Posts Tagged ‘eBay fees’

Dear eBay Queen:

Thank you so much for responding to my question about PayPal and eBay at the beginning of March. I am seeing how the fees on eBay and PayPal work much clearer. 

I do have a couple more questions.  I was thinking about trying to sell things at Fixed Price or a Buy it Now option. You mentioned something about shipping fees.  How does that factor in to the sale?  What if the shipping isn’t free?   How can shipping be free anyway?   Can the shipping affect the PayPal fee, insertion fee, and final value fee?  Forgive me for being slow, but could you give me a breakdown that would include shipping that cost? You gave me a breakdown of an item that sold for $50, but I wasn’t for sure if that included free shipping or shipping cost.  Again, thank you for taking the time to answer my questions.

Amy

Dear Amy:

Thanks for letting me know my response helped you. Your question about PayPal and eBay fees is one that even long time sellers don’t easily understand.

Fixed price and Buy it Now are great ways to sell your items fast. eBay use to have pretty strict requirements for a seller to use the Fixed Price or Buy it Now option, but they have dropped those requirements.  You can find the requirements and charges for Fixed Price and Buy it Now here: http://pages.ebay.com/help/sell/fixed-price.html  . 

It is up to each individual seller to decide what to charge for shipping.  Some sellers offer free shipping, some charge exact shipping and others charge a handling fee with their shipping charges.  eBay has made it easy for shipping charges to be figured.  When you are writing up your listing in the “Sell Your Item Form” you’ll see you can check the box for free shipping, calculated shipping or flat rate shipping.

·         Free shipping is free to the buyer, but the seller is still responsible for the charges.  This means you will need to build the price of the shipping costs in your starting price.  I would suggest before you offer free shipping that you become a little more familiar with shipping and shipping charges. 

·         Flat rate shipping is offering the same rate no matter where it is being shipped. This can be a little tricky also since shipping charges vary all over the US and internationally.  The post office makes it easier to ship in the US with flat rate boxes.  The USPS Flat Rate Boxes range in price from $4.95 to $12.95. You can check out all the USPS Flat Rate Charges here: http://www.usps.com/prices/priority-mail-prices.htm

·         Calculated shipping is the way to go when it comes to new sellers.  All you will need to do is put your zip code in along with the weight of the package and eBay’s calculator does the rest.

When it comes to the fees, eBay has just released their spring update March 15.  Check it out here http://announcements.ebay.com/2011/03/2011-spring-seller-update/ In this update they have announced they are going to apply final value fees to the total amount of the sale.  That means FVF fees will also be applied to shipping costs.  Starting July 6^th, all eBay sellers will be charged 9% final value fee on the total amount of the sale including shipping. 

Here is my original break down:

Let’s say you sold a vintage cookie jar for $50.00 + shipping.  Here’s a breakdown of the fees:

You started the listing at $9.99:  Insertion fee would be:                                     .25 cents
Your item sold for $50.00:  final value fee would be 12% of the sale price:   $6.00
PayPal Fees:  2.9% + .30 cents                                                                          $1.75
                                                                                   TOTAL FEES:                $8.00

After July 6^th your fees on the same cookie jar (that sold for $50.00 + shipping) will be:

You start the listing at $9.99: Insertion fee would be:                                     .00 (free insertion)

Your item sold for $50.00 + 12.85 shipping final value fee would be 9%        $5.65

of the total price (including shipping)

PayPal Fees: 2.9% + .30 cents                                                                    $1.75

                                                                             TOTAL FEES                $7.40

Auctionbytes is an independent online trade magazine for online auctions.  They have a complete breakdown of fees and the new changes.  http://www.auctionbytes.com/cab/abn/y11/m03/i15/s00 Let me know if there is anything else I can help you with.

