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Author Topic: eBay to Charge Sellers Final Value Fees on Shipping  (Read 20747 times)
notjomomma
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eBay to Charge Sellers Final Value Fees on Shipping
« on: March 15, 2011, 11:19:26 am »

Today eBay announced that they will be charging sellers Final Value Fees on SHIPPING !!!!

For those unaware, Final Value Fees are a percentage eBay sellers pay when an item is sold. In most cases the amount is 10-15% of the sale price of an item. For example, if you sell a $20 CD on eBay, you will pay 15% or $3.00 to eBay out of that sale. Final Value Fees do not include the LISTING FEE or the 4% PAYPAL FEE, which can all add up to 20-30% of each sale going in eBay's pockets.

Normally, sellers only pay the 4% Paypal fee on the item's shiping costs but now...


Sellers, read it and weep...

Quote
Seller fee update coming in July:

Fees adjusted to reward low-cost shipping--To pay the lowest fees, consider ways to lower your shipping costs and upgrade to a Premium Store.


Dear Seller:

We know that online buyers pay attention to the total cost of an item--including shipping--when deciding what and where to buy. That's why, to encourage low-cost shipping, starting July 6 Final Value Fee rates for Store sellers--Fixed Price and Auction-style--will be reduced and then applied to the total amount of the sale--including shipping.

The best way to minimize the impact on your overall fees is to take advantage of the available ways to reduce your shipping costs and charges. Based on your recent selling activity, you can also lower your overall fees by upgrading to a Premium Store.

With a Premium Store, you can list in Fixed Price for just 5 plus get the same discounted Insertion Fees for Auction-style.

Who does eBay think they're kidding with this hi-jacking? The people this is going to hurt the most are International buyers who are going to be paying more for shipping due to this fee increase.

Once again, eBay has proven they are the most corrupt, greedy company on the face of the planet.

http://pages.ebay.com/sellerinformation/news/SpringUpdate2011.html

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Noblitz
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Re: eBay to Charge Sellers Final Value Fees on Shipping
« Reply #1 on: March 15, 2011, 11:29:59 am »

The only thing I see happening is sellers are going to raise their shipping prices to cover the costs. I wonder if this fee increase covers handling fees as well?
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AntiqueJeff
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Re: eBay to Charge Sellers Final Value Fees on Shipping
« Reply #2 on: March 15, 2011, 11:49:23 am »

I love how they're spinning it in the media as EBay Lowers Fees to Attract Merchants, Boost Three-Year Turnaround Effort

what a bunch of baloney.
« Last Edit: March 15, 2011, 11:51:28 am by AntiqueJeff » Logged
notjomomma
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Re: eBay to Charge Sellers Final Value Fees on Shipping
« Reply #3 on: March 15, 2011, 12:34:54 pm »

It should be illegal for eBay to profit from shipping fees.

Can you smell the Class Action suit coming from this one??
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eBayCrime
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Re: eBay to Charge Sellers Final Value Fees on Shipping
« Reply #4 on: March 15, 2011, 12:43:21 pm »

Gas prices are up, the economy is still hurting so what does eBay do? Raise fees once again so that sellers can pass on those fees to consumers. This time they're clutching at straws by taking a cut of shipping fees. I hope their stock drops back down to $10 a share. Then the executives will start seeing that they have milked the cash cow dry.
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unixunix
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Re: eBay to Charge Sellers Final Value Fees on Shipping
« Reply #5 on: March 15, 2011, 01:01:46 pm »

What company raises prices in a bad ecomony when sales are down across the board, where did they get this new CEO?  (The Madoff school of management?)
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Noblitz
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Re: eBay to Charge Sellers Final Value Fees on Shipping
« Reply #6 on: March 15, 2011, 01:30:39 pm »

I love how they're spinning it in the media as EBay Lowers Fees to Attract Merchants, Boost Three-Year Turnaround Effort

what a bunch of baloney.

Jeff, there's always a spin with eBay. Nothing is ever as it seems and you have to read the fine print between the lines with a magnifying glass to figure out how they're nickle and diming you day to day.
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Vlasta
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Re: eBay to Charge Sellers Final Value Fees on Shipping
« Reply #7 on: March 15, 2011, 02:12:13 pm »

I sell a lot international and my main product line weighs over 2lbs which requires Priority Mail and costs between $6-$13 depending on the zone I'm shipping to. My product costs over $20 to ship internationally. I pay 12% FVF and 4% Paypal on this item which sells for $40 which means I already pay $6.50 in fees for each item sold. This doesn't include my listing fees and my store subscription which add another half dollar per item bringing me close to $7 per item.

