I am going to sell hatching eggs I have to use a flat rate box from usps the cost is 18.75 is it really going to charge me for every dollar over 10$ that is usps price I get none of that!
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Mw63 Reputation: 12 See Mw63's booth |
OK, I’ll attempt an answer for all of you.
(1) PayPal charges fees on the total transaction because they are in the business of processing money. To any payment processor, it doesn’t matter to them what the split is between selling amount and shipping amount. They are processing a total amount and fees are charged on that amount. That does seem fair.
(2) I believe that eBay started the practice of charging FVF on the entire transaction amount. The opinion on why/how it got started is shared by many people who have questioned this practice. Before eBay started the practice of charging FVF for shipping, they were seeing a lot of expensive items being sold at ridiculously low prices ($0.01 to $1.00), while the seller was simultaneously charging exorbitant amounts for shipping. This meant two things were happening. First, buyers were upset when they didn’t read the fine print and found out that they owed a lot more for the “inexpensive” item they won at auction. The other side of this is that eBay found that many sellers were exploiting this procedure to avoid paying FVF on their sold items. Also, as eBay noted at the time, the buyer experience was suffering due to the actions of some sellers.
In other words, instead of selling an item for $20 and shipping it for $5 (which would have resulted in about $2 to $3 in FVF), sellers where charging $1 for the item and charging $24 to ship the item. The seller would then pay FVF on only the $1. So, to avoid losing revenue and ticking off buyers, eBay started charging FVF on the entire transaction.
Amazon does it a little differently… they limit how much you can charge for shipping certain item categories. If you want to sell on Amazon, you must adhere to their shipping charges.
Then Bonanza came along and offered a much fairer deal. They waive FVF on the first $10 in shipping. Most sellers can probably ship within that $10 shipping target and not pay any FVF on the shipping portion of the transaction.
This is my personal opinion on why FVF are charged on shipping costs. So, try not to rain hate down on me… not saying that I agree with it, but it may be the only way to keep the majority of the people happy and having sellers pay their fair share of FVF without having to require “proof” that seller’s shipping costs exceed the $10 FVF-free amount.
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tomwayne1 Reputation: 8637 See tomwayne1's booth |
Other sites charge fees on the full shipping price, so you are actually getting a break, not paying fees on the first $10.00. Depending on the weight of the package, it may be less expensive to ship in a none flat rate box.
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a2zVideoGamesNdvds Reputation: 391 See a2zVideoGamesNdvds' booth |
2 Comments
Not sure of the weight/size of your items if that is the reason you are using Flat Rate Priority Boxes but USPS has another bunch of Priority Boxes called Regional A and Regional B that are free to order on the USPS site.
Regional A ships up to 15 lbs at a 2 pound calculated rate and Regional B ships up to 20 pounds at a 4 pound rate Priority.
Only you would know your weight and size designations for your ship item but it MAY be a cheaper option than flat rate costs. You MUST print the postage online (not available at the PO counter) and Regional box postage options are NOT AVAILABLE on Bonanza so you will need to print the Regional rate label from the USPS site.
You can use Bonanza calculated shipping for 2 pound or 4 pound Priority shipping (by distance) so your customer would see the proper costs of shipping the items depending on what Regional box (A or B) that you would be using.
Order a few of the Regional boxes from the USPS and you will get a better idea of the size of each of them. There are 2 DIFFERENT Regional A and 2 Different Regional B boxes so order all 4 sizes. PO will deliver them to your door for no cost to you. Might be worth a look-see to see if it is a option for you rather than using Flat Rate Boxes which are pricey if you dont need to ship 70 pounds of weight Flat Rate in the USA.
Good Luck!
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Atomicdiner Reputation: 1902 See Atomicdiner's booth |
a2z is right, paypal, and everywhere else…you are charged the fee on total charge…
If you purchase the flat rate shipping label from paypal on purchases, the price will be 16.35 for large flat rate…but if the total weight is less than 4-5 pounds depending on zone..then the cost is less than the large flat rate shipping costs anyway…and every little bit helps
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ccmom Reputation: 12648 See ccmom's booth |
3 Comments
When I first joined Bonanza, I was thrilled to see the first $10 of the shipping cost not part of the FVF. However, that was over 7 years ago. At that time, Priority Mail was a flat rate no matter when you shipped within the US. Soon afterwards, USPS changed to zone shipping. If you are shipping from the middle of the country, you may not see a big difference, but if you’re shipping from coast to coast, shipping can be almost prohibitive. I honestly believe the $10 waiver is outdated and should be reconsidered. Anything I ship to the west coast will automatically be over $10. So while the policy may be better than anything anyone else offers, sellers are penalized depending on the location of the buyer. Ignoring paypal for a moment, if I ship a 2# package within my state, the cost would be $6.80 and Bonanza will not assess a fee on the $6.80. But if that same package has to go to CA, the shipping cost is $12.40 and Bonanza assesses a fee of $0.43. So same item sold and if it must be shipped cross country, my net on the sale is less than if it is shipped closer to home.
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AbbysAttic Reputation: 395 See AbbysAttic's booth |
1 Comment
Thanks I will do it by weight. The only reason I’m using flat rate boxes is because they are free. Not really tho it just makes me mad I’m already not making a lot of money at this and I’m only doing it because I’m struggling to survive.So when you consider gas, packaging materials, site fees, and PayPal fees it is barely worth it.
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Mw63 Reputation: 12 See Mw63's booth |
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