Seller fees out of control

I've been selling on eBay for 21 years.  I am seriously reconsidering this relationship.  With the company taking over payment management, seller fees have increased by over 1%, but that's really just the latest example in a string of bad faith policies.  Collecting fees on shipping costs?   Dispensing payments without an itemized breakdown of the fees and deductions collected?  Layering fees, sketchy application of "taxes" (on a private seller, no less; imagine doing that to someone holding a yard sale), conflicting information from representatives?  After a net surrender of almost 16% applied to the item AND its shipping, there is a strong case made here for eBay alternatives. 

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Seller fees out of control

EBay has been collecting fees on shipping for years. The excuse was that some sketchey sellers were charging  99c for the item (and paying FVF on that) and $99 on shipping (where there were no FVF). EBay objected to that fee avoidance but also mentioned that this annoyed buyers, some of whom then did not buy, losing eBay more money and giving the site a bad name.

 

I'm not sure what you mean about taxes.

EBay collects the Internet (state) Sales Tax from American buyers, and ,like Paypal, passes it through the seller's account.

It has been a Standard Practice for payment processors for as long as I can remember. Our shop got its first merchant card account in 1979 or so, and paid Moneris/Visa/MC fees on all the payment our customers gave us including Ontario sales taxes and later on GST.

I understand the same will be happening with Australian, EU, UK and possibly Saskatchewan sales taxes in future.

We are charged GST on eBay fees. EBay fought that with Revenue Canada and lost. The only saving grace is that they were not required to collect GST on sales made before the judgement.

 

I totally agree with you on the phone representatives. They are subcontractors, poorly paid and worse trained, with a quota of calls to "resolve" per shift. As a result they want to get you off the phone as soon as possible.

I much prefer the Chat to the phones which has the added benefit of an emailed transcription, which means if something sounds odd about the advice, I can review it to see if I misunderstood or if the rep was wrong.

 

Message 2 of 19
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Seller fees out of control


@nbdog20j0 wrote:

Dispensing payments without an itemized breakdown of the fees and deductions collected?


Payouts:  https://www.ebay.ca/sh/fin/payouts

Select the payout you want to look at and you will be shown all the items in the payout. Clicking on view beside each item gives a detailed fee breakdown for that item.

 

-;-

 

Message 3 of 19
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Seller fees out of control

marnotom!
Community Member
Your seller fees may have gone up 1% but you’re also not paying a separate payment processing fee the way you were under the old PayPal-based system.

It would be a good exercise to do some number-crunching with a few of your sales just prior to Managed Payments to work out what percentage of their proceeds went to eBay and PayPal, particularly with a sale to the US. I think you’ll be surprised by a lot of the hidden fees associated with PayPal.
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Seller fees out of control

byto253
Community Member

It is the FVF fee on the state taxes collected that is an effective fee increase.   Some have posted it is to cover the cost of processing that collection... wouldn't credit card companies love to be able to charge 14-15% in processing fees.   

Message 5 of 19
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Seller fees out of control

i agree with you completely the fees are too high iam now at close to 20  % now of my actual sales to ebay fees -- and with canada post coming in at 18 %( even with a commercial account tracking is costly) thats 38% percent of my sales gone to just selling the items -returns(damaged) non sellable again new and scammed stuff adds about 3percent so thats not bad at least

some months its been as high as 45 % and thats nothing to do with the cost of the goods -- which for me is around 20 percent  so 65% costs ( i get great deals from my supplier )but all added up its not very much for putting in 5/6 hours every day 7 days a week- listing /sending/packaging going to the post office  waiting in line and then now more hours with up dating listings to ebay wants and needs  with over 2600 listing to update- the day is not long enough  for %35 payment on return- most of my items are 40 to 70 dollars so i clear about $15 dollars to $18 dollar a sale if i got 10 /15 sales a day then it would be great and i would no be complaining  but iam lucky to get one a day ---weekends maybe 3 sales -- i try everything i can -- now its free shipping on most of my goods i hope with my lower prices  also--- the two things will increase sales to a point i can stop worrying about everyday things and start looking at the big picture

maybe i am looking at this all wrong

i don't now

i am getting pretty beat and tired from this constant bill juggling 

when i started about a year ago   things looked rosey-- 3/4 sale a week and it was looking up

---but with all you tube channels gurus telling me how easy it was --- well most of them don't sell in Canada and the ones that do -- i really wish- they explain really how they sell so much stuff  with such high profits   i guess some of us have some of don't -- i'll give to the end of the year - and then see if this working for your self stuff is really what its cracked up to be 

thanks for listening  

doker bohm

Message 6 of 19
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Seller fees out of control

- and with canada post coming in at 18 %( even with a commercial account tracking is costly)

You don't pay shipping. Your buyer pays shipping. Even if you use Free Shipping (I do) the shipping cost is part of the asking price.

