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Ad Fees
Summary: 5cr00g3 expressed frustration over eBay's practice of including postage and VAT in ad fee calculations. They noted that this cost structure, particularly for overseas postage, has led to financial losses when ad fees exceed their item's sale price. papso22 explained that eBay charges fees based on the total amount a buyer pays, separating their services from those provided by sellers. red_magpie added historical context, mentioning past seller dissatisfaction when eBay first implemented charges on delivery costs, highlighting eBay's monopoly and controversial practices.
I have read all the small print and all information. But something is still bothering me. To the point where i may stop selling here all together because technically speaking ebay charge me for a facility they are providing, to the buyer. that service has no monetary impact on myself or my item.
Why is postage + vat included when the Ad Fee is calculated? The amount the buyer pays for postage goes straight to ebay and has no real relevance to my listing since the purchaser is buying a service/postage from ebay. not myself.
red_magpie
Mentor2 weeks ago · EditedAt one time (until I think about ten years ago) eBay did not charge fees on the cost of delivery. Then their accountants presumably realised that they could hugely increase their fees by doing so - and without having to do anything to earn it!
There was a huge furore at the time, with many sellers threatening to leave (very few did) and at least one legal challenge in Scotland, as I recall. The discussion boards were overwhelmed by complaints.
eBay's near monopoly position at the time won the day, the fuss died down and users had to grudgingly accept the new fee.
Ironically, eBay's own guidance to sellers was that they should only charge the actual cost of post and packing, and not try to make a profit from it. But eBay is famous for not applying its own rules to itself. (A good example is feedback - eBay promotes feedback as a way to "encourage" sellers to improve their performance - but doesn't enable users to give any feedback on its own!)
5cr00g3
OP3 weeks agoAd fees destroy overseas selling for me. Ever since i sold an item for $10, that had $30 postage fees and 50% ad fee. I made a loss on the listing because the fees were more than what i sold the item for... Figure that one out eh
papso22
Mentor3 weeks ago · EditedEbay are simply calculating their fee to you based on the total the buyer pays.
They charge you for what they provide to you, it's up to them how they do that.
5cr00g3
OP3 weeks ago · EditedIs that fair on overseas postage? since the cost of postage is to pay for postage. Not profit
I sold an item for $10. That cost me $30 to send to USA. I owed ebay money after the item sold because they included the postage in there ad fee.
I do find your 2nd sentence in your reply funny. "They charge you for what they provide to you, it's up to them how they do that."
They charge me for a service that i have to pay for and am providing to the buyer. Not them.
Im also pretty certain if you watch your own listing after navigating it from your overview page and it has an Advert. You will automatically be charged an Ad Fee when it sells even though the buyer didnt get to the listing via the advert. Hmmm
papso22
Mentor2 weeks ago · EditedThere are a number of supplies of goods and services when a seller sells on ebay. The goods the seller sells to the buyer, the services ebay supplies to the seller, and sometimes, the services ebay supplies to the buyer.
You need to separate these out.
Fairness doesn't usually come into commercial decision making, which is what is behind Ebay's fee structure.