Business Seller Fees

Hi

 

I am trying to get a simple answer for a simple question.  eBay explanations are to convoluted.  If I sell a DVD or CD as a business seller, what do eBay take after the sale.  I am talking final value fees not listing fees.  For example, the new business protect fee for private sellers is 0.75 + 4%.  Passed onto the buyer, granted, but still requires the seller to add this to cover the cost.

 

What are the Final Value Fees for Business Sellers with a shop in % terms and any other extra charges?

 

e.g.  If I sell a DVD to someone for £2.50, eBay will take...?  Out of the final sale.

 

Thank you.

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Business Seller Fees

Below standard seller - eBay fees £0.79
Above standard seller - eBay fees £0.67

Top rated seller - eBay fees £0.64

 

That is before insertion fees or a shop, and any promoted listings. 

 

If you’re sending 2nd class at £1.55 up to 100g or £1.90 up to 250g it isn’t viable. 

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Business Seller Fees

Well, I'll go to the foot of our stairs!!!  

 

When did eBay reduce fees for top rated sellers?  I must have missed that one!  Is it just in the DVD category?  

 

My last sale was for £60.28

 

Category 14.99% plus VAT

 

Fees £11.39  (fvf £8.98 rof  £0.21 fvf fixed feee £0.30 VAT £1.90) 

 

So it doesn't look like I'm not getting a lower rate for being top rated.

 

And now I'm depressed.  

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Business Seller Fees

I took it off a calculator:

 

https://www.ebayfeescalculator.com/uk-ebay-calculator/

I’m a bit rusty as I haven’t been listing but it rings true with what I remember in the DVD (films & TV) category - it drops from 9.9% to 8.91.

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Business Seller Fees

If you’re sending 2nd class at £1.55 up to 100g or £1.90 up to 250g it isn’t viable.

 

That's the eBay fee they quote for postage and doesn't include any packaging, Jiffy Bag etc, they seem to think these are free or sellers should cover the expense of them.

 

NO, especially when eBay are ripping us off a 10% P&P fee too !

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Business Seller Fees


@hideawayvideo wrote:

 

What are the Final Value Fees for Business Sellers with a shop in % terms and any other extra charges?

 

e.g.  If I sell a DVD to someone for £2.50, eBay will take...?  Out of the final sale.

 

Thank you.


Having a shop (or not) makes no difference to the final value fees. The upfront listing fees get progressively less expensive for different shop levels but FVFs stay the same. Here's ebay's info page for business seller fees: Fees for business sellers | eBay

 

There's no simple answer because ebay deliberately make it as complex as possible to try and stop sellers from realising just how much it costs. Ironically, ebay call that "simplifying".

 

So, for a DVD sold as a business seller, the final value fee is 30p + 9.9%. But that figure only stands if you're VAT registered. If you're not VAT registered then you need to multiply all fees by 1.2 to get to what it will actually cost you. So then the FVF becomes 36p + 11.88%. But, on top of that, you also get charged a regulatory operating fee of 0.35% (that one's a special perk of being a business seller - private sellers don't get charged for that service). Of course, that becomes 0.42% once you've added the VAT. 

 

So your final value fee (assuming no VAT registration) is now 36p + 12.3%. But that only stands if your sale is to a UK buyer. If your buyer is abroad or their account was registered on a foreign ebay site then you pay an international fee on top as well. That fee is an extra 1.05% for Eurozone & Northern Europe, 1.8% for Canada and USA and 2.0% for all other countries. Remember to multiply them by 1.2 if you're not VAT registered so they become 1.26%, 2.16% and 2.4% respectively.

 

But we're not done yet. If your buyer is in a country where import VAT (or its equivalent tax) is charged then ebay have to collect and remit this VAT at whatever rate each country charges it at (it varies but 20% is fairly average). But ebay make sure that they make money from doing this job for the various taxmen by charging business sellers the full FVF percentage on the tax that ebay have to collect (that never goes anywhere near the seller) as well as on the item price and the postage price. Off the top of my head, countries with this import tax in place (at a variety of different rates) are all of the EU, Norway, Australia, New Zealand and most states in the USA.

 

So, if you sell with "free" UK postage and the buyer of your £2.50 DVD is in, and registered in, the UK then your FVF (assuming you're not VAT registered) will only be 36p + 12.3% of the £2.50 - which comes to 67p. If you charge postage on top of the £2.50 then you'll also pay 12.8% of the postage charged.

 

If the buyer is not in the UK then that 67p will increase but it'll be different for every country.

 

So, simple answer is in red above but even that is far from simple.

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Business Seller Fees

Sorry, I replied very quickly I was heading out for a meal.. I should have been clearer about the top rated seller fees. The lower FVF% for top rated is only applied for sellers who jump through the hoops to qualify for the premium service badge:

 

https://www.ebay.co.uk/sellercentre/protection/ebay-premium-service

You could get it down from 14.9% to 13.41% plus VAT if you went for the badge.

