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

[247newdeals]

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@go-tazz wrote:

So you sell an item for say $27.90 with free postage.

You then use part of what the buyer has paid you to pay for the actual postage.

If you put down in any spread sheet that you sold the item for $25.90 and didn't charge postage then you

are costing yourself money and it doesn't make economic sense,(it's like throwing money away).

The spread sheet should say item sale price $$27.90 > postage cost say $ 7.80 = profit $20.10

Obviously you don't have an accountant to do your books,(as they wouldn't believe you).

Off course the buyer pays for the "free" postage as everyone know it's built into the price.

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This is about the fees EBay charges on th postage not the postage itself but I totally understand you wanting to jump in and comment without knowing/caring what it is about so you can agree with the frum in crowd.

[247newdeals]

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@*tippy*toes* wrote:

OK, I get it now. You buy your items for $99 from China, you sell your items for $99 on eBay, meaning you get back exactly what you pay, therefore generating $0 profit. In that case, when you get the eBay bill of $9 for selling the item, that $9 is coming out of your pocket. That means you are paying money out of your pocket to sell items at a loss. Makes perfect sense now. Great business sense too! I aspire to be just like you, especially if that's what gets the buyers in. Yeah, I'm happy to make a loss if it means getting buyers and an increase in my feedback score.

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Firstly I buy items from all over the world and you just writing a lot of nonsense does not state anything except you would rather just post nonsense than think about what I actually posted but I already knew that so this post does not add anything really and your still wrong

[247newdeals]

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imastawka wrote:

Aww geez

  

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I wouldn't call tippy a dead horse but I see your point and mildly amusing 

[lyndal1838]

OK, so once again I am wrong according to you.

In the interests of being kind to the elderly could you please explain in very simple language how you come to the conclusion that YOU are paying the ebay fees and not your buyers.

You are so confident that you are right that you must have a very good reason for your beliefs, so please share it with the rest of us.

[imastawka]

                 

[davidc4430]

ive just read this whole thread and i'm sooo confused.

ok, so lets say i have absolutly no money, not a brass razzoo.

but i have a lovely picture of say, a dead horse being whipped.

i sell my picture of said dead horse being whipped for $100 with $10 postage to a buyer who loves pictures of dead horses being whipped.

so i now have $110 in my paypal account less the fees paypal took.

i run to the post office and post off the picture of the dead horse being whipped to the buyer who can't wait to have another picture of a dead horse being whipped hanging on his wall.

now ebay wants me to pay them some fees including some on the postage for the picture of the dead horse being whipped.

who pays?

remember the only money i have is the money the buyer who loves pictures of dead horses being whipped paid me.

i really am very confused, i cant pay as i done have any money.

[go-tazz]

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@247newdeals wrote:

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The profit margins I have to work with to sell on EBay are extremely low and it is ME not the buyer who is paying the fees

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This is about the fees EBay charges on th postage not the postage itself but I totally understand you wanting to jump in and comment without knowing/caring what it is about so you can agree with the frum in crowd.

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It's the same thing,(you sell the item for the price you want and which includes all postage costs,eBay fees and

Paypal fees).

So it should be $27.90 sale price,$7.80 postage cost,$2.70 eBay fee,(which includes the fee on

postage),$1.11 Paypal fee for a nett profit of $16.20

If you are not doing it that way then you are the only one on this site that is losing money deliberately.

The sale price has to include all the costs involved,(which the buyer pays).

No one agree's with you because the system that your are using doesn't make sense,

You pay the fees from the money the buyer gives you,(so the buyer pays).

Mine is set up automatically to be take from my PP account and it has always come out of the money

that the buyers have paid into my PP account,(I've never paid any other way).

So do you pay eBay each month by credit card as it seems you don't have automatic payments from

your Paypal account set up?,(so how do you pay them?).

[jensmanchester-australia]

go-tazz - the op is basing their concept of profit on gross profit not net profit.

For example if they purchase an item for $5.00 and sell it for $20.00 they are saying they have made a profit of $15.00 and that $15.00 is their money to put in their pocket to spend however they want.

Out of the $15.00 profit, which in their mind no longer belongs to the buyer as that is their money to spend, they are saying they are paying the ebay fees, paypal fees and any other costs associated with the sale of the item (ie Internet costs, stationary costs etc etc).

They are also saying if a cost goes up - ie the ebay fees were to increase, rather than increase the price of the item they are paying the extra costs out of their gross profit. They are perceiving it is as coming out of their pocket as at the end of the day they have less money left over, after all costs, for them to spend.

Most people who run a business understand it is the net profit which is the important figure - not the gross profit as gross profit does not take into consideration the expenses.

[imastawka]

           So, in the long run, it's simply semantics, and newdeals

has just been messin' wif y'all

[go-tazz]

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@jensmanchester-australia wrote:

go-tazz - the op is basing their concept of profit on gross profit not net profit.

For example if they purchase an item for $5.00 and sell it for $20.00 they are saying they have made a profit of $15.00 and that $15.00 is their money to put in their pocket to spend however they want.

Out of the $15.00 profit, which in their mind no longer belongs to the buyer as that is their money to spend, they are saying they are paying the ebay fees, paypal fees and any other costs associated with the sale of the item (ie Internet costs, stationary costs etc etc).

They are also saying if a cost goes up - ie the ebay fees were to increase, rather than increase the price of the item they are paying the extra costs out of their gross profit. They are perceiving it is as coming out of their pocket as at the end of the day they have less money left over, after all costs, for them to spend.

Most people who run a business understand it is the net profit which is the important figure - not the gross profit as gross profit does not take into consideration the expenses.

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Thanks,

Building it on gross profit just doesn't make sense as those fees have to be paid and need to be included in

the sale price,(which the buyer pays).

They need to change their "business" model to work of the nett profit so they can work out their real profit.

So it's all about their perception that the gross profit is their profit,(which is a wrong way of thinking).

They need to start using the final fee calculator so that they can work out their nett profit,(which is the

money they can spend):

http://finalfeecalculator.com/