Are most buyers by now aware that sellers have to pay ebay a final value fee on the postage ?
It's a hidden cost that is not seen up front so maybe not considered.
So a seller takes $10.60 from you for postage and loses 10-13% to ebay.
This system is rightly in place to protect buyers from postage pirates.
( many of you may be too young to remember the items selling for $1.00
but having a postal charge of $100.00 ).
48 comments
countessalmirena
·3 years agoIf you were selling CDs, it might be Bublé wrap...
paper-jack
·3 years agoHaving read through this whole thread while waiting in a phone queue yesterday, I've had time to think about the awareness of buyers. As a buyer from various online stores I have frequently noticed that the postage charge is way above the APO charge. Eg fixed postage price of $19.95 for small sized items that weigh under 500g. I suspect other buyers wanting this product (not available with my state, only in Qld or WA) would do what I did, ordered several items to get good value out of the postage.
Many online stores have a postage or delivery charge that is more that the standard postage rates. As they keep open one conclusion is that some people don't care/don't notice or, where offered, go for the "spend over $xx and receive free delivery".
I suspect if they wants it they gets it, no matter what. I also suspect that some people look for an angle to complain in every part of their life.
Would a potential buyer who looks into a seller, go past the feed back score? I've never considered looking at the Reasonable postage costs score.
sugar249
·3 years agoI think you comment just highlights the lack of understanding.
The listed postage will not match the actual delivery charge. because on top of the AP charge there are other postage costs, as an example a box, bubbkle wrap, etc. If we use OP's comment the FVF. Which yes could all be added to the cost of the item, but depends how you run your store you can include in the postage charge.
All my items have the AP charge plus my on costs included in postage , which in a way is to my detriment, as I do a lot (heaps of combined postage), so if I had added the oncosts (say 50cents) to each item, I would make extra per total sale then by having it in my postage charge.
domino-710
·3 years agoYou make the money on the sale - not the postage.
Postage should simply cover costs of posting the item - not for making a profit.
sugar249
·3 years agoYou didnt read, the postage is more then the AP component, it is also the packaging etc. No profit being made on that.
And just an aside it is up to the business owner to decide where and how they make profit, and what that margin is.
Not sure if you realise we as sellers can set our prices to suit us, than the buyer can decide if they wish to purchase or not..
domino-710
·3 years agoI've been selling for 20 odd years.
What do you think ' the costS ' of posting an item cover.
Basically everything it costs you to put it in the mail.
Beejeebus - didn't think I would have to add ' bubbkle wrap '.
sugar249
·3 years agolol
springyzone
·3 years agoAbsolutely spot on!
Most businesses (big businesses) that I buy from online have moved to 2 different postage/delivery models.
Firstly, there is the fixed price model. You can order as little or much as you like but you're up for a set amount with postage. The obvious aim is to get the customer to feel they may as well order more while they are at it as it won't cost extra to post. I have to admit, this works for me.
The next strategy that some use is to offer free postage over a set amount & that works on me too sometimes, if what I have in the basket comes anywhere close to that amount. My thinking often is-if postage is eg $9.99, then I may as well order something small, worth about $12, to take me over to the 'free' threshhold.
But very few businesses that I have come across offer totally free postage from the start. The only places I have struck it lately have been some items on ebay plus some on Catch.
I suspect the bottom line is customers don't love paying postage but most recognise it as a necessary component. But.. they will often buy a bit extra if that will get them a postage freebie.
But do they consider fees that sellers are paying? I'd say no, they just figure the business can absorb it from their profits.
kh-stanley1
·3 years agoHi everyone
This thread is getting a bit personal and off topic. Please remember that, while it is fine to disagree with others, discussion should always remain courteous and respectful.
Thank you for your cooperation.
springyzone
·3 years agoHey, I'm a buyer so I feel fully qualified to answer you.😁
The answer is no. Definitely no.
The majority of customers would be aware, vaguely, that sellers who place ads-whether that is on ebay, on TV, radio etc, generally get billed for that. There are some free ad venues-eg gumtree & marketplace-so some customers may not even be aware ebay charges fees, let alone wonder if there are fees paid on postage.
I'm well aware of fees but that is only because I was once a seller, plus I frequent the boards. Plus I know a couple of people who do sell on ebay.
One thing I can tell you is that customers don't give much thought to postage fees a seller might be charged but they do pay special attention to any fees THEY may be charged. That's what customers care about-how much THEY have to pay. I'm like that myself.
Even then, some customers have extremely unrealistic views of what postage should cost.
