eBay

themitso5 · ‎02-18-2021

Hi,

due a short search in eBay catalogs, I noticed that I can easily find what I am looking for, at low enough prices, but... when it went for shipping, I could not believe my eyes! Who decides the shipping cost and why so much difference, between the price of the selected item to buy, and the price for shipping?

However, I don't think that this is fair for anyone.

kosmosattik · ‎02-21-2021

Maybe an example would help so you can see it from the seller's perspective.

Let's say I sell you an item for $10 + $5 shipping or $15 with free shipping, same either way from the buyer or seller's perspective if the seller uses ebay shipping which is almost always the cheapest known shipping method at the time of listing. Here's the seller's perspective:

Ebay takes 10% of that sale including the shipping, $1.50. PayPal takes 2.9% + 30 cents, $0.74, a few pennies more if there is sales tax which passes through the seller. The seller is still paying to ship the thing. If this happened to be a package weighing a few ounces going First Class, the actual shipping cost to the seller might be around $4 after ebay bulk discount, a kinda sorta rebate.

So, on that $15 sale, the seller nets $15 - $1.50 - $0.74 - $4 = $8.76 net. That doesn't include time and materials. I pride myself on same day or next day mailing. That might involve driving 6 miles round trip to the post office to get it on truck by the end of that day. If I used the IRS mileage rate of 57 1/2 cents per mile as my cost factor, that's an additional $3.45 cost to me if I happen to have only one package.

With lower ticket items, like a $4 baseball card or a $5 CD, properly packed in a $4 first class or $3 media mail package, the profit picture gets a lot worse. The margin is way better on high ticket items, but if they are of any weight or size the shipping cost can vary wildly and if you don't charge the buyer shipping could lose money on the deal.

From my perspective as a businesslike casual seller, not an ebay businessman, selling 40 or 80 items per year, collectibles and stuff around the house we don't use or want anymore that still has value, I probably make $5/hour if that. I'm sure if the many casual ebay sellers did a little microeconomics and themselves on the clock, they'd find this exercise is something to do to fill spare time.

I'm retired, I do this in the winter when there's no golf, no yardwork, no day trips or road trips. I do it fill the time, make a couple of bucks I don't really need, with the idea in the back of my head that if I died tomorrow each sale is one less item my wife has to figure out what to do with before moving to a condo.

cliqbae · ‎02-21-2021

follow the free shipping.. 😊

southern*sweet*tea · ‎02-21-2021

@biddybiddyboombum wrote:
If you live in a state which charges SALES TAX you are actually saving a lot of money if the seller charges, for example, $1 for the item and $100 for shipping.
EBAY collects SALES TAX on the item price but not on shipping.

Not exactly correct. SOME states charge tax on shipping - mine is one of them.

https://blog.taxjar.com/sales-tax-and-shipping/

The easier you are to offend the easier you are to control.

We seem to be getting closer and closer to a situation where nobody is responsible for what they did but we are all responsible for what somebody else did. - Thomas Sowell

kosmosattik · ‎02-21-2021

"If you live in a state which charges SALES TAX you are actually saving a lot of money if the seller charges, for example, $1 for the item and $100 for shipping."

That's not true, at least not in all states. I can't speak to how every state charges sales tax but I can give a couple of examples:

I recently sold an item for $30.00 + 4.70 shipping = $34.70 . The sales tax was $3.38. The shipment was to Gleview, IL which has a 9.75% sales tax. $34.70 * 0.0975 = $3.38324 rounded to $3.38. Ergo, the shipping cost was taxed.

I live in New York. I sometimes buy things on-line that have a separate shipping charge. The shipping cost is taxed. The New York State Department of Tax and Finance web site states that shipping and transportation costs by whatever name are "generally" taxable. I don't know when that might not be the case, but as a consumer shipping is taxed every time.

