic shipping services.

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@iamalwaysright wrote:

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But I'll have to check my international sales though. If someone buys to ship my item internationally, I should get charged FVF on the cheapest domestic shipping according to this policy right? Hm, I have a bad feeling ebay isn't doing this for me.

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Yes, and I haven't had an issue with that. Looked at a recent sale with free domestic shipping and paid international shipping and I was not charged fees on the international ship cost (direct ship, not eIS).