My advice would be that if your stars are being dinged and you suspect it is because you add 50c to the postage cost, then add the 50c to the item price instead.
sugar249
·3 years agoUnless things have changed, as they are advertsing as free postage (claimed in an earlier update), you don't get to rate them on postage cost . So not really relevant for this person
domino-710
·3 years agoJust an up while you are burning people Sugar.
Advise - is a verb - to advise is to give advice.
Advice is a noun.
Use it.
sugar249
·3 years agoNot burning anyone, just clarifying.
I'm glad you are so perfect
domino-710
·3 years agoMe too. LOL
springyzone
·3 years agoYes, you're quite right, I went back and noticed that in one of the later posts.
I think what misled me was an earlier comment Fixnwear made,
If I edit our postage business policies to make them all actual postage rates we will still save on most ( except those pesky rural postings ) and will score 5/5 instead of 4.9/5 for postage costs.
Perhaps he has more than one selling account and tries different strategies, I don't know.
But whichever way sellers list their items, I don't think buyers are generally aware of fees on postage price.
Even when items are listed as free postage, I think the majority of buyers don't stop to calculate how much the postage component would be (let alone fees on it). A lot of them wouldn't have a clue. All most buyers are interested in is how much it is going to cost them.
sugar249
·3 years agoWhy should a buyer care.
They just want to know what price they are paying for the item.
There are so many costs that go into the final price I charge a buyer, not just your so called hidden cost. Besides your so called hidden cost just on postage alone there is packaging, labels, petrol to PO, etc, etc, I could go on, but you seem to fail the basic grasp of business, in that there are most likely 30 plus costs that go into the final price we charge a customer.
The buyer doesnt care about our costs, just what they pay.
fixnwear
OP3 years ago"you seem to fail the basic grasp of business".
This is almost funny.
After 40 years in bricks and mortar I had more than a basic grasp of business principles.
I was, however, abysmally dumb when I assumed that a jump to online trading would result in a less complicated and more leisurely life.
I can no longer turn the key and have a night off 😞
I got one thing right though in that I never incorporated BNPL in my web site business model.
sugar249
·3 years ago40 years of business and you still think the customer should know every component of what makes up the price of an item. I sure hope you advised every customer at your bricks and mortar how you calculated your final retail price.
Wow, you cant turn the key off, again a failure in business practices, yes you can, why cant you? Maybe you need some advise and guidance on how to run a business.
fixnwear
OP3 years agoPerhaps I didn't make myself clear enough in my OP.
I was not suggesting we itemize our costs to our buyers simply
that buyers will see a postage rate of so much as 5 cents over and assume a rip off
and leave low stars for Postage Charges.
I don't need to mention postage costs as all my items are 'postage included'.
I was simply asking whether buyers are generally aware that ebay charges a fee on postage.
As usual, no answers were provided.
I guess 'buyers either don't know or don't care' seems to be the concensus here.
Here was I thinking some posters might provide clues.
Oh well.
sugar249
·3 years agoNot sure how sellers would be aware what goes through a buyers mind, maybe you would like us to ask them.
sandypebbles
·3 years agoI had more than enough buyers when I was selling 'tell' me how much things cost to send, how I could just stuff bulky items into a yellow envelope and mail it as a letter, how (apparently) eBay 'gave' us all our packing materials etc etc etc to know
I doubt much, if anything has changed
I would not be surprised if there are some buyers who think a stamp still costs what it did in 1990
domino-710
·3 years agoI'd say probably not - unless a buyer is also a seller.
How's that. ??
cam-2793
·3 years agoAs a buyer, I am aware but considering how many buyers come on the boards complaining about stupid stuff ( like a change of mind return they have to pay return postage on an item originally listed as free postage- " but postage is free!") My guess would be most buyers don't know anything about how eBay ( or real life) actually works.
gutterpunkz05
·3 years agoHow the hell is anyone here, buyer or seller, supposed to know what the majority, or for that matter any percentage, of buyers are aware of ebays fee structure.
I doubt even the highest echelons of ebay, would be able to offer a qualified answer to such a question.
How long is a piece of string?
gutterpunkz05
·3 years agoJust to add, we could always just go with 42.
sandypebbles
·3 years agoAnd the Powerball number?
countessalmirena
·3 years agoSeveral posters have answered this to the best of their knowledge, including me. Quoting:
I can’t enlighten you about the knowledge of most buyers other than to say what I have. Judging by the outraged posts by eBayers who are primarily buyers but infrequent sellers, about the FVF on the total transaction amount including postage, there are at least some buyers who don't know about this component until they’re faced with it themselves when selling something. It’s impossible to extrapolate from this a conclusion about all or even most buyers. We can only guess — as I did.
gutterpunkz05
·3 years agoRecently had a buyer of several items, tell me how much they were prepared to pay for postage. (wrong)
Over the years, I have had numerous buyers tell me how an item should be packed and at what stamp fee. (wrong)
None of them ever receive their goods, as I don,t need their BS.
sugar249
·3 years agoExactly, I am staunchly against the ''customer is always right'' **bleep**.
