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Shipping Charges

Okay, I tried to read what others have said, but my situation seems to be different. Say a buyer buys an item for $25 with $5 shipping. They pay $30 plus tax. I recieve $25. That $5 shipping does not appear anywhere for me. I have to buy the shipping label out of the price of the item itself. I am left with $20. Is this really how it's supposed to work? Do I have to charge for the shipping both within the price of the product and with the shipping in order to get a net amount that makes sense?

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Re: Shipping Charges

@ntz795, you have forgotten about the eBay fees and the sales tax. eBay fees are calculated on the total amount that the buyer paid, including shipping and sales tax. Then the eBay fees and the sales tax are deducted from the total amount. If you pay for the shipping from your available funds, then that is deducted as well. The sales tax is a pass-through and is sent to the buyer's state.

 

You need to price your items so that the purchase price covers all of your expenses, plus the profit that you need to make the sale worth while.

 

Using your numbers as an example, and assuming 6% sales tax (which is about the average) and the default 12.9% for FVF, here's how the fees work out for that sale:

 

PAYMENT: amount:calculated on:  (comments)
      purchase price  $   25.00 
      shipping cost  $     5.00 
   subtotal  $   30.00 
   sales tax    6.0% $     1.80subtotal  (at buyer's rate)
total payment  $   31.80 
FEES & DEDUCTIONS:   
      variable final value fee    12.9% $     4.10total payment
      fixed final value fee $      0.30 $     0.30 
   total eBay fees  $     4.40 
   sales tax  $     1.80(sent to buyer's state)
   shipping label  $     5.00(if purchased with available funds)
total deductions  $   11.20(total eBay fees + sales tax + shipping label)
PAYOUT:   
payout sent  $   20.60(total payment - total deductions)
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Re: Shipping Charges

Hi, I think you made a mistake .  The 5.oo shipping should NOT be deducted from the above example unless the seller has printed the shipping label from Ebay shipping. Otherwise, the 5.oo is there until the seller prints the label.

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Re: Shipping Charges

@ms.rodriguez*,

 

Yes, as I said, the cost of the shipping label would be deducted IF the seller paid for it with their available funds, before payout. So no, not a mistake, just one of the assumptions, which leads to the bottom line of about $20.00.

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