Help understanding fees/final fee etc please...

[michelleandmickey]

Hi there...

Scenario - I have a basic store, so no insertion fees.

I am selling an item for $24.80 plus $7.20 postage... 

When I use the calculator, it says I should be paying $2.98 in fees... but I am paying

$2.36 + $0.68 (on freight) = $3.04

When i use calculator and pretend I am selling this item for $32, with FREE FREIGHT, my bill is $3.04

Can anyone please explain why this might be happening, or why I am dense for not understanding something... does the extra 6 cents I seem to be missing come through as a credit later or something??

EDITED: OMG I AM DUMB! DISREGARD ^^^^^ HELPS IF I ENTER VALUES RIGHT!!! DERRRRRRRR ME!

PLEASE HELP WITH BELOW THOUGH 

And, while explaining that... am I to understand, as a new seller, that when I pay my post office $7.20 to freight something, eBay charge me for that... so ideally, we should add about 15% to all our sales, to cover FVF, Freight FVF and Paypal Fees?

Thanks in advance for your time... 

[2011.narelle]

Someone else will be much better with actual figures than me.I'm lazy with numbers so i go to Seller Account~Account summary then in the box the part that says "includes promotion savings" (view details) that shows a every item I've recently sold + the FVF on the item & also the FVF on postage for each item.

As i use satchels it shows i pay i think 82c fvf for each 500g,$1.38 for the 3kg.I just slightly upped my start price to make up for the extra pimp daddy eBay fees.

[*crikey*mate*]

generally speaking, unless a low cost item, 15% should cover your fee expenses

[digital*ghost]

There are some pretty good tools around that can calculate a range of things automatically - there is an Aussie version of this one somewhere (which I don't seem to be able to find again), which lets you set certain parameters like store level, listing type etc, then automatically calculates a BIN price based on the profit you want to make (eg if you want to clear $5 on an item, you put that in and it shows you straight away what the eBay price needs to be): http://www.ecommercebytes.com/cab/tools/calcs/ebay_fee_calculator 

That one will be a little off for Oz listings as it uses the US fee structure, but there's a lot of similar ones that use ours - http://ecal.altervista.org/en/fee_calculator/ebay.com.au/

[clarry100]

We have been operating two basic stores now for just over 12-months.

We have been tracking all income/expenses for tax reasons throughout this time.

The average across the 2-stores over the 12-months tax year just ended has been 15.4% of total sales (all income from sales incl any postage charges) for all fees. This includes all fees both ebay and paypal.

So your allowance of 15% on top of your item price to cover these fees I'd say is not too far off the mark.

Here is what we do:

Start out knowing what an item costs us to get into our stock holding.

Then add on what we think we want as a profit from it. This can be competition driven as well.

Add a factor (ie 15%) to cover our fees.

Add a factor (usually $2) for postage & packaging etc (our stuff is all "FREE" postage)

With that total take a look at any competition on same/similar items and make adjustments up/down if necessary.

Then list the item & watch its performance over time.

Occasionally we will run a sale (maybe 10/15% off across the board) and if an item sells much better with a discount we will consider reducing its BIN price permanently.

[casbit33]

I have been adding 11% plus nearly $1 to cover bubble wrap and fees.  By the time I pay Paypal fees, Ebay fees and Postage - there's very little left.  For an item under 500g. I charge $8.95 postage.    Australia post charge $7.20, Ebay fees .89, paypal fees .51. Total cost = $8.60

That only leaves .35c to cover bubble wrap & other wrapping. Not much is it.? But buyers don't think of that - they assume I am making $1.75 on the postage. Not so. Then of course there are the fees on the item itself - so that price has to be dearer too.  I really don't see why there should be fees on the postage. Just greed I guess.

[haolove13]

Hear Hear !!!! greed , greed, greed,

[haolove13]

And on caculations.
How much is 15 % of zero?.
That is how much I pay now.

[davewil1964]

Paypal fees are 21c. The 30c transaction fee should be included in your item price, not postage, as you would pay it regardless. So you have 65c for packaging materiel. I can get 2metres of 375mm bubblewrap for 65c.

The only difference is the 89c FVF on postage. The other costs were already there. And you have that covered with your 11%.