You might want to pull some receipts of purchases with separate shipping and run the numbers. You might be surprised.

pjcdn2005 · ‎02-21-2021

@kosmosattik wrote:
Right on the shipping cost. Wrong on the tax. Ebay does not take 10% on the tax. However, when PayPal calculates their fee (2.9% + 0.30), they base it on the all-in buy cost--price + shipping + tax.

Managed payment sellers do pay fvf on the full amount of the sale, including sales tax.

ed8108 · ‎02-21-2021

When considering making a purchase always look before you leap & commit to buy.

Always buy on total cost. Item + shipping

zoin3580_cdcqgfel · ‎02-22-2021

Thanks for the answer.

I didn't know that you can't pick more than one. I think that should change.

The thing is that I bought cake pans shipped with International Standard Delivery which was cheaper and no extra fees asked when I received them, while the Global Shipping Program charged me extra 22$ for taxes! Which will not refund to me!

wasalamni_0 · ‎02-22-2021

the best way is you can go through reputed sellers for your deals! and the other thing is ask your item's background before you purchase from your seller. make a good communication! regards your doubts.

lightlily_arts · ‎02-22-2021

To clarify what eBay charges for final value fees the policy below is found in the seller center:

Final value fees

We charge one final value fee when your item sells, and you don't have to worry about third-party payment processing fees. This fee is calculated as a percentage of the total amount of the sale, plus $0.30 per order.

The total amount of the sale includes the item price, any handling charges, the shipping service the buyer selects, sales tax, and any other applicable fees

lightlily_arts · ‎02-22-2021

It's ok and I knew that. I was just adding my two cents so that the OP would know what it really costs sellers to list an item here. Most buyers don't have a clue what expenses a seller has to list on eBay which I believe averages about 35%. There is always that cheapskate that thinks it should be cheaper. Even when they pay the exact USPS shipping they don't realize that the seller is losing money due to the fees we pay to eBay on shipping. For example, the minimum First Class Mail Parcel retail rate is $4 for zone 1 & 2. The maximum is $4.20 for zones 8 & 9. Although we get discounted shipping for our labels if you don't add that 12.35% back in to your shipping charge you are losing money. It really annoys me when a buyer asks for a 50% discount with free shipping on a $5 item. I so want to hit my BB list with their user ID. Instead, I just respond with my usual statement of "we are not accepting any offers."

powell-memorabilia · ‎02-22-2021

I often see CRAZY prices for shipping, until I remember to limit the geographies of sellers. Sure, if I'm in the U.S., and buy a small item from the U.K., the shipping charge will look far too high, esp. in comparison to what it would be from the U.S.. That isn't anything that the seller is doing wrong - it is just a shipping charge based on the realities of intercontinental shipment costs.

ra_201044 · ‎02-22-2021

@wasalamni_0 wrote:
the best way is you can go through reputed sellers for your deals! and the other thing is ask your item's background before you purchase from your seller. make a good communication! regards your doubts.

Do all of you get a book of 'board posts' when you sign up? It's not like it's going to help you sell anything from sri lanka despite what anyone says .........

lightlily_arts · ‎02-23-2021

👎 👎 👎 Everyone here has an equal right to post responses.

powell-memorabilia · ‎02-23-2021

@lightlily_arts

thank-you - 100% agreed!

soh.maryl · ‎02-23-2021

If you will look at the taxjar map kindly provided by another poster, you will see that there are more states that require eBay to charge state sales tax on the shipping fee than those that don't.

The bottom line here is, and I can't believe it's still open to debate, is that eBay, in the majority of sales to the majority of states, collects state sales tax on the total paid by the buyer to the seller; that is, the item price + the shipping.

And, again, surprised we are still debating this, but state sales tax is on the transaction, not the item. In most, if not all, the states that require state sales tax, the tax is charged on both used and new items. Ever purchase anything in a thrift store or antique shop? How about a used car? If the tax were to be charged only on new items, wouldn't there be at least some sellers who would list their shiny, brand-new-in-the package items as "used"?