Ad fees on sales tax is greedy!

Question

Realizing that 13.5% and the suggested promoted rate of 9% are not only for the $5500 item is is also charged against the buyers sales tax and shipping. Since sales tax and shipping are ( I do not think eBay is promoting sales tax or shipping) it seems incredible greedy and very unfair that Sellers pay eBay an extra ad commission on those 2 NON item cost.

inceptions · Answer

The fees are for facilitating the entire sale and processing the entire payment, not just part of it. You agree to the fees when you list the item for sale. Take them into account when you price your item and determine your ad rate (if you use one).

eburtonlab · Answer

eBay calculates fees based on the total amount the buyer pays, including shipping and taxes. eBay gets to decide how fees are calculated.

It is up to individual sellers to decide if the amount of the fee is too high to warrant listing a specific item at a specific price, or to use a specific promotion.

eBay could calculate the fees on a lesser amount, but then the percentage of the fee would have to be higher in order to collect the same amount of fees in total.

As to why shipping enters into the calculation: consider three sellers selling the same item.

Seller A sells the item for $90 and charges $10 for shipping.

Seller B sells the item for $100 and offers free shipping.

Seller C sells the item for $1 and charges $99 shipping.

Which seller should pay the lowest fee? In other words, which method of selling should eBay incentivize?