Author
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Topic: Total Ebay/Paypal Costs to Seller is usually between 13.4%-17.9%
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MTDetermine Member
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posted July 21, 2011 10:32 AM

Ebay link: http://pages.ebay.com/help/sell/fees.html#fvf_fixed Paypal fee is 3.9% for international payments. Only start falling to 3.5% if you accept over $3000/mth Paypal fee is 2.9% for USA payments. Only start falling to 2.5% if you accept over $3000/mth Calculations below based on 3.9% international payments. If you are USA, just minus 1% from the result as you pay 1% less in paypal fees. Shipping is factored in as part of the cost as 1) You pay paypal fees on the shipping portion now 2) You pay ebay fees on the shipping portion now Auction Style Listing: Flat 9% final value fee, cap at $100 $50 Auction comprising $48 card + $2 shipping. Ebay fee = $4.50 (9.0%) Paypal = $1.95 (3.9%) Shipping = $2.00 Total = $8.45 or 16.9% cost $100 Auction comprising $48 card + $2 shipping. Ebay fee = $9.00 (9.0%) Paypal = $3.90 (3.9%) Shipping = $2.00 Total = $14.90 or 14.9% cost For $50 Fixed Price Ebay (fixed price to ensure you don't get a freak result), comprising $48 price and $2 shipping.
Paypal fees: $1.95 (3.9% of $50) Ebay fees: $5.50 (11% of $50) Total fees: $7.45 Shipping: $2.00 Total costs: $9.45....For $50 BIN, you only get $40.55, which is like, 18.9% cost? For $100 Fixed Price Ebay (fixed price to ensure you don't get a freak result), comprising $98 price and $2 shipping. Paypal fees: $3.90 (3.9% of $100) Ebay fees: $8.50 (11% of $50 + 6% of last $50) Total fees: $12.40 Shipping: $2.00 Total costs: $14.40....For $100 BIN, you only get $85.60, which is like, 14.4% cost? For $200 Fixed Price Ebay (fixed price to ensure you don't get a freak result), comprising $198 price and $2 shipping. Paypal fees: $7.80 (3.9% of $200) Ebay fees: $14.50 (11% of $50 + 6% of last $150) Total fees: $22.30 Shipping: $2.00 Total costs: $24.30....For $200 BIN, you only get $175.70, which is like, 12.2% cost? For $400 Fixed Price Ebay (fixed price to ensure you don't get a freak result), comprising $398 price and $2 shipping.
Paypal fees: $15.60 (3.9% of $400) Ebay fees: $26.50 (11% of $50 + 6% of last $350) Total fees: $42.10 Shipping: $2.00 Total costs: $44.10....For $400 BIN, you only get $355.90, which is like, 11.0% cost? Auction Style listing pretty much cost you 12.90%, unless your auction can end at over $1111. But how many of you get to auction something that will end at more than $1111? Beta Lotus? Your entire MTG collection?
You pretty much need to sell at $400 BIN to pay only 11% in total costs. I am not sure how many MTG cards out there can give you $400 BIN. Maybe playset of Rev Seas and Rev Tropical Island? If you are selling a $50 card, or a playset worth $50 (a card worth $12.50 is already more valuable than 99% of MTG cards out there), you get hit with 19% cost. Good luck! International Sellers So ebay/paypal costs are ~14.90% for auction style, and 14.4%-18.9% for BIN between $50-$100. USASellers So ebay/paypal costs are ~13.90% for auction style, and ~13.4%-17.9% for BIN between $50-$100.
[Edited 2 times, lastly by MTDetermine on July 21, 2011]
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NiceFaceLOL Member
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posted July 21, 2011 10:33 AM

Not sure if mods can sticky stuff here but this deserves it.Thanks Determine!
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MTDetermine Member
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posted July 21, 2011 10:34 AM

