eBay

tryleo · ‎10-04-2021

Sold an item for $105.50. MI sales tax is x.06 = 6.33. Invoice paid was 111.33 on eBay. No shipping as customer picked the item up. My net payment was $91.17 or a total eBay fee of $20.66 which shocked me.

Questions:

1) Does the $20.66 include the $6.33, meaning eBay forwards state tax to MI and we no longer have to?

2) If so, that still says they charge $14.33 on a $105.50 sale, or 13.6% ?

3) If the $20.66 does not include the $6.33 tax, they're charging around 20% to sell on eBay?

4) We've been using eBay for over 20 years and if the foregoing is true, "TryLeo" will merely stop using them.

tdumonde2014 · ‎10-04-2021

Yes, ebay forwards the tax. The 12.55% FVF is charged on the full amount of $111.33.

"Those who enter the arena unarmed or unprepared are quickly dispatched."

tryleo · ‎10-04-2021

So we're paying the fee on the added tax, which we don't see. Ergo, the 12.55% becomes around 13.5% on the basic sale.

ten_o_nine · ‎10-04-2021

Yes, and thank God there are no tips.

justafemster · ‎10-04-2021

You stated $40 shipping on that item.

Did you change the invoice to the $105? Or did the customer pay you when they picked it up?

If they paid you at pick up, ebay figures you got $145 out of the sale.

If they paid through ebay and you refunded the shipping, then ebay keeps the extra fees.

And the math works out to 12.55%

fab_finds4u · ‎10-04-2021

You don't see the tax money but eBay collects and remits it. They want to be paid for collecting ALL funds and making sure those funds go into the right pockets.

gjs_16 · ‎10-04-2021

@tryleo wrote:
Sold an item for $105.50. MI sales tax is x.06 = 6.33. Invoice paid was 111.33 on eBay. No shipping as customer picked the item up. My net payment was $91.17 or a total eBay fee of $20.66 which shocked me.

I am shocked also how up until now 105.50 - 91.17 = $14.33 and now, well now that equals $20.66 !!!

105.50 is what you sold the item for, I realize they charge tax so the buyer pays 111.33 but you sold your item for 105.50, the tax doesn't belong to the seller so 111.33 - 91.17 is wrong... Yes, they did charge fees on the tax but even then it's still not $20.66

Granted, 14.33 out of 105.50 isn't exactly 12.55% either.

More like 13.58%...

inhawaii · ‎10-04-2021

There are no "hidden" fees. The fees are out there for all to see.

You have every right to think they are outrageous.

But don't ignore the fees, then sell something, then complain that the fees are too high.

Papa Was A Rolling Stone - The Temptations

isaiah53-57 · ‎10-04-2021

@tryleo wrote:
Sold an item for $105.50. MI sales tax is x.06 = 6.33. Invoice paid was 111.33 on eBay. No shipping as customer picked the item up. My net payment was $91.17 or a total eBay fee of $20.66 which shocked me.
Questions:
1) Does the $20.66 include the $6.33, meaning eBay forwards state tax to MI and we no longer have to?
2) If so, that still says they charge $14.33 on a $105.50 sale, or 13.6% ?
3) If the $20.66 does not include the $6.33 tax, they're charging around 20% to sell on eBay?
4) We've been using eBay for over 20 years and if the foregoing is true, "TryLeo" will merely stop using them.

Good Thing you didnt have to ship it as they would take 12.55% of the shipping cost as additional fees and you would likely be paying 16-20% Fees(weight depending) on that $105 Item.....Our fees are an UTTERLY RIDICULOUS 16%-20% or even more in some situations ... If we sell a $40 item and add shipping at $12.50 and Taxes at $2.50 and Pay 12.55% plus the .30 cent per transaction fee, that amounts to $7.20 in fees which is 18% of $40...And Then They Want Us to Pay a Promoted Listing Fee of 5-to-10% More!!!!???? - Its Insane!!!!!!

mikhirs · ‎10-05-2021

It can always be worse. The tax in some places is more than 10.75%

madproaudiodeals · ‎11-30-2021

I noticed the fees as well lately are absolutely in line with eBay taking advantage of it's sheer size/power.

