Home  >  Community  >  The eBay Outlook  >  FVF on Shipping, how does this work???


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 merrie
 
posted on August 18, 2011 12:00:46 PM new
Was looking at some of my fees today to figure out what I owed a friend and wanted to know the exact amount Ebay charged for FVF on shipping. It is listed separately on the charges, but my question is....

What do they base the fee on if there is a sale with multiple items and you offer discounted shipping?? It seems complicated sometimes. I had a customer recently that bought quite a few things. I sent him an invoice for the first 3 items, he paid. Then he bought several more and just went ahead and paid the invoice Ebay sent instead of waiting for my invoice which would reflect discounted shipping, so I sent him a refund for overpayment of shipping fees. What did I get charged on?? Initial payment or did they take the refund into account??

Also, what if I just sent an invoice through Paypal and not list the shipping separately??

How do they know what the shipping amount is if there are several options listed for shipping.

Thanks!! perhaps this is spelled out in detail some where on Ebay, but their explanations are sooooo complicated.

 
 ladyjewels2000
 
posted on August 18, 2011 02:48:11 PM new
I had a refund situation and I can tell you that I got charged the FVF for the full shipping amount. I thought about calling ebay but I never did. I don't know if it would do any good anyway.
I get too upset when I think about the FVF on shipping - it's just such a crock.

 
 merrie
 
posted on August 18, 2011 04:11:15 PM new
Here's what I gathered from my fees:

Store item:Shipping 10.50 FVF $1.15 (lost $2.00 on shipping on that transaction)

Store shipping 7.95 FVF .87
Auction 10.50, .79
Auction 9.50, .71
Auction 6.50, .39
Auction 17.48, .70
Auction 7.50, .57

Cannot figure out how they get these figures when you sell 3 or 4 of the same item from your store.

I don't mind giving buyers a break on shipping but it sure does annoy me to give this money to Ebay when I am trying to keep shipping costs down.

 
 ggardenour
 
posted on August 21, 2011 06:23:43 AM new
I have the same question. I had a customer purchase 5 items paid for each item sent the customer refunds on the shipping on 4 items. Am I still being charged for Shipping FVF on the 4?


 
 merrie
 
posted on August 21, 2011 07:02:38 AM new
Reread all the loop holes and fine print for shipping FVF. It looks like you pay the FVF on the lowest shipping offered. So, if you offer economy and they choose priority, you pay it on the economy. My figures do not really jive with that, but I did have an international buyer pay $98 and the fee on the shipping was not much. I have a headache trying to figure it out!!

The variation of the fees between store items and auction is amazing, also!! With the free listings if you don't have a store and the lower FVFs I am not sure it is worth paying Ebay for the privlegde of having a store.

 
 hwahwa
 
posted on August 21, 2011 08:20:21 AM new
If you are constantly carping about Ebay store ,is it worth the money?
Then you should close the store and go with auction listing,set up 4 IDs and you can list 200 items free each month.
I have 2 IDs for auction listings,the results are just pathetic,you know the saying-you get what you pay for?sell through rate is like 10%!
*
There is no 'Global savings glut',only wild horses and loose bankers.
 
 ladyjewels2000
 
posted on August 21, 2011 08:49:36 AM new
Yeah I think you need a PHD in math just to figure this shipping FVF out. All I know for sure is the fees are much higher now.

hwahwa - you don't have to have a store to list in BIN and you still get the free auction listings.

 
 merrie
 
posted on August 21, 2011 08:54:10 AM new
hwahwa, don't really know why you take such an aggressive, cranky stand on topics listed here.

It is worth analizing all options to see what works best for each individual seller. That is what I am doing.

Thanks for all of your valuable insight.

 
 hwahwa
 
posted on August 21, 2011 12:19:03 PM new
aggressive?cranky?
I am sorry if I come across as 'aggressive and/or cranky'
I am just responding to some comments made here about store,aucton etc.
You have been wondering for months now if it is worth your while to keep a store on Ebay,so my suggestion is -wonder no more,close it and go with free listings.
I am just reporting my results on free auction listing,I am not cranky or aggressive,merely reporting the facts !
*
There is no 'Global savings glut',only wild horses and loose bankers.
 
 merrie
 
posted on August 21, 2011 12:37:41 PM new
"If you are constantly carping about Ebay store ,is it worth the money?"

I think the word "carping" is a bit cranky and aggressive. I have been pondering the merits of a store vs just auctions. When I have weighed all the pros and cons, I will decide. I am afraid, I will "wonder some more."

Many people have have the same concerns. It does not appear to be as clear cut to me as to you.

This thread was asking for help about how Ebay determines FVF for shipping. As ladyjewels2000 put it so well, you seem to need a PHD in math to figure it out. I only have a Master's Degree in Math, so I am at a loss.