Strange eBay item of the week: eBay item: 320662470743 (enter this number in the eBay search box in the top right corner of the home page): Do you know someone that looks forward to St Patrick’s Day? They need one of these!  Brand New Guinness Countdown clock St Patrick’s Day. SOLD $395.00 http://cgi.ebay.com/brand-NEW-GUINNESS-Countdown-clock-St-Patricks-Day-/320662470743

Suzie Eads is a nationally known eBay marketer and eBay trained Education Specialist. She lives in Rantoul. Do you have a question for the eBay Queen? E-mail: questions@asktheebayqueen.com

Dear eBay Queen:

I don’t have an eBay or PayPal account.  I am contemplating becoming an eBay seller, but I’ve got a few questions about PayPal and eBay. I contacted PayPal and asked them some questions.  I typed the information down on my computer, but unfortunately someone in my family deleted it when they closed down my computer.

My understanding of PayPal is like this:

·         I register with them and put my bank account or credit card on file.

·         When I sell a product on eBay, the customer sends their payment from their PayPal account.

·         Their money goes to my account and becomes my money and payment for their item.

From what I read, PayPal actually charges money for this service, or at least that's my understanding. I’m confused about what exactly they charge. If I sell my item for 50 bucks, the customer buys the item and pays for it, I will have 50 bucks in my account. Is this correct?  How does PayPal get the fee? Do they take the fee from those 50 bucks as soon as it’s in my account?

Ok, now on to eBay: I think eBay charges a listing fee.  Do they deduct money from my PayPal account as soon as I list something?  From what I read, they also charge a final sale fee. I am guessing it works like this: I list my product on eBay; they deduct the fee from my PayPal account; the customer orders the product; the money comes in. Now I have 50 bucks in my account.

Just one other thing, how much money does eBay and PayPal take?  I guess if eBay takes say 15 percent of my 50 dollar sale, – that’s 7.50, so that would leave me with $42.50.   I’m also trying to figure out PayPal deductions.
I’m not sure when eBay or PayPal deduct their amount. Is it as soon as the money goes into my account? Is it after I ship? Is it days later?  Thanks so much for your help.

Amy; Olathe, KS

Dear Amy:

I understand your frustration; eBay and PayPal fees can be pretty confusing.  When selling on eBay, there are three types of fees.  They are:

·         Insertion Fee: When you list an item, you're charged an insertion fee for the listing. The insertion fee is based on the starting price and the category of the item.

·         Final Value Fee: If the item sells, you're charged a final value fee. This fee is based on the final sale price and category of the item. It does not include shipping costs; unless you specify free shipping, then shipping is built into the price.

·         Listing Upgrades: If you add upgrades to your listing, such as a subtitle or extra pictures, there's an additional charge for each listing upgrade.

·         PayPal Fee: When someone sends you money to your PayPal account, PayPal will charge you a fee based on the amount that was sent.  The fee is taken out of the payment before you receive it. For more information on PayPal fees go here: https://www.paypal.com/cgi-bin/webscr?cmd=_display-receiving-fees-outside

eBay fees (whether they are insertion, final value or listing upgrades,) are taken out automatically once a month. You can choose where they come from: your checking account, PayPal account or credit card.  I have friends that choose to pay their eBay fees once a week and they go in and make payments to their eBay accounts.  Here’s a link to all the fees you will encounter when selling on eBay: http://pages.ebay.com/help/sell/fees.html

PayPal fees are taken out instantly when the buyer makes the payment.  There is no charge to send money with PayPal.

Let’s say you sold a vintage cookie jar for $50.00 + shipping.  Here’s a breakdown of the fees:

You started the listing at $9.99:  Insertion fee would be:                                               .25 cents

Your item sold for $50.00:  final value fee would be 12% of the sale price:   $6.00

PayPal Fees:  2.9% + .30 cents                                                                                    $1.75

                                                                                    TOTAL FEES:                         $8.00

I hope this helps you….

Strange eBay item of the week: eBay item: 220730555241 (enter this number in the eBay search box in the top right corner of the home page): I didn’t know liquor could be sold on eBay, did you?  Check out St Magdalene 19 YO Single Malt Scotch Whisky Bottle & Box SOLD $445.00  Check it out HERE  

Suzie Eads is a nationally known eBay marketer and eBay trained Education Specialist. She lives in Rantoul. Do you have a question for the eBay Queen? E-mail: questions@asktheebayqueen.com