Before someone starts shooting his mouth off on "shipping being included", please note that the title is "Ebay/Paypal Costs". Shipping is one of the cost incurred when you sell stuff to people. IF the title is "Ebay/Paypal Fees", then shipping will not be included. But USPS/UPS/FedEx don't work for free, so there you are, "Ebay/Paypal Costs"
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wayne Member
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posted July 21, 2011 10:44 AM
  
quote: Originally posted by NiceFaceLOL: Not sure if mods can sticky stuff here but this deserves it.Thanks Determine!
No "sticky" feature on MOTL
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bigbob585 Member
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posted July 21, 2011 10:53 AM

oh no! Does this mean that the MOTL price guide is about 15% high on average?
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Bagbokk Member
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posted July 21, 2011 11:11 AM

quote: Originally posted by MTDetermine: Before someone starts shooting his mouth off on "shipping being included", please note that the title is "Ebay/Paypal Costs". Shipping is one of the cost incurred when you sell stuff to people. IF the title is "Ebay/Paypal Fees", then shipping will not be included. But USPS/UPS/FedEx don't work for free, so there you are, "Ebay/Paypal Costs"
Not trying to be difficult, but trying to figure one thing out: You used $50 fixed price eBay, comprising $48 price and $2 shipping. You took 3.9% off $50, and took 11% off $50, this is fine because eBay takes fees off shipping too. You also took $2 off shipping, this is fine because that is actual cost of shipping. But you ended up with $9.45 "cost" (seller receives 40.55 out of 50.00), my question is shouldn't that be out of 48.00--so, $7.45 actual "cost" (seller receives 40.55 out of 48.00, the value of the cards not including shipping)? This comes out to 15.5%. Bleh, finding it hard to explain and I don't do math anymore. Bah I'm done editing 
[Edited 6 times, lastly by Bagbokk on July 21, 2011]
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rats60 Member
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posted July 21, 2011 11:16 AM
  
quote: Originally posted by bigbob585: oh no! Does this mean that the MOTL price guide is about 15% high on average?
Except it doesn't include shipping into its price. It is about 12% high for the seller and ~1.00-2.00 low for the buyer.
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rats60 Member
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posted July 21, 2011 11:24 AM
  
quote: Originally posted by Bagbokk: You also took $2 off shipping, this is fine because that is actual cost of shipping.
Except shipping isn't 2.00, it's less. Most sellers charge more for shipping than it actually costs, so most sellers are not paying even the regular fees, which are ~12%.
[Edited 1 times, lastly by rats60 on July 21, 2011]
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Bagbokk Member
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posted July 21, 2011 11:28 AM

The calculations assumed seller gets $2 for shipping so I'm working with that price. Reality might be that seller charges $3 for shipping, but I actually see many sellers of singles/playsets charging about 2.00 for domestic sales.Shipping in US, assuming bubble mailer + DC, is $1.75 if paid for through eBay. Bulk bubble mailer will cost like 0.10, toploader/sleeve probably costs like 5 cents or something, etc etc. The actual cost isn't too far off from $2 if you consider everything. Now, if the seller skimps on protection and sends you something without bubble mailer, without toploader, etc., that's different. For ease of calculations there must be some assumptions made. $2 is a reasonable assumption for cost of shipping, IMO.
[Edited 1 times, lastly by Bagbokk on July 21, 2011]
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dwiz Member
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posted July 21, 2011 11:30 AM
  
What's the point of this?
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Bagbokk Member
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posted July 21, 2011 11:43 AM

quote: What's the point of this?
Personally I think figuring out exact % is eaten by costs can help sellers price cards better here. If a card consistently sells for $48 on eBay, that's what MOTL will show on its price guide. But if I would actually receive only $40.55 selling that card on eBay, then I could sell my card for $41 here and I will still earn more from that sale. I think it's interesting nonetheless. I guess not everyone feels the same, but that tends to happen with many topics, no?
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dwiz Member
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posted July 21, 2011 05:52 PM
  
