MSE News: eBay sellers beware - its fees now eat into postage costs

thescotties

if they are including postage in the price they are in effect being charged fees on the postage element too as the final value fee in on the whole amount.

Strapped

Just to add - it appears that if you list an item with free UK postage, but post abroad as well (at additional cost) then that international sale does not qualify for TRS discount. :huh:

thescotties

You pay final value fees on ALL postage costs. eBay have been charging this fee in the US but limit final value fee on postage to internal cost so you do not pay extra for international postage. I think maybe this is because Europe would see this a a tariff on international sales.
Have a look at the Seller Central boards on Ebay

jon81uk

Wywth wrote: »

There's probably no point charging P&P anymore for most items.

The only reason previously was that the p&p was exempt from ebay fees.

So yes, probably most people will just lump the p&p into the selling price and offer 'free' p+p. I know I will.
(I usually list by total cost incl p+p anyway when looking for a specific item, so no advantage have p+p separate)

The only time when additional p+p would be considered appropriate is if something was sold with the option of free collection by buyer (I don't usually partly because of the paypal scams associated with collection)
Even if I did, and ebay fees cannot be added to p+p, then they would have to be added to base price, so person who collects will be paying me the fee ebay would have charged me on p+p even if they opt to collect.

Also, free p+p means automatic 5* for p+p

But this doesn't work as well for small private sellers, who are just using eBay to clearout the wardrobe/cupboard. If I start a listing at £9.99 I get no bids, start a listing at £4.99 and the bids eventually reach £9 anyway. I then charge a reasonable postage charge on this.

If I started bidding high with free postage I can't see me getting any bids. Start bidding low and the item may sell to cheap and I don't make the postage cost.

polskiegowLondynie

Thanks for the post OP. I'd missed this, I guess the email from eBay about the changes got lost amongst all the promotional ones they send.

Strapped

thescotties wrote: »

You pay final value fees on ALL postage costs. eBay have been charging this fee in the US but limit final value fee on postage to internal cost so you do not pay extra for international postage. I think maybe this is because Europe would see this a a tariff on international sales.
Have a look at the Seller Central boards on Ebay

Yes, I understand that the FVF are payable on the P&P amount. But it seems that international sales can't qualify for the 15% TRS discount, unless you offer an international free postage option (which clearly isn't going to happen). So when calculating how much to charge for international postage, you have to take into account the additional FVF on the postage amount, and the additional FVFs on the ITEM price due to no 15% TRS discount...less the amount of domestic postage that is already included in the item price...confused yet lol?

Retro_Bunny

Everyone seems to be blaming eBay for this, but let's give them some credit - it's the Chinese / Hong Kong sellers that have caused this in the first place by attempting to bypass fees through low cost auctions with massive postage fees, hence making the profit through postage.

So if I sell a new DVD at £10 plus £3 postage, eBay were taking £1 which is fine.
But the Chinese (typically) sellers were selling the DVDs for 99p plus £12 postage, so eBay were being scammed out of their fees via the postage model.

While it's unfair the fees being charged costing everyone more, at least it's a level playing field.
Just would've been nice if the model had included a drop to 9% on fees or something to compensate.

martinsnest

Bit confused here so if you offer free postage and say you will sell abroad does the free postage only apply to the British sales?

LayLadyLay

Seakay wrote: »

one more reason to go to Gumtree

My thoughts exactly! Until ebay realise that is what sellers are doing and then they will start to charge for Gumtree as well.

Strapped

martinsnest wrote: »

Bit confused here so if you offer free postage and say you will sell abroad does the free postage only apply to the British sales?

Yes. But if you don't offer a free international postage option, and make an international sale, then that transaction does not get the 15% TRS FVF discount. At least, that's what ebay have told me, when I queried something on my Aug invoice - but I'll probably get a different answer from someone else at ebay if I try again lol.