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EBay and PayPal rip-off charges
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# 1
JTP
Old 16-04-2008, 9:54 AM
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Default EBay and PayPal rip-off charges

I've long suspected that eBay's listing fees, final value fees and PayPal charges add up to a sizeable chunk of your takings on low value sales. After doing some analysis I discover that on sales worth less than 5 (and lets face it, there are a LOT of those on eBay) the amount you pay in charges can add up to more than 60 per cent of your takings.
It has taken me months to reach this conclusion as eBay does not make it easy for you to view an itemised list of the charges you've incurred each month.
It is possible, however, if you go into My Account, and fiddle with the settings on Account Activity. Then add the PayPal charges, and see for yourself how much - or little - you are really earning from eBay sales.
To those, like me, who are flogging off small items like outgrown baby kit, my advice is simple - if it's not going to fetch a fiver, you might be better off saving yourself the time and trouble and taking it down the charity shop.
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# 2
StaffsSW
Old 16-04-2008, 10:12 AM
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Not sure where you have calculated 60% from, but based on a BIN of £4.99, i calculate the following...

Insertion fee 15p
Gallery 15p (optional)
BIN fee 5p
Final value Fee 30p
Paypal Fee 37p

Total - £1.02 or 21% of the total sale price.

For products at this price range, listing upgrades such as bold/featured/highlighted etc do not make economical sense.
<--- Nothing to see here - move along --->
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# 3
hectoriess3000
Old 16-04-2008, 10:16 AM
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I agree how do you get to 60%:confused: .

Also if you want to make some money but don't want to sell on e-bay anymore why not try a carboot sale.
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# 4
pepsi_max2k
Old 16-04-2008, 10:21 AM
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don't know about 60% but it can deffinately get up to around 40% for lower value stuff.

eg. media item sold for £1 total = 10p (10%) ins (would only be 5% if 99p, but this is a worst case), 9% fv, 3.4% (3.9% if from abroad) paypal, + 20p paypal (20%) = 42.4% (or 42.9% if from abroad).

yes, technically that only works if postage is free, though even then only the fv % would change (for 50p / 50p you'd still be around 40% total fees). and if you wanna get technical you'd hopefully be charging more for postage abroad anyway which would affect all percentages but... meh.

Add in postage and packaging and you'd probably make a loss anyway


Last edited by pepsi_max2k; 16-04-2008 at 10:29 AM.
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# 5
steviebabes
Old 16-04-2008, 10:21 AM
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As above I agree. Even if you sell on a car boot you have a pitch fee, transport costs etc. If you make say £50 pay £5 for your stall and £5 fuel you are talking about the same cost percentage and you don't have to freeze to death!
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# 6
frivolous_fay
Old 16-04-2008, 10:28 AM
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*cough* micropayments *cough*
My TV is broken!
Edit: refunded 515 for TV 1.5 years out of warranty - thank you Sale of Goods Act!
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# 7
RFW
Old 16-04-2008, 11:11 AM
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Quote:
Originally Posted by JTP View Post
I've long suspected that eBay's listing fees, final value fees and PayPal charges add up to a sizeable chunk of your takings on low value sales. After doing some analysis I discover that on sales worth less than 5 (and lets face it, there are a LOT of those on eBay) the amount you pay in charges can add up to more than 60 per cent of your takings.
It has taken me months to reach this conclusion as eBay does not make it easy for you to view an itemised list of the charges you've incurred each month.
It is possible, however, if you go into My Account, and fiddle with the settings on Account Activity. Then add the PayPal charges, and see for yourself how much - or little - you are really earning from eBay sales.
To those, like me, who are flogging off small items like outgrown baby kit, my advice is simple - if it's not going to fetch a fiver, you might be better off saving yourself the time and trouble and taking it down the charity shop.
Have you ever thought that maybe they don't want you to sell lower value items?

If you have several items worth around a pound each, list them together, not seperately.
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# 8
JTP
Old 16-04-2008, 11:33 AM
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OK, the 60 per cent charge (actually 61 per cent) only happened once, on a 99p sale that was going overseas, hence higher final value fee. On sales under 2 you are basically looking at between 40 per cent and 50 per cent fees.
But I think you nitpickers are missing the point. You flog something on eBay, think: oh goody! at least I got a couple of quid for it. But you didn't. You got half that. And they make it hard for you to tell. And that, to me, isn't quite fair play.
In reply to RFW, have I ever thought eBay doesn't want me to make low value sales? No, RFW, I haven't. I think they want me to make lots and lots of low value sales, and to remain in blissful ignorance of the fact that they are raking in lots of dosh from them.
Do you really think that 60 per cent, or 50 per cent, or even 40 per cent, is a reasonable level of fee? If your bank charged you that you'd go bananas.
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# 9
DGJsaver
Old 16-04-2008, 11:37 AM
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Quote:
Originally Posted by stevew8975 View Post
21% of the total sale price.

That`s an outrageous amount really
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# 10
StaffsSW
Old 16-04-2008, 12:21 PM
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As a business seller myself, 21% is still more cost effective than opening a high street shop, or any other sales outlet with a potential 180m customers.

I know exactly what margin I make on every product I sell - it's basic business strategy. If I am selling lots of lower value items, then they'll be listed as shop inventory format, reducing my overall margin. I also have a higher turnover through paypal that means my fees are 2.9% + 20p, and my DSR ratings are currently rewarding me with a further 25% Final value Fee discount. With careful planning and listing strategy, I can get my fees percentage down to about 12-13%. Overall, I aim to keep ebay/paypal fees to under 17.5% of my gross revenue - and then I also have to consider the margin erosion caused by unsold items - effectively a wasted insertion fee.

