eBay Fee Changes
eBay says the move is aimed at encouraging sellers to offer free or low-cost postage. The online auction website usually takes a 10% cut of the overall price of an item. eBay will now take a cut of the money you charge for postage. New rules mean selling goods online has just got more expensive for those that choose eBay.
Why eBay Takes a Percentage of Shipping Costs
This is why eBay takes a percentage of shipping costs charged on the site. When an item sells, eBay used to charge 10% of the sale price, including postage. PayPal’s cut was 2.9%, plus 30p per transaction. Now eBay will charge 12.8%, including postage, plus 30p per order. So you’ll pay slightly less in total. You’ll now get paid directly into your bank account.
Shipping Fees and Charges
eBay takes 1.5% to 15% of the sale price, including shipping. The percentage varies based on the item category and seller account type. eBay’s fees are often the largest single cost for sellers. The final value fees are taken as a percentage of the total amount charged to the customer. That includes item price, shipping, and sales tax.
Sellers cannot delay shipping once payment arrives. Offering extra fees on shipping when free shipping was accepted goes against eBay policy. The dos and don’ts apply except for real estate, vehicles, and services.
It is legal to charge sales tax on shipping in some states. In others it’s only required in special cases. Some states don’t require it at all. It is legal to charge commission on taxes.
Shipping supplies from USPS, UPS, FedEx, and DHL are free when you have an account. This helps lower eBay shipping costs. Sellers can also offer combined shipping discounts. Efficient packaging and volume discounts also reduce expenses.
When products have free shipping, the costs are built into the price. So they seem more expensive and get fewer views. Only so much can be done about accuracy of costs. Some sellers make a living on eBay. But most are supplementing income. So low volume makes shipping pricey.