Is anyone having problems with fees for shipping cost taking away from their profit?

[eufaulaborn]

Is anyone having problems with the fees for shipping cost eating into the profit margin?

[m*and*l*sales]

Fees and charges of all types eat into my profit margin.  It isn't just shipping costs that do it.

[monica-sells]

nope....I add the fees into the shipping costs to the buyer

the only thing eating into my profits are the costs of acquisition (inflation....acquired many items prior to 2018) and the difficulty locating items in my categories at resellable prices.......

[eufaulaborn]

I am new to the community.  I have a lot of low price items I have had out there for years.  Example $5 and shipping is $7.  The buyer only pays $7 and the actural shipping cost is $7.  The $1.17 fee for shipping comes out of my $5.  Net profit was $2.95 and Ebay got $2.02.  I think the buyer should pay that $1.17!    My issue will be these small orders and Ebay ending up with over 40% of the cost of my item.  

[soh.maryl]

Most smart and experienced eBay sellers used to say it's not worth it to list anything for less than $10.

Probably by now that figure has increased to $20.

[eufaulaborn]

That is probably true.  Thanks for the comments.   

Can you change your setting so the buyer can receive an invoice?  That way I may be able to tell what the shipping will be and make sure the fee is included.

[buyselljack2016]

I know what it cost to ship things. (selling 101)

Items are listed with a buyer paid shipping cost that covers the shipping, and if not all, at least some of the fees eBay charges on the shipping.

I sold hundreds of items for $9-10 total with the shipping, but even though I made $4 (no cog) with my time being basically worthless, it just isn't worth my time to bother with them anymore.

[buyselljack2016]

invoice what?

you can not change (increase) the shipping after the sale.

[monica-sells]

You answered your own question.....

"...Example $5 and shipping is $7.  The buyer only pays $7 and the actural shipping cost is $7.  The $1.17 fee for shipping comes out of my $5.  Net profit was $2.95 and Ebay got $2.02.  I think the buyer should pay that $1.17! ..."

simply add the $1.17 to the shipping....$7.00 + $1.17 = $8.17 (handling charge is $1.17)

actually...regardless of the item, I would list it at $14.00 with Free Shipping.....

visually, it looks better than $5.00 for item + $8.17 for shipping

[nobody*s_perfect]

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@eufaulaborn wrote: ... .  I think the buyer should pay that $1.17!  ...

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You need to add that $1.17 to either your asking price or your shipping price.  You cannot surprise buyers after the sale with a shipping cost that is higher than what's shown in the listing.  

There are very few situations where there is a valid reason to send an invoice with a different shipping cost: such as if the buyer requests an upgrade in the shipping service, or if the seller is giving a discount on shipping for multiple purchases shipped together.

[yuzuha]

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@soh.maryl wrote:

Most smart and experienced eBay sellers used to say it's not worth it to list anything for less than $10.

Probably by now that figure has increased to $20.

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Untrue. You just have to figure out how to account for the fees.

In my case, I do so by charging the buyer the retail cost of shipping rather than passing along the shipping discount. That always more than covers the cost of the fees on the shipping portion of the sale.

[shoplindashop-96]

I agree with you.  I am having similar problems.    The shipping cost is calculated by eBay, and the shipping fees collected by ebay is less than the actual shipping cost I pay.  Even with the ebay discount.  I am having to pay the cost of the label out of my profits.  I believe it's because the weight and demensions of the package is never acurate.  For some reason, the package is bigger and heavier than what the buyer pays.     Even when the box is Factory seeled.   EBay  should know the true weight and size of the box.  (or at least be close).  But it never is.     Plus ebay should not be receiving a profit percent of the shipping cost.  
The percent they collect is the sell price plus  shipping fees.   Sales tax does not show as part of the selling cost.  I think ebay should not make a pofit from the cost to ship an item.  I certainly don't.

[psfhobbies]

Monica-sells is right same with me also