Question Re: fee calculation in Selling on eBay DND

fee calculation

zepp2010 — Mon, 26 Oct 2020 08:49:48 GMT

Hi,

I'm trying to calculate the fees from a recent sale:

Sale price: £700

Postage: £10

Total: £710

eBay fee £43.32

Paypal fee: £20.89

So the questions I have are:

1) Are both eBay & PP fees calculated on the full £710? It would seem that PP should calculate their fee after eBay have taken their cut (otherwise you have two calculations based on the full amount)

2) I charged £10 postage. It will cost that (not charging for packaging, just the actual cost). Are PP & eBay including the postage in their fees?

Thanks for the clarification.

Dayve

Re: fee calculation

1956glyn — Mon, 26 Oct 2020 08:53:27 GMT

Business seller fees are different to those of a private seller.

You may well get a very experienced business seller respond to you here but then again you may well be better off asking on the Business sellers board.

Re: fee calculation

pixiesen2012 — Mon, 26 Oct 2020 09:15:12 GMT

both companies charge their fees on the full amount the buyer pays, item price and the P&P

paypal charge 2.9% plus 30p and take this fee as soon as the buyer pays

ebay charge 10% at the point of sale and invoice you monthly

Re: fee calculation

zepp2010 — Mon, 26 Oct 2020 09:42:08 GMT

Hi,

Many thanks for that 🙂

Re: fee calculation

red_magpie — Mon, 26 Oct 2020 09:49:43 GMT

It would seem that PP should calculate their fee after eBay have taken their cut

That's a great bit of wishful thinking!

Regrettably, it's not going to happen. In fact, as a financial institution, PayPal is actually more justiified than eBay in charging fees on the whole transaction value.

If anything is unfair, it's eBay claiming an extra fee by charging a 10% fee on the cost of postage and packing, which it has noting to do with. But this has been talked to death years ago.

In any case, you accepted all of this in the user agreement. You can find full details of eBay's fees for business sellers here: https://sellercentre.ebay.co.uk/business/fees

Re: fee calculation

zepp2010 — Mon, 26 Oct 2020 09:52:06 GMT

Many thanks for your reply. I did wonder about both parties taking their percentage based on the whole amount (including postage). I believe eBay's take on the postage is that we should charge more to compensate, which makes things less attractive to the buyer of course. For those who just want to charge the actual cost of postage, without making a profit, it make that impossible.

Thanks again for your reply 🙂

Re: fee calculation

rusticrye — Mon, 26 Oct 2020 12:05:30 GMT

Everything you need to know about selling on Ebay, including what Ebay's (and PayPal's) fees are, and when they take them from you, is in the Seller Centre. Surely you checked them out before listing anything for sale...? That's the only way you can calculate your pricing.

Ebay's and PayPal's fees are charged on the full amount you charge the buyer.

PayPal take their payment processing fee (2.9% plus 30p) the second the buyer's payment hits your PayPal account.

Ebay's fees are called for by monthly invoice. If you're still being paid via PayPal, the Ebay selling fee is the category % plus 20% VAT.

As a business seller, you'll shortly be switched from PayPal to Ebay's Managed Payment's system if that hasn't already happened. The selling fee will be the new higher category %, plus 30p, plus 20% VAT.

@zepp2010