final value fees

[kickedoutofbar]

i sold a single pack of hooks $3 buyer paid shipping $4.31 for a total $7.41

my total fees $1.22 + .30 = $1.52 

so i netted $1.48 on a $3 sale 

why would i be charged final value fees on  any shipping costs is beyond me.

till i add in costs of packing and my cost of item i'm probably loosing money on transaction. i tried to get this explained to me by an ebay rep but i'm pretty sure i understood whats happening more than she did. ive been doing this thru ebay for a long time an i've never been more confused about anything. i've seen people saying about go daddy booking keeping but how are they affording to pay for it is beyond me. 

[kickedoutofbar]

the $7.41 also included .36 sales tax . which of course is rising the "total sale" 

and the fees . 

so if i got this right i'm paying fees on -

 sold price +shipping+taxes 

and then lets add on a .30 fee 

this is gonna be the end of KICKEDOUTOFBAR

[stlbbrpm]

Unfortunately there may be no alternative. I've known other ebayers who tried other platforms and the sales there are very slow.

Have to be careful about selling low priced items because the fees will eat you up.

[myescape]

You need to consider all those costs(or overhead)when setting your price so that they are covered

[nobody*s_perfect]

Yes, eBay and PayPal both charge a fee that is equal to a percentage of the buyer's total payment including shipping and taxes.  In order to make a profit, you must factor in this expense just as you factor in all your other expenses when setting a price for your product.

And yes, there are some items which are just not profitable to sell in this type of pricing structure, including not only low-value items like yours, but also higher-priced  items that are very expensive to ship.

[tomtrue2]

I recently noticed that oversee shipping now has a aditional fee. Small but add up. I thought this was part of there service and paid for by buyer?

[disneyshopper]

I try not to list anything under $20.00 unless I can acquire the item at a very good price.

[corvettestainless]

You are charged for shipping because that is the total value and price the customer paid to purchase and get the item. 

Plus it would make sellers that offer 'free shipping' be penalized for higher costs ($20 item shipped) vs. a seller that does not offer free shipping ($15 with $5 shipping).....and free shipping is the preferred way to sell. 

[glittercute]

Back when I started on Ebay in 2004, Ebay didnt charge fees on shipping, so a lot of seller used to make .99c listings with the entire price of the item for sale on the shipping.  Aside from making their fees lower, it made it unfair for the buyers when disputing an item and they could only get refund for the item price and not shipping charges.   

I do think Ebay shouldn't charge a fee for fair shipping prices, especially for those set up with their help, or sellers that offer free shipping should get a better cut on their fees since we still need to pay for shipping out of the item price.

I do like that now we get a high number of free listing, vs back in the early 2000s, back then I used to list and even without making a single sale I already owned ebay so much from listing that most of the time didnt even sell :(. 

[suec6690]

I am trying to decide what to do.  They charge me so much in fees, that is is not profitable to sell.  My prices are high , so If I don't have a 20% or more off, Nobody buys!  Undecided as to what to do.

[grasscarp]

---

@kickedoutofbar wrote:

why would i be charged final value fees on  any shipping costs is beyond me.

This is to prevent sellers from listing an item for $1.00 and charging $25.00 Shipping.

If ebay only charged Final Value Fees on the list price, they would not be in business because everyone would 

list extremely low and have a "free" ride on shipping fees.

I looked at your items for sale---great prices for a buyer. I do not know how you can sell a package of hooks for $2 and charge $3.85 shipping. You need to make a profit after all fees + supplies + item cost to you. And also you will be obligated to pay taxes on any profit. If after all this you only make 50 cents on a sale, you have to ask " what about my time, and returns, and lost/late packages, etc. Maybe I should just use these hooks and go fishing!!"

Best of luck to you.

[kickedoutofbar]

ive been selling hooks on here for almost 20 years, a $3 pack of hooks for $8 isnt gonna make anymore profit because no ones gonna buy it

[pjcdn2005]

---

@tomtrue2 wrote:

I recently noticed that oversee shipping now has a aditional fee. Small but add up. I thought this was part of there service and paid for by buyer?

---

The buyer pays currency conversions fees when required but the seller always pays an international transaction fee when the buyer uses a non US based account.  There was a similar charge in Paypal as the seller paid 2.9% for US buyerss and 4.4% for international buyers.  I'm not sure but isn't the MP amount also 1.5%?

[luckythewinner]

---

@kickedoutofbar wrote:

why would i be charged final value fees on  any shipping costs is beyond me

---

Without fees on shipping:

  $10 item with $10 shipping at 10% = $1

  $20 item with free shipping at 10% = $2

With fees on shipping:

  $10 item with $10 shipping at 10% = $2

  $20 item with free shipping at 10% = $2

eBay has made it clear that they want sellers to offer free shipping. Applying the final value fee to the total cost removes the financial penalty for sellers who offer shipping. 

[mam98031]

You've been a member for 10 years and you are just now noticing you are charged a FVF on shipping?

It is OK to increase your shipping prices to cover your fees for shipping or you can put it into your product price.  Both ways are acceptable, but yes you need to charge your buyer for it instead of taking it out of your profits.  It is just like any other cost.

You won't find the grass greener on the other side.  Most if not all similar sites to Ebay charge a FVF on the shipping.  

Ebay has charged FVFs on shipping since 2011.  So this is not a new thing.  You were charged it before you went into MP as well.  You've always paid it.  You may not have realized it, but you did.

Oh and just in case you weren't aware.  USPS is raising their rates come October for FC mail by 25cents.  So you may need to raise your pricing on some of your stuff.  Some of your stuff would likely be fine where it is if you are charging $4.20 for 4 Oz or less.  The highest zone for 4 Oz would end up being $3.43 so that leaves you 77 cents for fees and packaging.