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Free Shipping : Are there ‘hidden’ fees?

Hello. I’ve seen/heard on other secondhand platforms that if the seller offers free shipping that platform will take a cut out of the earnings. I think most of it is due to them using the platform’s shipping labels but I’m unsure if they still do even when using your own shipping.

 

My question is if eBay does this? Or is the free shipping, actually free. As in you pay for the shipping your own and label on your own. And eBay just gives you what you sold as with no extra shipping deduction.

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Re: Free Shipping : Are there ‘hidden’ fees?

Fees come off the total sale including the shipping...Free shipping is simply rolled into the price on the listing.  No such thing as FREE SHIPPING, someone always has to pay for it.  The total cost of the sale * times the %percentage =$ total fees you pay.

ᓚᘏᗢ


KrazzyKats  •  Volunteer Community Member  •  Buyer/Seller since 1998

Message 2 of 12
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Re: Free Shipping : Are there ‘hidden’ fees?

If you don't buy your labels through Ebay, they don't charge you anymore then the regular fee's.

Have a great day.
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Re: Free Shipping : Are there ‘hidden’ fees?


@an_ebb_ebony wrote:

Hello. I’ve seen/heard on other secondhand platforms that if the seller offers free shipping that platform will take a cut out of the earnings. I think most of it is due to them using the platform’s shipping labels but I’m unsure if they still do even when using your own shipping.

 

My question is if eBay does this? Or is the free shipping, actually free. As in you pay for the shipping your own and label on your own. And eBay just gives you what you sold as with no extra shipping deduction.


There is no such thing as a “hidden fee”. eBay spells out on their fee pages exactly what they collect. NONE of it is hidden (although it does appear that some ((many??)) sellers don’t bother to read and therefore are surprised by the fees which are clearly spelled out.) So when you see someone talk about “hidden fees” that is a giant tip off that they never bothered to see what the clearly stated fees were before they started selling.

 

The fees are based on the total amount of money that the buyer spends without regard as to exactly what each dollar is for. There is no fee (hidden or otherwise) on what you spend.

 

For your convenience eBay enunciates exactly what each dollar is for (item, shipping, tax, promo fee, etc). But that is irrelevant when it comes to calculating the fees.

 

It does not matter where you buy the label. From eBay or any of several other sources. The fee is on the COLLECTED money, not on what you spend (for the label) nor where you spend it.

 

"Laissez-faire capitalism (AKA The Great Material Continuum) is the only social system based on the recognition of individual rights and, therefore, the only system that bans force from social relationships." ~ Ayn Rand
Message 4 of 12
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Re: Free Shipping : Are there ‘hidden’ fees?

eBay takes a cut of the total regardless of whether you offer free shipping or not. If you're truly offering free shipping and covering it yourself or rolling the shipping into the total price in classic smoke and mirrors fashion, is up to you. eBay takes an average of 13% out of your fanny for every stinking dollar that's collected no matter if you see that money or not. Buyers sales tax? You pay 13%. Buyer paying shipping cost? You pay 13%.  

Message 5 of 12
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Re: Free Shipping : Are there ‘hidden’ fees?

One of the first things that a seller needs to understand is this:  There is no such thing as free shipping.  Either the seller rolls the shipping cost into the price of the item or the buyer pays for shipping.  I list an item for $20 with free shipping.  I list an item for $15 plus $5 shipping.  Same price to the buyer.  It doesn't matter whose shipping labels are used. 

Before you go any further in selling on eBay, may I respectfully suggest you do a little more reading? There are no hidden fees, everything is clearly spelled out for you.  

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Re: Free Shipping : Are there ‘hidden’ fees?

eBay's fee is a percentage of the total sale including whatever the buyer paid for shipping.  So the fee  for a $20 item with free shipping is the same as the fee for a $15 item with $5 shipping.

 

Sellers can choose whether to purchase postage through eBay or elsewhere; that does not affect their fees at all.

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Re: Free Shipping : Are there ‘hidden’ fees?

another question, if I ship an item say worth $50 with free shipping, USPS breaks the item. When I file an insurance claim, would it be for the whole $50 since there was no shipping paid by the buyer. Only asking because I'm thinking of switching fishing rod's over 48" back to the PO, they run about $20 to ship compared to UPS charging $40+ but PO insurance doesn't cover shipping just the item.

 

Message 8 of 12
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Re: Free Shipping : Are there ‘hidden’ fees?

Yes, that's one of the more subtle advantages of free shipping: If you file an insurance claim, USPS will want you to document the selling price.  But frankly they usually deny damage claims.

 

If you're shipping via Ground Advantage, there's a surcharge of $8.40 for packages with a length over 30 inches.

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Re: Free Shipping : Are there ‘hidden’ fees?

Surcharge is still cheaper then UPS, over 48" rates jump to $40+,  pretty much double USPS. PO insurance claims are a pain, biggest problem is not them but when they break an item, the customer is then mad and I have to ask them to take up to PO for inspection.

 Just have to add self insurance and it's a write off if the do break it.

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Re: Free Shipping : Are there ‘hidden’ fees?


@tsme35 wrote:

Surcharge is still cheaper then UPS, over 48" rates jump to $40+,  pretty much double USPS. PO insurance claims are a pain, biggest problem is not them but when they break an item, the customer is then mad and I have to ask them to take up to PO for inspection.

 Just have to add self insurance and it's a write off if the do break it.


Experience has been that shippers o not pay for damage in transit. Their usual response is that it got broken because you did a poor job of packaging it. Generally damage claims are denied so the question is moot.

"Laissez-faire capitalism (AKA The Great Material Continuum) is the only social system based on the recognition of individual rights and, therefore, the only system that bans force from social relationships." ~ Ayn Rand
Message 11 of 12
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Re: Free Shipping : Are there ‘hidden’ fees?

UPS has paid out for 2 broken fishing rods with very little hassle in the last 6 months. I haven't use USPS in 2 yrs, they paid on a couple broken rods but did take a month and that was mainly waiting on customer to drop off for inspection.

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