after 23 years, I think I'm done with eBay because of the fees
It has gotten completely out of hand. Just sold a set of golf wedges (my primary business on eBay is golf clubs), and after reviewing the fees they charge, I think I'm done. This is insanity. I was charged 13.25%, which I'm sure is typical, but it's calculated on the total value including sales tax (8.65% for my zip), and on shipping cost. I'm guessing if you are in this forum, you already know these things but the actual percentage they got based on the purchase price is 15%. I'm done... I'll deal with the flakes on Facebook Marketplace for that much of a gouge.
14 comments
rustydalmatian
·2 years agoI never calculate my fees. My ulcer wouldn't like that. I figure I get to keep 84% of my sales price (on average), so I pay eBay 16% for the privilege of hawking my wares to a few hundred million people at zero listing fee. Pretty good deal, as far as I'm concerned.
from_me_2_you
·2 years agoThe sales tax in my state is ZERO..........yet, I get to give eBay its 12+% on the tax and do not forget the shipping, as well. Their bat, ball and glove in their ball park!
go-bad-chicken
·2 years agoYeah it has always been my opinion that eBay made a big mistake by charging a variable rate FVF on sales tax collected from the buyer. It leaves a bad taste in seller's mouths. Granted they needed to collect something for the cost of compliance and for the service that they are providing. BUT to collect 15% from some sellers and 9% from others and then 5% from certain others never made sense to me.
In my mind it was always inevitable that many sellers were going to be resentful about paying more money for sales tax collection than others sellers based on the category that their item was listed in. IMO when it comes to the sales tax fee eBay should just charge a flat fee of say 5% across the board regardless of category. It would feel a lot more fair their sellers as well as making it easier to project an accurate profit margin at the time that a listing is created versus at the time of sale.
golfingaddict
·2 years agoGood Point.
But couldn't the same argument be made when you talk about shipping charges?
Sellers that ship heavy items or items that are now considered "oversize" get hit with higher shipping costs which translate to paying more in final value fees.
You could even say that the location of a seller will dictate that they pay more in final value fees simply because of where they are located. If you view an interactive zone map for USPS it is an eye opener.
1786davycrockett
·2 years ago@go-bad-chicken
"Yeah it has always been my opinion that eBay made a big mistake by charging a variable rate FVF on sales tax collected from the buyer. It leaves a bad taste in seller's mouths. Granted they needed to collect something for the cost of compliance and for the service that they are providing. BUT to collect 15% from some sellers and 9% from others and then 5% from certain others never made sense to me."
The FVF is based upon the category in which items are listed, as well as the total selling price of the item -- not on the individual state sales tax of the state in which the buyer lives.
The states which charge sales tax establish those rates by legislation, and can vary widely from state to state, and may additionally vary between individual communities, counties and residential groupings; and it is the legal responsibility of eBay to collect the mandated sales taxes, to be delivered to each state on a regular basis.
What you are proposing sounds like an additional discount program to be managed by eBay, to punish states with higher sales taxes, while rewarding other states with lower sales taxes.
soh.maryl
·2 years agoThe state sales tax that is charged to your buyer is calculated on his delivery address, not on your address.
The fee schedule for eBay is not a secret, but is posted for easy reading.
The final value fee is calculated on the total amount the buyer pays the seller, usually the item price, the shipping cost and the state sales tax, if applicable.
And, unless I am mistaken, this same fee schedule has been in effect for at least one year, possibly more. Am no longer a seller, so don't keep track of changes much.
Would you care to show the actual figures where your FV F was 15%?
buyselljack2016
·2 years agoAn extra $2.50 or so because of sales tax..............................................
Build that into the cost of the item.
Processing fees on shipping paid by the buyer has been around for ...................... years......................
My selling costs (which includes MP fees) run between 25%-30%. That is all figured in when I list, and is taken into consideration before I purchase item to sell.
tobaccocardyahoo
·2 years agoFacebook Marketplace is a bargain in the situation where you actually make the sale - most of those sales are local.
Facebook has not yet monetarized the marketplace, when they do they will be forced to provide more services and cease to be a bargain.
If it works for you, use it while you can.
johnrj1226
·2 years agoThese fees have been going on for several years and have been published in normal type size in eBay ANNOUNCEMENTS. e.g. selling fees on shipping charges have been around since 2011. The current seller fee structure structure for ~5 years., Should be no surprises to long time sellers.
At one time eBay charged for every listing and the fee, Increase based on listing price ever photo but 1, etc. on the other had a seller receive 250 free listings,receives 12 photos for "fee", yeah eBay offer optional features that come with an added price price.
jameshen1
·2 years agoDepartures are usually announced at the airport, bus terminal, and train station. But thanks for letting us know your plans. I am sure we will all sleep better knowing.
monroe67
·2 years agoOK -- bye !
I'm sure your competitors are quietly cheering your departure.
By the way, I want to clear up one misconception in your post:
Sales tax, paid by the buyer, is charged at the sales tax percentage in effect at the zip code of the delivery address.
Your sales tax percentage, at your zip code as the seller, has nothing to do with the sales tax paid by the buyer.
If I had purchased your golf clubs, I would have paid 7.75% sales tax.
People in some states pay as low as a 4% sales tax rate.
soh.maryl
·2 years agoThe state sales tax in my jurisdiction, small town in NE Ohio, is currently 6.25%. A little north of here, it's 7.2.
A little south of here, it's somewhat less, about 6% last I checked.
albertabrightalberta
·2 years agoYes, fees are calculated on the total payment made to you by the buyer.
One correction though: The sales tax paid by the buyer has nothing to do with your state tax rate. It's required by the buyer's state to which the item is being shipped.
iamalwaysright
·2 years agoGlad you found this out now versus way after ebay implemented this.
Sales tax is charged based on your buyer's location, not yours. If you moved your shipping cost into your item price and had free shipping, your FVF will be closer to 13.25% of your item price (but the amount would be about the same).