Credit Card Chargback

[dylan11235813]

I had a buyer about 2 months ago order an item for about $7 and I got a chargeback thing for the transaction through paypal. I decided to fight it as it was for an unauthorised use of a Card (not realising it actually cost me $15 to do so by paypal). I stated in my claim that it was paypals and the banks fault because they initially allowed the fraudulent transaction. I had no proof of shipping an item or anything.

Anyway I won (after about 2 months) and they only refunded me the $7 and not the $15 fee paypal charge. Shouldn't the bank  or paypal pay the $15 fee as they have admitted they are in the wrong by refunding me.

[haolove13]

If I buy an advert in a magazine / newspaper/ trade journal/  based in Oz I claim 10 % back.

If I sell through an Aussie based company I receive a 10% payment back through GST.

If I pay commission to an Aussie based B&M store I receive a benefit.

That is a positive effect on my cashflow until tax time as it reduces my amount payable on my BAS.

The only Australian based company I do not receive this benefit from is EBAY.COM.AU

My payments for services to Aussie Banks etc. attracts a GST payment for services provided.  

Why are Ebay so special ????????? do they actually contribute anything to Australia?

Anything I sell in Australia to australian customers is invoiced including GST. So because I sell through a swiss based company can I invoice all Ebay sales as GST exempt as they are GST exempt?  How does that add up???????

[j*oono]

Ebay is just a platform.  You are paying them very little to advertise your items.

Obviously if you are earning enough from this platform you need to let your buyers know that it includes GST. That doesn't really have anything to do with ebay because they are not charging you the GST, the tax system does.

[haolove13]

Ebay set reasonable (according to them) postage limits.

For me to send a $13.40 satchel it now costs me $16.00 to provide that service. That cost can not be incorporated into my bas statement as Ebay fees do not include GST so the customer pays more , I pay more with no ability to claimand recover my expenditure. But Ebaymake increased profits at my expense.

That is not an honest way to do business.

And as a part time seller think about what you are losing.

You pay $13.40 for a 3kg satchel

You charge the customer $13.40 for the service.

But you actually need to charge $15.80 just to break even

how much do you charge?

If you think 9.9% plus paypal charges is a reasonable price to pay I suggest you look back to ten years ago.

It was 5.25 % up to about $75.00 and 3.25 percent after that.

so three times the charges plus paypal. Is that really a realistic charge.

You can guild your own lilly but I know when I am being fleeced.

[haolove13]

As a registered business for GST I charge and show on my invoices in all areas for GST purposes. The only significant business I deal with that does not charge or credit for GST purposes is EBAY.
Australian taxation law does not allow me to exempt Ebay sales from GST. So how do you explain that.???????

[cq_tech]

How did you calculate a figure of $15.80 to break even on a $13.40 satchel?

To recover the 9.9% FVF you need to add 11.1% to the price which is a total of $14.89.

[j*oono]

Haolove, If you are a big time seller then you can get a contract with Australia Post.  I know that with one buyer I have bought from they never pay more than $10 to post anything.  I know there are restrictions.

Speak to someone at the post office.

I usually offer free postage because I make my own things.  For others I just charge what it actually costs.  I'm not running a business so for some people you need to decide which is better.  Ebay, own website or a retail shop.

[haolove13]

On $14.89 I pay FVf of $1.48 plus paypal of 66 cents.
On $15.80 I pay FVF of $1.58 plus paypal about 79 cents.
That does not recover packaging materials or include any small handling fee.
It also does not include the twenty minutes to deliver the item to the post office as without lodgement proof I lose a very high percentage of parcels. My time is charged at fifty dollars per hour so to post one parcel costs about $17.00. If I am lucky enough to make multiple sales in one day then that cost reduces.
if you choose to offer free post that is fine, but when you post at cost and try to make a small profit from items you sell then you need to recover costs in a realistic manner.

[cq_tech]

Understood. Sorry, I didn't include the Paypal fee component in my original calculation so your figures are indeed correct. 🙂

[haolove13]

I am not a big seller. I run several businesses which include Ebay (until they banned me) A private website, two other selling platforms and personal sales. To obtain significant discounts you need to buy large multiples of individual items or commit to significant multiples. I have previously purchased 100 of individual items but it took me twelve months to use them all so the cost of holding that stock was significant. I use seven different types of packaging so to purchase 100 of each would cost me about $ 1,000 upfront.

As sales on Ebay have deteriorated to use 100 of any postage item would take a long time to recover my investment let alone make a profit.

I have tried making individual boxes etc for items but the time involved in that is very expensive.

(try packing ten individual items with custom made boxes in less than an hour. !!!!!) And by that I mean pack them safely  not just cut and paste a box. Use bubble wrap, card facings, shredding and write the address clearly.

I have been in this game for twenty years now and only one or two items have been damaged by my bad packing. Many more items have gone missing through false claims, poor aus post practices one via German post practices. (they read 56 as 65 and sent the item back via south africa. )

[haolove13]

And to consider a $13.40 satchel it actually costs you $15.80 to post it.
If you offer free postage for it you are $15.80 out of pocket.
I sell a lot of items in the $10.00 to $35.00 price range and there is not enough profit in these items to offer free postage.
And if you send without tracking the incidence of false claims and losses is significant now adays.