Quick Answer: Why Does EBay Charge A Final Value Fee On Shipping?

The bottom line is this fee is ILLEGAL.

This is a common claim, but no one who makes can ever cite the law being broken.

The courts have already established this by their ruling in the favor of eBay Motors sellers on the class action suit!.

Does eBay always charge final value fee?

eBay charges their fee on the item as soon as the item is sold. When the buyer pays they then charge their fee on the amount paid for shipping the item. So you actually see two final value fees for the item unless you sell with free shipping.

Is it illegal to charge more for shipping?

It turns out it is illegal to overcharge for shipping by online retailers. … Many are targeting this particular area within the online shopping experience to earn a higher profit margin. But, there’s established public policy that requires retailers to charge customers no more in shipping than the actual costs incurred.

Do I still pay eBay fees if I refund?

EBay does not return your original insertion fee once an auction is complete regardless of what happens with the sale. If you relist the item after refunding the buyer, you are charged a fresh insertion fee, but if the item sells again you get this second insertion fee back.

What happens if you don’t pay eBay fees?

What if I don’t pay my eBay fees? You will be unable to sell anything and when you put money in your Paypal account to pay for a purchase, eBay will see to it they are paid first, leaving you with an Unpaid Item Dispute. If you don’t pay an Unpaid Item Dispute, you get a Strike on your buying account.

Why is eBay charging me a final value fee on shipping?

After a buyer commits to purchase an item, you’re charged a final value fee. … Final value fees are calculated based on the total amount of the sale and are charged per item. The total amount of the sale is the final price of the item, shipping charges, and any other amounts you may charge the buyer.

Can you overcharge shipping on eBay?

There’s no such thing as overcharging on shipping. Nothing to report. Sellers can charge whatever they want for shipping as long as it’s stated in the listing.

Is it better to offer free shipping on eBay?

Free shipping isn’t really free—you will build the shipping cost into the price of the item. Calculated shipping is really the fairest way for the buyer and the most accurate way for both buyer and seller. Definitely never offer free shipping on large or heavy items.

Does eBay punish non paying bidders?

The punishment for non paying bidders is in the form of their own disappointment when they are blocked from making a purchase. This only works when sellers are pro-active enough to set up their blocks and report non payments.

What percentage does eBay take from shipping?

10%As noted, eBay will charge 10% of the buyer’s total payment including shipping. In your example, if you had offered free shipping, eBay would take 10% of $100. If you had sold the item for $100 and also charged the buyer $10 for shipping so the buyer’s payment was $110, then eBay would take 10% of $110.

How do I avoid final value fee on eBay?

eBay Fees Too High? Here Are 5 Ways To Lower ThemCalculate fees and profits before listing items. Before you list an item for sale, make sure it’ll be worth the time and effort it takes to sell it. … Reconsider your eBay store subscription type. … Become a top-rated seller. … Request final value fee credits. … Evaluate eBay listing upgrades.

How do I avoid final value fee on shipping?

In addition to zero insertion fees, each eBay subscription, from Basic to Enterprise, also comes with reduced final value fees from between 4% to 9.15%. You can reduce this final value fee even further by offering eBay Fast N’ Free shipping, to eliminate the final value fee on shipping costs.

Why are eBay’s fees so high?

The eBay Community : Shipping costs are so high because Sellers have to buy tracking and signature required now for every package because it’s very easy for buyers to make claims and get free items. Postage is not the only cost in shipping. … The seller pays fees on both the selling price and the shipping price.

How much are eBay final value fees?

Sellers with a basic eBay account pay a 10% final value fee for most items (with a $750 maximum), 12% for books, DVDs, movies, and music (with a $750 maximum), 2% for select business and industrial categories (with a $300 maximum), and 3.5% for musical instruments and gear (with a $350 maximum).

How does eBay calculate final value fee on shipping?

eBay charges Final Value Fees when your items sell. This fee is calculated as a percentage of the total amount of the sale. The total amount of the sale is the amount the buyer pays, including any Shipping and Handling charges.

Does eBay always take 10%?

eBay will take 10% of the sale price of any item you successfully sell, including postage, and you’ll pay extra if your buyer pays via PayPal, so be sure to factor this in.