Fees on fees!

terrysbears
Contributor
Contributor

Here is what I have realized -----> When you sell on eBay and use PayPal you end up paying even more that you think and here is why: You list your item for $10 and it costs you $3 to ship it. You study everything well and you figure it will cost you 9% of the sale price to pay eBay (this does not include listing fees) and 2.9% + $.30 that will go PayPal. Totaling these will give you11.9%. You do the math and finally figure that it will cost you $1.19 to do this transaction and  you will end up with $8.81 ($10 - $1.19 = $8.81). You decide this is good enough and so with a sigh you proceed. You sell your item, get paid with PayPal, buy and print your shipping label, and send off the item you sold. You think all is well until you go look at your PayPal account and you see $9.32.

 

Here is what has happened so far: Paypal collected $13 from your buyer. They charge you $.68 for the transaction ($13 x 2.9% + $.30 = .68) and deduct $3.00 that you paid for shipping. So . . . 13 - 3 - .68 = $9.32

 

You immdedately think that's not so bad and so you go list another item. Where is the problem? YOU HAVEN'T PAID eBay YET! You have already paid fees on the $9.21 in your account but you have to pay them again. eBay will invoice you monthly and they will charge you 9% of the sale price for final value fees, so in this case, $10 x 9% = .90. When you subtract that from what you see in your account you end up with $8.42.

 

THE TOTAL YOU PAID TO COMPLETE THE TRANSACTION IS $1.58 or 15.8% !!!!!!!!!!!! Surprise!

 

The worse part of all this is that a substantial part of what you pay for every transaction is actually fees on postage and fees on fees! OUCH!

Login to Me Too
103 REPLIES 103

packratmom
Contributor
Contributor

Thanks for the website, etsy is another option too for vintage items.

Login to Me Too

workingathome07
Contributor
Contributor

I feel "gauged"!!  Time to stop using paypal!!!  STRIKE!!!!  =(

Login to Me Too

mattnormand
New Community Member

I am a little annoyed by PayPal.

I do not mind if they take a commission on the total sale, but the shipping too?

This needs to be readdressed by PayPal. This is not ethical.

I am shipping to Ireland and the shipping costs $135. PayPal added this to the total sale leaving me to make up difference. I think it is odd because ultimately the post office gets the money, not me. What the PayPal and eBay monopoly needs is some VERY serious competition or else their going to have some hefty class action lawsuits to contend with.

Login to Me Too

sandypurins
Advisor
Advisor

Most (all?) payment services charge their fees based on the total payment amount which includes the seller's shipping charge. Can you find any payment service or merchant account which excludes the seller's shipping charge from the fee calculation?

Login to Me Too

b_felix1209
Contributor
Contributor

Do you work for paypal???????


@sandypurins wrote:

Most (all?) payment services charge their fees based on the total payment amount which includes the seller's shipping charge. Can you find any payment service or merchant account which excludes the seller's shipping charge from the fee calculation?


 

Login to Me Too

sandypurins
Advisor
Advisor

Hi b_felix1209,

 

I do not work for PayPal.

 

Sandy

Login to Me Too

b_felix1209
Contributor
Contributor

I agree 100%. I started using ebay as a seller just last Dec 2010. I thought it would be a good way for ME to make a little extra money, since I am disabled and have fibromyalgia. My goal was to start small w/things around my house that were nice that I didn't use/want anymore, sell them at a good price, get my seller status up there, open a store and specialize in something. Which I hadn't decided on yet. First off.. I "thought" I would be able to use my pre-pay Visa as a way to get verified. I found that to not be the case. They won't let me use it. But, they are FAST to take money from it to make up the difference on something. Since I put it on file in the beginning. So, ALL I can do is buy things w/the money I make. I am thankful I didn't rush out and get a checking acct. The first month (Dec), they charged me my fees TWICE! Than Jan went ok. Now, here comes Feb. They took it out on March 2nd. I watched it come out. I had almost $100 showing on my paypal (which w/my little bit of selling is quite a bit). I had checked paypal to see what I was up to and it had dropped to almost 1/2 of that. I said to my husband " What? There was more in there yesterday." He stated that he had check e-bay and they showed that they had taken my Feb fees out. Ok, that was fine. But, now they are saying that paypal didn't give it to them and I need to pay it, or they will turn it into a collection agency. We are not happy campers. I pd twice in Dec. They took it off my pre-pay AND out of my paypal. I was new to ebay and still figuring things out, so didn't notice it until just recently. I now make sure there is NO money on my pre-pay (which I pay my bills with) and when I get ready to pay a bill, I literally put money on it, while on the phone to the bill I am paying and tell them, "Ok, it's on there, take it now!!". I probably will end up getting a different paypal card. My husband who is GREAT at math, printed everything out and spent 6hrs yesterday (thank goodness he had printed the prior palpal records, because they no longer exist, nor does the money they took out. It's not showing anymore. They went in and deleted it). Yet, we have it on a ledger (PRINTED FROM PAYPAL!). After he figured out what we had made and what ebay/paypal got from us.. They got more than we did!

