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Transaction Fees On Ebay
Can someone please explain to me why we are paying transaction fees based on the sales taxes? I never noticed this before and am stunned that this practice is even legal. Thanks in advance for your help. Steven
5 comments
house*of*paws
Mentor1 year agoHi @stevejna
Basing fees on the total cost of the transaction ... meaning item price, buyer-paid shipping cost, and tax ... is customary and legal, but not necessarily logical or appreciated by sellers. 😕
[It has been eBay policy since the beginning of Managed Payments.]
stevejna
OP1 year agoThank you for that. I appreciate it. Like being taxed twice in my opinion.
dryophelia
Mentor1 year agoFees are not taxes.
house*of*paws
Mentor1 year agoYou're very welcome @stevejna. 🙂
Being taxed twice isn't quite accurate ... since the tax the buyer pays goes to a State ... but I understand what you mean. Here's some (totally nerdy) information that might make you feel a bit better:
When PayPal was processing buyers' payments for sellers ... sellers paid fees to both PayPal and eBay. PayPal based its processing fees on the total amount of buyer's payment (item price, shipping, AND tax). eBay's transaction fees were based on item price and (buyer-paid) shipping cost ... but NOT tax.
When eBay shifted to Managed Payments ... sellers paid fees only to eBay, meaning processing fees and transaction fees were combined. Because sellers just started paying transaction fees on tax with MP ... eBay reduced the percentage of its fees so that they were comparable to (or lower than) the total fees sellers previously paid to eBay and PayPal.
Of course, eBay's rates/percentages have changed since MP began ... but eBay originally attempted to avoid raising total fees on sellers. And I'm sure you realize that if transaction fees didn't include the tax ... the percentage would be increased to make up the difference. 😖
eburtonlab
Mentor1 year agoThat's how eBay calculates fees and that's what you agreed to when you listed an item on eBay.
Which law do you think is being violated?