Also shipping costs are based on weight, dimensions, service, and destination, not on the value of the shipment.  So calling them a percentage of your income is wrong on two counts.

 

returns(damaged) ... and scammed...adds about 3percent

Oh dear. That's about triple industry average.

 

going to the post office waiting in line

My post office and postal outlet have boxes outside their premises, but most of my items just go in the box, no need to line up. In fact, most go into the box a block from my house.

If you have a bulky shipment with a  preprinted label, you can just hand it over the counter. No need for anything else. Half of the label is a receipt.

 

about a year ago things looked rosey

We all saw that. 2020 was unusual- there was a pandemic surge that caught all online sellers unaware.

Best to compare sales to 2019 or earlier to see what "normal" looks like.

 

i really wish- they explain really how they sell so much stuff with such high profits

They have time to make YT videos -- they are making money from advertisers to their channel.

Also:

On the internet , nobody knows you are a dog.On the internet , nobody knows you are a dog.

Message 7 of 19
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Seller fees out of control

YOU  THE SELLER PAY SHIPPING WHEN ITS FREE SHIPPING TO THE CUSTOMERS AND  AS BEING REQUESTED MORE AND MORE BY EBAY TO PROVIDE FREE SHIPPING TO GET YOUR BOOST IN LIKES ETC ITS A PART OF DOING BUSINESS   I KNOW NOW

--AND MOST OF MY LISTINGS NOW HAVE BEEN CONVERTED TO FREE SHIPPING

---I HAVE QUITE A FEW LEFT TO DO  AND YES IN SOME CASES I WAS ABLE TO RAISE THE PRICE A LITTLE TO COVER SOME OF THAT ONLY ABOUT 30/40 % OF SHIPPING RATES ON AVG.   5 DOLLAR INCREASE HERE AND THERE IS ALL MY PRODUCTS CAN HANDLE TO STAY THE COMPETITIVE IN THE EBAY WORLD

---NO POST OFFICE HERE IN MY AREA  HAVE OUTSIDE BOXES FOR PARCELS ANYMORE THEY WANT YOU TO GO TO THE  POST OFFICE DESKS TO GET TRACKING AND PAY MORE-- JUST LETTER STYLE BOXES AND THEY ARE HARD TO FIND-- AND DON'T ACCEPT ANYTHING OVER LETTER SIZE ---- THOSE LUCKY POKEMON /SPORTS CARD SELLERS CAN JUST PUT ON USED NON CANCELLED STAMPS  THEY GET A SUPER DEAL ON THE INTERNET AND WAY THEY GO --SUPER SAVINGS ----BUT THEN AGAIN EACH TO HIS OWN WAY TO SAVE IF YOU CAN -- ME I HAVE TO PAY /PAY /PAY SENDING TODAY A SMALL SMALL CARTRIDGE FOR A FAUCETS 2X1X1/2 INCH  TO QUEBEC COST ME 16.95 AND THE ITEM  ONLYSOLD FOR 29.99

WELL IF SCAMMERS AND RETURNED DAMAGED GOODS IS 3X THE INDUSTRY STANDARD

I GUESS ITS THAT TWO /THREE OF MY FELLOW EBAYS HAVE SIMILAR STATS SO I GUESS ITS MORE POPULAR THAN YOU THINK  

I DO AGREE WITH LAST COMMENT ABOUT U TUBERS MAKING MORE MONEY OFF THEIR UTUBE CHANNELS THAN ENBAY SELLING  AND THATS A ISSUE  FOR ANOTHER TIME 

 

BUT THANKS FOR THE COMMENTS EVERY BODY IS DIFFERENT  AND HAVE DIFFERENT METHODS IN THIS EBAY WORLD JUST WISH IT WAS A LITTLE SIMPLIER TO MAKE A DOLLAR 

I REALLY DON'T THINK THE RATE TO SELL SHOULD BE SO HIGH --FOR ME IT 'S HIGHER (PERCENT WISE) THAN IF I HAD A RETAIL SHOP ON MAINSTREET  

THERE ARE OTHER SITES TO SELL BUT THEY EACH HAVE PROBLEMS ALSO -- SO ITS STAY HIGH HERE AND FIGURE OUT HOW TO SELL MORE WITH LESS AND MAKE LESS AND BE HAPPY 

DOKER BOHM

Message 8 of 19
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Seller fees out of control

most of those youtube guys pushing the propaganda are shills, hopelessly naive and thereby leaving much of reality behind, want to appear to others they are doing that well but in the mode of Potemkin's village make it seem way better than what it is because they want the ego boost, or are really doing that good and want to use the format to brag to the world.  I rarely watch those videos because I know the reality of how hard this can be first hand.  

