eBay collects hidden fees: Sellers pay fees for buyers' taxes

[joeblackfox]

Recently, I double checked the fees collected by eBay and was surprised. Instead of 15.3% (13.3% selling fee + 2% Ad fee) eBay charged 17%. I opened the payout breakdown, did some math and found out that eBay charges selling and ads fees on buyer's taxes.

eBay collects state taxes from buyers (the tax amount depends on the state) and immediately deducts them from the payment. Sellers never get this money. But eBay applies selling and Ad fees to taxes. I think it is wrong and unfair.

[alcoforever]

This has been going on for years, since ebay went to managed payments.   Before that paypal did the same thing, i.e. charged their fee on the taxes paid by the buyer.

You can think it wrong and unfair all you want but it isn't going to go away.   You might as well adjust your business plan to account for it.

[inhawaii]

They are not hidden.

Ebay's fees are there for all to see.

[klhmdg]

None of eBays fees are hidden.

All are spelled out in the T&Cs. 

Also in the Understanding selling fees video.

Fair or unfair rarely applies to business.

[retro_entertainment_collectibles]

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@inhawaii wrote:

They are not hidden.

Ebay's fees are there for all to see.

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@inhawaii 

Oh no no...  If you look hard enough everything is hidden. 

Cool statement huh?

Our reality is just a painting hanging on a wall.  That said I wish the artist would have given me a bigger...  

[frankenhobbit]

Not really hidden. If I was trying to find out what the fess were before I listed anything (and why on earth would anyone not find out what something costs before they use it?), I'd look for the 'Selling Fees' page. The Final Value fees are listed there and it clearly says 'sales tax' is part of the total amount that the fee is calculated on. Same size as the other components. It even stands out a bit as it is a hyperlink.

Not really fair to call something hidden if you didn't read it. 

[marnotom!]

For what it's worth, eBay dropped the overall FVF percentage when it moved to Managed Payments in partial consideration of taxes now being part of the entire transaction value.

It's best to note if your FVFs make sense overall than to get too obsessed over what goes into them.  If eBay didn't charge FVF on the entire transaction value, the percentage amount would likely be higher to make up for that.

[tgombita]

be aware that when using Ebay’s AI, there is a fee for that.

[tgombita]

Ebay also adds the final sellers fee to shipping and handling costs. I use buy it now a lot, even if my item doesn’t sell I get charged that part I don’t like.

[broto_64]

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@tgombita wrote:

be aware that when using Ebay’s AI, there is a fee for that.

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Is that for real or were you just joking?

[soh.maryl]

The state sales tax on any purchase is collected by eBay from the buyer's payment and is then sent to the appropriate state.  The seller is not supposed to "get this money".

And this was true back on 11/05/23 also.

[gloryglorygifts]

Yes, ebay does charge a fee on the taxes they have collected from your buyer. That's because they collect the tax on your behalf and pay the jurisdiction to which it is due. Since tax laws and percentages change, trust me when I say it is worth that fee to have ebay take care of it. Otherwise, you will be filing 50 sales tax returns and I am sure that you don't want to do that. 

Ebay fees are in every sale under details so you can see them. It's a cost of doing business. 

[toomuchstuffagain35]

ebay doesn't charge any FVF on an item that doesn't sell. What part are you being charged for?

And btw no, it doesn't cost anything to use the AI (they charge what it's worth (zero).

[mam98031]

@joeblackfox 

And you are calling this "hidden fees" because you never looked at your fee details before or read the policy on Promoted Listings and how the fees are calculated????  

Promoted Listings Standard fees

You are only charged for Promoted Listings Standard when a buyer clicks on your promoted listing ad and purchases any of your promoted items within 30 days. (A click is when a buyer clicks-through to your item page from your ad, or clicks the Add to watchlist heart symbol on your ad.) This means you only pay when you sell.

The fee you are charged is based on the ad rate you set for each listing. An ad rate is the percentage of an item's total sale amount (including item price, shipping, taxes, and any other applicable fees).

www.ebay.com/help/selling/listings/listing-tips/promoted-listings?id=4164#

Ebay doesn't "hide" any of its fees.  They are clearly stated in the policy pages, the seller just needs to read them.  It is after all our responsibility as sellers to know this stuff.  

[tobaccocardyahoo]

For many years I was an unpaid tax collector for the state of Massachusetts. Many people cannot understand the resentment I carried for being a slave to them.

Ebay has the opportunity to be paid for providing those services for 40+ states and I do not resent their deciding they want to be paid for the additional work they must do, and for taking the risk of penalties if things go wrong.

In the 21st century, there is a high level of knowledge that slavery is not a good thing.