Shipping & final value fees

[hmurphy56]

I recently sold a large item. I charged the buyer $30 for shipping. I purchased FEDEX shipping through Ebay for $29.59. I don't think that it is fair of Ebay to charge me a final value fee as if the $30 charge was pure profit. I spent almost all of it on shipping (again, purchased through Ebay, so they should know that I only overcharged 41 cents. I think that the final value fee should only be on that 41 cents. It makes me feel that selling on Ebay is not worth the effort.  They are taking more from this sale than my profit on the sale was.

[corvettestainless]

They've charged a FVF for shipping for 10+ years. It was spurred from people charging $1 for the item and $100 to ship to avoid FVFs. It's in the Terms/Conditions you thoroughly read and agreed to when you opened your account. It will not change, it's all the rage and every internet selling format does it. Most states also charge sales tax on the total purchase, which includes shipping- as well. 

[hmurphy56]

I have been an ebay seller since 1998. I know why they did what they did, I just thought that it was on the difference between what I charged for shipping and what I paid them for shipping. Which would be the fair way to do it.

[express_commerce]

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@hmurphy56 wrote:

I recently sold a large item. I charged the buyer $30 for shipping. I purchased FEDEX shipping through Ebay for $29.59. I don't think that it is fair of Ebay to charge me a final value fee as if the $30 charge was pure profit. I spent almost all of it on shipping (again, purchased through Ebay, so they should know that I only overcharged 41 cents. I think that the final value fee should only be on that 41 cents. It makes me feel that selling on Ebay is not worth the effort.  They are taking more from this sale than my profit on the sale was.

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That's the way it has been for years. There's nothing you can do about it. Maybe find higher priced item to offset the shipping and fee.

[modulok!]

Just think how miffed you will be IF FedEx charges your Ebay account for a lot more than the "estimate" you were given and you will have zero recourse because Ebay is the shipper not you (if its Ebay's FedEx account you are using and not your own).  Check out the thread titled "FedEx via EBay Should Be Avoided!" and many more on this subject.  Hoping all goes well for you and you don't have any FedEx via Ebay issues.

[corvettestainless]

@hmurphy56 I just thought that it was on the difference between what I charged for shipping and what I paid them for shipping

You did not pay 'them' for shipping, you will be paying Fedex through ebays account, and they don't care what you paid vs. what you stated to the buyer. Sellers do not have to use USPS or Fedex, or purchase labels through ebay, they can get them direct, or use UPS, DHL etc. All they care about is that you give a tracking number that will show it's delivered. Therefore, there is no system that would have you pay the difference, never has been. 

[richard1rst]

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@hmurphy56 wrote:

I recently sold a large item. I charged the buyer $30 for shipping.

They are taking more from this sale than my profit on the sale was.

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Simple answer is you should have charged the buyer $35.00 (because Paypal also takes 2.9% of the shipping). To make a profit you MUST factor in ALL of your costs including any fees you are charged.,

[johnrj1226]

@hmurphy56 wrote:

I have been an ebay seller since 1998. I know why they did what they did, I just thought that it was on the difference between what I charged for shipping and what I paid them for shipping. Which would be the fair way to do it.

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How would you  handle it for a listing  with free shipping and the S&H is buried into the price of the item?  Plus some sellers buy their postage from  other sources  other than eBay stamps, USPS, PayPal etc.  eBay has no clues as to what they paid

[the*dog*ate*my*tablecloth]

It is the most fair way to allocate fees to sales. This way a seller who sells the same item. For the same total will pay the same fees. It doesn’t matter how they structure the listing, whether “free” shipping, actual shipping or shipping and handling.

the fees are the fees. Would you prefer to pay nothing 9n shipping but 15% on the item total? If they change the structure fees would not go down.