Questions On How Ebay Now Calculates Fees

I've been absent from ebay selling for well over a year and am considering getting back into it. Can someone please confirm if I have Their current fees correctly calculated. I start a listing at .01 and it sells.
So here is my understanding of the transactions.
SCENARIO 1
Sell .01
USPS .55
Est Tax .04
Total sale .60
Less .30 for transaction fee
Less 12.5% .08
I net .22
Less the price of the stamp @ .55
I lose .33

SCENARIO 2
Listing sells for $10.00
USPS .55
Est tax. .80
Total sale 11.25
Less transaction fee .30
Less 12.5% $1.40
I net 9.55
Less stamp .55
I net $9.00
Thanks for looking and commenting
Paul

Postage to mail a letter is now 58 cents, not 55.

Oops - thanks Linus. Totally forgot about that and what's really interesting is I've been sending a few out with .55 in Sept and Oct and none came back.

Also check your math on Scenario #2, it sells at $10, you net $9, I don't think so. Your fees were $1.70.

Just trying to help you,

Linus

Total sale with tax and shipping is $11.25 which if I understand the fee system is what my net is based on. I don't get how they are allowed to make a profit on the tax if that is the way they doing it.

Probably because they can.

ALL processors, and that is what ebay is, charge their fee on the grand total.

Based on your #s I suggest;

Its similar in the UK with fees, they are VERY high on low cost items.

Is there a better way?

Indeed - going to the managed payments model was a very smart move! Instead of billing sellers on monthly basis, as before, it is pay as you go - comes off the top...

John

Looks like my estimates were close and it only makes sense to sell higher value at a fixed price otherwise it just doesn't make sense to list anything under a $1. It makes more sense to donate lower values to the kids section at stamp shows.
Thanks all for the great responses.
Paul

Also the calculation is based on NOT having any tracking or connection to ebay's system after the sale, nor using discounted postage. Envelopes, tape, labels, and other packing supplies are also not included above.

Regardless of the exact calculation, it shows why many sellers have a minimum threshold of $5 or $10 value or starting price per lot and lesser items need to be combined into sets or related groupings to reach a value worth handling.

Beyond that, it gets into the selling philosophy and comfort level of the individual seller for auction vs buy-it-now, low starting price or net pricing, etc. Obviously some large sellers have no problem with the occasional loss leader items sold for 0.01 or 0.99 when compared to the overall bulk of their other lots - microanalysis of the seller's tolerance of losing money on an occasional lot made up by the macroanalysis of the overall sales volume.

Keeping the minimum listing values higher, say $25 or more, also greatly limits 'revenge feedbacks' malicious purchases. When you have low value listings, it is easy for those with bad intentions to make a number of purchases only for the purpose of leaving you negative feedbacks to trash your score.
Don

ebay makes sense ,when your buying large lots and withholding better material for yourself . Then selling everything else and it becomes a break even at the end of the month . There are many retired people who don't look at their working hourly rate on their ebay sales .

The discounted postage is a help - it means, let's say, 40p saving for me on every £ of postage, assuming I don't use another courier. We also have occasional ebay offers of 80% off final value fees (lots of exclusions, of course). If I were wise, I'd save all my items in expectation of an offer period. I'm not, of course.

You guys keep saying the .30$ fee comes first before ebay's cut— pretty sure it's the other way around. Of course ebay takes their 12% off of the higher total then deducts .30$ after that.