But I recently sold an item for $210.50 on EBay but only $204.10 was forwarded to my Paypal account. On top of that I paid $5.25 for shipping which is a separate line item. In the future I will pay EBay a 10% commission.
Why was $6.40 deducted? Is that typical? I seldom sell items on EBay.
“PayPal will be free, forever.” - their claim for the first year of existence.
Too bad the skim from float didn’t make them rich, so they had to add fees much like any other service. I love how the “free and democratic” net turns most bright ideas to calculating money grabs.
They’ve got credit card processing fees, so they have to charge SOMETHING. Those run like 2%, so if half of sales are fed by credit cards instead of e-checks, they’d need to charge 1% to break even.
They’re the most expensive CC processor I’ve seen, particularly if you’re doing volume, but they have to charge something.
Worth noting that Ebay now charge a fee on the total amount that the seller receives.
In the past only the amount of the actual item cost was liable for Ebay fees … the shipping cost was exempt.
This previous system became grossly abused by some traders who would sell an item for 99 cents and charge $50.00 shipping.
Nowadays , of course, sellers factor in the fee on shipping into the shipping cost, so the upshot is that the buyer ends up paying more than previously.
It’s a bargain and nice benefit. Go get your own merchant account, and see how bad it is. That said, while 99% of my money comes through paypal at some point, I stopped selling on eBay a few years ago. At the time, policies had been getting worse for quite some time. The shipping maximums that are sometimes less than postage, taking a % of the shipping in addition to the sales price (Ihough it was annoying when you would sell an item for $25 plus $5 shipping and your competitor sold it for 99 cents and charged $29 shipping to circumvent fees.), all that stuff sucks.
It’s a cost of doing business, and even if you aren’t in “business” and just want to sell your old stuff, paying these fees will net more for your items than the previous alternatives. For a time I had a business just buying stuff from in-person auctions and selling them on eBay. I’d rather sell something for $100 on ebay and get $80 after fees than sell it for $1 at a yard sale (extreme but reality-based example).