03-04-2023 11:03 AM
Is a seller better off to list an item for ex: $25.00 free shipping or $20.00 plus $5 shipping? Do we pay fee's to Ebay for a $25.00 sale either way? thanks!!
03-04-2023 11:07 AM - edited 03-04-2023 11:11 AM
Sellers pay final value fee based on the total amount of the sale. Purchase price PLUS shipping PLUS tax= Total Amount
You haven't factored in sales tax
If the sale is $20 plus $5 shipping Plus sales tax = Total Amount minus fvf
Or $25 PLUS tax = Total Amount minus fvf
Sales tax varies
03-04-2023 11:09 AM
Same fees either way.
eBay's final value fee is a percentage of the buyer's total payment including the item price, shipping and handling, and sales tax if any. Some states charge sales tax on shipping; others don't. So if your buyer is in a state that doesn't charge sales tax on shipping, they'll pay less sales tax and you'll pay less FVF if you charge buyers separately for shipping rather than offering free shipping.
03-04-2023 11:13 AM
One advantage to offering free shipping, with the postage costs rolled into the price, is that buyers can filter Search results with it. There may also be a psychological advantage to giving the buyer “free” shipping. But, really, it boils down to what the item is, how much shipping costs will be, and your personal preference. There is no right or wrong way to handle this issue.
03-04-2023 11:20 AM
Yes, the seller would pay the same fees either way.
And you might want to do a little more reading about the final value fee for sellers.
03-04-2023 11:45 AM
"Is a seller better off to list an item for ex: $25.00 free shipping or $20.00 plus $5 shipping?"
Interesting wording. Since the title is "question about fees" and the second sentence in your post asks, "Do we pay fee's to Ebay for a $25.00 sale either way?", the answer is: YES. You (the seller) pay eBay's fee as a percentage of the total $25.00 sale.
As alluded to by "ebooksdiva", you have omitted sales tax and a couple other variables from your hypothetical.
The largest part of eBay's Final Value Fee (FVF) is a percentage of the Total Amount Paid By The Buyer. (Almost always, this percentage will be larger than the base $0.30 (thirty cents) per order fee that eBay retains.)
The Total Amount Paid By The Buyer will include the price of the item + any handling charge you, as the seller, might add + any sales tax the buyer is required to pay + postage or other shipping charges paid by the buyer + any other legally-required charges, such as recycling fees imposed by the buyer's state.
03-04-2023 11:48 AM
There is an advantage to showing "shipping costs" separately...if customer returns item for "buyers remorse" customer is responsible for all shipping costs.
If $25 (free shipping) you must refund $25
If $20 + 5 shipping) you ONLY refund $20
You cannot "deduct" for FREE SHIPPING when customer makes return.
03-04-2023 11:50 AM - edited 03-04-2023 11:51 AM
The fee is the same.
There is only ONE difference I can think of.
$25 item with free shipping:
On a remorse return the buyer does not pay for return shipping.
$20 item with $5 shipping:
On a remorse return the buyer pays $5 for return shipping.
I list all my items with a separate shipping charge.