final value fee on shipping

[329b-8g]

Since EBay chooses to skim 10% of the final value fee for the shipping, it would seem our only choice is to inflate that shipping fee.  This prevents us from charging an actual true shipping cost to our customers. 

[fern*wood]

Or you can make sure your asking price covers all your expenses in addition to a profit.

[thatsallfolks]

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@329b-8g wrote:

Since EBay chooses to skim 10% of the final value fee for the shipping, it would seem our only choice is to inflate that shipping fee.  This prevents us from charging an actual true shipping cost to our customers. 

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Well, yes, it would make sense to pass all costs along to the buyer.

[couldabeenworse]

Since EBay chooses to skim 10% of the final value fee for the shipping, it would seem our only choice is to inflate that shipping fee.  

No.  That is not our only choice.

[nawlinsron2]

Boo-yah...it's the evil genius plan at work. They're pushing you to "free" shipping, which is what their "customers" want...BTW, you're NOT their customer.
They get 10% whether you include shipping in your price or not.
Sadly, what the evil plan doesn't consider is that if you do offer "free" shipping, you have to include Zone 8 pricing, or else plan on eating the diff between it and the average price.
That diff could be $2+ on heavier items. and if you're in a tight competitive market, that $2 could mean you lose a sale. If you can afford to eat the $2, great...but that's 20 cents more in their pocket.
This especially hurts sellers on the coasts, who would rationally price for Zone 8 in their "free" shipping.

[chicboutique31]

dont forget to account for the cost of shipping supplies, especially if you are a high volume seller like myself. This would be bubble mailers,bubble wrap, tape, printer paper and printer ink, which is costly. All of this really adds up within the time of each month. I broke all of this down with my tax advisor and  i spend over a hundred dollars per month just in supplies.

[mikescuriouscurios]

So I recently had a conversation with a e-rep about this exact topic a very short time ago. It is true that you get charged the FVF (Final Value Fee) on either the full amount of your free-shipping sales price (with shipping included) OR the selling price PLUS any shipping costs paid to you by the seller. At least that was the way I understood the explanation.
I then proceeded to ask "Well, what if the buyer decides to request overnight shipping (which they also encourage us to offer as an option) costing $25 on a $2.50 item which he just HAS to have tomorrow? The 10% FVF just wiped out my entire sales price: cost, profit and all"
The response was a slightly awkwardly stated reply, well, we don't charge an additional value fee for (it seemed like she said) anything over the base shipping rate you offer. i.e. if first-class is your basic rate, they don't charge FVF on the difference between 1st class and priority or express if they request it and pay extra for it...
So, being the usual thoughtful and always-looking-for-the-even-break person I am, I paused for a moment then asked: "Well, what if I lower my list price and sold EVERY item with the first shipping option "local pick-up" as being the free shipping option (included in my price), knowing full well 99.9% of the buyers are not going to be able or willing to take advantage of it and needing to select another such as 1st class or priority, etc. and pay "extra" for it. According to what you just said I should not have to pay any FVF on their "optional" selected shipping method right?"
...
[silence]

[dannyk71]

I originally thought this was ridiculous as well, but realized the discount on the shipping price usually covers the difference. I also sometimes add a small handling fee to cover this and cost of shipping supplies if i have to use a special box or a lot of bubble wrap etc.

[chrysylys]

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@mikescuriouscurios wrote:

I then proceeded to ask "Well, what if the buyer decides to request overnight shipping (which they also encourage us to offer as an option) costing $25 on a $2.50 item which he just HAS to have tomorrow? The 10% FVF just wiped out my entire sales price: cost, profit and all"

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You adjust your new total and invoice the buyer accordingly to cover your total costs.

[the*dog*ate*my*tablecloth]

You specifically asked a customer service rep about practicing fee avoidance? The whole purpose of splitting the fees between item price and shipping is that Ebay doesn't know until the item is shipped what the shipping will be. Maybe the rep is confused with the FVF on item shipped overseas that only get charged the US rate.

If it doesn't make fiscal sense to overnight it because the item has no profit, why is that the fault of Ebay or their fees? 

Fees on the total amount is the most fair way to allocate fees. The only other solution would be to drop the FVF on shipping and raise the FVF on item price but then people with free shipping would be devastated and shipping bandits would make out like bandits.

[mikescuriouscurios]

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@the*dog*ate*my*tablecloth wrote:

You specifically asked a customer service rep about practicing fee avoidance?

Yeah, I got SOME b*lls, huh? lol.

The whole purpose of splitting the fees between item price and shipping is that Ebay doesn't know until the item is shipped what the shipping will be. Maybe the rep is confused with the FVF on item shipped overseas that only get charged the US rate.