Message 9 of 19
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Seller fees out of control

my favorite 'fee' is the GST they charge on per item fees at point of sale.   I would love to put that in front of a tax lawyer and bet on how fast that person raises one eyebrow and shoots me a '**bleep**' look.  

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Seller fees out of control


@darak10 wrote:

my favorite 'fee' is the GST they charge on per item fees at point of sale.   I would love to put that in front of a tax lawyer and bet on how fast that person raises one eyebrow and shoots me a '**bleep**' look.  


You might want to spend some time with this four year old thread:

https://community.ebay.ca/t5/Archive-1/Canadian-sellers-to-be-charged-GST-HST-QST-on-all-fees-effect...

Message 11 of 19
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Seller fees out of control

THE SELLER PAY SHIPPING WHEN ITS FREE SHIPPING

No.

It's an advertising ploy-> which is cheaper?

A $10 item with $5 shipping or a  $15 item with "Free Shipping"?

AND MOST OF MY LISTINGS NOW HAVE BEEN CONVERTED TO FREE SHIPPING

I hope you also changed your asking price to include all your shipping costs, both postage and packaging.

NO POST OFFICE HERE IN MY AREA HAVE OUTSIDE BOXES FOR PARCELS ANYMORE

It does depend on the size of the package. Anything much over the size of a hardcover book won't fit the pulldown door.

Larger will have to go inside. 
I have found that noon hour is very busy at my local Post Office and the nearest Postal Outlet. But 2 pm is busy at the outlet while the actual Post Office is quiet. It may help to work out the flow of business at your PO.

 

THEY WANT YOU TO GO TO THE POST OFFICE DESKS TO GET TRACKING

You can print your own labels at home using SnapShip (which is Canada Post) and you can get a discount on many postal services by using a Solutions for Small Business number.

https://www.canadapost-postescanada.ca/cpc/en/business/small-business.page?

This month we are getting one free (really free) Expedited parcel each Tuesday in October with the SfSB number.

You can also use funds being Held by Managed Payments to buy labels.

With the exception of the Christmas rush, when our PO had lines out the door (only two customers on the sales floor allowed) and down the block, I rarely have to wait more than one customer. The Postal Outlet is always busier for some reason.
I did see one lad during the Christmas rush who would push a cart (some days two) into the PO and the entire cart would be taken in immediately, because there was nothing the desk clerks had to do.Every parcel was already labelled and paid for.

 

FOR ME IT 'S HIGHER (PERCENT WISE) THAN IF I HAD A RETAIL SHOP ON MAINSTREET

You must live in an area where commercial space and business taxes are very low.  We gave up our B&M shop on Ottawa's Sparks St Mall when we retired. Our business taxes were $9000 a month and didn't cover garbage collection. And then we had rent and utilities. And insurance.

It was a big space over two floors. We found eBay to be much cheaper just under 20% of selling prices on average. YMMV.

 

There is a saying that you make your money when you buy not when you sell.

This means both the purchase price for your goods and buying items that will sell at a decent markup and fast.

 

 

Message 12 of 19
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Seller fees out of control

The full fees for all items sent in your payout can be viewed via the "transactions" tab. Compared to Amazon, Ebay's reporting is a breath of fresh air!

Message 13 of 19
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Seller fees out of control

Yep. Also eBay is now saying they base their fees on the after tax value - which I am not sure is actually legal. If not illegal, then grey area, and certainly underhanded.
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Seller fees out of control

I'm around 20% seller fees as it is. I am going to reduce my advertising cap and reassess.

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Seller fees out of control

I might keep US sales shut out of spite.

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Seller fees out of control

Fees are based on the TOTAL of the TRANSACTION and that is NOT unique to eBay....but then again you really didn't want to know that did you?

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Seller fees out of control

FWIW- I sell on dot COM where the fees I pay total 13% of sales and on dotCA where fees make up 19% of sales.

The difference is the number of sales and more importantly that I use dotCA when I will have to use parcel rates because the item is bulky. That means a higher payment since international, or even domestic, tracking is expensive.

 

@explorerroller 

thrift store receipt 1.jpeg

 

Note that this is also a charity selling used goods.  And collecting sales taxes.

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Seller fees out of control

ZOMBIE THREAD FROM SEPTEMBER 2021

 

The problem with zombie threads is that the advice and information may be out of date and incorrect.

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