topic Re: Final value fees on shipping in Selling

Final value fees on shipping

02*mcevoy — Sun, 07 Feb 2016 04:59:06 GMT

Hi Sellers,

I recently sold a package to a Bahrain buyer. The shipping price I quoted to the Buyer was $109.30, exactly as quoted by AP.

Herein lies the trap for novices.

Ebay and Paypal charges totalled 13.55% which meant I lost $ 14.81 on the shipping cost.

To break even on the Shipping Cost, I should have inflated the cost by 15.6738% which would bring the Cost to $126.43.

Do the sums: 13.55% on $126.43 = $17.13 Now $126.43 - $17.13 = $109.30

I believe that the shipping cost is technically a 'PURCHASE' and should not be exploited as a 'SALE'.

What about the retention/freezing of the Funds from the sale, for 3 weeks, and we do not receive any Interest?

Re: Final value fees on shipping

lyndal1838 — Sun, 07 Feb 2016 05:13:04 GMT

*sigh* All this has been discussed on the boards many times. I suggest you have a look around and see what has been said in the past.

If you dont want to lose money on the FVF on postage you need to charge the buyer 11% (I believe) over and above the AP quoted rate.

Paypal holds the funds of new sellers and sellers who hve not sold for some time. As soon as the buyer leaves positive feedback and/or the tracking shows that it has been delivered you can ring paypal and ask them to release the funds.

Re: Final value fees on shipping

k1ooo-slr-sales — Sun, 07 Feb 2016 05:21:52 GMT

if the final-value-fee on postage is 'new' to you, just wait until you find out about eBay Money Back Guarantee, it's a doosie

Re: Final value fees on shipping

bakeandfry — Sun, 07 Feb 2016 05:22:18 GMT

FVF on postage has been here for a while, you can increase prices on listings to cover it.
"Pending" payments is what paypal are entitled to do for all new sellers, that being said paypal paypents should be released in these following points
* 3 days after confurmed delivery (tracking) and marked as posted from ebay sold page
* 7 days after last estimated delivery and marked as posted from sold page
*21 days after estimated delivery date and not marked as posted
Every new seller is in this boat.

Re: Final value fees on shipping

02*mcevoy — Sun, 07 Feb 2016 06:05:44 GMT

I have shown in the sums that the inflation figure to be added to the Shipping charge is closer to 16%, rather than your 11%, just to break even.

I have been on eBay for a few years and this was my first venture into the International arena, and I do not want to see other sellers caught unaware of this trap where there is HIGH cost for International Shipping.

Re: Final value fees on shipping

imastawka — Sun, 07 Feb 2016 06:12:01 GMT

Paypal don't charge FVF for shipping.

Ebay charges 10% on shipping. So Lyndal is right when she says

to charge 11% to cover costs on shipping

All other FVFs should be incorporated into the item price

Re: Final value fees on shipping

lyndal1838 — Sun, 07 Feb 2016 08:44:21 GMT

You should not be adding the ebay and paypal fees to the shipping cost.....just the 10% FVF that ebay now charge on the postae.

In order not to be out of pocket at all you need to add 11% of the AP quoted shipping cost.

You need to add a sum of money to the price of the item that will cover the ebay FVFs and the paypal fees. If you are selling overseas you need to add a bit more than if you are only selling locally...as you have said the overseas postage is a killer.

Many sellers have stopped selling internationally for this very reason.