Sick of Ebay Fees
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12-27-2014 08:33 PM
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Re: Sick of Ebay Fees
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12-30-2014 01:54 PM
"Shipping fee is a rip off no matter how you do the math"
False. I did the math, now, you do it.
Before the FVF on shipping came in, my total monthly fees averaged about 16.5%.
After the FVF on shipping came in, my fees have averaged 16.5%.
They raised one fee and lowered another.
Please explain your "rip off" to me, in dollar and sense.
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12-30-2014 01:59 PM
@mr.elmwood wrote:"Shipping fee is a rip off no matter how you do the math"
False. I did the math, now, you do it.
Before the FVF on shipping came in, my total monthly fees averaged about 16.5%.
After the FVF on shipping came in, my fees have averaged 16.5%.
They raised one fee and lowered another.
Please explain your "rip off" to me, in dollar and sense.
Because I sell a lot of items that are $10 or less and the shipping is often equal or more than the item amount the fvf's on shipping hit me quite hard. On the other hand the reduction if fvf's on the item and the 20% discount effectively brought my fee down below what they had been, Combine that with all the free listing offers and my total fees are now only about 60% of what they were 5 or 6 years ago.

"What else could I do? I had no trade so I became a peddler" - Lazarus Greenberg 1915
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Re: Sick of Ebay Fees
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12-30-2014 02:04 PM - edited 12-30-2014 02:07 PM
I don't know why a few need to post over and over replying to every single post on the issue claiming ebay didn't raise (or lowered) fees with the shipping change because it happened to work out that way for them. Just because it worked out that way for a few people in certain lower fvf categories with certain shipping costs doesnt mean it worked out that way for everyone, or even very many, There is no question ebay raised its overall take rate with that change, and every other fee change they've ever done. Many sellers faced a huge fee increase from that one, bizzare to claim its "false' when someone says it was an increase. People who were using auction or auction+BIN format not only didn't get any fvf decrease, they've had a FVF increase on top of the fvf on shopping since then, with teh recent defect change having booted more sellers from the trs discount too
Re: Sick of Ebay Fees
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12-30-2014 02:12 PM
before shipping FVF - $23+$7 S&H - fvf 9% = $2.07 fee
Now $30 FVF 10% = $3.00 fee
No increase, really???
Re: Sick of Ebay Fees
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12-30-2014 02:20 PM
Ironically, eBay unwittingly encouraged fee avoidance when they introduced the first 50 free auctions listing that had to start at 99 cents about 4 or 5 years ago.
Non-store sellers had the 50 free auction format listing if they started them at 99 cents. Sellers would want to not pay insertion fees on the auctions (rates were 10 cents for a start price under $0.99 over the 50 free, 25 cents for a start price under $9.99, 50 cents for a start price under $24.99, and so on).
Sellers would open additional eBay ids to get 50 free auctions. They would start items at 99 cents and put the majority of the item price in with the shipping cost. Now it was not just expensive items but common low priced items that would normally list for $10 or less with $2-5 shipping cost. So eBay inadvertently taught good sellers to do FVF avoidance with the new 50 free auctions starting at 99 cents. Many of these listings sold at 99 cents but the buyers bought on total price not item price and were okay with the price they paid. So no insertion fee and a minimal FVF on the 99 cent item price collected by eBay (from 5 to 15 cents (rates were 5 to 15% depending on the eBay category if I recall correctly)). As close to a truly "free" eBay listing, lol!
After a year of this first 50 free, eBay changed to 50 insertion free auctions and introduced the shipping FVFs. They also lowered the FVF rates in the categories by 1% to 2% to compensate for the shipping FVF. The change made some sellers pay more fees, some less and others were neutral. But the selling field was evened out and all sellers no matter how they distributed the item price and shipping cost paid FVFs from then on.
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12-30-2014 02:35 PM - edited 12-30-2014 02:35 PM
@pocomocomputing wrote:
After a year of this first 50 free, eBay changed to 50 insertion free auctions and introduced the shipping FVFs.
Yup, this was another area of abuse to add to my list above, that was stopped by introducing the FVFs on shipping.