 

I know it doesn’t work for everyone. You could make it without too much intrusion with 2 day dispatch and Tracked 24 freepost (along with the other boxes ticked for express delivery) or 1 day dispatch and Tracked 48 as the freepost option. And obviously just factor those postage costs into a higher item price. 

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Business Seller Fees

Just FYI, my listings don't qualify for Top Rated status when I select '1 day dispatch and Tracked 48' ... even that isn't fast enough ... for me it's 'same day dispatch and Tracked 48' or '1 day dispatch and Tracked 24'

 

1 day dispatch / Tracked 48 listing:
https://www.ebay.co.uk/itm/335713018725

 

Same day dispatch / Tracked 48 listing:
https://www.ebay.co.uk/itm/335780215857

 

Only the second one get's the 'eBay Premium Service' badge

 

Also worth noting it only becomes a Top Rated item when the item is 'over £20'

 

I have over 1000 listings and only ~30 qualify for Top Rated Seller status for this reason, it's quite frustrating

 

More info on requirements:
https://www.ebay.co.uk/sellercentre/protection/seller-standards

 

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Business Seller Fees

I sold two item this month that fall into the dvd/cd catagory. I was charged 6.5% final fee plus 0.35% vat. Now granted I am based on ebay Ireland, not UK. So charges with be a bit different. I sold the cd for a tenner, plus 4 pound postage and was charged 1 pound 9 pence in fees.

 

The dvd I sold for 14 pounds, plus again 4 pounds for the postage. This I was charged the same 6.5/0.35, but the final fee was closer to two pounds. 1.97 to be exact. 

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Business Seller Fees

Interesting. I must have realised this at some point as I select ‘other 48hr courier’. If you do that you’ll get the badge. Have a look at my 1 listing, the badge is on there with other 48hr and 1 day dispatch.


The way it always worked for me was the £20 number was only the threshold at which you had to use tracking. Anything under £20, in theory, could be offered with 2nd Class untracked freepost. All I had to do was change dispatch to same day and I added a 5am cut off time.

 

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Business Seller Fees

But am I right you can't get the 'top seller' badge on things under £20?

 

I've tried both '2nd class' and '2nd class large letter' and don't get the badge

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Business Seller Fees

No that’s not right.

 

Unless it has changed, I got it all the time even if I listed a £2 item. I wish I could show you a clear cut example but my 90 day sold history has fallen off now. 

This is my postage policy on the low value untracked with 2nd class to get the badge:

 

technthread_0-1740740221300.png

technthread_0-1740740273759.png

 

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Business Seller Fees

Thanks, I'll try that ... and what do you do for cut off times sorry to accomdate that?

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Business Seller Fees

You don’t have to set a cut off time in same day dispatch. I think it is a good idea though so you aren’t scrambling late afternoon to post a sale that has just come in. I set a 5am cut off time myself for my own sanity, anything that sells later than that doesn’t have to be posted the same day to avoid eBay defects. That option is under postage preferences.

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Business Seller Fees

Ah great, that's a real help thanks. Have updated my live examples to show what does and doesn't trigger the Top Rated Badge:

 

1 day dispatch / Tracked 48 listing:
https://www.ebay.co.uk/itm/335713018725

 

Same day dispatch / Tracked 48 listing:
https://www.ebay.co.uk/itm/335780215857

 

1 day dispatch / Other 48 listing:

https://www.ebay.co.uk/itm/335714530359

 

1 day dispatch / 2nd class listing:
https://www.ebay.co.uk/itm/335713018725

 

Same day dispatch / 2nd class listing:
https://www.ebay.co.uk/itm/335782922331

 

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Business Seller Fees

That’s great, it’s how I remembered it working. 

It is only small fee savings but I used to do it and then if I wanted to promote at 2% it felt like 1% after the fee discount so was a no brainer for me. 

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Business Seller Fees

Do you mind me asking what the top seller discount actually is and how you find it on a transaction, I’m not seeing it on mine, see below:

 

IMG_1512.jpeg

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Business Seller Fees

I posted an example on an old thread. Someone recently revived it with a comment so luckily I can find it:

 

https://community.ebay.co.uk/t5/Business-Seller-Board/Top-Rated-Seller-Discount/m-p/7788376#M329061

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Business Seller Fees

Thanks so much, this is all super helpful. Obviously don't answer unless you have time, but with top seller badges on listings eligibility ... am I right in thinking as soon as something is OVER £20 it HAS to offer TRACKED shipping in some form or it won't qualify for the 'eBay Premium Service Top rated seller, fast delivery, and easy returns.' feature? 

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Business Seller Fees

Yeah anything over £20 has to be listed with a free tracked service to qualify. 

 

I would draw the line at posting anything untracked at around the £12-£15 mark anyway so I never found the £20 order threshold a problem.

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