Frame and Wheel eBay Selling Services has changed its fee structure to a "cost plus" arrangement. The new fee structure allows Frame and Wheel to return more proceeds from a transaction to the client and it is more transparent. This makes Frame and Wheel eBay Selling Services more competitive and a highly practical alternative for cyclists and independent bicycle stores who wish to quickly and easily turn excess equipment or inventory into cash. Please see the summary below and contact Frame and Wheel with any questions.
Fees
Frame and Wheel provides its financing and execution services on a cost plus basis. This means that the client pays the cost related to the listing of the item (eBay and Pay Pal fees) plus 10% (ten) of the final value of the item to Frame and Wheel. This fee structure is transparent and competitive and returns more value to the seller than the traditional consignment arrangement.
Sample auction transaction
Description | Numbers ($) |
Final value price | 100.00 |
Shipping (Paid by buyer) | 10.00 |
Total transaction value | 110.00 |
Cost * | |
eBay listing fee ($) | 1.00 |
eBay final value fee (9% of final value price or $50 maximum) ($) | 9.00 |
Pay Pal fee (3.0% of total transaction value) ($) | 3.30 |
Plus | |
Frame and Wheel fee (10.0% of final value price) | 10.00 |
Total paid by client to Frame and Wheel | 23.3 |
Total returned to client | 76.7 |
- Listing fees typically range from a minimum of 12% to a maximum of 15% for traditional auction. Hybrid selling methods generally have higher eBay listing fees.
Sample transaction
The client retains Frame and Wheel to sell an item using the auction method. The final value price of the item is $100.00. Shipping is $10.00 and paid by the buyer. The total value of the transaction is $110.00.
The eBay fees related to this transaction are $10.00 ($9.00 is the final value fee and $1.00 is the listing fee). The Pay Pal fee related to the transactions is $3.30 (3.0% of the total transaction value of $110.00). Thus, the total cost of the transaction to the seller is $13.30. This is the amount the seller would have paid if they had listed the item themselves. However, since the client has retained Frame and Wheel to manage the listing and provide its execution services (packaging and shipping), the client pays 10% of the final value price of the item, which in this case is $10.00, to Frame and Wheel. The “cost” to the seller of this transaction is $13.00 to eBay and Pay Pal “plus” $10.00 to Frame and Wheel for a total of $23.30.
Rather than having eBay and Pay Pal invoice the client, Frame and Wheel deducts the cost ($13.30) from the final value price ($100.00). This fee structure is more transparent than the traditional consignment arrangement where eBay, Pay Pal and Frame and Wheel fees are “covered” by a larger fee deducted from the final value price. Additionally, the client can see the costs more clearly and Frame and Wheel can return more proceeds from the final value price to the client. Please contact Frame and Wheel with any questions.
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