eBay Final Value Fees beware

Azn310 on 14/05/2014 - 14:05
Last edited 14/05/2014 - 14:07

Hi guys,

Just a little discussion for eBay sellers and buyers here (and hopefully get some tips from experienced sellers and regular buyers)

I have an eBay store selling brand new imported items. So it goes 1 item for $5 on one listing (individual), and 5 items for $15 on another (bulk). You know, if a buyer buys more, it costs the same to post, so they should save.

EBay Final Value fees is now roughly 10% (its currently changing depending on categories)

So when I sell the individual, I pay eBay 50c. For bulk, $1.5. Fair and square.

But then, some buyers (assuming they are in a rush) don't know I sell the bulk one, so they go ahead and order 30 individual items (!) and pay $150. They would get the same if they buy 6 bulk and pay $90. Being a honest seller, and want long term business, I tell the buyer what happens and refund $60 difference. Good guy Paypal also refund me the difference in fees paid and eBay is informed and update the transaction as Partially-paid.

Here comes the interesting part, eBay's final value fee for that transaction is $15 on me, instead of $9, for taking $90 from the buyer. I was hoping they would credit $6 back but nah, it's their money now. Contacted them and they told me I should have cancelled the transaction and ask the buyer to buy the correct one. It is logical, but I wouldn't want my buyers to go through all that trouble!

So in a sellers point of view, what would you do? would you just eat your loss like me or go with cancelling the transaction or some other bright ideas? This happens quite regular too, like once or twice a month.

In a buyers point of view, would you be happy if a seller ask you to cancel the transaction and purchase again to save you money? In which case, I don't even know how to cancel, I think buyer have to open a case (?) or something ridiculous.

P.S. This is Ebay description of Final value fees:
* The fee is based on the total cost of the item to the buyer, including postage

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Comments

  • timmypete on 14/05/2014 - 14:29
    +4

    I think you'd best alert the buyer to the fact that if they cancel and re-order you can offer a better rate, but owing to eBay you can't just apply a discount.

    It would be worth mentioning that you are packing the order for shipment and will dispatch in x days/hours if you don't hear back from them. This'll stop people thinking you are stalling for time, and still offer them a decent service.

    PS> I'm interested to know what you sell (assuming car stuff given your post history). There aren't anywhere near enough sellers that have your sort of mentality these days, and its a real pity what eBay has become.

    • Azn310 on 15/05/2014 - 12:42
      +1

      Thank you for your suggestion, I just sell small dental care products, car stuff is the weekend hobby :D

  • tonyjzx on 14/05/2014 - 15:16
    +2

    the OP is too honest

    the reality is this circumstance is something you engineered

    the customer wont thank you

    you need to change your processing so that this doesnt happen

    i hate ebay but the thing is you want them to respond to some issue that is your own doing

    you should remove the issue, not make an inflexible company work around you

    • Azn310 on 15/05/2014 - 12:34

      Yep thats true, I am working to make my listings simpler and easier to understand.. I'm not even mad at eBay in this case, nor blaming them for anything.. neither am I looking for thank yous from customers.

      I was just comparing with the insertion fees credit if items don't sell policy that they have. Also they say fees are based on total cost of item to buyer, including postage, which I find is a bit misleading, it should be as simple as based on total price of item sold including postage

  • PissLUR on 14/05/2014 - 15:17
    +1

    I believe as a seller, you should follow the ebay's way.

    the buyer would have to go through the hassle in order to get the discounted price. Let that decision to them.

  • wbeer on 14/05/2014 - 15:55

    If you have a store, cant you have a drop-down menu with different options.

    ie.
    Pack of 1 - $5
    Pack of 5 - $15 , etc

    • Azn310 on 15/05/2014 - 12:26

      Thing is they wouldn't even go to the store.. sometimes consumers behavior amazes me, not even one are as price-conscious or as patient as us OzBargainers

      • wbeer on 17/05/2014 - 21:55

        I think you misunderstood - see this listing for an example.

        You can set it so the buyer selects a 'pack' of 1, 5, 10, etc from the list and the price changes.

        http://www.ebay.com.au/itm/1m-1-5m-2m-3m-4m-5m-10m-15m-20m-P…

        Either way, best of luck.

        • jackary on 28/05/2014 - 01:59

          I think OP means he would generate more traffic to 5 listings for 5 seperate pack quantities on their own, than just 1 of said item, with a selection of pack quantities to choose from.

