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Ebay to include shipping in final value fee calculation

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Ebay to include shipping in final value fee calculation
Mar 15, 2011 06:12 AM
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Ebay to include shipping in final value fee calculation

(296 Replies / 54,256 Views)
Ebay to include shipping in final value fee calculation
Mar 15, 2011 06:12 AM
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by abbys135 (1116 ) View Listings
(96 of 296)
Re: Ebay to include shipping in final value fee calculation
Mar 21, 2011 07:56 PM
I have spoken at length with two seller "Customer Support" representatives about this. What it comes down to is that Ebay fears they are loosing market share to e-commerce sites that offer "free" shipping or that O site that charges $2.95 for whatever you buy at one time. That might be true for sellers of new merch where there are comps out there, but for the antiques and collectibles I sell it just isn't applicable.

Their suggestion is that I include my shipping charges in my opening bid amount and offer free shipping. Of course they do, that will raise all of my insertion fees and they will still get a cut of my shipping as part of the regular FVF. It will also make lower priced items almost impossible to sell.

I plan to stick with my $5.95 opening bids and adjust my shipping charges accordingly. I also plan to add a shipping disclaimer to all of my sales explaining that Ebay is now effectively charging the buyer an additional 9% on the shipping THEY pay. It would be great if we could come up with a uniform disclaimer for all Ebay sellers to use, mine will be the following:

Dear Buyers,
Due to Ebay’s recent decision to start charging Ebay Sellers a 9% final value fee on shipping charges, on top of the 3% we already pay on shipping payments made through Paypal (An Ebay company), I have no option but to increase my shipping charges accordingly. Ebay will now be making 12% on the shipping charges you pay.
(97 of 296)
Re: Ebay to include shipping in final value fee calculation
Mar 21, 2011 09:02 PM
Shipping is such an issue with buyers that I think you will be shooting yourself in the foot. It might work if everyone did it but most will not. It would be better to up your opening bids, offer reasonable shipping, and say nothing.

I have given up on low start price auctions since being burned too many times. I put my things out at the very least I will take and people can buy them or not...... these days, it is mostly not :( Once this policy is instituted, I might try some free shipping listings on some higher priced items and build it into my opening price....... It can't hurt to try since we will be charged on the full amount either way.



Me in another life.......

(98 of 296)
Re: Ebay to include shipping in final value fee calculation
Mar 21, 2011 09:28 PM
Eventually it has to happen that some existing or wanting to exist site will emerge and start looking better to sellers and buyers.

I know that at least 80% of the sellers I know would jump ship if they were convinced or at least felt strongly that something came along that they could use that actually got exposure for their items.

I wonder what reaction ebay would have if a significant number of sellers suddenly (and noticeably) migrated to a competing site? Wouldn't it be great to see say 50k accounts close in a week and reopen with the same username elsewhere.



That would be great. First PayPal skimmed off the shipping,now eBay wants their cut. I feel there is som illegal goings on here. How can they get a cut of the Govetnment postal money anyway?

Sellers are between a rock and a hard place. Add free shipping in the listing,or make the buyer pay. At the end,PP and eBay win:(


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(99 of 296)
Re: Ebay to include shipping in final value fee calculation
Mar 21, 2011 09:29 PM
forgive my mis spelling...government.


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(100 of 296)
Re: Ebay to include shipping in final value fee calculation
Mar 21, 2011 09:32 PM
This i s excellent pigeon.....


Dear Buyers,
Due to Ebay’s recent decision to start charging Ebay Sellers a 9% final value fee on shipping charges, on top of the 3% we already pay on shipping payments made through Paypal (An Ebay company), I have no option but to increase my shipping charges accordingly. Ebay will now be making 12% on the shipping charges you pay.


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(101 of 296)
Re: Ebay to include shipping in final value fee calculation
Mar 21, 2011 11:06 PM
To include such verbage is a feebay listing violation
(102 of 296)
Re: Ebay to include shipping in final value fee calculation
Mar 21, 2011 11:12 PM
To include such verbage is a feebay listing violation



Of course it is...just like putting in your TOS about giving 5 stars or you can't sell. I still think its excellent:)


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(103 of 296)
Re: Ebay to include shipping in final value fee calculation
Mar 21, 2011 11:33 PM
With ebay/paypal, the fees are different in that the one charges for the auction service and the other charges for the money transfer service. While we may not like it, the fees are for separate services and justified. The issue of charging ebay fees on the shipping costs really gets into a grey area IMHO.... What service are they providing in relation to the shipping?



