topic Re: Fees are too high... in Selling

Fees are too high...

arman_sch — Wed, 29 Aug 2012 04:11:00 GMT

I don't know about the rest of you, but as a casual seller/buyer on ebay (I often sell stuff I actually bought on ebay), I find that the max fee for a listing is just too much. I recently sold a lens for about $1000, on which the fees were over $100 (with $0 insertion fee). That left a sour taste in my mouth.

I'm also rather unhappy with the paypal fees, especially now given that we aren't really provided with an alternative; those fees should be transparently displayed as part of the ebay listing fees.

Now I know that ebay is providing a service, and I'm very grateful for it, but I certainly won't be selling anything between $500-$1500 on ebay ever again; I simply don't believe that the price advantage justifies the price. And even if the price after fees were equal to the price I could get on a free listing service, I'd definitely go with the latter just out of principle.

What do you all think? I'd be interested to hear how everyone feels about handing over 11% on every sale (and arguably every purchase, if you're into economics)...

P.S. Wouldn't it be cool if there were an option, as a seller, to see the current bidding price net of all fees that will be deducted, based on that price? Just a thought...

Re: Fees are too high...

***super_nova*** — Wed, 29 Aug 2012 04:16:56 GMT

If you take your items to auction rooms you will be paying 20% plus, and so will the buyer, which means they will bid less.

Or you can put an ad in a newspapers. But in both cases you will only reach very small number of potential buyers comparing to eBay.

I am happy to pay the FVFs as they are, and am more than happy to pay the few dollars for PP transaction.

Re: Fees are too high...

the-kazbar — Wed, 29 Aug 2012 04:26:40 GMT

I'm fine with the ebay fees as well. I am paying for a service. i can use it or not.

The only fee that gets up my nose is the PP fees on echeques. I think the buyers should have to pay those.

Re: Fees are too high...

arman_sch — Wed, 29 Aug 2012 04:34:20 GMT

I've never used an auction house personally, but I have used many free local mailing lists and have always gotten a good price for my items. It certainly doesn't feel like I'm getting 11% less, to justify the costs on ebay.

I think the economic benefit of ebay is probably greatest for larger sellers, because for them it's simple economics. For me, as a private seller just selling a few things here or there, I simply don't want to pay 11% every time I sell something, knowing that I can get a better deal elsewhere (albeit for more work - ie. posting to the list, waiting for replies, organising payment, etc.).

It's frustrating though because I really like ebay. I like the auction format and the protection paypal offers, I'm just not willing to pay 11% for it, it's too much.

Re: Fees are too high...

arman_sch — Wed, 29 Aug 2012 04:38:31 GMT

Let me rephrase that; I don't think 11% is too much, I think it's perfectly fine for smaller items. I'm happy to 5 bucks if I sell something for $50. I think $50 for a $500 item is maybe also tolerable, but $100 for a $1000 item just seems like a ripoff. I mean, it's not like the overheads change. Protection services are not funded through ebay fees, so the increase in cost for larger items is simply discretionary, they have no larger overhead for those items.

Re: Fees are too high...

*sparklz* — Wed, 29 Aug 2012 04:50:07 GMT

I'm fine with the ebay fees as well. I am paying for a service. i can use it or not.

The only fee that gets up my nose is the PP fees on echeques. I think the buyers should have to pay those.

Just wondering why you would thnk that?

Re: Fees are too high...

lyndal1838 — Wed, 29 Aug 2012 04:58:06 GMT

Is there an extra fee for e-cheques?

Re: Fees are too high...

davewil1964 — Wed, 29 Aug 2012 05:29:13 GMT

No there is not.

Re: Fees are too high...

the-kazbar — Wed, 29 Aug 2012 05:30:55 GMT

No, the fees for echeques are the same as for transactions funded by credit cards and PP balance however echeques take 3 to 5 days longer to clear than if the person paid by bank deposit.

PP offers sellers the convenience of having a fast payment and the ability to accept credit cards and we pay for that service. I think that if buyers want to pay via a bank account but also have the PP protection then they should pay those fees.

