Why does eBay charge final value fee on shipping?

[1kwanstar]

I understand their insertion fee and final value fee because they provided sellers with a place to sell, but I don't understand the final value fee on shipping. Some sellers may charge more than necessary for S&H but I only charge what my Post Office charges me. I always refund extra money back to the buyers after I've shipped their package (see my seller feedbacks). In fact, there have been many times where I had to pay out of my pockets because I charged less than expected. I think it's unfair for sellers like myself to be charged with final value fees on shipping.

[007steveb16]

Welcome to the reality of what others have abused, has created.

It was hardly "some sellers", the problem was excessive and rampant.

Ebay had to act and this is what they've done.

[ok_so_im_50]

In years gone by, ebay only charged a final value fee on the end price of the item. What ended up happening too often was sellers were listing items for a really low price like 99 cents but charging the price they wanted for the item as shipping so they would not have to pay the higher fee.

I have in seen sellers list 99 cents for athletic shoes but charge $150 and up for shipping so they would not pay a fee on the $150 shipping. I once seen a set of listed for really cheap but with $400 shipping. It was called fee circumvention.

Well, ebay decided that it would charge the fee on the total sale and not just the item price thanks to the few selles who abused the system.