eBay fees and buyer paying for shipping

[el_duderino007]

I had an item that sold for $192, with the buyer paying for shipping. After deducting fees, I only have $140 available for payout, for something that sold for $192. After calculations, even if I had offered free shipping, I would have had the same amount of funds available for payout. So, what is the point in having the buyer pay for shipping when the Final Value Fee is calculated from the total price, including shipping and taxes, and then deducted from the sale price, excluding taxes? In my case, there was no difference in how much I am making off this sale whether I paid for shipping or the buyer did.  

[buyselljack2016]

Buyer pays you for shipping. Makes no difference if the shipping is "free" (included in the price), or an additional charge. Fees are the same.

Some use "free" shipping as some buyers like that. Think it's free.

Some states do not charge sales tax on the shipping portion. That would save the buyer some $$, and save the seller some pennies.

[el_duderino007]

Why is my payout the exact same then whether the buyer pays for shipping or not? What is the point in having the buyer pay for shipping if eBay is just gonna screw you over either way.

[agemelee]

Couple of reasons:

1) Before ebay charged FVF on shipping people use to list an item for .01 then charge $100 shipping to avoid fees. 

2) When people see “free” they think its free and it can also make a listing standout. 

3) When accepting a return, if you charged for shipping you can choose to not refund the shipping portion (assuming its not an item not as described). 

[bonjourami]

Then when you list your next item, use free shipping..and have the shipping fee come out of your pocket..maybe then you will see the difference.(Most 'free shipping' is rolled over in the sale price) No other way to explain it to you.Nobody is 'screwing' you over, you just dont get it.

[downunder-61]

The buyer does not pay the shipping company - the buyer pays you the shipping amount you have on the listing, then  you use that amount to pay the shipping company.

So you are not ''paying'' from your funds but from the amount the buyer paid in addition to the item price

[monroe67]

"So, what is the point in having the buyer pay for shipping when the Final Value Fee is calculated from the total price, including shipping and taxes, and then deducted from the sale price, excluding taxes?"

Great point.  It's a lesson some people here seem to have never quite understood. 

The point in offering "free shipping" is largely a purely psychological advantage for buyers.  It can encourage some people to buy your listed item because they think they are getting a great bargain.  

What some new eBay sellers seem not to realize is that somebody has to pay the postage.  If an item is listed for sale with "free shipping," the seller is still going to have to give money to the USPS or FedEx or UPS to send the item to the buyer.   The seller had better have included the cost of postage in the cost of the item.  

Personally, I only offer "free shipping" on lightweight things I can send without tracking, in an envelope with one or two actual postage stamps.   If the item in an envelope can be mailed with a two-ounce postage stamp, 78 cents, I add 80 cents to the item's price.   

[714ricki]

Let's break down the fees & see....

Buyer pays for the shipping - You collect a grand total which includes price of the item + shipping + tax

• Ebay remits the sales tax on your behalf
• You pay for a shipping label
• You pay ebay's commission based on the grand total collected

Free shipping - You collect a grand total which includes price of the item + tax

• Ebay remits the sales tax on your behalf
• You pay for a shipping label
• You pay ebay's commission based on the grand total collected

When the buyer pays for the shipping label, you will definitely be left with a bigger remaining balance.

[coolections]

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@el_duderino007 wrote:

what is the point in having the buyer pay for shipping when the Final Value Fee is calculated from the total price, including shipping and taxes, and then deducted from the sale price, excluding taxes? 

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Because it depends on where the buyer lives. If you offer free shipping, you have to add the ship cost to the furthest destination or you can possibly lose money. At the same time if the buyer is closer, they may not want to buy because they can get the item cheaper from a seller who lives closer. In all reality as far as fees go it makes no difference other than some buyers for some strange reason think free shipping is better.

[el_duderino007]

None of you have been able to answer my very basic question of how my total funds available for payout are the same whether I were to pay for shipping or whether the buyer paid for shipping. What is the advantage of having the buyer pay for shipping? 

[bonjourami]

Omg....

[coolections]

Read my reply #9. I told you the exact reason.

[downunder-61]

I'm done........

https://www.ebay.com/help/selling/selling/start-selling-ebay?id=4081&st=12&pos=4&query=Start%20selli....

https://www.ebay.com/help/selling/shipping-items/shipping-items?id=4077&st=3&pos=1&query=Shipping%20......

[el_duderino007]

I assume you fall into the "nothing to lose" camp.

[bonjourami]

You know what they say about assuming.