quote: Originally posted by Bagbokk: Personally I think figuring out exact % is eaten by costs can help sellers price cards better here.If a card consistently sells for $48 on eBay, that's what MOTL will show on its price guide. But if I would actually receive only $40.55 selling that card on eBay, then I could sell my card for $41 here and I will still earn more from that sale. I think it's interesting nonetheless. I guess not everyone feels the same, but that tends to happen with many topics, no?
Well, yes. That is common sense, but I agree most people don't understand that. I was just wondering why this topic came up, and there's no explanation about why it's here.
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andrew777 Banned
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posted July 21, 2011 06:15 PM

quote: Originally posted by dwiz: Well, yes. That is common sense, but I agree most people don't understand that. I was just wondering why this topic came up, and there's no explanation about why it's here.
I think it's just a rant feebay and it's absurd fees.
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MTDetermine Member
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posted July 21, 2011 06:42 PM

quote: Originally posted by dwiz: Well, yes. That is common sense, but I agree most people don't understand that. I was just wondering why this topic came up, and there's no explanation about why it's here.
Well, I saw a few threads here, including this thread: http://classic.magictraders.com/ubb/Forum1/HTML/025023-4.html where people say selling on Ebay/Paypal costs 8-10%. I believed it was higher, so I calculate this to prove my point. I was right, costs are closer to 15% for most items (most MTG singles/playsets are below $50), unless you are selling P9 or playsets of old playables (Duals etc). I calculated shipping too as it is a cost and a Ebay Seller will need to pay ~15% fee on the shipping portion too. So if USPS Express Mail is $30, an Ebay Seller who charged $30 will actually lose $4.50 to fees on shipping alone. I have put up the figures in a transparent way. Anyone who want to take out the effect of shipping can do so themselves easily.
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MTDetermine Member
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posted July 21, 2011 07:48 PM

quote: Originally posted by bigbob585: oh no! Does this mean that the MOTL price guide is about 15% high on average?
On MOTL, most members are willing to work out shipping arrangements that are cheaper than those on ebay. So buyers do benefit from lower shipping. But it rankles me a bit that even though sellers are saving a fair bit on fees (~15% in many cases) by selling at MOTL prices, they are asking for further premiums of ~10% in some cases. This has been a deal-stopper for me at certain times. Happy to say, most members here are reasonable and willing to work out deals on reasonable terms.
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psilence6k Member
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posted July 22, 2011 05:54 AM

EBAy started charging a % fee on shipping because sellers started making auctions w/ a BIN of $0.01 and $20 in shipping, so they were bypassing the ebay fees.As a result of some unscrupulous sellers, now ALL of us take a hit on the shipping charges to prevent that kind of "fraud" from happening... :*( Thanks for the list Determine! If nothing else it is just one more reason to sell on MOTL and avoid Ebay whenever possible! Cheers, Carl
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Uthaedeol Member
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posted July 22, 2011 06:42 AM

quote: Originally posted by MTDetermine: $100 Auction comprising ***$48*** card + $2 shipping. Ebay fee = $9.00 (9.0%) Paypal = $3.90 (3.9%) Shipping = $2.00 Total = $14.90 or 14.9% cost
Shouldn't this card be $98? __________________ Swamps suck. Mountains rock!
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MTDetermine Member
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posted July 22, 2011 06:57 AM

quote: Originally posted by psilence6k: EBAy started charging a % fee on shipping because sellers started making auctions w/ a BIN of $0.01 and $20 in shipping, so they were bypassing the ebay fees.As a result of some unscrupulous sellers, now ALL of us take a hit on the shipping charges to prevent that kind of "fraud" from happening... :*( Thanks for the list Determine! If nothing else it is just one more reason to sell on MOTL and avoid Ebay whenever possible! Cheers, Carl
Actually, its just an excuse Ebay used so that they can earn money from shipping as well. If Ebay had wanted to prevent that "shipping trick", they could have just wrote some computer command into their system such that: 1) Shipping will be cap at say, 5% of the item's value, 2) Allow a maximum of $2 for shipping if the item value is low. These types of simple rules can be easily written into their computer system. They just want to take the profitable way out and earn money out of postage too =p
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dwiz Member
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posted July 22, 2011 08:25 AM
  
