hiwhy does ebay take commission on shipping cost as I sell items for auction

[creamandgreen]

why does ebay take a commission on shipping fees?. I have been told by ebay staff by phone to add postage onto price of item & tick postage free. All my items are auctions so if I started item off at .99 cents with postage at $14.80 The buyer would recieve item for nothing & it would cost me more than the item is worth. I don't mind paying commission for final valuation fee 10%. But ebay forced people selling into opening  pay-pal accounts. Pay-Pal   take their commission on total amount deposited by buyer which includes shipping costs. then ebay take their commission out of the total deposit (item final value sold & shipping costs). Do they expect the smaller ebayer members to compete with all the bigger companies that mark their products up when bought & add their propfit percentage plus shipping costs into the price of their items before selling at a fixed price. Example Myers, david jones, target all have postal account where they can send any item anywhere in australia for about $5.00 how can I being a smaller ebay seller compete with that. We the smaller ebay seller are getting charged commission twice on the same final value fee & shipping by ebay & pay-pal. Could you please look into this matter as it is unfair to be charged twice for the one total price by both companies.

thankyou

[imastawka]

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@247newdeals wrote:

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@imastawka wrote:

Just read all this and ...................

newdeals sounds a lot like erg?         Just sayin'

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Ouch that hurt lol

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Newdeals you're swimming against the tide.  And it's because you insist that

you know what's best.   Even though it's been pointed out that spending money

on a store is a waste for 17 items,  you scoff at saving that amount.

You don't make money by scoffing at a $20 saving.

Also both you and erg insist that you will be selling shiploads within a month.

I see that this has not happened on your id, and, in fact, you have received 2 negs

in 6 months

It does you no favours to joust with the members on this board.

(It just makes them type faster)

JMO

[jensmanchester-australia]

newdeals - I think you are getting a bit confused with the difference between gross profit and net profit.

You are talking about gross profit which is the selling price less the cost of goods. ie you purchase something for $10.00 and sell it for $20.00 which gives you a gross profit of $10.00

Net profit , which is what you ultimately end up with in your pocket is the selling price less all expenses incurred (including the cost of the goods)

ie you purchase something for $10.00 plus you have your expenses which might be ebay fees $2.00,  paypal fees 50c, packing material, computer paper, ink, internet fees etc $5.00 which makes your total expenses $17.50.

You sell the item for $20.00 which leaves you a net profit of $2.50

The reality is that the buyer has paid all your costs as it was the buyer who gave you the $20.00 for your item.

[247newdeals]

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@imastawka wrote:

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@247newdeals wrote:

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@imastawka wrote:

Just read all this and ...................

newdeals sounds a lot like erg?         Just sayin'

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Ouch that hurt lol

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Newdeals you're swimming against the tide.  And it's because you insist that

you know what's best.   Even though it's been pointed out that spending money

on a store is a waste for 17 items,  you scoff at saving that amount.

You don't make money by scoffing at a $20 saving.

Also both you and erg insist that you will be selling shiploads within a month.

I see that this has not happened on your id, and, in fact, you have received 2 negs

in 6 months

It does you no favours to joust with the members on this board.

(It just makes them type faster)

JMO

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I love how people just read one side I will say again I do not have 17 items I have 17 different items currently I have 45 items it is usually more but I have been concentrating my efforts in other areas. I make way more than $20 by having the store and even if I did not it still has NOTHING to do with if I pay the fees or my buyers not sure why people KEEP bringing it up time and time again

How does me saying I pay the fee state I am going to be selling shiploads within a month not sure how YOU make that connection as far as what ERG says I have no clue I always skip his posts seems that is possible to do but some people here can not except they are not always right and will argue no matter what

well spotted very little has happened on an account I put very little time into but what is YOUR point and what does that have to do with if I pay the fees or the buyer does?

Once again pray tell what has any of this to do with if I pay my fees or the buyer does?