Or I was confused at the response. Or I confused her with the question...

If it doesn't make fiscal sense to overnight it because the item has no profit, why is that the fault of Ebay or their fees? 

Because if they only charged a FVF on the original shipping (which had been worked into the price appropriately) rather than the added shipping options which THEY encourage and expect, profit would still be there. Basically we only get enough to cover the additional shipping, but then Ebay takes a piece of THAT and we're stuck paying the extra 10% back to the shipper out of our own pocket. Not fair.

Fees on the total amount is the most fair way to allocate fees. The only other solution would be to drop the FVF on shipping and raise the FVF on item price but then people with free shipping would be devastated and shipping bandits would make out like bandits.

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I agree with the concept, but not necessarily the method.  I've recently been made aware that there is a way around this. As dannyk71 mentioned:

the "shipping cost discount" i.e. giving us an approximate 10% discount on the shipping is supposed to make up for this."

Well that would be great and true if it worked that way.  I had all but forgotten about the little check box in the seller preferences about showing OUR discounted rate rather than the non-discounted rate and passing the savings along to the buyer? Apparently if you clicked that up front years ago, when the FVF rules were a little different, then it was a nice thing for the buyer and neutral for the seller. But when Ebay changed the rules to charge FVF on ALL the shipping fees, as usual they didn't mention, "oh BTW you might want to uncheck this now as it is no longer a benefit, but rather a necessity just to break even." But if this is the case, mine does not seem to be working as I expect. Turning it off does not seem to make a difference in the price the buyer is shown (and presumably charged) for requesting expedited rates. They are still showing my discounted rate (which is on the average 10% lower) rather than the standard USPS rate. Am I missing something or is this all a load of baloney?

 Thanks for any assistance.

[partial*eclipse]

I checked 4 of your listings, and they were showing the retail price for Priority Mail.

[luckythewinner]

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@329b-8g wrote:

Since EBay chooses to skim 10% of the final value fee for the shipping, it would seem our only choice is to inflate that shipping fee.  This prevents us from charging an actual true shipping cost to our customers. 

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If a seller sees your solution as the only choice, then IMHO his imagination must be fairly limited. 

[atomic_treasures]

I copied and pasted this from another answer here on the feed.....Ever since 2011, eBay has charged their 10% final value fee on the total paid the seller by the buyer, including shipping.  I believe this is outlined in more than one place.  They implemented this fee schedule because there were apparently some sellers who were avoiding final value fees by charging $1 for their item and $99 for shipping, thus making eBay's share of that sale 10 cents.  

IN MY OPINION this is illegal...this is the very reason EBAY is pushing free shipping !

IN MY OPINION Ebay should NOT be allowed to charge ANY FEES on shipping !

Ebay may eventually have to pay back al related fees to thoses charged on shipping fee's, for it constitutes fraud on their behalf...charging sellers on shipping fees, based on others scams to make money off shipping is not only unethical but not good business management !

This fee skimming is not good for any one, you, or I or Ebay. It makes Ebay look callaus in their actions and in MY OPINION it is theft.

If enough of us sellers were to sign a petition againt this fraudulant policy , a policy based on the fact of others abuse of $99 shipping fees...and not the thousands of other honest sellers...I think we may have a fighting chance.

I love Ebay ! I have been selling ion Ebay since 2002..but feel it has become more an avenue to make themselves richer off fraudulant fee based scheming of shipping !

It makes sellers look incredibly naive to just go along with the system, as if we do not have a choice.

I have had 99 cent acutions w free shipping , and when alls said and done, I end up giving free items away and have to pay for the shipping, which causes me to lose not only a product I had to pay for, but also giving away an item and being in the negative financially , while Ebay recieves  their fees out of my pocket.

I DO NOT AGREE WITH CHARGING FEES ON SHIPPING, AS I AM SURE THOUSANDS OF OTHER SELLERS DO NOT AGREE !

I have put my 2 cents in...that is MY OPINION and I am sticking to it !

[city*satins]

Shipping costs to buyers and charges to sellers has been a pain forever and will continue in perpetuity, i expect.

I've seen buyers gripe that they were charged 10 cents more than exact postage.

I've seen buyers leave bad feedback that they paid too much for s/h when they were charged less than the seller paid for postage, never mind shipping materials.

On the other hand, in the past, I've seen sellers offer an expensive handbag for $1 and a s/h charge of $300.  The seller paid FVF only on the $1.   Nowadays this won't help the seller, but in the earliest days of eBay's inadequate buyer protection policy, the buyer who opened a buyer protection case in such a sale would only be entitled to reimbusement of the sale price. i.e. $1

Theres always something that pinches somebody when it comes to s/h.  It's kind of like whack-a-mole.