Paypal fees/commision on money paid for posting goods

[Yugocent]

Hi everyone,

This just a debate, and I would like to invite you to contribute your view. We all know that Paypal charges fees on gross amount (including money for goods/service & Packaging & shipping ) from the money they received from buyers on ebay on behalf of sellers. Now the problem I noticed is that  the money left for packaging and postage after paypal has deducted their fees is sometimes not enough to post the item to buyer. As a result,  you the seller now have to add money from your pocket to make it up.

As we all know, there is a maximum amount you can charge for P&P on ebay, so you cannot charge slightly higher postage fees to offset paypal charges on money customer paid for shipping. In my view, I think it is rather fair  from ebay seller's point of view, if Paypal does not charge fees on money paid for P&P. That is to say that they should only charge us commission on the price paid for goods/service rather than inclusive of money for P&P.

What do you think?

[aussieflower]

I am new to eBay and PayPal and have only just put a couple of small things on to sell.  I have managed to sell one and it wasn't a huge amount, but I got confused about how to do labels for postage etc. and couldn't print it so panicked and sent it myself by post with Proof of Postage.  Now I'm being asked to send it.   I tell you what, I am not going to bother again - I shall put add in local Co-op shop or newspaper in future - it's easier.

[Mekky]

It is morally wrong and ethically unacceptable for a company like paypal to be taken some percentage of money paid for postage. The postage fee does not belong to the seller. So why take some percentage of it?

How can Paypal have elephant on their head but choose to catch an ant with their legs? What a shame.

If they fail to do something about this issue and many others, one day the elephant will disappear and their will be no ant to catch.

[SOOTY6750]

Yes, I agree. I've just started to sell a couple of things on ebay, and I too was astounded to find that the Paypal fees include the p&p costs!!? Surely this must be contrary to commercial law?

[Yugocent]

Indeed, I would suggest that perhaps paypal need to review the fees policy on P&P. They may argue that they are unable to differentiate between P&P and goods money. But I would argue that since  Ebay is a parent compamy to Paypal (Paypal officials can correct me if i am wrong, but i do believe that paypal and ebay have connection of some sort) they can communicate between each others to identify P&P money and hence not charge fees on it.

[pugsy]

Hi some sellers State they will add postage costs to the Price of the item,then send Postage Free,it's a problem with many new sellers,hoping to make a few pounds,regards the Postage costs you are trying to add to the costs,if eBay State you are over charging the postage,Dont sell the item,Why should the seller be out of Pocket? eBay/PayPal will wont their fees no matter what the buyer pays.

[matsgear]

I've been using eBay for some years and so watched it's decline until it is now so far up its own a*se it can no longer see daylight. So many rules, regulations and restrictions it makes big brother look like a revolutionary teenager.

With regard to Paypal, why are so many surprised to find a bank ripping people off? Yes paypal is exhorbitant and yes they should not be taking fees for the P&P portion of a transaction and yes this would not be a difficult thing for them to rectify, given that eBay now owns Paypal (as far as I understand). Even worse, this is a bank that does not pay interest on credit balances and is a fully autiomated system so cheap to run.

WE MAY AS WELL ACCEPT THAT LIKE ALL FINANCIAL INSTITUTIONS. THESE DAYS, THEY SPECIALISE IN PARTING US FROM OUR MONEY BY WHATEVER MEANS.

IT'S THE SAD TIMES IN WHICH WE LIVE, HOWEVER WE DO NOT HAVE TO LIKE IT OR PUT UP WITH IT.

LONG LIVE THE REVOLUTION!!!

[rip-off]

I agree. Paypal is owned by ebay, ebay charges commision then paypal takes it 3.4 % on the total. I sell items not postage so why should paypal take commision on the gross amount and not the nett. People add the paypal fee to the postage charge inflating the cost to the buyer. Doesn't ebay make enough without creaming off more money.

[PayPal_AdrianO]

Hey guys,

When you receive payments through PayPal it is viewed as one single payment, there is no differentiation between postage and the item. You are charged your fee on the whole amount that is received to your account.

Whilst eBay Inc. owns both PayPal and eBay, we are two separate companies. eBay is an online market place where you can list and sell items which is why they have their own fees for listing. PayPal is an online payments processor and is used to send and receive funds online so we have a charge for our services too.

In relation to earning interest on your PayPal balance, this is not possible as EU Regulations state that we are not allowed to earn interest on eMoney.

Hope this helps.

[Mateypeeps]

All these posts and replies confirm that the whole of ebay is weighted in favour of Paypal, Ebay the buyers and then lastly the sellers who get shafted at every corner.