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Fees and shipping

Hello. I've never posted before but I want to make sure this doesn't happen to anyone for not being careful enough in reading and understanding the options Ebay uses for selling.  I had an item that I was selling for $800.  It was up for awhile then I saw the option to promote it.  I didn't quite understand how this worked so I chose the tab that was most recommended. I think there was general or minimum. There were two options so I chose the one most used.  I called customer service and she says you pay from 2%-100%. I didn't choose one so it charged me 11%. I put $20 for shipping based on the measurements posted.  I was charged $96 for promoting it and over $100 in fees and taxers.  The buyer paid $20 for shipping, however the shipping label I printed was for $56.  I did call on this and they are going to dispute it with the USPS.  All in all, from an $800 sale, my portion came out to $550. I think this is absolutely crazy. $200 for selling an item? This is making me rethink selling on ebay, although I know it's the best place for selling online.  Just wanted to put this out there so others will make sure they figure this out before they get overcharged as I did. Thanks.

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Fees and shipping

So is the moral of the story:

 

NEVER 'promote' anything that costs you $$ BEFORE you understand what you are doing? 

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Fees and shipping


@smallzuki wrote:

This is making me rethink selling on ebay, although I know it's the best place for selling online. 


You do still have one item listed: a Kate Spade bag that appears to be roughly the same size as the one you sold, and on that one you have Free Shipping.

 

Before listing, I would strongly recommend figuring out how you will be shipping: size and weight of package. That way you can offer Calculated Shipping to your buyers, and your buyer will be charged only the correct amount to ship to his or her own doorstep.

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Fees and shipping

*I was charged $96 for promoting it and over $100 in fees and taxers."

 

You chose  to promote your item at 11%.  Thus, your promotion fee is really nobody's "fault" but your own.  What did you think "promoting" means?  What it means is that the seller pays for promotion (advertising) and, in theory, eBay places your item near the top of similar listings.  Essentially, eBay would say to you, "Hey, you chose  to promote your listing and your item sold.  Our system worked for you.  So, what's the problem here?"

 

Sales taxes are paid by the buyer.  eBay is required by law to collect those sales taxes from the buyer, based on the sales tax percentage at the zip code of the delivery address.  eBay then sends that sales tax money to the state where the item was delivered.  Yes, eBay does show you that amount of sales taxes, as they are part of The Total Amount Paid By Your Buyer. 

 

Why is "The Total Amount Paid By Your Buyer" such an important number?  Because (1) the percentage you chose for promoting your listing and (2) eBay's Final Value Fee (FVF) percentage are both applied to that Total Amount in order to calculate how much money eBay will retain (keep) from your total sale.  

 

"The buyer paid $20 for shipping, however the shipping label I printed was for $56.  I did call on this and they are going to dispute it with the USPS."

 

This should be another learning experience for you.  You don't really say whether the listing in question had a flat shipping cost of $20.00 or whether it had "calculated shipping."

If you listed a flat shipping cost of $20.00, you essentially are volunteering to pay any shipping cost over $20.00. 
To complain now about those costs (over $20.00) is a little -- I don't know -- confused?  

 

With calculated shipping, each listing form contains spaces for you, the seller, to fill in the weight of the item and the dimensions of the box or envelope it will be shipped in.  The weight of the item, therefore, should be a very accurate estimation of the weight in the packaging you choose, with packing materials included.  

"All in all, from an $800 sale, my portion came out to $550. I think this is absolutely crazy. $200 for selling an item? This is making me rethink selling on ebay, although I know it's the best place for selling online."

 

My calculation of a $550 payout from the sale of an $800 item comes to 68.75%.   That sounds about right.  The old saying about "looking a gift horse in the mouth" comes to mind.  My selling ID generally estimates she will receive about 70% of the item prices in her listings.   

eBay's Final Value Fees apply to each and every eBay sale.  The FVF percentages vary widely among categories, from 6.35% for guitars to 15% for jewelry.  Most categories carry an FVF percentage of 13.25%. 

 

The Promoted Listings fees, however, are completely voluntary.  You might want to try not promoting a few listings in the future, just to see whether the advertising program will always work for you or not.  

And come back often and read this Shipping community forum and the Selling community forum.  It's one of the best ways to learn about eBay's procedures on shipping and sales taxes and fees, etc., etc.  

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Fees and shipping

You need to know what your cost will be before you start to sell.   You didn't understand promotions, you didn't  understand shipping....not knowing those two things will definitely smoke you.   This is not ebay's fault.   There is a cost to selling, its not free, but how much those cost will be, is based on you and your choices.

 

Promoting, you can play around with and figure out if it works or doesn't work for you, but shipping & packaging costs, you need to have that knowledge down

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Fees and shipping

Ebay dispute with USPS .... I can't wait to see the outcome of that.

Lift your left leg at midnight to start off on the right foot. Happy new Year!
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