Explain Ebay Seller Shipping Fees

[bpl521_sell]

Hello:

As I understand it Ebay charges a fee based on the shipping charges. So to take it further if I am a Canadian seller I understand I pay a shipping fee based on the domestic shipping if the buyer is international, I don't pay a fee based on the international rate.

So how is this calculated. If I list a item on Ebay.ca and the item ships from Vancouver to Toronto I understand I pay a percentage of the shipping to Toronto as a fee, but how is the fee calculated if I ship to say California. What is the fee based on domestically, my domestic shipping rate to my own Postal Code?

Cheers

[musicyouneed]

So lets say you charge $4.00 for shipping within Canada, your ebay fee is 10% or 40 cents.  If you charge $7.00 to ship to the US, your fee would be 10% of your domestic cost which in this case is $4.00 so you would pay 40 cents.  I am pretty sure that is the way it works. 

[pjcdn2005]

Yes, it is supposed to be based on the cost to your own postal code If you are using calculated shipping.  

[bpl521_sell]

Thanks, good to know. So then your shipping fees could actually end up being lower if shipped internationally. Bonus

[wonsxela]

You could also take advantage of this if you offer free domestic shipping. (You might include all or part of your shipping cost in the cost of the item in order to justify the free shipping, it's up to you, and it depends on the item.) So for example if you would normally charge $4 to ship a certain item within Canada and $12 to ship the same item internationally, if you decide to offer free shipping within Canada, you can subtract the value you'd normally charge for domestic shipping from the international amount, making it $8. This might make it look like a better deal to an international buyer, AND you wouldn't pay any shipping fees to Ebay because your domestic shipping fee is free.

[bpl521_sell]

Thanks for that, I am just selling some items that I no longer need and not a business. Quite a few are heavy but low value items, so good to know that I won't get terribly soaked on fees. The free domestic shipping concept sounds interesting, but I find with parcels the shipping prices can vary considerably by location. 

[reallynicestamps]

You are right.

If you must use parcel rates, Free Shipping is tricky.

 Free Shipping just means adding the cost of shipping to your asking price.

Which is cheaper?

A $10 item with $5 shipping?

 Or a $15 item with Free Shipping?

It's really just one of those advertising gimmicks-- and one that works very well.

If you can use Flat Rate shipping then Free Shipping goes well.

In fact, it is worth looking into using dotCOM to list rather than dotCA since you don't need Calculated Shipping.

BUT

As you know, parcel rates are based not only on dimensions and weight but also distance travelled.

So a parcel from ON to QC may cost $5 but the same parcel to BC may cost $10.

The rate changes are too great not to use Calculated Shipping and dotCA for listing.

[bpl521_sell]

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@reallynicestamps wrote:

BUT

As you know, parcel rates are based not only on dimensions and weight but also distance travelled.

So a parcel from ON to QC may cost $5 but the same parcel to BC may cost $10.

The rate changes are too great not to use Calculated Shipping and dotCA for listing.

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Yes, too dangerous to not use calculated shipping in Canada as rates vary so much. Just sold a item to someone in Iqaluit, had I used flat shipping, would have cost me money <g>

[pocomocomputing]

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@wonsxela wrote:

You could also take advantage of this if you offer free domestic shipping. (You might include all or part of your shipping cost in the cost of the item in order to justify the free shipping, it's up to you, and it depends on the item.) So for example if you would normally charge $4 to ship a certain item within Canada and $12 to ship the same item internationally, if you decide to offer free shipping within Canada, you can subtract the value you'd normally charge for domestic shipping from the international amount, making it $8. This might make it look like a better deal to an international buyer, AND you wouldn't pay any shipping fees to Ebay because your domestic shipping fee is free.

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Your scenario makes no difference to the amount of shipping fees paid to eBay. Here is an example.

Case 1

Assume item price $10. Shipping to Canada $4. Shipping International $12. Assume FVF rate is 10%,

FVF on item price is $10 x 10% = $1.00.

Shipping FVF Canada is $4 x 10% = $0.40.

Shipping International FVF is $12 but eBay uses domestic shipping cost $4 x 10% = $0.40.

Total eBay FVF is $1.00 + $0.40 = $1.40 for domestic or international.

Case 2

Now item price $14 ($10 +$4 of shipping included). Shipping to Canada $0. Shipping International $12 - $4 = $8. Assume FVF rate is 10%,

FVF on item price is $14 x 10% = $1.40.

Shipping FVF Canada is $0 x 10% = $0.00.

Shipping International FVF is $8 but eBay uses domestic shipping cost $0 x 10% = $0.00.

Total eBay FVF is $1.40 for domestic or international.

It makes no difference to the total amount of FVF (price plus shipping) if you charge for domestic shipping or if you offer free shipping as long as you add in the domestic shipping cost to the item price and remove that same amount from international shipping cost.

Free shipping for domestic shipping will give $0 shipping FVF for domestic Canada and International. But if you build in the domestic shipping cost into the item price and reduce the international shipping cost by the domestic cost, the net effect on total FVF is the same.

If you are TRS and get the FVF discount (was 20% and is not 10%), then building the shipping cost into the item price will save a bit because you now get part of the shipping cost in the item price with the TRS discount.

[33nhl]

Well to all the above info that is what should be happening with final value shipping fees but it only has been happening for me for the past 8 months on single item purchased, and when buyer purchases say 7 items the system does not give that benefit, its been set up that way to scam millions from top rated sellers.

I only noticed this cause of the increase in listings to 200 plus did some variant listings and when a buyer would purchase multiple items the fees on shiping would be charged to the full amount on what i have as USA or International instead of being charged to what i have set up for Domestic.

I have been contacting Ebay about it and falling on deaf ears and nothing has been done to fix the problem.

More or less Ebay is scamming $Millions$ from Top Rated Sellers and i have a feeling in the new management payment system will be removed as i recently now checked a few sites and they dont show out this benefit that was previously posted as a benefit to top rated sellers before management payment came into effect. 

[femmefan1946]

ZOMBIE THREAD FROM 2017

The problem with zombie threads is that the information in them may be out of date or inaccurate.

It is best after long periods to start a new thread with the current problem .

I think the policy about only charging the 10% Shipping FVF based on the Domestic Shipping fee changed a  few years back.  Not too sure.

[kh-leslie]

Hi everyone,

Due to the age of this thread, it has been closed to further replies. Please feel free to start a new thread if you wish to continue to discuss this topic.

Thank you for understanding.