          Scenario:
          OP Sells batteries, in quantities of 10, 20, 50 and 100. He decides to amalgamate this to 1 listing. He lists item to something of effect of "Grade A Cell Samsung Batteries AA" etc. Along comes a customer, they want 100 AA Batteries. They search for "Pack 100 AA Batteries".

          …OP's item won't come up. Sure this can be fixed by listing quantities in the title etc. but with pretty limited title length restrictions on eBay as it is I would imagine this would be quite prohibitive for the seller in the long run, it effectively takes away even more space to describe their product. Having 4 separate listings for "Pack 10, 20 etc. Grade A Cell Samsung Batteries AA" would have removed this possible issue entirely.

          Theres no gain/loss to sell items separately other than maybe a little extra housekeeping for OP, I agree, I'd stick to listing individually. eBay search isn't particularly smart, and at the end of the day the aim of the game is to find yourself on as many customers' pages as possible! Good luck OP!

  • mskeggs on 14/05/2014 - 16:14
    +4

    I am a pretty regular buyer and I am fine with having a listing cancelled and re-ordering if it is going to save me money.
    A quick note saying, Hi, I saw you made a large order. Would you like me to cancel it and you can buy at the bulk price here: link?

    • Azn310 on 15/05/2014 - 12:24

      Thank you, good to hear from a buyers point of view!

      • SirFlibbled on 28/05/2014 - 08:37

        I think the majority of people will be fine with it. It's that pesky 1% where it'll be a problem because they just don't think logically.

  • hindo on 14/05/2014 - 19:04
    +1

    How about you reduce the discount to incorporate your extra eBay fees. ie from your example, rather than return $60 to the seller, make it $54 and explain to seller about extra eBay fees. In the end you have still saved them $54 so they will be happy.

    • Azn310 on 15/05/2014 - 12:23

      Yep, I also thought of that, will take it into consideration.

  • 2ndeffort on 14/05/2014 - 22:10
    +1

    I am a former Powerseller and eBay store owner. I would put large warnings on my listings to make buyers aware of the opportunity to get a better dicount buying in bulk. If you have the ability to code your listing and add menus then that's a good idea. I dont know how much business you do but I would get tired very quickly writing to people, cancelling orders and relisting them.

    • Azn310 on 15/05/2014 - 12:22

      Will try to make warnings larger. I'm no good with coding and stuff, only good at messing things up haha. Thanks for your suggestion.

  • zhenjie on 14/05/2014 - 23:33
    +1

    If you want to keep the listings seperate, then I would put huge warnings also both at the top and bottom of the auction.

    However, if the category allows, I would prefer a Multi-variant listing with option for single and bulk purchases. This gives you a few advantages
    a) Buyer is totally aware and you'll never run into this problem
    b) Total sales are combined and you get better rankings in Best Match
    c) Listing cost is diluted so you can start using Subtitles and other promos to get more traffic into the listing.

    • Azn310 on 15/05/2014 - 12:19

      Thank you, they come in different sizes so, as much as I want to keep the listing as one, I can't..

      I did put warning on top, but maybe not large enough, maybe buyers don't read description now adays.. they just scroll, scroll, buy now lol

      • whodidthat on 15/05/2014 - 19:19
        +1

        They don't because a lot are looking on "smartphones" where the ebay APP is bleedin' useless!
        Most only look at pretty pictures now and either cannot, or do not, see/click on the description link.

    • whodidthat on 15/05/2014 - 19:20

      I think you're right, a multi-variant listing would be the way to go.

  • whodidthat on 15/05/2014 - 19:17
    +2

    Just be careful with any refunding now! Particularly when these "defect" stupid rules come in.
    Any refunds, even partial, can count as a defect!
    As you have found, ebay also (now) keep all fees on the full transaction. Item, postage, the lot.
    Doing a full refund is particularly dangerous as it depends a lot on what you choose as the reason for refund. If you do too many of the same reason, ebay will "investigate". You may end up with a lot of "defects".
    In addition, if you do a full refund, you do not get the full amount "back" from Paypal, they keep 30c per transaction now.

    It's all getting so ridiculously stupid. When you think ebay can go no lower, they find a way to do so.
    I've been a "member" since 1999, a seller for most of the time. The place is nothing like it used to be.

  • lisss on 16/05/2014 - 14:34

    eBay's stupid new fee structure screws you over if you offer buyer's a combined postage discount on items in general. You can get around this with a multi variant listing if you offer bulk purchases, but for the casual seller offloading a few items of clothing etc, it doesn't make sense.

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