As I see it, PayPal can make a case for what amounts to a charge on shipping, as they define it as charging for receipt of funds into an account -- they provide the online account/bank platform.

eBay is another matter: they are planning to charge a fee on a service (shipping) provided by an outside and completely unrelated company or organization (USPS, FedEx, UPS, etc.). What sellers CAN do, is ACTIVELY inquire (in numbers!) at the office of the Postmaster General (federal/national) as to whether or not this is legal (can eBay take a commission on services provided by a government agency or organization, such as the U.S. Postal Service?).

Sellers can ALSO inquire at the executive level of shipping providers such as FedEx and UPS -- do they have thoughts on the issue? Are they supporting it and are they perhaps in on eBay's plan to charge sellers what amounts to a commission on shipping costs (are FedEx and UPS, etc. getting a cut in some form or another?). It can't hurt to ask (and let them know the move is generating a lot of ill will).

AND sellers can contact their state Attorney General's office to inquire on the legality of eBay's charging of a commission on shipping costs -- again, a service that eBay itself does NOT provide.

Email, fax, write a letter, call -- just contact them and ask. Different states may have a Web site to file complaints or take inquiries that way. With enough inquiries all around, maybe somebody will approach eBay and ask what's going on. Yes, it's a given that eBay has many (many!) attorneys who MAY have done preliminary homework on the shipping cost commission plan, but legality (especially getting into cross-border commerce issues) may not be a done deal.

Email. Call, Write. Go online.
(104 of 296)
Re: Ebay to include shipping in final value fee calculation
Mar 21, 2011 11:46 PM
Just wait...eBay my soon take a percentage of the State taxes charged by sellers who sell within their State too. Oh wait,they will since they will take a percentage of the bundle.

Great info Ruzgar..something to look into.


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(105 of 296)
Re: Ebay to include shipping in final value fee calculation
Mar 21, 2011 11:48 PM
No doubt a move towards sellers offering free shipping.


What nobody seems to have mentioned anywhere that I've seen is that charging a commission on shipping fees means that eBay will get additional $$$ from sellers (out of the new shipping commission) to cover their Buyer Protection Program ("Covers your purchase price plus original shipping"). They can advertise that THEY, eBay, cover it, but in effect, it will be the sellers paying for it.
(106 of 296)
Re: Ebay to include shipping in final value fee calculation
Mar 22, 2011 02:12 AM
Some good points raised by Ruzgar, well worth looking into.
(107 of 296)
Re: Ebay to include shipping in final value fee calculation
Mar 22, 2011 11:40 AM
Really though it is the buyers, who Ebay claims they want to reduce shipping costs for, who will be paying for this increase in Ebay fees. I have no option but to pass this added Ebay fee on to my buyers.

Does no one at Ebay even see the irony in the fact that after years of exhorting buyers NOT to make a profit on shipping, THEY are now the very ones who will now be doing so???
(108 of 296)
Re: Ebay to include shipping in final value fee calculation
Mar 23, 2011 01:48 PM
I received the email that starting sometime in April, eBay is going to get a commission on the seller's shipping cost, something to that effect. This sucks big time. They already charge you on your shipping cost on PayPal and they are going to do the same now on eBay. The least they could do is lower the FVF to offset the shipping charge. They will lose more sellers this way. Greedy bastards!
(109 of 296)
Re: Ebay to include shipping in final value fee calculation
Mar 25, 2011 05:38 AM
Wasn't it eBay who said We can't make a profit on the cost of shipping. That we could only charge for handling expenses.
(110 of 296)
Re: Ebay to include shipping in final value fee calculation
Mar 25, 2011 07:14 AM
This may be illegal in some countries, same as ebays "paypal monopoly" is in some places, anyhow it is certainly something I`m going to look into. Stamps after all are legal tender in many countries & so in effect ebay are saying a $1 stamp now costs $1.03, sub-post offices & corner shops in the UK who sell stamps aren`t allowed to do this so I don`t see why ebay should be allowed to. Of course it may mean you have to go to the PO yourself & not charge any handling fees but I do that anyway.
(111 of 296)
Re: Ebay to include shipping in final value fee calculation
Mar 28, 2011 08:59 PM
Does no one at Ebay even see the irony in the fact that after years of exhorting buyers NOT to make a profit on shipping, THEY are now the very ones who will be doing so???


Excellent point, pigeon-cove. Clearly, the eBay folks DON'T see the irony, because it's far beyond ironic -- it's HYPOCRISY!

