Gator08041971 • Volunteer Community Mentor 2024
This question comes up all the time, because many sellers don't realize how the fees and shipping charges work so a quick break down:
You sell an item, lets say it sells for $100.
You charged for shipping, lets say that's $10.
And there was tax for the buyer according to where they are, lets say that was 6%, so $6.
eBay totals that for $116 and then takes their % (depending on category) from that entire total. There is also a $0.40 transaction fee. These fees they charge are for allowing you to sell your item on their platform.
Then you buy a shipping label, lets say again, it was $10. So you got paid $10, you spend $10, the shipping was covered. The Taxes are collected and paid by eBay.
In the end:
You pay for the shipping and any eBay fees based on a percentage of the entire sale. If you use any promotion of your item, those fees are on top of the rest of the fees charged for your item's selling total.
Things you can do:
When offering shipping costs, charge retail rates but pay eBay discounted rates. This can help offset some costs.
And if you offer free shipping, its only free to the buyer. You still have to pay for the shipping. Be sure to bake in costs for shipping and fees when you are figuring out what price to sell it for.
Other than that, that's about all there is too it.
On average, expect about a 30% difference between what an item might sell for including shipping vs what you will get after paying for fees and shipping.
The cheaper the item, the less your margin is. Many things are very difficult to sell for less than $5 dollars here. I see DVD's for example. Even at 6.99 with free shipping, I might make $1 to 1.50, depending on shipping. But if I sell several to the same buyer in one order, I may get above $3 per movie.
I see this item you sold recently:
Now its showing me the shipping I would pay if it were sent to me. But here is how it would calculate out:
- $37.54 for the item
- $10.41 to ship it to me.
- 6% tax for my location on the item = $2.25
- Total is $50.20 for my total.
eBay will then take:
- $2.25 and send it to my state
- $0.40 for their "transaction cost"
- $7.53 for 15% of the entire sale (handbags are 15%)
- And lets say the shipping is what you paid above at $8.50.
So that means that:
- 50.20
- -.40
- -2.25
- -7.53
- -8.50
$31.52 -That is what my math shows you making in that case. Yes this is more than you say you got, by about $3 dollars.
However that doesn't take into account what your buyer actually paid for shipping, or if their tax was a different amount. Nor does it take into account any promotional advertising you might have signed up for.
Now.
You can use this link to review your transactions to see what the details are of the sale and what you paid:
this screebshot may help explain it....
1 is what the buyer paid me to ship the item (included with the total sale funds)
2 is what I paid out to USPS for shipping label from the funds for this order.