Its only my opinion and it will never change but I think we should at least be able to block echeques if we choose.

Re: Fees are too high...

*sparklz* — Wed, 29 Aug 2012 05:41:25 GMT

Ok valid points there Kaz.

There is a lot of sellers that are asking if they can block echeques as they do not like them.

At least with an echeque a buyer can not do a chargeback.

Re: Fees are too high...

lyndal1838 — Wed, 29 Aug 2012 06:01:00 GMT

But you are paying paypal for the service of transferring money, no matter what form it takes. You still have seller protection too, so why is it any different to paying fees for any other type of payment.

Re: Fees are too high...

the-kazbar — Wed, 29 Aug 2012 06:10:13 GMT

PP are not providing me anything different with an echeque than bank deposit does, and in fact it takes over twice as long.

They are providing the buyer the service with an echeque, so I think they should pay.

Re: Fees are too high...

lyndal1838 — Wed, 29 Aug 2012 06:19:25 GMT

Doesn't paypal provide Seller Protection no matter what the funding source is?

Re: Fees are too high...

the-kazbar — Wed, 29 Aug 2012 06:24:49 GMT

Yes, but so does bank deposit hence me saying "PP are not providing me anything different with an echeque than bank deposit does"

Re: Fees are too high...

lyndal1838 — Wed, 29 Aug 2012 06:32:07 GMT

Do I understand you correctly Kaz....the buyer can whistle for a refund if they do a bank transfer to pay you?

The seller and buyer are both covered if it is an e-cheque but only the seller is protected in the bank deposit scenario.

Re: Fees are too high...

digital*ghost — Wed, 29 Aug 2012 06:46:20 GMT

They are providing the buyer the service with an echeque, so I think they should pay.

But don't buyers essentially pay the fees regardless of funding source, anyway? As a business, I'm sure you factor the cost of using PayPal into your prices and so forth, so when buyer does pay with PayPal, you still get the X amount of profit you want...so wouldn't that just make it more of a case that you want them to be more aware that they're paying those fees if they use an echeque?

Re: Fees are too high...

phorum_junkie* — Wed, 29 Aug 2012 11:28:27 GMT

You know what the fees are going to be before you list so if you don't like them don't use the site to sell.

Re: Fees are too high...

the-kazbar — Wed, 29 Aug 2012 18:14:26 GMT

Do I understand you correctly Kaz....the buyer can whistle for a refund if they do a bank transfer to pay you?

The seller and buyer are both covered if it is an e-cheque but only the seller is protected in the bank deposit scenario.

No. You are not understanding me at all, but I also think that you knew that and are just being a little difficult for the sake of it.

My customers are covered for missing parcels regardless of the payment method because I am an honest, reliable seller.

If you read what I have actually written you will see that I have said is that the service I am receiving (ie paying for) from PP is no different from what I get from my bank.

This thread was about fees. I think the ebay fees are fair. If I didnt I wouldn't use the service. I would like to have the same choice when it comes to accpeting , or not, echeques, but I can't.

Re: Fees are too high...

the-kazbar — Wed, 29 Aug 2012 18:20:36 GMT

But don't buyers essentially pay the fees regardless of funding source, anyway? As a business, I'm sure you factor the cost of using PayPal into your prices and so forth, so when buyer does pay with PayPal, you still get the X amount of profit you want...so wouldn't that just make it more of a case that you want them to be more aware that they're paying those fees if they use an echeque?

Yes, but I don't know of any business that doesn't want to reduce their costs. Do you?

Re: Fees are too high...

digital*ghost — Thu, 30 Aug 2012 02:21:38 GMT

Yes, but I don't know of any business that doesn't want to reduce their costs. Do you?

That's a slight diversion from the issue, though. If you agree that buyers pay those costs (and those costs are only incurred if they purchase and pay), then it's not really a cost to the business.

I'm not actually trying to be argumentative, even if it seems like it, just offered a different perspective on the issue.