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How New Fees Will Impact eBay Dropship Sellers

 drop ship access  If you are an eBay dropship seller, you should be aware that there will soon be yet another fee increase.

This one, like some of the others, comes to us as a wolf in sheep’s clothing---promising lower fees when in actuality, in many cases your fees will be higher.

What are the fee changes all about this time? In a nutshell. Ebay, not content with collecting listing fees when you list your widget, Final Value Fees once your item is sold and Paypal fees when your buyer pays for the item; will soon be collecting fees on what you collect from your buyers for shipping.

The story is that sellers will be rewarded for low cost or free shipping because while eBay will be charging fees on the shipping cost come July, they will reduce a seller’s Final Value Fees on the transaction.

Click Here to Learn How to Become an eBay Powerseller

Naturally, the Powers That Be at the Bay are touting this fee change as a good thing for sellers. But, many are speculating that the overriding reason for the decision to start charging fees on shipping charges is simply that eBay needs more money.

Here is what eBay has to say about this lovely new update:

“New fees reward low cost shipping.”

The new fees will help dropship or other sellers who are already selling with free shipping. For example, if you are a seller in the Clothing, Shoes & Accessories category, you will pay 2% less in fees on a $15 sale with free shipping.

This same item, if you sell it for $12 and collect $3 shipping, will cost you a little over 4% more in fees even though eBay has decreased your Final Value Fees.

What does this mean to sellers?

You will have to pad the cost of your item to be able to offer free shipping. Of course, this only works for Fixed Price listings. If you still prefer to sell in auction format, as many sellers of vintage and collectible items do, them you will have to incorporate your shipping cost into the starting price of the item in order to offer free shipping.

Either way, buyers are probably going to be angry and upset when prices go up across the board on eBay again due to another increase in seller fees.

Here is a free calculator generously donated for public use by some nice eBay seller. It will help you do the math and see exactly how these new fees will affect your eBay profits:

Fee Calculator

Dropship sellers can make a substantial income on eBay, but you have to keep an eye on your bottom line! So, be sure and educate yourself on this newest change so that you can adjust and adapt if necessary.

If you liked this article, you may also enjoy this one:

Drop Ship News: A Heads Up For eBay Sellers!


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