Fees

Question

Did I just read this correctly? eBay is now charges us fees based on the total sale INCLUDING TAX COLLECTED!!! This is wrong in everyway

iamalwaysright · Accepted Answer

I feel like this post was written back in 2019 and the OP finally just clicked the submit button on it. That was back when eBay started charging sales tax, thus a fee on it.

Hate to break it to you, youâ€™ve been paying that fee since then without knowing it.

mantle1951 · Answer

You have been selling for quite a while now, just found this?

fullers_uk · Answer

They have been doing it for years but now they also charge fees on MAGA tarrifs as well!

pickapaper · Answer

@gregorpalon0

This has been going on for years. How did you not know this if you file income taxes? You have to take your gross total of sales from eBay and subtract the fees and expenses to get your net income. This would have been part of the equation.

continentalcollectibles · Answer

Please review eBayâ€™s cost structure closely. eBay imposes a 14.9 percent fee on both collected taxes and shipping fees, inflating the cost of sales to approximately 19 percent, as sellers are charged for expenses and fees not directly tied to revenue received. To sustain sales on eBay, sellers are often compelled to accept these terms, as non-compliance typically results in minimal transactions. By allocating up to 50 percent of sales revenue to eBay fees, sellers consistently gain greater visibility and sales volume. eBay openly promotes this through daily posts, Promoted Listings advertising, and various creative methods to extract seller funds. However, this approach frequently leads to losses on individual sales, compounded by overhead costs such as shipping materials, labor, rent, and insurance. While eBayâ€™s investment in its platform may justify their fees, the financial strain on sellers is significant. Regrettably, costs on other platforms are often even higher.

inhawaii · Answer

@gregorpalon0 wrote: Did I just read this correctly? eBay is now charges us fees based on the total sale INCLUDING TAX COLLECTED!!! This is wrong in everyway What a rip off!

mam98031 · Answer

@gregorpalon0

In July / August of 2020 [over 5 years ago] Ebay started onboarding all sellers to use Managed Payments. The onboarding was completed by December of 2021. From the time you entered Managed Payments you started paying Ebay for both your selling fees AND your money processing fees.

You no longer paid PayPal the 3% on the ENTIRE payment by the buyer, you now paid Ebay for everything.

So whatever the buyer pays when you sell them something, Ebay charges their fee on it for both the money processing and seller fees. Plus the fixed per transaction fee of 30 or 40 cents.

1786davycrockett · Answer

And I am reminded of the classic tale, told by Nathaniel Hawthorne, of another similar individual:

"All stood amazed until an old woman, tottering out from among the crowd, put her hand to her brow, and peering under it in his face for a moment, exclaimed, 'Sure enough! It is Rip Van Winkle, it is himself! Welcome home again, old neighbor. Why, where have you been these twenty long years?' "

frugalmarketplace · Answer

@gregorpalon0 ðŸ™„ ðŸ™„ ðŸ™„ ðŸ™„ ðŸ™„ ðŸ™„

gloryglorygifts · Answer

Consider that small amount collected your fee for them collecting the tax and paying it to the various jurisdictions that is owed. I think it's a small price to pay for saving me a heck of a lot of work.

animal-house-8 · Answer

In my state I would get 1.5% of the tax I collected, that stopped when ebay started doing the collecting and ebay also charges to collect the tax with their fees.

itsjustasprain · Answer

@gregorpalon0 wrote:
Did I just read this correctly?

You did.

@gregorpalon0 wrote:
eBay is now charges us fees based on the total sale INCLUDING TAX COLLECTED!!!

Right. Payment processors (including credit cards) charge the seller on the basis of the buyer payment. They do not make deductions from that amount.

@gregorpalon0 wrote:
This is wrong in everyway

It is not. It is pretty much standard practice.

jonathanbrightlight · Answer

So, when you create a listing (and this is not the only place this information is available, just one of many), you'll see this at the bottom before you click List:

That link on the words "Final Value Fee" takes you to eBay's page about fees: https://www.ebay.com/help/selling/fees-credits-invoices/selling-fees?id=4822#section2

The first thing you'll see in the Final Value Fees section is this (emphasis NOT added, it's there in the original):

We charge one final value fee when your item sells, and you don't have to worry about third-party payment processing fees. This fee is calculated as a percentage of the total amount of the sale, plus a per order fee. For orders $10.00 or less the per order fee is $0.30, for orders over $10.00 the per order fee is $0.40.

The total amount of the sale includes the item price, any handling charges, any shipping costs collected from the buyer (some exceptions apply), sales tax, and any other applicable fees.

bonanza125 · Answer

Well I am surprised that you just come to find out about this and have been charged for years. It's not wrong it's all in the terms and conditions which you agreed to before clicking submit. Item cost + shipping + tax. Ebay takes a fee from all 3.

kensgiftshop · Answer

They have based their fee's on the total amount since you've been selling.

bonjourami · Answer

Yes, you read correctly that Ebay charges on the whole amount they process..shocker!

redstarrobot_vintage_toys · Answer

As a ebay user since 2016 I would assume you have read all of ebays user agreements and policies.

loose_goose_garage · Answer

They've been doing this for years. It sure beats having to file taxes in all the states you sell to.