Why are Final value fees so High

[spudd57joe]

Why are Final value fees so High?

Once E Bay final fees apply and the paypal fee as well we are looking at around 13%... then the shipping cost have to be met.

I know a fee should apply but this makes selling low priced items not really worth the effort.

Yes I understand Profit Viability of a product.... But with the turn over E Bay makes... I believe the 9.9% on both item and shipping as well, is a bit rich... especially for those of us non business sellers.

"Crickey Mate" suggests finding another Platform and I have found more than one... I can still use Paypal and it will give me all the protections I require; and my overhead becomes much less. Very soon I will stop selling on Ebay that is of course unless things change.

If anyone agrees with my point of view I suggest they vote for change with their feet as I will be doing.

Good Luck everyone

[spudd57joe]

You can wait for special offers like no final value fees on 10 items or 75% final value fees as is being promoted last week. trouble is you have to copy / record your item numbrs that you are listing. ... WHY... Because the e Bay software often never records those; and you have to make contact to get the appropriate credit. Sounds strange it happens on all promotions. Does the right hand not know what the left hand is doing? OR; Are they hoping the seller doesn't chase it up on each event? And, one must always check the fine print on all promotional offers, wether buying or selling. However when you make contact the operators, in the Phillipines or USA, or where ever, are quick to help with a remedy. Hmmm always mistakes?.... or tatics?????? Ah well...  try to use the system to your advantage when the opportuity arises.

I also don't understand why we have to pay the gst on things we have already paid gst on... especially when it is ebay that is offering the service.... shouldn't the burden be on E Bay; after all, after Paypal, and E bay fees on goods and postage, they are making quite a percentage... ah well if we don't like it we can leave I guess.

Good luck everyone 🙂

[lyndal1838]

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@skye3357 wrote:

My fees just hit 15.6% almost 16% 

If the item is worth $100 and you get $100 them pay shipping - $13 , then fees - $13 you are left with $84.

So you must be willing to take 84 - 80%  or the value.. 

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I am not sure where you are getting your figures from but they are wrong.

If you are going to offer free postage then increase your item price to at least cover part of the cost. 

The final value fee on a $100 item is not $13....it is closer to $10 and it is your own fault if you have offered free postage without increasing the item price to compensate.  On your example your fees and postage would be $26 leaving you with just $74.

[lyndal1838]

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@spudd57joe wrote:

I also don't understand why we have to pay the gst on things we have already paid gst on... especially when it is ebay that is offering the service.... shouldn't the burden be on E Bay; after all, after Paypal, and E bay fees on goods and postage, they are making quite a percentage... ah well if we don't like it we can leave I guess.

Good luck everyone 🙂

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You are not paying GST on your sales....you are paying GST on the fees you pay to ebay for using their service.  And ebay does not keep the GST....they remit it to the ATO

The end user is the one who pays the GST and sellers are the end users of the ebay selling platform.

You can always increase your prices to cover the amount you pay to ebay for the GST....it is roughly 1% of the fees you pay to ebay.

[spudd57joe]

yes i understand i am paying gst on my fees so ebay can remit the tax... that means  i am paying the tax on the fees. So E bay pays no tax? fair?... I am saying E bay should absorb the 10% of 9.9% 0n both final value and postage fees.... especially when they do nothing to earn the 9.9% on postage... they just are forcing me to use free postage for sales as a ploy to increase the sales atractiveness to buyers. not for my benifit... smoke and mirrors... I know how it works and I have to accept it if I want to play the game.   I only sell when promotional offers are for example ... free final value or as prior to 31/8... 75% 0f final value fees. I also duplicate my item sales on Gumtree and advertise the same items are listed on ebay... at an extra 14% + postage... surprisingly I sell on gumtree the same item... and pay no final value fees once the buyer is aware of the cheaper option. usually i will use Paypal anyway and including postage, they purchase the same item at 10% less than on Ebay... thanks ebay for the advertising advantage. by the way no GST

[spudd57joe]

Oh and I charge what I like for postage... no fees

[chameleon54]

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@spudd57joe wrote:

yes i understand i am paying gst on my fees so ebay can remit the tax... that means  i am paying the tax on the fees. So E bay pays no tax? fair?... I am saying E bay should absorb the 10% of 9.9% 0n both final value and postage fees.... especially when they do nothing to earn the 9.9% on postage... they just are forcing me to use free postage for sales as a ploy to increase the sales atractiveness to buyers. not for my benifit... smoke and mirrors... I know how it works and I have to accept it if I want to play the game.   I only sell when promotional offers are for example ... free final value or as prior to 31/8... 75% 0f final value fees. I also duplicate my item sales on Gumtree and advertise the same items are listed on ebay... at an extra 14% + postage... surprisingly I sell on gumtree the same item... and pay no final value fees once the buyer is aware of the cheaper option. usually i will use Paypal anyway and including postage, they purchase the same item at 10% less than on Ebay... thanks ebay for the advertising advantage. by the way no GST

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WHY ????   You are the one using the service. Why should ebay pay your GST tax obligations ????    Sorry, but I just dont get this idea that everything is always some-one elses fault. The council should fix it, the government should pay for it, ebay should absorb it........... Its really very simple. You use a service in Australia, you are obliged to pay GST on the cost of the service. Ebay is no different.  If you use their services in Australia to sell your items, you should pay GST on the cost of those services.......SIMPLES !

[spudd57joe]

Take it easy!.... like I said in earlier replies; like it or leave it.... Still. Does Ebay pay tax? And why should we pay 9.9% and GST on our own personal postage... no service there. No effort on Ebay's part there..... I can appreciate your point of view, but don't agree TOTALLY.  I'm still using Ebay when it suits. Chill out and no need to reply to me. have a nice day 😉

[jillywinkle]

Because they can....

[kamenriderforze2013]

13%? try over 20% $19.60 final value fee on a $180 sale thats over 20% Ebay is turning in to EA time to take action and move on and I aleady stopped selling ages ago because of high fees, this was my first new sale and what a welcome back, fees have almost doubled in about a year, leave before they introduce lootboxes and gambling for children!

[padi*0409]

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@kamenriderforze2013 wrote:

13%? try over 20% $19.60 final value fee on a $180 sale thats over 20% 

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No, $36.00 would be 20% of $180.00...........................