Part 1, is here, from 2017. https://community.ebay.ca/t5/Seller-Central/Explain-Ebay-Seller-Shipping-Fees/td-p/372910
I've recently (last few days) struck up a conversation with another ebay seller. It started with me submitting an offer on an item he's selling, and we got into ebay fees and shipping charges.
On the surface, you get the impression that if you sell an item, the fees on the sale are 13.25%.
Technically this is true, except for the fact that those fees, are also charged on the shipping cost.
They started this many years ago (I've been here over 23 years) when the commission only applied to the item, and sneaky sellers tried to get around fees by listing items at impossibly low prices, with horrendous shipping fees. Eg: Listing an item worth $100 that would cost $10 to ship, for $10, with $100 shipping.
Back then, ebays knee-jerk reaction was to include the shipping charges in the FVF. However, when they did this, they lowered their fees a bit to compensate for "normal" shipping fees.
Fast forward to late 2023, and after a long chat with a seller on ebay, we realized that the amount eBay takes in fees can amount to a lot more than 13.25% of the item. And it's much worse for selling internationally.
Example:
- He's selling an item I want, for $36.99 US.
- Shipping cost to me in Canada: $28.14 US.
- Shipping cost to most of US: $9.35 US.
- So, ship to Canada: $36.99 + $28.14 = $65.13. Ebay fee at 13.25% = $8.63.
- Ship to US: $36.99 + $9.35 = $46.34. Ebay fee at 13.25% = $6.14.
Ebay's FVF when shipping to Canada: 23.3%
Ebay's FVF when shipping within US: 16.6%
This seller would lose $2.49 selling the item to me, versus selling to an American address.
Since the price of the item is 36.99, he loses 6.73% of the price of the item, selling to Canada.
The lower the selling price of the item, the worse this gets. Especially if the item is heavy.
Ridiculous example to prove point: You list a very heavy item - say a large shop vice - that's going to cost $100 to ship. (Regardless of country.)
Your shop vice doesn't get much interest and sells for only $10.00.
Buyer sends you $110.00, $10 for the item and $100 for the shipping.
Ebay takes a commission of $13.25 on the $100 shipping, and $1.35 on the $10 item, total: $14.60.
Ebay sends you a BILL for $4.60. You just paid $4.60 for ebay to take that item off your hands.
(Fees are over 100% of the item price.)
Now I see why many US sellers won't ship to Canada or Internationally.
Canadian sellers have the same problem. Shipping to the US can be double or more shipping within Canada.
Keep in mind, at the end of the day, the end result is idential. The buyer gets their parcel at the door.
But the seller - who gets no benefit whatsoever from the higher shipping charges - gets hit with substantial extra FVF's if they ship out of their own country.
I don't think this is right or ethical to be honest. Ebay is pretty much a monopoly at this so it's pretty much "Their way or the highway." Don't let anyone fool you suggesting Amazon or Walmart, or Etsy, Facebook Marketplace, etc. are "competition". They're not.
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