Ebay charges a fee on shipping even if the shipping is actual cost

[jt9d-7j]

 I sell and item and I charge the buyer the actual shipping cost. Ebay can verify that because I purchased the shipping label from them. Why then should Ebay be entitled  to a fee on the actual shipping costs? That's just unfair. They probably are making money from the shipping label also. 

I get why they implemented the procedure , but they are punishing the whole class for one bad student.

They can verify shipping costs via the shipping labels they sell. Then punish those that charge more by  charging them a fee on the overcharge and refunding the purchaser for the overcharge through the seller.

If you don't purchase a label from them then the seller pays a fee on the shipping charge they collect from the buyer, since the actual shipping charge cannot be verified.

Now that is fair. The cheaters get punished and the 99% of sellers that are honest, don't get punished.

[wastingtime101]

Fairness has nothing to do with it and if you want to talk about fairness, it's not fair to punish sellers that purchase labels outside of eBay to suit your wishes.

Bottom line: every seller is charged fees based on total amount buyer pays (item + ship + sales tax). You know this in advance so set up your pricing to accommodate those fees.

An easy way to do that is charge buyers retail rate instead of online rate for shipping labels.

[stainlessenginecovers]

Yes; just like many States in the US charge 'Sales Tax' on the 'shipped amount...because in reality, the buyer isn't paying $10 for those socks, they are paying $16 with shipping. Just ask the buyer what they paid? 

[monroe67]

"I sell and item and I charge the buyer the actual shipping cost. Ebay can verify that because I purchased the shipping label from them. Why then should Ebay be entitled  to a fee on the actual shipping costs? That's just unfair. They probably are making money from the shipping label also."

Of course, eBay makes money on the shipping costs -- precisely because eBay charges their Final Value Fee (FVF) percentage on the total amount paid by the buyer, which usually includes a specific dollar amount for shipping and handling.  

eBay's "entitlement" is, I think, based on ownership.  eBay owns this platform.  They get to make the rules, as long as those rules are legal.  And as others have often said, I am sure eBay employs and/or retains enough attorneys to research laws and cases and precedents to make sure their policies are truly legal.  

"I get why they implemented the procedure , but they are punishing the whole class for one bad student."

Bingo !!!  In a class of 22  5th-graders, usually 10-year-olds, some peer-pressure might help get that one bad student to start behaving, especially when the rest of them have to cut their recess short or have to learn a few more spelling words because of one bad kid.  (In my schools, that was usually a boy named Roger.)  

Indeed -- not to change the subject but -- many of our nation's laws have gone into effect because of One Bad Apple.  Why do we all have to take off our shoes for the security inspection before boarding an airplane?  Because One (#$*&) Guy decided to try to blow up a plane by smuggling matches in the soles of his shoes.  Why is eBay required to send reports of income to sellers who have earned "only" $600.00 during a taxable year?  Because the IRS decided to try to crack down on tax cheaters (while obviously ignoring huge-corporate tax tricks that are on a much higher level than six hundred dollars). 

"They can verify shipping costs via the shipping labels they sell. Then punish those that charge more by  charging them a fee on the overcharge and refunding the purchaser for the overcharge through the seller.

If you don't purchase a label from them then the seller pays a fee on the shipping charge they collect from the buyer, since the actual shipping charge cannot be verified.  Now that is fair. The cheaters get punished and the 99% of sellers that are honest, don't get punished."

Great plan.   Sounds sort of complicated, though.   And scammers still gonna try to scam.  
If eBay did implement such a complicated process for charging fees on shipping and handling charges, I think they would be able to justify increasing the FVF percentages and perhaps even increasing the current 30-cents-per-order portion of the FVF.   That 30-cent charge has been in effect for a couple of decades.  I can't even imagine the uproar that would happen if eBay ever decided to raise that 30 cents to 40 cents.  Horrors !!!!

Bottom line:  Accept the things you cannot change.  If you cannot accept eBay's policies/procedures, you are allowed to leave eBay.  

[kensgiftshop]

So it would be fair for you to charge a buyer $10 shipping, buy your label through Ebay  and pay no fee, and another seller charge a buyer $10 for shipping, but don't buy their label through Ebay, but they have to pay a fee?

That sounds real fair, Ebay should switch to that and do away with the system now where it's fair for all sellers.

