Shipping rates changed automatically

[djnick01]

Hi everyone. 

Im listing from South Africa selling on Ebay UK and using Fedex. The rates Im entering for shipping are being automatically adjusted up by a several GBP by Ebay. Im worried that that the higher rates are going to put off buyers. 

All the details and my shipping policy appear to be correct. Is there a setting that is causing Ebay to re-adjust my shipping?.

Its also readjusting up my buy it now price ( in this case 124 GBP  up to 145 or so). 

Any help on this would be appreciated. 

Thanks, Nick

[thesmokingrunner]

Hi djnick01,

There could be a couple of reasons for the shipping rates being adjusted:

1. Depending on whether you are listing in GPB or ZAR the first reason would be the exchange rate - eBay price of shipping displayed on listings varies depending on the current rates.

2. For auction items, the shipping rate inexplicably increases the higher the bidding. I have never been able to work out why - an item which costs a certain amount to ship will cost the same amount regardless of its selling price - and my gut feeling is that eBay actually prices the shipping dependent on selling price. 

Given that the Buy It Now price of your item is also being adjusted I am given to think that you originally listed in ZAR and movement in the £/ZAR exchange rate is the reason for the price adjustment, although an increase of around 18% is a rather large movement in the exchange rate. Apologies, but I cannot think of any other reasons.

[djnick01]

Thank you so much for your reply.

Im definitely doing all my pricing in GBP.  I do all my currency calculations first and then create the listing only in pounds, so i dont think it can be a currency conversion issue.

To be crystal clear, I have edited and updated my shipping profile with the shipping rates for the item (which are pretty average) - the item appears to list with these but then the rates are changed.

Ive tried several times. Its a bit mystifying as it appears i am following normal procedures.

[thesmokingrunner]

Ok, so it's not the exchange rate.

Another thought: I've just done a quick calculation based on the Buy It Now price you mention in your first post (124 GBP up to 145 or so) and I'm now wondering if it's VAT?

20% VAT on £124 is £24.80, giving a total of £148.80 - which is the Buy It Now price showing on your listing for the Akai Looper Delay pedal. The auction price also states '+ 20% VAT will apply', which it will unless the auction price exceeds about £130.

To explain: ebay collects VAT on items up to about £130 in value - VAT on anything in excess of that is collected by UK customs when the item arrives in the UK. As your account is registered as being in South Africa any sale to the UK will be liable to VAT - items with a price less than £130 collected by eBay, more than £130 collected by HRMC.

Given that you calculate and set the price in GBP the exchange rate (obviously) cannot have any bearing on the price displayed. The one and only difference which seems to apply is that as you're in SA and listing on the UK site VAT will be added to the prices you enter on your listing.

I do hope that helps.

[djnick01]

Thanks again for your input.

Yes that does make sense. I had no idea about the 130GBP threshold. Its useful to know about.

Ok so the item is listed at 88GBP and postage is at 21GBP (my price) but the postage is upped to 25.20

so Ebay is putting 20%VAT onto the postage. It appears to be doing thes same for my European shipping rates which are being upped similiarly. i dont have the exact figures at hand but will update.

[thesmokingrunner]

You're very welcome, djnick01.

The short answer is yes - eBay will add 20% VAT to both the listing price and the shipping when items are listed by a non-UK-registered account for less than £130, and it applies - as you have discovered - EU-wide. Charging VAT (or whatever the tax is called in the EU) on imports was introduced by a European Union Directive a couple of years ago - sorry, I can't remember precisely when or what the name of the Directive.

Interestingly although eBay is charging VAT on both the sale price and shipping for your Looper Delay, the fact that the total (Buy It Now price plus shipping) is greater than £130 means, technically, that eBay should not be charging VAT. It may well be because the item also has an auction price, so if the final price including shipping is below £130 eBay will add VAT but if the final price including shipping is above that figure eBay will not and the VAT will be collected on import to the UK by the carrier. I regret to say I don't know what the precise answer is but it is certainly something of which to be aware.