Final Fee applied to Shipping Charges

[beautyexpertbenita]

I cannot understand why eBay sellers are  not complaining about eBay's practice of applying a final fee of 10% to include Shipping Costs. In reality the final fee is well more than 10%. First of all shipping costs are NEVER free to the seller and are difficult to control. Whatever shortfall the seller takes on the shipping costs is supported only by the product sale price. Again there are no FREE SHIPPING SERVICES that I am ware of. If anyone knows about a free shipping service, please let me know.

Therefore what is eBay's justification for this extra fee and also why are they not clearly indicating that the fee is really more than 10%?

Is there anyone out there who shares this objection?

[pierrelebel]

You are new selling on eBay and may not have the historical background here.

Several years ago, eBay changed its policy regarding how to charge fees.  It decided to copy what its largest competitor was doing: charge fee on the total amount of the transaction, not just the selling price.  It was too easy for unscrupulous sellers to sell something worth $50 for $1 (on which they paid fees) with a $49 shipping charge (on which they paid no fee).

At the time, eBay lowered Final Value Fees on most fixed price listings.  The net effect was basically "revenue neutral" meaning as many sellers paid less in fees than those who paid more.  Those calculations were based on American sellers who make up the bulk of eBay's business.

Sellers whose listings offer "free shipping" (about half the listings on eBay offer "free shipping") all saw their fees go down.  Free shipping means the overall cost of shipping is included in the price.

" why are they not clearly indicating...

Please take a few minutes to read the fee schedule carefully.  It is there!

[pierrelebel]

I should add that Canadian sellers who pay much larger shipping charges than Americans were negatively affected by the change of policy.  Many in fact had to stop selling on eBay if their shipping charges were a large component of the total transaction value.

[pocomocomputing]

I object to all fees, LOL. But I have to know how to price an item to make a profit.

The shipping final value fee is just another fee. Fees have changed over the years as to rates and what is charged.  Pictures used to cost money and are now free, insertion fees were a big cost to sellers and are now free for many sellers.

Profit = item income - costs.

Item income = item price + shipping charged

Costs = fees, postage, materials, item cost, and whatever.

The seller should know all of these costs in detail and what is needed for the item price and shipping charged to make a profit.

The seller tries to minimize costs as much as possible with better buying of items, lowering postage by being very aware of shipping services and weight and size break point.

If you cannot make a profit acceptable to you, then the item is not for selling on eBay or any venue where it does not make a profit.

[Anonymous]

No matter how much we complain about the final value fees on the shipping costs, eBay is NOT going to change or remove it, as long as they are getting $$$$ from that area, which is why eBay likes it SO MUCH and they are not going to give up those final value fees on shipping costs!

[pierrelebel]

" eBay is NOT going to change or remove it"

I hope not.

eBay would have to reverse the FVF reduction to make up the difference.  In general, buyers and sellers are all better served by the current policy.

A reversal to the "old days" would mean higher fees overall for many.  I am not interested. Thank you.

[nuvistors]

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@beautyexpertbenita wrote:

I cannot understand why eBay sellers are  not complaining about eBay's practice of applying a final fee of 10% to include Shipping Costs. In reality the final fee is well more than 10%. First of all shipping costs are NEVER free to the seller and are difficult to control. Whatever shortfall the seller takes on the shipping costs is supported only by the product sale price. Again there are no FREE SHIPPING SERVICES that I am ware of. If anyone knows about a free shipping service, please let me know.

Therefore what is eBay's justification for this extra fee and also why are they not clearly indicating that the fee is really more than 10%?

Is there anyone out there who shares this objection?

 
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Are Amazon sellers complaining ?

[nrmn]

Yup as a first time Canadian seller I am not impressed. Just wanted to sell a handful of items that I've accumulated. Between the non payers and eBay fees and the frustrations of being stuck in hold by ebays "customer service" dept I'm just going to donate my stuff to a Goodwill. So not worth the headaches...

[Anonymous]

Pierre, I wouldn't worry about higher fees when we are getting lots of free listings promos now.

[pierrelebel]

" I wouldn't worry about higher fees "

???

Maybe you do not worry about higher fees but I do.  Most sellers do.

Looking at the big picture over the years, for the last ten years eBay has consistently lowered the cost of listing while increasing the commission they charge (FVF) on successful transactions.

The result has been a huge and steady increase in the number of listings resulting in higher sales by sellers although the "sell through rate" has steadily gone down.

It would NOT benefit me as a seller if eBay raises FVF by 2%.  I like the fees the way they are and can live with them.