Reality check? Fee percentage of selling price

[bluemorningglory]

I think that I am not offended by the amount of fees that are charged, but by how the fee structure is frustratingly hidden by Ebay/Paypal. I decided to sit down with a calculator, and find out how much (on average) fees are really costing me. I wanted an average percentage number, so that I could glance at an item while shopping, and say, "Ok, it will cost me this much to sell it. Is it worth buying it to sell on Ebay?"

Let's assume that I am a small seller without a store. I go to a yard sale, and buy some ordinary piece of trash, say the classic frog beanie baby. I intend to sell it on Ebay, and ship it in a small Priority Mail flat rate box. The buyer will use a credit card to send me the money via paypal. What percentage of my selling price will Ebay keep?

I decide to list the item for $10 with buyer paying shipping of $4.95. The auction ends with one bid. I "sold" my item for $10. What percentage of that $10 selling price did Ebay keep?

I started with the Ebay fee calculator, which states that Ebay fees for this item will be a mere $0.90, or 9% of the selling price. I follow a footnote to find that Ebay will also charge me a final value fee on shipping. That is another $0.45 in fees. Why did Ebay put in big bold numbers that my Ebay selling fee was only $0.90?

Next, I go to Paypal. After several frustrating page views, I find that I do not qualify for the 1.9% rate, but the 2.9% rate. This rate is applied to the entire amount sent to me, $14.95. Another $0.43 in fees. I also notice that this 2.9% is in addition to a flat fee of $0.30.

So, add it all up: 0.90 + 0.45 + 0.43 + 0.30 = $2.08

On an item which sold for $10, my selling fees were 21% of the selling price.

We have run several numbers through the calculators, and selling fees of about 20% of the selling price seems to be a fairly consistant estimate for my selling style.

Of course, you should try running a more typical item (high/low price, other categories) for items that you normally sell. For a $1 item with 50 cents shipping, your selling fees would be about 50% of the $1 selling price.

In general, fees would be about 12% of total amount (price plus shipping) sent by seller, plus 30 cents.

[redbud_farm]

EBay also charges a fee on shipping

[salesscout62]

As a seller since 2006 I have to say eBay is taking the fun and profits from lower volume sellers like myself. I can't be a top seller so I feel like an outsider,even though I have impeccable feedback and the fees with eBay and Paypal makes the effort to sell things questionable. As company's grow they almost always give the accountants a free hand over common sense and the people who really love the company. This was the death of the Saturn car company. It's why Jet blue was able to kick the butts of big poorly managed airlines. eBay still has a huge customer base and as a seller that's still a great thing , but if that slips eBays days may be numbered.

[redbud_farm]

Trs means little if it costs more than it returns

[acj3i]

yeah... somehow i accidentally ended an item early with this goof-ass ipod i have... wanted to se if i could have it relisted... as to not look like a dick by ending it and relisting it... and this **bleep** from india says to uninstall the app and reinstall it... that should 'fix my problem'... really?.. i will say i have seen some morons on here... but give me a break lady...

[ssman9691]

It's bull****!  Why should they charge a fee for shipping charges---that has nothing to do with them!

10% of the total transaction is ridiculous.

[redbud_farm]

But it works. For millions.

10% is cheap

[patsy7giraffe]

In my opinion more mistakes are made by larger companies that pay cheap wages to people that don't give a **bleep**. You my friend do not know what you are talking about.

[mitchmarie]

"Ebay still has a huge buyer/seller base". It's getting smaller and smaller by the year, either that or my browser is just not seeing the masses....

[redbud_farm]

Largest employer , pays cheap wages , going strong

WalMart

[thestormrider]

First and last set of listings.  You guys can kiss my ass if you think I am going to pay 10% after these. 

This place is a load of **bleep** as a seller.  And once the sellers go,  so do the buyers.

[thestormrider]

Because the fees were reasonable prior.  They have quietly gone up from 3% to 10% plus other tack on fees.

Ill stick to forums from here on out.  **bleep** on ebay.

[thestormrider]

Amazon for me. Actually try forums.  Way better.

[redbud_farm]

Ah, check amazon's fees and requirements. They make eBay look tame

[collegeboy-usa]

And PayPal fee that you didn't see (they took for every transaction.)

[redbud_farm]

The fees are listed and stated . you just need to read the sites poilcies