There goes another fvf on shipping

[altimateoutlet]

I am tired of seeing ebay take 10% plus exchange on my shipping charges.

[pierrelebel]

The policy was changed over two years ago (matching eBay's major competitor) and I would not expect eBay to ever revert to the old system. FVF on the total value of the transaction (except for tax) are here to stay.

There is only one solution: include the domestic shipping and handling charge in your selling office.

If you are a Top Rated Seller, you get 20% rebate on the total value of the transaction, saving on FVF charged on shipping.

[sunstone]

There is NO justification for FVF on shipping,,,,A complete rip off....as a part-timer for 15 years on ebay i find it absurd that ebay feels it can charge for an activity that it has no role in ,increasing costs and reducing sales for the backbone of ebay, its sellers.

[inuk_the_polar_bear]

There is plenty of justification. It is the industry norm. Paypal is processing that money, eBay is invoicing for that money. Service should be for free?

eBay is moving to a free shipping model. Argue all you want. One day it will be mandatory. I knew about the FVF on shipping over 4 years ago.

I do not pay 10% FVF on shipping. Never have and never will.

Sellers are not the backbone of eBay, buyers are. An old adage I always use: "No customers, no job".

[rykkm]

It is to conform to their major competitor, but the other factor was the excessive shipping costs some sellers got away with several years back. I believe they called it fee avoidance, by selling items cheaply and charging large shipping $$, which went directly to the seller.

Buyers didnt really care, as the total price was quite often the same or close to it. But ebay was missing out on a whole lot of $$. I guess it was easier to modify the business model than employ people to investigate those who were contravening the rules. Sad that a minority of bad apples caused a change that affects everyone.

I havent sold on ebay in years, but I imagine I would go to the free shipping model these days, depending on the product. I guess one can build in the cost of fvf into shipping, but that 20% discount certainly makes it tempting to go with the free option.

[angus_coin_shops]

Don't kid yourself, sellers are the backbone of eBay> no sellers, nothing to buy> no buyers.

EBay is no better than any governing bodies, once they get to taste the extra money they wont give it up.

You just have to adjust to the fvf on S/H.

[melissasminis]

"Service should be for free", there was no fvf on shipping before, they got by okay, why not now? It's another way for them to get into your pockets, like the government. Shipping is never free! You can place it into your purchase price all you want, it's still there. You knew about FVF fees on shipping over 4 years ago, has it been in effect that long? Don't think so! If I'm wrong, please let me know. Just like old question/joke, what came first, the chicken or the egg, that's how you describe sellers and buyers. I think without sellers there's nothing to buy and no venue, but you see it as without buyers there's no sellers, or something of the sort, please forgive me if I'm wording that wrong. Not convinced, sorry.

[melissasminis]

The sellers are the backbone of ebay, not the buyers, without anything to sell, what do you have? Nothing! Therefore, no website, and no buyers, nothing to buy in the first place!

[melissasminis]

Don't forget, we, as online sellers, are giving a huge convenience to people around the world. The opportunately to buy rare or uncommon items that you can't find locally, the convenience of shipped to your door, many opportunities are given to people who sell and shop online, we do forget this, this is most important in my opinion. People take quick advantage of this right and freedom and technology, and almost disrespect it. Appreciates it, and things will go well, take advantage of it, and it becomes your.........

[surplusdealdude]

Don't forget, we, as online sellers, are giving a huge convenience to people around the world

People can live without your "huge convenience" if they can dispense with your "huge attitude" as well.

This is a service industry - forget that and you'll find yourself pushed to the side.

Remember this - there is ALWAYS a substitute for your product.  EVERY SINGLE TIME.  No exceptions.

As for the FVF's on shipping, we got those because a significant number of sellers were selling stuff for 1 cent with $75 shipping, ripping ebay off for fees and forcing us to pay for their bad acting.

It was either see the fees go up another couple percent and give the bad sellers even more of an advantage or even out the playing field - ebay chose the latter.

People always remember the FVF's on shipping, but they forget that the FVF's went down 2% at the same time.

[pierrelebel]

"we, as online sellers, are giving a huge convenience to people around the world. The opportunately to buy rare or uncommon items that you can't find locally, the convenience of shipped to your door, many opportunities are given to people who sell and shop online, we do forget this, this is most important in my opinion."

That is quite true.

Also true:  eBay gives you - a Canadian seller - the opportunity to offer your low cost items to a worldwide audience.  What other venue could offer you access to millions of potential buyers for a few cents per listing? Where would your business be without eBay?  Would you sell through your own website?  How many potential customers would even know you exist? How much would it cost you monthly to advertize your website through search engines? Think about it.

eBay policies are clear. In addition to much reduced listing fees eBay charges a commission of 9% or 10% (less in some categories) on the amount of the transaction (including shipping and handling but not including taxes).  You sell low price items (all under $25) at fixed prices.  Why not include the shipping charge (mostly letteermail within Canada) and sell on a "free shipping" (shipping included in selling price)?

eBay offers incentives to TRS to sell with "free shipping" by lowering FVF by 20% on the shipping charge portion.

