eBay

doglover550 · ‎07-12-2013

Something I've been noticing for the past month or so is that when someone buys an item and pays for it, the shipping they pay for is not what is charged on Paypal. Last night I sold an item, small packet Air to US which the customer paid $9.85 US shipping. When I printed the label the shipping was $10.35 Cdn. with the conversion amount of $10.15 Cdn. Are these differing amounts accounted for by the exchange rate. $.30 seems like a considerable difference. It adds up after awhile.

pierrelebel · ‎07-12-2013

"customer paid $9.85 US shipping. When I printed the label the shipping was $10.35 Cdn."

That is about right at this time. Rates fluctuate and 5% seems about right yesterday

"with the conversion amount of $10.15 Cdn"

I do not know where that comes from. It asumes a 3% only premium on the US$. It seems out of range. Banks currently (today) charge 6% premium to buy US$. It may have been 5% briefly at one point yesterday

pierrelebel · ‎07-12-2013

I should add that there is always a difference between the approximate converted amounts shown on eBay.ca and actual PayPal amounts as they come from different sources.

The approximate converted amounts shown on eBay.ca are based on the daily wholesale conversion rate without any conversion fee. They are meant as a guideline for users not familiar with the currency.

The actual rate charged/given by PayPal is the rate applicable at the time of the transaction (conversion rate is adjusted several times daily based on market condition). It does include the bank conversion spread (difference between buying and selling a currency).

inuk_the_polar_bear · ‎07-12-2013

The spread sounds about right. There are two factors. One is the direct bexchange rate that eBay shows. The other is that Paypal buys and sells currencies and has a profit margin on top of the exchange rate, just as any bank does.

doglover550 · ‎07-12-2013

Thanks to both of the responders for the clear explanation for the discrepancies. In other words, " suck it up buttercup" is the attitude I'll have to take.

Thanks again.

inuk_the_polar_bear · ‎07-12-2013

I never ever looked at receiving, spending, exchange rates, the spread, etc. Simple profit, loss, dollar cost averaging. I use price pointing to compete with American sellers, so, the rates mean nothing.