Locked
Discussions in this board are limited to the original poster and Community Mentors
Why does ebay base their cut on final price, INCLUDING TAXES?? SO NOT FAIR
How is it that ebay can charge their thirteen point six percent of the final price?And it includes the taxes and the shipping?? Shouldn't it be just on the total final price itself?With no other charges??
2 comments
monroe67
Mentor10 months ago"How is it that ebay can charge their thirteen point six percent of the final price?And it includes the taxes and the shipping?? Shouldn't it be just on the total final price itself?With no other charges??"
Oh, it's "worse" than just taxes and shipping !!
eBay's User Agreement states that the Final Value Fee (FVF) percentage is applied to the total of five things, paid by buyers:
1. Item price paid by buyer,
2. Shipping cost paid by buyer,
3. Sales taxes paid by buyer, plus
4. Handling charge paid by buyer (added by seller when the listing is created), AND
5. "Any other applicable fees" paid by the buyer.
Re #4: Sellers can set up shipping rules for use when they create listings, which can include a handling charge. That handling charge is included in the shipping cost that any potential buyer sees when he/she opens a listing.
Re #5: Examples of "other applicable fees" are fees required by some specific states, on specific items or processes. Currently, two states require a "retail delivery fee", that buyers have to pay. So, yes, when you send an item to a buyer at a Colorado address, you will pay eBay a fee of 13.6% on the 28 cent fee that the buyer pays. That works out to 4 cents, rounded up from 3.808 cents.
Many long-term eBay sellers take the position that their buyers pay their eBay fees.
eburtonlab
Mentor10 months agoeBay gets to decide how fees are calculated.
Individual sellers get to decide if those fees are reasonable or not, and decide to list an item on that basis.
eBay decided how fees were to be calculated, and then chose a percentage to bring in enough revenue to run eBay and pay shareholders a profit. eBay did not pick a percentage and then decide to apply that percentage to item plus shipping plus taxes; it was the other way around.
Would you prefer a different system where taxes were not subject to fees, but the percentage of the fees was higher, so that eBay brought in the exact same revenue for each sale? To be clear, you would pay the exact same amount in fees, just the calculation would change.