I am really disappointed since like I said, I thought this would be a way to make some extra money because it is SO tight. He goes to school & is getting ready to have to drop out due to me being unable to take care of the house, cook, do laundry, etc. School and doing that full-time is just too much on him. We are almost 50. THIS is  NOT where I thought we'd be at this age. I really have no idea what we will do. He was laid-off is why he went back to school and so we started up e-bay to help w/the slack, since the financial aid from school wasn't cutting it either.

I just told him last night that I see a "Class Action Lawsuit coming towards ebay/paypal". I had went into a community the other night and people were closing down their stores for the same reason. A lot of them were like me, disabled or retired and had stores for YRS! And, they had to close them down. It was costing them more to keep them open than they were making.

I wasn't aware that they were keeping money out of the postage too. My husband was stumped on that one last night as he went through all our statements. Now I know. He is in class right now, and I know he's not going to be happy when he gets home and I tell him.

Oh well... I suffer with depression from all of this (being disabled). I used to work for the gov't and had a high paying job. I now get $921 a mo on Social Security. THANK YOU EBAY AND PAYPAL for adding to my anxiety and depression!!!

I'm about to say "forget it" and if they want to turn me into a collection agency for 46.88 that they have already taken out, more power to them! They can't take Social Security, or guarnish a Social Security check. So, they can have fun with that one. I'm finishing selling what I have on here and then I am through. After reading your posting... I can tell that you sell a LOT more than I do. And, they are just plain being dirty with you. I am sorry. This world has come to people just being so greedy! e-bay used to be a good place (or so I was told). But, I'm seeing with my own eyes they aren't anymore. I might as well stood on the street corner with a table and given my things away. Since they money they got from fees was much more than I made selling any of it. And, some of it was things I probably would've kept. But, I thought I was going to help bring income into our home for food, utilities. Things we NEED. Unlike ebay... We are struggling.

Thanks for listening to my ranting and raving. But, I just wanted to let you know, you aren't the only one who is being ripped off. Like I said, I went into one of my groups last night and there was at LEAST 5 stores closing down for the SAME reason! TOO HIGH OF FEES! People are trying to make a little. Not make ebay rich. They can still take some of it, but to do what they are doing is just wrong. And, I hope someone does step up to the plate and file a lawsuit. I'll be right there with all my records. I've got them all printed out where they have changed prices, dates, etc, etc. each time I go into it.

To top it off... my husband bid on a pair of shoes (we had the money in the acct) and when they took it out the 2nd time, it dropped it down so we don't have enough in there now to pay for them. He won the bid and NOW we have a case against him. I have 100% feedback and have done WONDERFUL with ALL my buyers. No neutrals or negatives EVER! So, someone else is being affected by it too and it's making us look like dead-beats.

Good luck. Let me know if you get anything resolved. I doubt it though. They do have a monopoly on things and what they say goes.

Many Blessings...

~bonnie

b_felix1209

Login to Me Too

sandypurins
Advisor
Advisor

Hi Bonnie,

 

Login to your PayPal account, click on the "History" tab and then click on the "All activity (with balance)" option to look at your account activity. The "with balance" view will show (in the right hand column) your PayPal account balance after each transaction and should make it very easy to see how much was available in your PayPal account balance when eBay tried to collect your eBay seller fees payment.

 

If your PayPal account didn't have sufficient funds to pay for the total amount due, PayPal will attempt to remove the entire payment due amount from your PayPal backup funding source... your bank account or your credit card.

 

http://img.photobucket.com/albums/v635/dulcinea02/advanced07.gif

Login to Me Too

b_felix1209
Contributor
Contributor

Hello...

 

Problem with that one was there WAS enough to remove the money, they said that they did on March 2nd. It showed it being removed and then paypal reversed it on the 8th. So ASSUMNG that it had been taken out, I spent the money. I don't know WHY they would have done this. And, on top of that... we have ALL the printouts showing this, yet as of this date via ebay AND paypal..it has been erased and states none of what I printed out...

Things that make you go... HMMMMMMMMMMMM~~~~

Login to Me Too

aciac
New Community Member

I can tell you that they have lost my business. I was charged over $80 in fees for a refund due to me. I will never use paypal again.

Login to Me Too

Haven't Found your Answer?

It happens. Hit the "Login to Ask the community" button to create a question for the PayPal community.