I'm not simply complaining on this post. After this outrageous act, taking their cut out of what I PAY for shipping, I'm done selling on eBay. I'll be letting them know of my vehement objection to their ridiculous skimming scheme. More importantly, I'll demonstrate my objection in the most powerful way that a customer can -- by taking my business elsewhere.
(112 of 296)
Re: Ebay to include shipping in final value fee calculation
Mar 28, 2011 10:05 PM
so... in a couple weeks I can add this? (I was just getting back into selling so am trying to get my head wrapped around understanding this)...

NOTICE:
Effective April 19, 2011

to buy on ebay you pay for all of the following three:
1) the item
2) the cost to ship the item
3) eBay and PayPal's fees they're charging on the total shipping costs.

eBay is now charging a fee for the shipping charges, even though shipping is not a service they are providing.

This is on top of the 3% we already pay on shipping payments made through Paypal (An Ebay company), so it appears to be a double charge on the service they're not providing.

This fee increase is only for ebay, neither the post office nor us sellers realize any money from it.

Upon the sellers' objections at the ebay Town Hall Meeting, ebay's reply was to raise our (sellers) prices, so on ebay's advice we are passing on those fees to you.

If you are unable to give us a 5 star rating on shipping, then please do not buy from us.

Note: This is probably temporary. There's a good chance in the future that ebay will charge more fees for services they don't provide.
Examples are: a fee based on the gas we purchase to get our vehicle to the post office to mail items. And a fee based on the upkeep we pay to keep our vehicles running to get to the post office. And a fee based on the clothes we buy so that we don't get arrested for nudity when we go out to purchase our stock and mail our items. And a fee based on the groceries we buy so that we can stay alive to stay signed in with ebay. And a fee based on the packing materials we purchase. And a fee based on our time to pack items. And a fee based on our energy bills to keep stock housed in warm dry conditions. These are just estimates.

So buy now before we are advised to raise prices again to cover for ebay's double fees for non existent services.
(113 of 296)
Re: Ebay to include shipping in final value fee calculation
Mar 29, 2011 04:18 AM
This doesn't even sound legal. Can anyone explain to me why Fee-Bay likes to go out of its way to harm sellers?
(114 of 296)
Re: Ebay to include shipping in final value fee calculation
Apr 1, 2011 12:01 AM
This doesn't even sound legal. Can anyone explain to me why Fee-Bay likes to go out of its way to harm sellers?


My guess is, it's because of John Donahoe, President and CEO of eBay since 3-31-08. He's a bigshot in the corporate world. From 2-2005 to 3-2008, he served as eBay's President Of Marketplaces, and during that 3-year period, revenues and profits for that division doubled. In my opinion, he's the reason we've been seeing all these changes that affect eBay sellers. Certainly, eBay doesn't look the same as it did 2 years ago.

Now eBay wants a cut of what sellers pay for shipping. It's outrageous, and seems illegal at first glance. So, instead of simply complaining on these boards, I'm done selling on eBay. On my way out, I'm submitting to them my objections to this new policy.

"The eyes of man are never satisfied."
(115 of 296)
Re: Ebay to include shipping in final value fee calculation
Apr 6, 2011 05:44 AM
This is crazy! With the new fees, I can't afford to sell internationally anymore - I can barely afford to sell in the USA! I think this is a big mistake on eBay's part...they will lose a lot of buyers because nobody can afford those fees. *sigh*
(116 of 296)
Re: Ebay to include shipping in final value fee calculation
Apr 6, 2011 08:55 AM
We had to create a mind shift at our company we had to think bold and not just incremental.
We had to create a vision of the future so people could let go of a very successful past.

eBay CEO John Donahoe
(117 of 296)
Re: Ebay to include shipping in final value fee calculation
Apr 6, 2011 08:54 PM
so people could let go of a very successful past.

And the future is ??? Boy, what a telling statement! :)Wendy
(118 of 296)
Re: Ebay to include shipping in final value fee calculation
Apr 6, 2011 11:19 PM
I guess the future will be increasing the fees & commissions that ebay/paypal can squeeze out of sellers to the maximum amount possible.
It`s pretty obvious that ebay/paypal having recognised that their largest source of revenue is commissions is simply intent upon making that pool as large as possible whilst not forgetting the two other main sources of revenue for internet companies, advertising & the sale of personal data.
(119 of 296)
Re: Ebay to include shipping in final value fee calculation
Apr 7, 2011 02:06 AM
eBay...aka PayPal is all about $$$$$$$$$$$$$$$$$$$$$$$


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