I sell custom systems, it is sickening to even get hit with fees on ship cost, let alone the ridiculous
fees already. I am left with no other choice but to raise my prices. I just sold an item with almost $150 just in fees, leaving me with next to nothing. Many small businesses stuck with, and helped build up eBay over the years. eBay has abandoned that model. You get charged outrageous fees, and they advertise companies
selling same type of items as yours along side your ads! I am complaining, but only in the sense of venting.

If I want to sell on eBay, I have to put up with their greed as I am just a peasant.

wannaber2d2 · ‎01-12-2022

Just wait til you get a 1099k for the gross amount and the IRS is wanting its 25% at the end of the year!!!

The rippage is worse on big ticket items!! I sold a spoiler for $300 plus $200 shipping (LTL quote for continental freight). Here is the breakdown after their fees. $23 tax. The final invoice was $523 and some change. EBAY fee of 12.5% on the TOTAL was $66.01. I sold the spoiler for $300-66.01 = $233.99 Net...((so now the fees are 22% of the sale price, but that is not the net yet. Because they took 12.5% of the shipping too, I had to come up with another $25 out of pocket to pay the $200 shipping. Now my actual net is $208...so actual percentage impact of the fees is 29.3%

Paying fees on taxes and shipping when you see none of that money is robbery!!

Oh...lest we forget!! They are going to 1099k me on the $523 gross sales price!! IRS will want 25% of that which is $130.75. So $208 (net) minus $130.75 =$77.25 absolute I get to keep NET NET. And I paid 12.5% on the sales tax already!! This model in not sustainable for me...

dq3141 · ‎01-12-2022

@wannaber2d2 wrote:
Just wait til you get a 1099k for the gross amount and the IRS is wanting its 25% at the end of the year!!!
The rippage is worse on big ticket items!! I sold a spoiler for $300 plus $200 shipping (LTL quote for continental freight). Here is the breakdown after their fees. $23 tax. The final invoice was $523 and some change. EBAY fee of 12.5% on the TOTAL was $66.01. I sold the spoiler for $300-66.01 = $233.99 Net...((so now the fees are 22% of the sale price, but that is not the net yet. Because they took 12.5% of the shipping too, I had to come up with another $25 out of pocket to pay the $200 shipping. Now my actual net is $208...so actual percentage impact of the fees is 29.3%
Paying fees on taxes and shipping when you see none of that money is robbery!!
Oh...lest we forget!! They are going to 1099k me on the $523 gross sales price!! IRS will want 25% of that which is $130.75. So $208 (net) minus $130.75 =$77.25 absolute I get to keep NET NET. And I paid 12.5% on the sales tax already!! This model in not sustainable for me...

The 1099 will not include the sales tax.

Selling items with a shipping cost that's a large % of the item price hasn't been a good idea on eBay since 2010, when they started charging their fee on shipping.

If you're a business, you get to deduct your costs from the amount on the 1099.

braus3449 · ‎01-12-2022

@tryleo wrote:
Sold an item for $105.50. MI sales tax is x.06 = 6.33.

A little off the subject but if the buyer pays cash on pickup, how is sales tax handled since Ebay isn't handling payment? If I'm buying from a private individual, I'm only giving them the $105.50.

donrx · ‎02-02-2022

The previous CEO of Ebay in 2019 made 18 million per year. The new CEO

Jamie Lannone made 78 million in 2020. A increase of 328%!!!

This is why we are seeing such massive hikes in fees, also the holding of our payments {Ebay holds it like a bank and makes interest on your $ while you wait 3 days to get it}.

We used to get paid right away with PayPal, and that system was the best.