I agree that 21%, 50% or 60% may seem high to some people, but a little bit of planning and strategy analysis is all that is needed to ensure the sales method is profitable. I'm not sure how an overseas sale attracts a higher Final Value fee though - yes, it will cost more to post, but surely you will be charging the buyer more?

If you are a private seller after a bit of pocket money, then eBay is simple - costs - revenue = profit. If you are a business seller trying to make a living from it, then yes, a bit more care and planning is needed, but if you are reckoning on 60% as a fee cost, then there is either something fundamentally wrong with your business plan, or your calculations.
<--- Nothing to see here - move along --->
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# 11
martindow
Old 16-04-2008, 1:44 PM
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These charges certainly do take a large percentage on low value transactions but they should not come as a surprise as they are not secret. No one is forced to sell things on Ebay.

If you are contemplating putting something on surely you should calculate the fees and postal costs in advance. If you don't think it is going to be worthwhile don't put it on Ebay!
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# 12
amy_love
Old 16-04-2008, 2:45 PM
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I agree its a lot, and often its easier to take clothes to the charity shop than spend all that time to earn little profit however if you sell at a carboot sale you'll get pence for the item and people will still try and knock you down, plus there is the cold, as someone said....
Student Moneysaver going to Paris next year! Trying to save!

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# 13
custardy
Old 16-04-2008, 4:27 PM
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the fact is why do people use ebay over the likes of ebid?
because they get more sales on ebay and the chance of higher sales prices
so for this service you pay.
i agree it adds up but thats the choice you make in listing as there are alternatives and plenty of online resources to check the toal costs
Honesty,integrity,self sufficiency.
Seems I'm in the minority on this.
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# 14
Jaimered
Old 23-03-2009, 7:55 PM
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I’m fuming about the new EBay Fees - 10% final value fee, are eBay having a joke!!
I wrote a letter of complaint only to get a standard email back. Which I replied to – then I get the exact same STANDARD email again....customer service I THINK NOT.

Can you speak to a human being at eBay anymore? NO. It’s all automated emails.

I sold some tickets I did not need on eBay - thought I’d get something back on them until eBay charged me 10% fee and I’ve not lost £55 on the tickets because of this fee.

The tickets were £345 – sold for £410 = eBay charge £39 – PayPal charge £14.14 – I’m left with £10 profit. Thanks EBAY.

EBAY ARE GREEDY MONEY GRABBERS......BOYCOTT EBAY
Sign the petition at petitions (dot) number10 (dot) gov (dot) uk / ebayripoff
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# 15
RFW
Old 23-03-2009, 8:09 PM
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Quote:
Originally Posted by Jaimered View Post
Im fuming about the new EBay Fees - 10% final value fee, are eBay having a joke!!
I wrote a letter of complaint only to get a standard email back. Which I replied to then I get the exact same STANDARD email again....customer service I THINK NOT.

Can you speak to a human being at eBay anymore? NO. Its all automated emails.

I sold some tickets I did not need on eBay - thought Id get something back on them until eBay charged me 10% fee and Ive not lost 55 on the tickets because of this fee.

The tickets were 345 sold for 410 = eBay charge 39 PayPal charge 14.14 Im left with 10 profit. Thanks EBAY.

EBAY ARE GREEDY MONEY GRABBERS......BOYCOTT EBAY
Sign the petition at petitions (dot) number10 (dot) gov (dot) uk / ebayripoff
What in earth is a petition going to do? Certainly a fine waste of time and effort. Don't like the charges, don't use them, it ain't compulsary:confused:

Ebay is a business, like any other they are in it for the profit.
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# 16
chja
Old 23-03-2009, 8:54 PM
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It's a business not a charity- if you don't like their fees then don't use the service.

The risk of putting something on at 99p is that it will only sell for 99p - eBay will take 10% (not quite 60%) + paypal fees if thats the way you are paid.
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# 17
VanyaHargreeves
Old 23-03-2009, 10:11 PM
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Quote:
Originally Posted by Jaimered View Post
Im fuming about the new EBay Fees - 10% final value fee, are eBay having a joke!!
Surely you can just start your listing at a higher price...
Or go to an auction house and see if you like their fees.


And I dunno if I'm in the minority here, but it was obvious to me how much a percentage of my money is going to be paid to paypal + ebay as fees, and...well, I'm 14. :confused:
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# 18
amcluesent
Old 23-03-2009, 10:55 PM
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>and...well, I'm 14.<

You should be tucked in at this time of night, not on t'interwebs! Skool day tomorrow!
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# 19
VanyaHargreeves
Old 23-03-2009, 11:07 PM
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Yes ma'am, sorry ma'am
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# 20
RFW
Old 23-03-2009, 11:20 PM
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Quote:
Originally Posted by VanyaHargreeves View Post
And I dunno if I'm in the minority here, but it was obvious to me how much a percentage of my money is going to be paid to paypal + ebay as fees, and...well, I'm 14. :confused:
There does seem to be some strange feelings about Ebay and their charges that I've never quite understood. There are many companies who I think charge exorbitant prices, so I don't deal with them. Ebay is hardly comparable to charges for gas or electric or even petrol when there really isn't a great deal you can do about the prices. Ebay isn't the only place where you can sell goods, its probably the most convenient with the most customers but essentially that's what you're paying for.
If even a 14 year old can work that out......
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