Looking at the big picture, the management at eBay has concluded that "free shipping" is the way to go for e-commerce.  They are not leading the trend, they are only following it.  This is what most consumers want when shopping online: one price, no extra.

And it works.

Already 50% of the total value of all transactions on eBay.com come with "free shipping".  Buyers like it and sellers have been rewarded with extra business.

And yes, most Canadian sellers understand it is more challenging for us as shipping costs are higher in Canada than what our competitors face in the USA.  Reality is that if we want to compete in their marketplace, the largest in the world, we need to adapt to it, not the other way around.

[melissasminis]

What makes you think I have a huge attitude, because I said "huge convenience"?  I didn't say anything rude or out of line. Thank you for letting me know that people can do without my items, makes me feel good. How about antiques and OOAK items, everyone selling those, easy to come by are they?

[melissasminis]

Hello Pierre, Ebay does give us a great tool for selling online, I am grateful for it, didn't say I wasn't. Without Ebay, I probably would sell anything, can't afford an actual dollhouse store. What I disagree with is honest sellers have to pay these extra fees on shipping because of a wrong doing of someone else, I had to raise my costs because of it, and the buyer ends up having to pay more in the end, which is not really that fair in my opinion. I was thinking of adding the shipping costs into my price, but shipping costs to Canada/USA is much different than International shipping costs, many dollars in difference, so profit margin would be much less if I had to ship the item Internationally. That's the only reason why I left it the way it is.

[pierrelebel]

" ....honest sellers have to pay these extra fees on shipping because of a wrong doing of someone else"

I am sorry but that is NOT why eBay changed its policy many tears ago and now charges FVF on the value of the transaction.  It is only an interpretatiuon by some sellers and, quite frankly, misses the mark.

While charging FVF on the value of the transaction reduces somehow the fee avoidance prevailing on eBay yeara ago,  the main reason was for eBay to have a fee structure comparing with its major competitor (Amazon) who has been charging fees (generally 15%) on the value of the transaction (including shipping). Take a look at http://salecalc.com/amazon

The second reason, as stated in my earlier post, was to encourage sellers to offer "free shipping" (shipping charge included in selling price) because eBay believes - quite correctly in my opinion - that most buyers prefer to have an "all included" price when shopping online.  That has been the trend for years and eBay sellers offering "free shipping" have been rewarded.

Finally, as mentionned so many times before, when eBay instituted the new fee schedule, it lowered FVF (by 1% or 2%) on most fixed price transactions.  Many sellers actually saw their FVF go down if they were already offereing "free shipping" or if the domestic shipping charge is a low percentage of the value of the item.

[pierrelebel]

"shipping costs to Canada/USA is much different than International shipping costs,"

Many years ago, shipping lettermail/letterpost. I offered "free shipping" to Canada and USA and charged a flat $2.00 for overseas transactions.  It worked quite well until I retired a few years ago and limited my marketing efforts to Canada and USA only.

[pierrelebel]

PS - By the way, sellers listing on eBay.ca and offering "free shipping" to Canada are not charged FVF on the shipping charge to international buyers.

FVF are charged on the lowest of the first domestic shipping charge or actual shipping charge.

[pierrelebel]

One last comment this morning.

"the buyer ends up having to pay more in the end, which is not really that fair in my opinion."

That is a valid comment.

However, selling "stuff" on or offline is a business.  The selling price must cover cost of goods, related expenses and a profit for the seller/merchant representing a return on investment (inventory) and time.  "fairness" has nothing to do with it.

When you purchase goods at any large department store or discount retailer, you pay about 2% (two cents in every dollar) for goods that have been shoplifted or pilfered by others.  Is it fair?  Once again, "fairness" has nothing to do with it.  Merchants (sellers) need to recover all their costs and make a profit.

[altimateoutlet]

Little confused here.  Do buyers want to know what they are paying for freight?

If you include the shipping it jacks up the cost of goods and makes you appear uncompetitive.  If you charge the actual shipping after the sale Ebay takes their cut.

Personally I cannot see the differance because my dsr has been trashed and my exposure has been minimized as well as sales. We sell boots so if the boot don't fit .....we get slamed.   In one year from TRS to selling bum and not a thing you can do about it.

[pierrelebel]

"Do buyers want to know what they are paying for freight?"

Most buyers are only concerned with their total cost.

They do not really care if they are paying $10 for the widget and $10 "shipping and handling"

or

$15 for the widget and $5 "shipping and handling"

or

$20 with "free shipping"

Buyers are not stupid and realize the shipping and handling charge is included in the price.

eBay sellers have advantages in offering $20 with "free shipping" as more and more online buyers prefer an all-inclusive price and eBay offers incentives (better placement in search, lower fees) to include the shipping charge in the selling price ("free shipping").

That trend is irreversible.  Already half the value of eBay transactions are made on a "free shipping" basis. There is no point in fighting it.  It is a losing battle.

Adapt and go with the flow.

[marnotom!]

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@melissas-minis-2007 wrote:

The sellers are the backbone of ebay, not the buyers, without anything to sell, what do you have? Nothing! Therefore, no website, and no buyers, nothing to buy in the first place!

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Without buyers, the sellers don't get the money to pay eBay in the first place.