 
 NathanCS
 
posted on August 21, 2011 12:58:35 PM new
Hello,

The below eBay announcement might be of some help:

http://announcements.ebay.com/2011/07/final-value-fee-rates-updated-to-reward-low-cost-shipping/

My understanding of the part where you pay the FVF on the lowest shipping offered, is that this is only for international orders and domestic orders where the buyer chooses 1 day shipping. For domestic orders (where a shipping service other than 1 day shipping is chosen) you would pay the final value fee on whichever shipping service is chosen. I think this Auctionbytes (now eCommercebytes) article does a good job of clarifying:

http://www.auctionbytes.com/cab/abn/y11/m03/i16/s01

This eCommercebytes article might help as well:

http://www.auctionbytes.com/cab/abu/y211/m03/abu0283/s03

Also, I remember reading at some point that eBay will not take any refunds for shipping fee over-payments into account. In other words, in your original question I believe the answer is that you would get charged on the initial payment. If the initial payment includes the discounted shipping, then you would get charged based on the discounted shipping. If you discount the shipping after the initial payment and refund the over-payment, then you would not get charged based on the discounted shipping.

I think this is the eCommercebytes article that I was thinking of:

http://www.auctionbytes.com/cab/abu/y211/m06/abu0288/s02

Regards,
Nathan

 
 hwahwa
 
posted on August 21, 2011 01:55:09 PM new
I agree,the word 'Carping' is not so nice!
My apology.
I just sold a print from my shop since March,2010.
If it were an auction listing,I dont know if I will be so motivated to keep listing it for 18 months but I am glad it is gone,gone from my shop!
*
There is no 'Global savings glut',only wild horses and loose bankers.
 
 toolhound
 
posted on August 21, 2011 03:48:17 PM new
It works just like when someone comes up behind you with a gun and says give me all your money. Except they don't come up behind you and they don't have a gun. Same results though.

 
 hwahwa
 
posted on August 21, 2011 04:37:35 PM new
It started with some sellers listing large incense burner for 99 cents and charge 65 dollars shipping.
Or free shipping but insurance is manadatory $35 .
*
There is no 'Global savings glut',only wild horses and loose bankers.
 
 merrie
 
posted on August 21, 2011 05:20:58 PM new
This was copied from one of the articles Nathan posted the links to:

"Suttora said she wholeheartedly disagrees with eBay for charging fees on shipping services, and said 97% of her clients will be affected negatively by the new FVF fees. "Combined shipping notwithstanding, I'm also advising all my clients to take a tough love stance on their product line and focus on expanding more on their "proven products" (the top 20% that sell regularly and are profitable) and clearing out the inventory that is not selling. You can't keep relisting inventory that doesn't sell for a long period of time and remain profitable!"

Sounds reasonable.



 
 hwahwa
 
posted on August 21, 2011 06:33:01 PM new
Thats was we are doing,clearing out our inventory,using free listings every month!
*
There is no 'Global savings glut',only wild horses and loose bankers.
 
 shagmidmod
 
posted on August 22, 2011 07:29:22 AM new
I've been offering free shipping for almost a year now so the new rates actually lowered my cost by 1%.

My 60 day sales between 2 accounts were over $21,000 so I have little to complain about. By comparison from last year, my sales have increased by 400%.

Since closing our brick and mortar store in April I have been focused like an arrow... until the last two weeks when we decided to move our house (and storage). Everything is packed up and the flood gates have opened for sales at the same time. My favorite sales are the items that are tiny and you don't remember which box you packed them in in. Dig and dig, move boxes, and dig some more. LOL.




 
 ggardenour
 
posted on August 27, 2011 08:09:21 PM new
FVF on Shipping, how does this work???

It works like this

Step 1: Breathe Deep
Step 2: Bend Over
Step 3: Grab Ankles
Step 4: *CENSORED*
Step 5: Yell "Thank you, eBay! May I have another?"
Step 6: Repeat


Sorry just couldn't help myself



 
 ladyjewels2000
 
posted on August 28, 2011 08:03:29 AM new
Yeah that pretty much covers it.

 
 merrie
 
posted on August 28, 2011 04:30:40 PM new
ggardenour:

Love it!!

 
 alldings
 
posted on August 29, 2011 10:30:32 AM new
Perhaps next time eBay needs more revenue there exec's and employees will take a voluntary 15% pay cut instead of raising our rates.
By the way the no listing fees was that done for us or some seller or a group of sellers who want to list a few million items?

 
 wgonzales
 
posted on August 29, 2011 11:29:07 AM new
I would love to hear of any company whose executives take a cut instead of cutting expenses on lower lever payroll (i.e. at the customer service level) and/or raising prices.
No matter how just about any business cuts costs, it is always appears to be the consumer who pays the price either in dollars or service.
It generally works out just like ggardenour's amusing, but very true, scenario.


 
 
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