They are not always right and we decide on the process of our business.
cam-2793
·3 years agoMost buyers don't care about a seller's costs! Either online or off!
When you go to the supermarket, do you think about their rent, utilities, wages etc.
It's really not something most people think about and most people buy something from somewhere!
I bet even the majority of sellers only think about it when they sell, but not so much when they buy from someone else .
countessalmirena
·3 years agoI’m aware of it. I don’t think that most buyers consider it even if they know it. And in all honesty, I don’t think it would be helpful for sellers to try to spell it out. There just needs to be an up-front postage charge, non-negotiable. The buyer chooses to buy or doesn’t choose to buy. It’s up to the seller to distribute the costs involved so as to attract the buyer without losing money (to say the least; obviously sellers have to actually be making money!).
I agree that too many buyers really do think there is some magical sort of eBay postage fairy who makes the actual cost of delivery go away for those sellers offering “free postage”.
davewil1964
·3 years agoGiven eBay have been charging fees on postage since 2014, it's hardly a new issue, nor is it something any realistic seller doesn't take into account.
Why the alert NINE years later?
fixnwear
OP3 years ago"nor is it something any realistic seller doesn't take into account."
I am enquiring as to whether most buyers are aware of the FVF.
It more than obvious that a seller is aware of this cost.
imastawka
·3 years agoWhy would a buyer even care?
fixnwear
OP3 years agoAre you saying that buyers don't know so don't care or they are fully aware and don't care.
I doubt I will get an answer here now that the regular ebay crew have landed on this post.
Have fun guys and gals.
*sons_n_daughters*
·3 years agoNo, buyers don't care. All they care about is their ebay bargain they think they got. Because after all, ebay is the place of bargains, where you can get a $1,000 item for $20.
As you have never sold anything (on this account), I'm guessing you have no idea, and really wouldn't give a toss about what sellers have to pay.
fixnwear
OP3 years agoThat's funny. We have always charged 50 cents over the actual postage cost and save on our postage costs ( at 2 bands under maximum ) but you have given me an idea. If I edit our postage business policies to make them all actual postage rates we will still save on most ( except those pesky rural postings ) and will score 5/5 instead of 4.9/5 for postage costs.
If we try to restrict our delivery areas to maximum discount areas then buyers will stop whinging ( in the stars ) and we will actually profit on postage. Not sure if sales destinations can be fine tuned like this but it's worth a shot. If it can be done I will kick
After 17 years selling on ebay I am still learning.
Thank you.
ps Who in their right mind posts here using their selling ID.
fixnwear
OP3 years agoI had better leave this scene because I almost posted using my selling ID...lol
creekman51
·3 years agoit's just another ebay rort, they have so many taxes and fee's that it makes the ATO look like a charity, try buying from oversea's with postage cost's that are mind blowing eg. 100$US shipping for a coin ... yes a coin...
davewil1964
·3 years agoRelevance to the OP?
davewil1964
·3 years agoIt is more than obvious that buyers pay the sticker price. They don't and shouldn't care what fees a seller pays.
Advertising, methinks, or a complete disconnect with reality.
gutterpunkz05
·3 years agoNo need for buyers to know or care. Many seem to think postage relates solely to the stamp fee.
Most sellers can access discounted postage rates, making standard stamp fees irrelevant.
fixnwear
OP3 years agoFair comment but the seller is still being penalised.
There seems to be a zero broadcast from ebay.
I am sure there are a few buyers out there who still think
Free Postage is free.
sandypebbles
·3 years agoI'm aware of it (not sure how it is hidden) and remember the obscene postage costs in the place to having that as an item cost as a way to 'avoid' high selling fees
I very much doubt buyers would care one jot
Especially considering how many buyers think 'free' postage really is free to the seller
And others who think eBay give sellers all the packaging materials etc etc
In other words, too many buyers 'think' the full postage cost is what the 'stamp' says and nothing else
fixnwear
OP3 years agoFrom my previous post.
"( many of you may be too young to remember the items selling for $1.00
but having a postal charge of $100.00 )."
sandypebbles
·3 years agoYes, I know, that's what I said , I remember it
padi*0409
·3 years agoI doubt they would even consider it, I know about it but it really doesn't concern me as the seller should be building that into their item costs.