Massachusetts  |  Consumer Law

Legal Question

Asked on: 3/15/11, 9:14 am

eBay has recently announced that they will be applying the FVF Final Value Fee to Shipping and Handling as well the Item sold. Sellers are not selling the shipping, it is a service that the Buyer selects to ship the item. In most cases Sellers loose money in order not to have Buyers complaint over the shipping being too high because they don't research the actual rates. Plus eBay will be applying the fee to Handling, which is usually where the Seller already charges less for packing materials then the actual cost; for example paper wrap, bubble bag and an easy-fold mailer can cost $2.30 and a Seller may put $1.00. The Seller does not make money here. So, is it legal for eBay to charge a fee on what is not for sale? Don't they make a percentage from the services themselves for reselling the product; UPS, USPS etc? With the USPS, it is not legal for a civilian to sell federal services. You have to be a federal employee. So, how can eBay claim we are selling Shipping and Handling? Is this a CLASS ACTION SUIT?

1 Answer

Answered on: 3/15/11, 4:48 pm by Dmitry Lev

People sell a $40 item for $1 and charge $39 for shipping to avoid the FVF. eBay is a private company, they can charge whatever they want. Increase your shipping rates.

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