eBay Postage Discount FVF Calculation
Like many of you we have been wondering how eBay will account for final value fees on postage, especially for multiple purchase orders from different categories with different final value fee percentages and combined postage discounts.
We couldn’t figure it out so we asked eBay.
We suggested the example of buying a laptop with a 5% final value fee and a laptop bag on the same order from the same seller at 8% final value fees and asked how the postage final value fee will be calculated.
eBay told us that Electronics is slightly different to most categories as the cap on the device will override any part of the total FVF above £10 but the principle is to allocate FVFs based on their relationship to the first listed postage service.
Final Value Fee calculation for a combined postage order
- The laptop has a first listed postage of £15 and the accessory one of £5 so the basic postage total is £20
- The seller offers discounted combined postage of £10
- Effectively they have offered a 50% discount on postage
- eBay apply that discount to the first listed service to arrive at the amount the postage element of FVF will be charged on
- So the laptop will attract 5% final value fees on £7.50 (50% of £15.00), although if the overall value on this item is over £200 the FVF cap will kick in at £10. Then for the laptop bag final value fees would be charged at 8% of £2.50 (50% of £5)
Complicated, yes… but at least we now know how the postage element will be calculated.
Are you certain that’s correct?
Specifically the step “eBay apply that discount to the first listed service to arrive at the amount the postage element of FVF will be charged on”.
If the ‘first listed service’ happens to be a zero/low charge economy delivery but the buyer has selected a 24hr tracked and insured service at a higher cost the discount will be zero when the seller might expects something else.
Nothing to do with what the buyer expects or see. It’s the calculation for the fees that you as the seller will pay.
If the postage is free there’ll be no final value fees. If the buyer then upgrades to express paid for postage the fees will be based on the upgraded postage cost.
If it’s upgraded postage and combined then the above calculation kicks in.
Perhaps it’s just semantics but the devil is always in the detail with eBay.
I sell my laptop and bag and there are two postage options for the buyer, Free but slow (The ‘first listed service’) and as an option 24 hr tracked/insured at GBP15 plus GBP5 with a combined max of GBP10 (in eBay parlance the ‘second listed service).
The buyer selects the second shipping services, tracked/insured at at total of GBP20 but with a cap of GBP10. If the FVF calc step “eBay apply that discount to the first listed service to arrive at the amount the postage element of FVF will be charged on” is applied, then the FVF discount calculation will be calculated on a value of zero giving the seller zero discount on the ACTUAL shipping FVF of x% of GBP10.
The key phrase on how the calculation is made is “first listed service” as opposed to the ‘selected shipping service’.
Nothing to do with first listed service on the item page. On eBay UK you’ll pay fees based on selected service. First listed service on invoice is what the discount % is applied to with the balance on the second and subsequent services.
That’s great but it does conflict with the answer from Ebay that you presented above. Perhaps an edit correction to your original post might be a good idea ?
The bit you/they need to change is your/eBays reference to “FIRST LISTED SERVICE” in your bullet point four on the original post
To clarify. In eBay parlance when referring to shipping the term “first listed service” is usually used by eBay to refer to the first (usually free or low cost”) shipping service on an eBay item page. They typically refer to the buyer selected shipping service as just that, ‘the buyers selected sipping service’. They are very different things and open to some confusion.