Final value fees on shipping

[ollypoll]

Can you explain what Final value fees on shipping are please?

I have explored the ebay site and cant find reference to them anywhere.

Yet they are listed on my invoice for recently sold items.

It adds a chunk to my postage if this always applies.

I would rather queue at the post office than pay more than the customer is paying me to post it..

AM i misunderstanding this fee?

Can you please explain this to me?

Many thanks.

[elfkincatcher · Accepted solution]

There are fees applied to shipping at the same rate as the transaction...usually 10%. This has been the case for about 2 years. You need to take this into account when setting the price for your item...in the same way you do for the FVF on the item's sale price. 

The reason for this was because of the way some sellers abused the system and dodged paying fees! For example - if an item that is worth £100 and £10 postage (old fee £10) was listed as £1 with £109 postage(old fee £0.10) ...the seller pocketed £9.90.... that's FEE EVASION.

To remedy this eBay slapped a fee equal in % to the FVF onto the postage making it it not possible to profit from postage gauging. 

It is nothing to do with the Royal Mail... it a wholly eBay fees policy. Adjust your prices to compensate for this if you can and remain competitive!