Now eBay wants to charge me 12% on my shipping costs? This adds nearly $2.50 to each international order. I simply can't absorb those fees so I will be forced to increase my shipping prices or stop shipping internationally.

Goodbye international buyers. eBay doesn't want you doing business with US sellers anymore.
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ebay_flyer
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Re: eBay to Charge Sellers Final Value Fees on Shipping
« Reply #8 on: March 15, 2011, 02:17:14 pm »

I have been offering free shipping for a while now, and will see a significant decrease in my eBay fees. I am actually quite happy about the change.

Let's face it. Buyers go to Amazon in part because they ship things quickly and often for free. It is something buyers want, and I am glad that I am finally being rewarded for offering free shipping before this change. (Really, I have just had to add the shipping cost into the purchase price.)
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JaRon
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Re: eBay to Charge Sellers Final Value Fees on Shipping
« Reply #9 on: March 15, 2011, 03:06:32 pm »

I don't get it. Free shipping is fine for big ticket items where the cost can be absorbed. It's also good for Amazon or Walmart who get huge shipping discounts but for someone trying to sell a $10 item with $3 shipping, it's ridiculous to expect a buyer is going to pay $13 for that same item just because it says "free shipping"

We all know feebay has been pushing free shipping so they could take a cut of the shipping costs via FVF's but this new change really takes the cake.

Even if a seller refuses to offer free shipping, the stupidest part is feebay won't be applying the 20% TRS discount to the shipping portion of the FVF's. How crooked is that?

I know feebay want all sellers to offer free shipping so they can streamline the new shopping cart but for Christ's sake, feebay IS NOT a store, it's a marketplace. Offering a shopping cart between unique individual sellers is like having a shopping mall where customers can pick up items from any store in the mall and pay for them all as they exit the mall. It's just stupid.

This new CEO at feebay is a real menace.
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tinker
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Re: eBay to Charge Sellers Final Value Fees on Shipping
« Reply #10 on: March 15, 2011, 05:16:54 pm »

Dear ebay if you are going to charge me a final value fee on shipping than at least lower the rate from 9% to 5% so I can afford to sell on ebay. If I'm going to pay final value fees on the total price of the item than lower the percentage because I'm paying on a bigger number. Plus they are doubling the cap on auction style goods from a $50 max final value fee to a $100 max final value fee on auction style listings which also sucks.
This will drive a lot of sellers of low cost items out of business.

I hope that overstock starts offering buyer protection and starts gaining some of ebays business.
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TomCA
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Re: eBay to Charge Sellers Final Value Fees on Shipping
« Reply #11 on: March 15, 2011, 07:22:41 pm »

I ship a lot of big stuff. Today I'm shipping out an exhaust that costs $120 to ship and the item price is only $100. I will be killed on the fees for those items.

eBay, I think there could be a better way of dealing with dishonest sellers listing items for $1 price with $25 shipping. These blanket policies just alienate the straightforward, honest sellers such as myself.
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LaurenG
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Re: eBay to Charge Sellers Final Value Fees on Shipping
« Reply #12 on: March 15, 2011, 09:56:36 pm »

Pardon me if this has already been brought up (I didn't see it), but did anyone else notice that they DOUBLED the cap on the FVF?!? It was $50, now $100.
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Farnie
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Re: eBay to Charge Sellers Final Value Fees on Shipping
« Reply #13 on: March 16, 2011, 10:13:40 am »

How do we offer free shipping when people but multiple items?For example, we sell cassettes so if i add $3 into the price of each cassette to offer free shipping and someone buys 10 cassettes,they will be spending $30 shipping.
Which can be sent for a lot less than that.An international sale that costs $50 shipping will now cost the buyers $53.76 to compensate the 7% loss on the $50?And thats not considering the loss on the paypal fees.So basically $5 ebay items will start becoming $10 items from all sellers?
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Christo
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Re: eBay to Charge Sellers Final Value Fees on Shipping
« Reply #14 on: March 16, 2011, 11:21:24 am »

Firstly, I am surfing the internet for information on whether collecting fees from shipping is illegal. It's at the very least morbidly unethical. But ebay has ETHICS??? OH BOY, you slay me with such humor!!!

This new policy hurts nearly EVERY SELLER, especially bigger sellers with smaller items. I can no longer seller smaller items. Dollar items are worthless now. Sell something for two bucks with a six dollar shipping cost and after FVF including the new thievery charges and you net about TWENTY CENTS!!!!!

WAKE UP SMALL-TIME EBAY SELLERS!!! YOU'RE GETTING ROBBED!!!
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