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

[davewil1964]

So you don't understand what a lair is?

usually preced by the modifier 'mug'.

[247newdeals]

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@digital*ghost wrote:

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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. 

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Yes both are valid but I will chuck in once an item reaches a certain price sales will drop. Of course I could add the fees on top of the price of an item but I can honestly say if I did I would lose sales. Yes I charge buyers the postage costs but the fees I pay because I need to keep my prices at an acceptable level. 

A little example I am going to be setting up someone to run a maket stall for me the items there will cost the same as on EBay minus the postage costs they will not postage cost and fees. My profits cover the fees not my buyers on EBay. 

[digital*ghost]

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@imastawka wrote:

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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.

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Getting rid of the store won't necessarily result in a $20 saving.

You can actually save quite a bit in fees with a basic store, even if you only have one listing.

There are a lot of categories that drop down to 8% (some even 6%) FVF if the seller runs a (basic) store - the store fee will pay for itself in an 8% category with $1000 or more turnover a month, or only $500 or more turnover a month if the items qualify for a 6% FVF.

(This may or may not be applicable to newdeals' store, just pointing out it's not as simple as having more than 40 individual listings to make a store worthwhile). 

[247newdeals]

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@imastawka wrote:

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

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Did I say I plan to sell hundreds more with a month which is what you stated me and ERG said? and I am doing pertty well towards that target allready I am happy with my progess anyway. I still do not see YOUR point

[247newdeals]

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@davewil1964 wrote:

So you don't understand what a lair is?

usually preced by the modifier 'mug'.

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once again a post with no mean you really are consistent

[247newdeals]

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@jensmanchester-australia wrote:

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.

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I agree it is not different than food shopping a little question what happens (not that they would) if a supermarket increase their prices above what the other supermarkets do buyers keep buying from them? you have to stay with in the market price

Once again I will say the postage fees ebay charges comes out of MY profit not the buyers pocket 

[digital*ghost]

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@247newdeals wrote:

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Yes both are valid but I will chuck in once an item reaches a certain price sales will drop. Of course I could add the fees on top of the price of an item but I can honestly say if I did I would lose sales. Yes I charge buyers the postage costs but the fees I pay because I need to keep my prices at an acceptable level. 

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Correct me if I'm wrong, but what I'm actually 'hearing' when I read this is that you price not with all of your expenses in mind, but at the best level the market will allow, and basically make do with the revenue, even though ideally you'd add a bit more on to the price to ensure a better profit margin. 

If so, to me that's actually an alternative perspective-based way to do the same math (in other words, you can look at a specific equation in a lot of different ways, but the final sum will be the same). 

[imastawka]

I don't have a point.       Rarely do,   it seems.

Except to point to the thread title.

Which is nothing like what you're on about.                           

[*tippy*toes*]

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@247newdeals wrote:

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@digital*ghost wrote:

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@247newdeals wrote:

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

---

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. 

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Yes both are valid but I will chuck in once an item reaches a certain price sales will drop. Of course I could add the fees on top of the price of an item but I can honestly say if I did I would lose sales. Yes I charge buyers the postage costs but the fees I pay because I need to keep my prices at an acceptable level. 

A little example I am going to be setting up someone to run a maket stall for me the items there will cost the same as on EBay minus the postage costs they will not postage cost and fees. My profits cover the fees not my buyers on EBay. 

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It's your buyers that are giving you the profits! If you paid $10 for 100 items and sold each item for $5, then when your eBay invoice came in, yes, you'd be paying out of your pocket because you haven't made any money on the items. Any profit made is paid by the buyer. They cover the original cost of the item, the fees that you need to give eBay and whatever else is left over for you to keep.

You may be paying the fees out of your PayPal account automatically each month, but it's the buyer who put the money in there. If your $10 items sell for $5 each, then there won't be enough in there, so the difference will be taken from your bank or credit card, therefore coming out of your pocket. Buyers pay the costs in any business. If they didn't, businesses wouldn't survive.

[247newdeals]

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@digital*ghost wrote:

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@247newdeals wrote:

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Yes both are valid but I will chuck in once an item reaches a certain price sales will drop. Of course I could add the fees on top of the price of an item but I can honestly say if I did I would lose sales. Yes I charge buyers the postage costs but the fees I pay because I need to keep my prices at an acceptable level. 

---

Correct me if I'm wrong, but what I'm actually 'hearing' when I read this is that you price not with all of your expenses in mind, but at the best level the market will allow, and basically make do with the revenue, even though ideally you'd add a bit more on to the price to ensure a better profit margin. 

If so, to me that's actually an alternative perspective-based way to do the same math (in other words, you can look at a specific equation in a lot of different ways, but the final sum will be the same). 

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that is totally how I price an item I do add extra on and postage (no not the fees on it) if the market will not sustain that price I can not sell it which happens for a lot of products I look at