quote: Originally posted by MTDetermine: Actually, its just an excuse Ebay used so that they can earn money from shipping as well. If Ebay had wanted to prevent that "shipping trick", they could have just wrote some computer command into their system such that: 1) Shipping will be cap at say, 5% of the item's value, 2) Allow a maximum of $2 for shipping if the item value is low. These types of simple rules can be easily written into their computer system. They just want to take the profitable way out and earn money out of postage too =p
Except when sending a motorcycle engine that may sell for $50. You'd have shipping capped $2.50 for something that may cost $175 to ship.
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gcowhsu Member
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posted July 22, 2011 08:57 AM
  
I've been saying to everyone. If you can replicate Ebay and lower the fees you will be an overnight billionaire.It's going to go up since some states want to tax for online transaction. CA is one of them.
[Edited 1 times, lastly by gcowhsu on July 22, 2011]
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MTDetermine Member
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posted July 22, 2011 09:17 AM

quote: Originally posted by dwiz: Except when sending a motorcycle engine that may sell for $50. You'd have shipping capped $2.50 for something that may cost $175 to ship.
Well, assuming the same Feebay rules apply, out of that $175 shipping, Ebay will gobble back ~$25 as fees. So you are out of pocket by $25 at least where shipping is concerned. You got to love Feebay =p
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caquaa Member
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posted July 22, 2011 03:08 PM
  
quote: Originally posted by MTDetermine: Actually, its just an excuse Ebay used so that they can earn money from shipping as well. If Ebay had wanted to prevent that "shipping trick", they could have just wrote some computer command into their system such that: 1) Shipping will be cap at say, 5% of the item's value, 2) Allow a maximum of $2 for shipping if the item value is low. These types of simple rules can be easily written into their computer system. They just want to take the profitable way out and earn money out of postage too =p
they do cap shipping in certain categories. I think music CDs are one. But too many categories vary widely. I mean I could list in games a lot of 10 board games or such and that would take well more then any cap to ship.
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Bagbokk Member
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posted July 22, 2011 04:25 PM

quote: Originally posted by caquaa: they do cap shipping in certain categories. I think music CDs are one. But too many categories vary widely. I mean I could list in games a lot of 10 board games or such and that would take well more then any cap to ship.
I think they cap books too, at least half.com does, because they know you can send it by media mail (i think this applies to CDs) for like $3.50 max. But yeah, it's hard to set caps for most things.
[Edited 1 times, lastly by Bagbokk on July 22, 2011]
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mtglover Member
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posted July 22, 2011 07:41 PM
  
quote: Originally posted by gcowhsu: I've been saying to everyone. If you can replicate Ebay and lower the fees you will be an overnight billionaire.It's going to go up since some states want to tax for online transaction. CA is one of them.
Forget about ebay, it's replicating paypal that's hard.
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flophaus Member
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posted July 22, 2011 11:30 PM

I don't see anyone talking about how if you sell on MOTL and use PayPal, you're still losing a % to PayPal. This is, of course, if you don't use the personal payment. (Which I don't because I have no need to jeopardize my PP acc.) As for the replication on eBay and what-not; I think something will bring the giant down eventually. Back in the day, there used to be all kinds of decent auction sites. A place called "OneWebPlace" used to be awesome for MtG stuff... even on par with eBay. I don't understand why some company doesn't challange eBay/PayPal... at least for niche markets such as MTG. Or, maybe they do, yet don't have the name recognition. In a world where people "Google" it... people don't think to "AOL it" anymore. You Facebook instead of MySpace, but most huge colossal things like this eventually go the way of the buffalo.
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