[frankenhobbit]

I honestly would like a way to offer the eBay rates, with a markup to offset the FVF fee. Then a handling fee for materials/time. 

They already have a custom discount field, they already have 'offer the ebay discount' option. They have the handling fee. But you cannot combine all three (also the custom discount field doesn't let you just type something into it, you have to select from a list).

If I could offer the eBay rates, marked up by maybe 16 percent to get back the 13.25 percent and sales tax on shipping. (Need 15.2 percent markup to get the 13.25 percent back, plus a smidge for the sales tax). 

Instead, I have to mess around trying to find the right discount/balance so that my shipping is fair to the buyer and myself.  Depending on the carrier/weight/dimensions, I may still be overcharging/undercharging on shipping. 

Some will say I'm overthinking it, or to offer Free shipping, but it's not free, is it? It's rolled into the price and therefore it subsidizes the far away buyer at the expense of the local buyer. 

I'm also not doing this for a living. Just thinning out stuff I have collected over the years and having a bit of fun doing it to be honest. So I like to overthink it!

I just think that a button (you don't have to use it) that allowed a seller to markup the shipping to cover the FVF, in addition to the one that allows you to offer the eBay discount would be nice. Then I can find something else to overthink!

You could still buy your label elsewhere, just use the eBay rates to calculate what to charge

[frankenhobbit]

I'm certainly including shipping I paid when I calculate what an item that I sold on eBay cost me when I purchased it! 

[wastingtime101]

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@kensgiftshop wrote:

So it would be fair for you to charge a buyer $10 shipping, buy your label through Ebay  and pay no fee, and another seller charge a buyer $10 for shipping, but don't buy their label through Ebay, but they have to pay a fee?

That sounds real fair, Ebay should switch to that and do away with the system now where it's fair for all sellers.

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Don't forget this part:

"Then punish those that charge more by  charging them a fee on the overcharge and refunding the purchaser for the overcharge through the seller. If you don't purchase a label from them then the seller pays a fee on the shipping charge they collect from the buyer, since the actual shipping charge cannot be verified. Now that is fair. The cheaters get punished and the 99% of sellers that are honest, don't get punished."

So the OP charges $10 and buys the label on eBay. Another seller that purchases a label off eBay charges $11 because they're adding in the cost of the shipping box. eBay is supposed to take $1 from the second seller and give it back to the buyer, then eBay is supposed to charge a fee to the second seller but not to the OP. The second seller is being punished because they are a dishonest cheater.

Then a third seller decided to charge $9 for ship with a decreased profit to gain a selling advantage, but that seller rolls the $9 into their item cost and makes it "free" shipping so it's even more appealing to the buyer. But that seller has to pay fees on shipping because shipping is rolled into the item cost and everybody pays fees on the item cost. They, too, are a dishonest cheater?

I like to consider all points of view, but I can't wrap my head around how the OP's proposed change is supposed to be fair.

[redmodelt]

You agreed to the terms for selling here when you listed your items. All the fees are posted.

There was more than one bad student, it epidemic. 

[crystalbaysolar]

I think sellers pay a fee on shipping even if purchased through ebay discounted buyer shipping cost. Therefore, you can lose money as you are getting paid less than actual postage. Sellers who have ebay discount shipping cost for buyers will have to make it up in higher item charge. Not easy as so many people are going lower and lower with a buck or 2 "profit" lol. Option, besides increasing item price, might be to offer flat shipping.

[wastingtime101]

Not all sellers are being opted in to the eBay discounted shipping change on May 15 @crystalbaysolar . If you receive the eBay message there will be am opt out link in the message, but to make it even easier:

If you are opting out before the May 13 deadline you can do so using the link on the Seller Center page:

https://www.ebay.com/sellercenter/shipping/calculated-shipping-rates

Specifically: https://www.ebay.com/srv/survey/a/shipping.discount.optout

If you miss the May 13 deadline, then you will have to opt out after this goes into effect May 15 on your Shipping Preferences page: https://www.ebay.com/ship/prf

If you want to offer discounted calculated shipping you will need to increase your item prices or add handling fees to cover the loss/fees.

[crystalbaysolar]

Thanks wastingtime101. I like your name... I can relate. Happy spring!

[kh_nipun]

Hi everyone,

Due to the age of this thread, it has been closed to further replies. Please feel free to start a new thread if you wish to continue to discuss this topic.

Thank you for understanding.