Should ebay profit from a FVF on postage costs?

[mamacas65]

Bad enough for the big sellers and their bottom line but what about the poor sods selling an item for a dollar with a postage cost of $7.20?

They'll end up with 18c after ebay have done their bit and then have to pay 50c to paypal.

Not only has he made nothing but is, in fact, 32c out of pocket!

Ebay govern us to not profif from postage and are quick to chastise the over-chargers but is it now the kettle calling the pot black when, for so many sellers, the FVF on the postage will be greater than that of the actual item?

For me there is only one conclusion..........

It sux like a Dyson!

[phorum_junkie*]

I have no sympathy for sellers who list things for a dollar, why would you bother? it has been on the cards for years now that ebay would bring in fvfs on delivery in Aus eventually to bring it into line with the US. Can't see how anyone can be surprised and sensible sellers will have been gradually changing their prices for both items and delivery over the last couple of years so they do not have a sudden increase in either prices or profit margins.

Ebay has one aim and one aim only. that is to make the maximum amount it can in order to keep the shareholders happy, they are not in business to do things that sellers want one week and that buyers want the next.

If you want a say in how ebay is run you will have to acquire a large number od shares!

[dylan11235813]

"it has been on the cards for years now that ebay would bring in fvfs on delivery in Aus eventually to bring it into line with the US."

It is Australia simple as that, there are, as you know many things different. By your rational they might as well have a single website with the same rules for everyone, which is not going to happen anytime soon.

They may have wanted it for years but could only do it after striking a deal with Australia Post. I'm also curious as to how much GST is payed for the service that is supplied by ebay to print postage labels. The cost is still comparable to walking into the post office and paying for the postage, yet what happened to the GST?

I am by no means 100% on this but it would seem that as a customer of ebay no GST is payed on postage, in effect ebay is collecting the 10% GST and also charging the 10% or so FVF and also getiing a discount by taking the burdon away from Australia Post. I have no idea how GST works in this situation though, I don't collect GST myself so....

[sparrow2207]

Its actually against ebay's own policy to PROFIT FROM POSTAGE.

Its all a case of "do as I say NOT as I Do".

Its another reason why ebay should be pulled by by the ACCC.

The only company that shoukld profit from postage is Australia Post or a nominated courier company.

Maybe we should all send our packaging expenses to ebay for reimbursement as we now are out of pocket for what we weren't before.

Where is the postage discount when they give with one hand and take with the other.  And in a lot of cases its cheaper to post direct with AP.  

Its just another case of stealing iMO.

[porcelainforyou2]

I couldn't agree more.

Below is what I am writing on all of my eBay "surveys" when sent to me:

"Customer support experience OK, but I am extremely upset by eBay's decision to charge FVF on postage. This has completely terminated my selling to international buyers, as the FVF on international postage is considerably more than the final selling price for nearly all of my relatively low value second hand items. I have therefore had to remove the worldwide shipping option from my eBay sites, and restrict selling to Australian buyers only. Talk about "cutting off your nose to spite your face". To clamp down on the minority of unscrupulous sellers who lower the starting or fixed price and artificially raise the shipping cost in order to minimise FVF under the old system, you have killed off international sales for the scrupulous/ethical majority of sellers who charged 'honest' item prices and Australia Post postage cost only. Another metaphor that springs to mind is "killing off the goose that laid the golden egg"

[porcelainforyou2]

You clearly have not thought the issue through, as evidenced by your glib posting. Yes, for sellers who sell bulk items of 'fixed' value for which postage is 'fixed' (e.g. items < 500g posted within Australia which cost $7.20 to any postcode) - e,g. C.D.'s or jewelry, it is easy to incorporate the FVF on postage (approx. 0.72c) into the item purchase price. For items > 500g it is impossible to incorporate the postage FVF into the auction starting price or fixed price. For example, I recently sold some plates to an international buyer in South Africa. The plates cost $9.99, and international postage was approx. $84. Are you seriously suggsesting that I routinely add $8.40 to the item starting price, when domestic postage on the item would only be $12 - $15, just in case an overseas buyer purchases the item?? I have now removed international shipping from my eBay sites, and restricted sales to domestic buyers only. I am currently "wearing"  the FVF on domestic postage, as I cannot incorporate it into the starting/fixed price, bbecause it varies so widely depending upon the buyer's postcode. Postage of a parcel to a buyer in W.A. (where I am) is significantly lower than to the Eastern states or to Tasmania, so I would need to add on 10% of "worst case scenario postage" (e.g. postage to outback/remote QLD) to the auction starting or fixed price, which would kill off sales to W.A. buyers, particularly those who want local pick up.

[porcelainforyou2]

I have contacted both the ACCC and Fair Trading re eBay's FVF on postage, and neither bureaucracy is interested. They basically said that eBay can do what they like re FVFs as long as they make their 'customers' (principally sellers in this case, as sellers pay it) aware of the fees prior to the sale / transaction.

[cq_tech]

You obviously don't realise that phorum_junkie* is only a posting ID and that she does in fact sell under a completely different ebay ID.And no, of course she's not an ebay employee.

[davewil1964]

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@dylan11235813 wrote:

"it has been on the cards for years now that ebay would bring in fvfs on delivery in Aus eventually to bring it into line with the US."

It is Australia simple as that, there are, as you know many things different. By your rational they might as well have a single website with the same rules for everyone, which is not going to happen anytime soon.

They may have wanted it for years but could only do it after striking a deal with Australia Post. I'm also curious as to how much GST is payed for the service that is supplied by ebay to print postage labels. The cost is still comparable to walking into the post office and paying for the postage, yet what happened to the GST?

I am by no means 100% on this but it would seem that as a customer of ebay no GST is payed on postage, in effect ebay is collecting the 10% GST and also charging the 10% or so FVF and also getiing a discount by taking the burdon away from Australia Post. I have no idea how GST works in this situation though, I don't collect GST myself so....

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Five days after you print a label (the period allowed for a cancellation of said label) you can obtain a Tax Invoice for the postage. I believe it is issued by AP but it is still valid.

Apples with apples -

500g ebay satchel= $7.15, 500g C&S satchel = $8.00. 3kg = $11.70 vs $13.05.

Plus B1 boxes are about half the cost to post, and flat rate B4s are only available through eBay.

[porcelainforyou2]

You are incorect. I have ben selling on Bay for over 7 years through different eBay IDs and have >3,000 feedbacks over the different sites.