So sellers who complain about a small rise in their FVFs (and who don't use other strategies to reduce those fees), may be forgetting the impact on them if eBay were to return to the "good old days" and remove shipping FVFs -- a whole lot of people would abandon eBay for good. The risk is even greater now than it was then, because they have many other places to buy.
We already have enough trouble attracting buyers. Eliminating FVFs on shipping completely wouldn't be in sellers' best interests. Which do sellers want -- a slight hike in FVFs for some, or a bigger potential market of buyers (and fewer scamming sellers)?
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12-30-2014 02:42 PM
@mr.elmwood wrote:"Shipping fee is a rip off no matter how you do the math"
False. I did the math, now, you do it.
Before the FVF on shipping came in, my total monthly fees averaged about 16.5%.
After the FVF on shipping came in, my fees have averaged 16.5%.
They raised one fee and lowered another.
Please explain your "rip off" to me, in dollar and sense.
What part of rip off do you not get? Ebay introduced shipping fees to stop sellers from inflated shipping fees, there
for honest sellers with proper fees got charged fvf on shiping as well, it's a rip off for honest people.
Re: Sick of Ebay Fees
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12-30-2014 02:50 PM
@2014sportsterguy wrote:"...honest sellers with proper fees got charged fvf on shiping as well, it's a rip off for honest people."
Please read my post #26 above. There is a silver lining to the cloud -- nowadays everybody (even a dishonest seller) has to pay FVFs on shipping, which means shipping charges are kept reasonable, buyers are kept happy, and sellers make more sales (or at least don't lose their buyers to another site).
If you'd prefer not to be ripped off, use some of the strategies and perquisites that eBay offers to reduce or eliminate the sting of those shipping FVFs. It can be done.
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12-30-2014 03:06 PM
I'd happily take going back to having my fees 30%~ lower any day. Getting buyers has never been an issue. Ebay certainly hasn't made much progress in continuing to lose market share to its competitor despite all the changes. The notion they had to change the fvf for the buyers is bizarre, hammering sellers with the defect ratings accomplished the same thing. The fee changes are about increasing ebay revenue, the same as price increases anywhere else
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12-30-2014 03:09 PM
@rose-dee wrote:
@2014sportsterguy wrote:"...honest sellers with proper fees got charged fvf on shiping as well, it's a rip off for honest people."Please read my post #26 above. There is a silver lining to the cloud -- nowadays everybody (even a dishonest seller) has to pay FVFs on shipping, which means shipping charges are kept reasonable, buyers are kept happy, and sellers make more sales (or at least don't lose their buyers to another site).
If you'd prefer not to be ripped off, use some of the strategies and perquisites that eBay offers to reduce or eliminate the sting of those shipping FVFs. It can be done.
There is always a silver lining for most actions does that make it less of a ripoff, since when does two wrongs make a right......
Re: Sick of Ebay Fees
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12-30-2014 03:10 PM
@2014sportsterguy wrote:
@mr.elmwood wrote:"Shipping fee is a rip off no matter how you do the math"
False. I did the math, now, you do it.
Before the FVF on shipping came in, my total monthly fees averaged about 16.5%.
After the FVF on shipping came in, my fees have averaged 16.5%.
They raised one fee and lowered another.
Please explain your "rip off" to me, in dollar and sense.
What part of rip off do you not get? Ebay introduced shipping fees to stop sellers from inflated shipping fees, there
for honest sellers with proper fees got charged fvf on shiping as well, it's a rip off for honest people.
Then, I am not honest? My % fees did not change. Please explain to me why my fees did not change.
What part of a ZERO change do you not understand?
Re: Sick of Ebay Fees
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12-30-2014 03:18 PM
@toby**bleep**zu wrote:
The math on that for me would be using a $30 game as an example
before shipping FVF - $23+$7 S&H - fvf 9% = $2.07 fee
Now $30 FVF 10% = $3.00 fee
No increase, really???
Some saw an increase, some saw a decrease, some saw essentially no change. I doubt there is any way of restructuring fees for millions of different sellers without having some that lose and some that win.
The two major rejigging events prior to the fvf on shipping were very costly for me while only modestly higher for others......such is life!