They can type as fast as they want I am hoping one of them will type something that has anything to do with point but I am happy to keep defending the $20 fee I pay and earn WAY more from if that is the track they want to keep going down

[247newdeals]

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@jensmanchester-australia wrote:

newdeals - I think you are getting a bit confused with the difference between gross profit and net profit.

You are talking about gross profit which is the selling price less the cost of goods. ie you purchase something for $10.00 and sell it for $20.00 which gives you a gross profit of $10.00

Net profit , which is what you ultimately end up with in your pocket is the selling price less all expenses incurred (including the cost of the goods)

ie you purchase something for $10.00 plus you have your expenses which might be ebay fees $2.00,  paypal fees 50c, packing material, computer paper, ink, internet fees etc $5.00 which makes your total expenses $17.50.

You sell the item for $20.00 which leaves you a net profit of $2.50

The reality is that the buyer has paid all your costs as it was the buyer who gave you the $20.00 for your item.

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A simple question if say a $2 fee comes out of your gross profit does you net profit decrease or does it stay the same. OK let me say the EBAy fee comes out of MY gross profit NOT the buyers pocket if that is better 

I stand by my statement I pay my fees NOT my buyers

[jensmanchester-australia]

newdeals - all expenses other than the actual cost of goods comes out of your gross profit.

Gross Profit - Revenue (ie Sale Price) less the Cost of Goods

Net Profit - Revenue less all expenses including the cost of goods.

Your net profit is what becomes your taxable income and after all taxes have been paid whatever is left is for you to spend.

[247newdeals]

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@jensmanchester-australia wrote:

newdeals - all expenses other than the actual cost of goods comes out of your gross profit.

Gross Profit - Revenue (ie Sale Price) less the Cost of Goods

Net Profit - Revenue less all expenses including the cost of goods.

Your net profit is what becomes your taxable income and after all taxes have been paid whatever is left is for you to spend.

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I 100% agree but that is not coming out of the buyers pocket

[jas14jas]

I have read this thread and isn't 247newdeals trying to point out that he/she is paying the fees and not the buyer?

And that has nothing to do with making a profit or not.

[digital*ghost]

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@247newdeals wrote:

I stand by my statement I pay my fees NOT my buyers

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I don't wanna argue with you, but isn't really just a matter of perspective?

eg

Perspective one - If your fees are being paid out of the money the buyer pays for the item, the buyer's payment is covering the expense of that fee. (If your buyers aren't the funding source for your fee payments, then I'll certainly acquiesce the point). 

Perspective two - You can technically argue that all sellers pay all of their own fees, all the time.... If you consider that the money becomes the seller's when the buyer makes a purchase, in a similar way that a salary generally becomes the employee's as soon as it hits their bank account so they're the ones who are buying an eBay item, not their boss who paid the salary. 

[jensmanchester-australia]

It does come out of the buyers pocket because the expenses are built into the selling price. If they are not built into the selling price then you would be selling at a loss.

ie. you buy something for $10.00 and lets say all your expenses including ebay fees etc are $7.50.

If you sell the item for $17.50 - you have made no profit

If you sell the item for $20.00 - you have made a profit of $2.50

If you only sell the item for $15.00 (as you miscalculated your expenses) - then you have lost $2.50 on the item....in this case as you have made a loss then yes you have paid the ebay fees...not the buyer.

It is no different to when you do your food shopping - you are paying the staff wages, rent, electricity etc etc as the costs are built into the selling price of the products.

[imastawka]

247newdeals wrote

 How does me saying I pay the fee state I am going to be selling shiploads within a month not sure how YOU make that connection 

Umm, cos ya said this at post # 48.............

Serious you think I am going to hunt around for second hand boxes lol saving a few cent on each item really is not worth my time and effort clearly you only plan on selling a few items a day or something I plan to sell hundreds daily, if all goes well.

Anyway the thread is about why does ebay take commission on shipping cost as I sell items for auction - not who pays the fees