February 10, 2012
Ebay and Paypal ranting
eBay and Paypal are really starting to screw over eBay sellers. The fees associated with using their services are becoming more and more astronomical. Excuse my ranting here, but I need to vent and those of you selling on eBay need to know what these people are doing (if you haven't figured it out already). Click on photo or 'track listing' to read more...
I recently listed 123 records on ebay and out of those, 45 sold. Most of the records I listed were not all that rare or in great conditions, so I listed them at low prices. Around $1.99-$6.99, I think I might have listed one record that was over $10. Anyway, after all these records were sold and shipped, I got around to calculating my profits and man did I get hit...
It seems eBay has now introduced not only a fee for the final value of a sale, but also a fee for the shipping prices you charge?? I can understand you take a percentage of someone's profits for allowing them to use your site as a means to sell items, but shipping costs too? That's just obnoxious. From what I've read, eBay does this to 'avoid people from overcharging on shipping.' eBay limits the amount you can charge for media mail shipping to $4, is this not a solution to that problem? They also say this is a way to 'encourage sellers to offer free shipping in their auctions.' First of all, offering low starting bids is what gets people interest in your items. Shipping costs are almost expected with eBay auctions, so it can be easy for buyers to overlook the fact that free shipping is even being offered. This also creates a mess when you offer shipping to various countries with varying shipping costs.
The amount of money Paypal charges for using their services is ridiculous as well. I'm not sure if they were always charging so much for transactions, but it seems like their fees are also getting increasingly higher. Let me show you all an example of how one of my sales went...
I list a record for $1.99, and it sells to a guy in Europe which is $15.20 to ship.
Final Value Fee: $.20
Final Value Fee on Shipping: $.36
International transfer: $1.16
Total Fees: $1.72
Put the gun down. This leaves me with $.28 profit. eBay and Paypal step in and take nearly 75% of my earnings. How about I just give away the records? I charged too little for shipping on one of my International sales accidentally, and ended up doing just that. I have to package these records, schlep down to the post office, wait on ridiculous lines, fill out custom forms, all for a measly $.28.
You see, when people send you money through Paypal using a credit or debit transfer, Paypal charges you a percentage. For a payment of less than $20, you are charged about $.50 for US transfers, and double that for International transfers. If you receive a Paypal payment from a Paypal balance, the transfer is free. Great, but seemingly no one ever has money in their Paypal account. 9 times out of 10 Paypal pulls the money from their bank account and charges you a fee for it.
Now I either have to give up on eBay altogether, figure out some magical way to offset these fees, charge additional fees (which will cause buyer complaints), or completely cut off my International bidders (which account for a large portion of my eBay business). It's just ridiculous. Feel free to jump in and add your two cents..
What's funny is someone went out of their way to create a website dedicated to ripping on eBay, it's called fuckyouebay.com.
Also this week I got to deal with one of these buyers who wants to go back and forth arguing, giving me a headache over some slight damage to the back cover (not even the record condition) on a record he paid $4 for, disputing my VG+ grade and claiming it is VG. (Yeah, excuse me for not specifically detailing the exact defects on a record I list for $2, because the VG+ does not give you a good enough idea of what kind of shape it's in). Sellers, you know these guys, he's never happy with a standard refund. First he wants to keep the record and get half his money back, then he wants you to refund him before mailing the records back so he 'has money to ship it back to you.' Of course, this falls under what eBay considers 'feedback extortion,' so after this joker bombs me with negative feedback I have to jump around menu screens to find out how to handle it, file claims and wait for the results. Awesome.