"What else could I do? I had no trade so I became a peddler" - Lazarus Greenberg 1915
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Re: Sick of Ebay Fees
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12-30-2014 03:55 PM
'ebay introduced shipping fees to stop sellers from inflated shipping fees, there for honest sellers with proper fees got charged fvf on shiping as well, it's a rip off for honest people."
Actually there is a large misconception out there that the change in fee policy was to punish sellers with high shipping charge trying to avoid paying FVFs. In my opinion, that is incorrect.
First of all, we need to remember that eBay is an American company with policies based on its knowledge of the American marketplace. In the USA, four years ago, online commerce was growing at a much faster pace than eBay's. The bulk of the growth was pulled by retailers promoting "free shipping" (shipping charge included in the price). eBay started promoting the concept of "free shipping" among its sellers.
However, one of the largest challenge came from many large sellers complaining that by offering "free shipping" (shipping included in the selling price) those sellers ended up paying higher FVFs to eBay than sellers invoicing their shipping charge separately where FVFs were not charged. Also, at the time, sellers selling through eBay's largest competitor were paying fees based on the total transaction value (including shipping).
So, based on its knowledge of the American marketplace (things are different in Canada) eBay introduced a new fee schedule for fixed price listings where FVFs were actually lowered by 1% or 2% depending on categories while the same lower fees would be charged on the shipping charge. So, on a typical transaction where the shipping charge represented 10% of the value of the transaction, there would be no fee increase to the seller.
For sellers already offering "free shipping", the lower FVFs would represent an actual saving. I know as I saved over $1,000 in fees the year the new schedule was implemented.
Sellers who charged more than 10% on average in shipping charge would see a fee increase.
This is where Canadians got the short end of the straw as shipping charge in Canada are generally much higher than in the USA - thanks to Canada Post. The result of the policy change was that many Canadian sellers stopped selling on eBay if the shipping charge was a high percentage of the selling price.
A by-product of the policy change was to eliminate much of the nonsense we previously saw on eBay with items selling for $1 with $70 shipping charge. It was not the reason why the fees were changed but that result was welcome.
Later, eBay continued to sweeten the pot for sellers offering "free shipping" (shipping included in the selling price) by giving 20% rebate to TRS on the selling price but not of the shipping charge for sellers charging shipping separately.
At the end of the day, looking at the long term, eBay's policy change was based on its understanding of the online marketplace: buyers want to buy "stuff" with "free shipping".

Re: Sick of Ebay Fees
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12-31-2014 12:53 PM - edited 12-31-2014 12:55 PM
@pierrelebel wrote:
A by-product of the policy change was to eliminate much of the nonsense we previously saw on eBay with items selling for $1 with $70 shipping charge. It was not the reason why the fees were changed but that result was welcome.
Although your explanation is logical, I would be interested to know if your conclusions come through first-hand knowledge that the free shipping issue was eBay's reason for the policy change (i.e. insider information about the decision-making). Or are you deducing from facts openly available at the time? I know you were an eBay "VIP" seller for some time, so I'm wondering if you had access to the details behind the decisions.
It seems to me that prior to the time the FVFs on shipping were brought in, there wasn't a lot of free shipping offered on eBay anyway, most buyers expected to pay reasonable shipping costs, and the big commercial retailers (who had the ability to offer free shipping across the board) hadn't yet come on board.
I did a fair amount of buying in various categories up until about 4 years ago, and I can tell you I didn't once run into free shipping -- although granted, I didn't purchase collectible stamps, which have a higher sale value to shipping cost ratio than many items which dollar for dollar are larger or weigh more and thus cost more to ship.
I can't recall exactly how many years ago the shipping FVFs were introduced (I'm thinking it was around 2010), but I do know there had been a huge outcry by buyers over being ripped off by outrageous shipping costs, especially in those days when not every seller had to post shipping rates in listings so buyers would know in advance what they were paying. It was actually an outrageous abuse of the buyer/selling relationship, and had eBay let it go on unchecked, it could have destroyed them.
I would think that one of eBay's primary goals at the time was to keep buyers from leaving its site en masse, since, as you say, competition from other sites was beginning to balloon. Surely fixing that problem was not simply a pleasant side effect of a policy designed to help sellers offer free shipping which buyers really didn't expect to get at the time anyway.
If anything, it would make sense that eBay wanted to hang onto all the buyers it could, by restricting such egregious behaviour on the part of sellers. Unless you were privy to boardroom decisions at eBay (which may be the case, I don't know), it seems to me that the main point of the policy was to stop the outrageous fleecing of buyers by sellers and the avoidance of fees that went with it. EBay must have known it was bleeding huge sums of potential fees through such seller behaviour.
It seems more reasonable to assume that assisting sellers in offering free shipping was the by-product, not the other way around -- the FVF rip-off (at both ends) was a much more urgent problem. In the event, the introduction of the shipping FVFs very quickly remedied the shipping rip-off. From a buyer's point of view, I don't think it created a big increase in across-the-board free shipping -- not until they brought in the shipping cost DSRs.
Re: Sick of Ebay Fees
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12-31-2014 01:42 PM
""Although your explanation is logical, I would be interested to know if your conclusions come through first-hand knowledge that the free shipping issue was eBay's reason for the policy change"
My earlier post was based on knowledge, not assumption nor inside knowledge.

