ebay fees

Question

I think we need to start asking eBay what its justification is for charging sellers transaction and ad fees on the amount of shipping and the amount of taxes paid by the purchaser. I would like to know.

suchtwirly · Answer

Thank you for your answer.

wooden_flower · Answer

@suchtwirly

Fees are set by any business to achieve their income objectives. eBay can set the formula in any way they choose. If the tax and shipping are removed from the formula, the %s would go up, fees would not go down.

Hereâ€™s a few other reasons -

- Putting the fee on the shipping stops sellers from underpricing an item and overpricing the shipping. A decade ago, you had $10 items with $100 shipping.

- Charging fees on the shipping means the seller offering â€˜freeâ€™ shipping does not pay higher fees than the seller who prices shipping separately.

- All payment processors charge fees on the total including tax and shipping.

- eBay lowered the fee %s when they started processing payments and collecting the tax, to allow for the fee to be charged on the total.

-The math is easier.