Are you Canadian sellers losing money due to credit card/bank transaction fees?

[bruhpad]

For a relatively new seller, I'm happy to have moved over 13k in product on eBay. Trouble is, I'm losing money. Not positive, but think the transaction fees relative to my credit card in Canada are sapping away all my profits. 

Is this a problem for others working from Canada, selling in the USA?

[recped]

I'll take a wild guess.......

You are using a US based dropshipper and using your Canadian credit card to pay them?

If that's the case it's probably not credit card fees that are "sapping" your profits although they might be helping.

Do you fully understand all the costs involved in selling (on eBay or elsewhere)?

[mr.elmwood]

Rec, I could not grasp what the OP was alluding to. I could not figure out how 2.7% would put them under. Heck! I'm making 11.8% on the exchange today.

[pierrelebel]

"Are you Canadian sellers losing money due to credit card/bank transaction fees?"

If you are losing money it is because your selling prices are too low

or your selling prices do not cover your "free shipping"

or you pay too much for your products

or your fees (eBay and PayPal) take too big a bite

or

or

or

Nothing to do with the exchange conversion as you buy in US$ and sell in US$, and collect in US$

[tobyshitzu]

Hes probably selling in US$,converting to withdraw to his bank account, and using his CAN$ credit card to pay his US$ dropshipper.   Which is losing 5% to conversion.  Obviously there are other problems involved 

[pierrelebel]

"Obviously there are other problems involved "

Of course you are right.  But it is so much easier to blame someone or something else (currency conversion in this case).

[tobyshitzu]

Sell through is surprisingly high for that assortment of dropshipped items. So op pricing low compared to others with identical items from the same place.  Others who have stores, TRS, and no fx exchange.   At least 7.8% more in fees for op vs them .  People doing that probably happy to make 7.8%

[mr.elmwood]

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@toby**bleep**zu wrote:

Sell through is surprisingly high for that assortment of dropshipped items. So op pricing low compared to others with identical items from the same place.  Others who have stores, TRS, and no fx exchange.   At least 7.8% more in fees for op vs them .  People doing that probably happy to make 7.8%

---

That leads to the concept of 10% of the sellers doing 90% of the profit, and, 90% of sellers doing 10% of the profit.

With the dollar doing what it is doing, I am happy at my 90% profit level.

[bruhpad]

Thanks for these replies.

You're right about me using my Can. cred.card to purchase, transfer to my Can. bank & paying with Can. funds. I thought I had adjusted prices to cover that & that my asking price covered all PayPal & eBay fees with room for a small/ decent profit. 

I'll have to work thru this in the coming days. 

Meanwhile, I'll get a U.S.- based card to use & rely mostly on PayPal for future purchases to avoid cc & bank charges.

bhp

[bruhpad]

Right on! You guessed it correctly. I have some adjustments to make before I go gungho again.

[bruhpad]

You're right on with this. But there must be something else I'm missing.

[Anonymous]

Regardless of what, there are always something with $$ that are taking from us (be it credit card, conversions, fees, etc, etc.) and we have to live with them, otherwise don't sell anything. LOL.

[bruhpad]

So true.