Re: Sick of Ebay Fees
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12-31-2014 02:07 PM
"were an eBay "VIP" seller for some time"
???
I do not know what a VIP seller is at eBay, if there is such a thing.
Back many years ago, I was an early member of the eBay.com "Voice of the Customer" program ("Voices"). One of the few Canadians to make that team. As such, prior to joining I had to sign a 'non-disclosure" agreement where whatever information was acquired through the program would not be made public. I have respected that agreement.
Later, I was invited to join the eBay.com Stamp Advisory Committee as a charter member. Once again, I had to sign a 'non-disclosure" agreement where whatever information was acquired through the program would not be made public. I have respected that agreement.
Several years ago, I was invited by eBay.ca to join their "Canadian Profitability Initiative". Once again, I had to sign a 'non-disclosure" agreement where whatever information was acquired through the program would not be made public. I have respected that agreement.
The one thing I have learned from my close association over the years is "how eBay thinks" and some of the assumptions made on these discussion boards (both on eBay.,com and eBay.ca) are often just that: assumptions which have little to do with what eBay does and why it does it.
Because eBay is a public company, the information is generally available through financial channels such as EDGAR where all information must be disclosed:
http://www.sec.gov/edgar.shtml#.VKRI78maLto

Re: Sick of Ebay Fees
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12-31-2014 02:26 PM
It seems to me that prior to the time the FVFs on shipping were brought in, there wasn't a lot of free shipping offered on eBay anyway, most buyers expected to pay reasonable shipping costs, and the big commercial retailers (who had the ability to offer free shipping across the board) hadn't yet come on board.
At that time "free shipping" listing represented about 25% of all listings (I think it's more like half these days) but eBay was really pushing it hard and handing it out as the answer to what ills you. They got push-back from sellers who pointed out the conflict, "you want us to do free shipping yet you penalize us for it".
eBay may not listen to the tiny sellers like us but when the big boys push back they do.

"What else could I do? I had no trade so I became a peddler" - Lazarus Greenberg 1915
- answering Trolls is voluntary, my policy is not to participate.
Re: Sick of Ebay Fees
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12-31-2014 03:51 PM
It seems to me that before they had fvf on shipping they had a free shipping promo for a few months and if you were a powerseller, you got a larger discount on fvf. Assuming that I'm remembering it correctly, that's when more sellers started offering free shipping.
Re: Sick of Ebay Fees
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12-31-2014 05:26 PM
"that's when more sellers started offering free shipping."
To understand why the policy changed at the time, it is worth remembering that changes were requested by American sellers.
Many large American businesses selling their products through eBay (as a venue) understood the changes taking place in online marketing at the time. "Free shipping" was not an eBay issue as such but a method of marketing requested by buyers when purchasing online.
Large businesses understood that and quickly converted their marketing to include shipping costs in the selling price when selling online to better compete.
Large businesses also understood that the cost of shipping for them is much smaller than for the small individual seller who pays full or near full retail for shipping material and methods. So, offering "free shipping" gives them a competitive edge.
Even in Canada, individual sellers cannot get from Canada Post or any other carrier the low rates obtained by large mail order businesses like Chapter (Indigo) for example.
Shipping costs have always been challenging for Canadians, more so for most small businesses and individuals using eBay as a venue to market their products. Somehow we have to find ways to work smarter to compete.
Not impossible... as many do indeed succeed.

Re: Sick of Ebay Fees
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01-01-2015 01:19 PM
@pierrelebel wrote:
I do not know what a VIP seller is at eBay, if there is such a thing.
???
I think you've just defined it -- or at least described it -- in your post above!

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