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Pay to Promote... We have to pay on tax and shipping fee TOO?
I couldn't believe my eyeballs when I contacted eBay today because I thought that my payouts were ridiculously low.
I've been paying to promote my listings because otherwise they get absolutely NO views. My payouts have been ludicrously ridiculously low and I was trying to get to the root of it.
As it turns out, when we pay to promote our listings, even though we have no control over the tax base and whatever state it goes to or the shipping that somebody chooses, we have to pay a percentage on the tax or the shipping and not JUST the item being sold!
I had to ask the question multiple times in many different ways before it finally sunk in that eBay is really taking us for a ride with this promoted listing nonsense!
WHY do we have to pay a percentage of the buyer's tax and whatever shipping they choose as a promoted listing fee??? Isn't the fee of the price of the item plus they're enormous selling fees enough for eBay? That is complete insanity! Yet eBay has been getting away with it.
Am I the only one that feels this strongly about this? When I pay to promote I have to sit around praying that the buyer chooses the cheapest shipping option and is in a cheap state for taxes otherwise I have to pay extra money just for the listing????
eBay has gone too far.
kh-cathy
·2 years agoHi everyone,
Due to the age of this thread, it has been closed to further replies. Please feel free to start a new thread if you wish to continue to discuss this topic.
Thank you for understanding.
classictoyspaper
·2 years agoeBay has become a disgusting monster! they created the problem(aka the best match algorithm) then they create the solution(promoted sales)! its absolute insanity and how its legal I have no idea. there's a reason they haven't raised fees in many years because the amount of additional money they are making from this "promoted sales" SCAM has got to be off the charts! my 25th anniversary passed and eBay did not say a **bleep** word!! they do not give a rats about you or me. let that sink in.
reallynicestamps
·2 years agoBut, brick and mortar have their own problems as well with rent electric etc etc.
Shoptheft, inventory shrinkage.
inhawaii
·2 years agopilferage.
mam98031
·2 years ago@joliztoyco
As you know many posters post here with Posting IDs, not their main selling accounts for a variety of reasons. So assuming someone doesn't have selling experience because of the ID they are posting with is likely to be incorrect.
You also assume that sellers don't diversify. Now casual sellers would likely not have any need for this but sellers that sell all the time and purchase inventory to sell on the internet likely sell on multiple sites. I'm not at all sure why you assume you are teaching us something here. Many of us diversified years ago.
You make a lot of assumptions that assume your experience as a seller makes you a good authority to judge others with next to no information about their little businesses. Not sure why you do that or why it seems important to you.
I wish you well with your transition and further hope it is all you want it to be.
joliztoyco
·2 years agoAs well as all YOUR assumptions, mam.
You have a great day...
mam98031
·2 years agoNot really .....
4-peepsandpaws
OP2 years ago?
What do you mean by "not really"?
They are going to charge a percentage not just on the item being sold but also on the shipping cost and tax. I can't figure out what world they live in that they think that we should be paying a promotional fee on tax and shipping costs. I thought that I was paying to promote the item, not paying to promote tax and shipping.
robbie31415
·2 years agoOh I'm with you, remove it from the shipping.
Let me go back to selling for .99 with an $99 dollar shipping for my $100 items.
I would love having only to pay 13 cents for $100 transaction. ðŸ‘
Also let's max Tax everyone who offers free shipping.
Someone who changes 100 with free shipping should pay double fees than someone who charged 50 with 50 shipping.
Sucker for having free shipping.
mam98031
·2 years agoI'm not sure what you want from any of us here. The Promoted Listing program is a tool in which sellers can use or not. It is one that sellers decide how much additional FVF will be if an item sells. Ebay doesn't decide this, the seller does. One would think that if a seller was going to use this tool they would find out how it works FIRST. A simple reading of the policy page would have answered all your questions BEFORE you started using it.
Promoted Listings Standard fees
You are only charged for Promoted Listings Standard when a buyer clicks on your promoted listing ad and purchases any of your promoted items within 30 days. (A click is when a buyer clicks-through to your item page from your ad, or clicks the Add to watchlist heart symbol on your ad.) This means you only pay when you sell.
The fee you are charged is based on the ad rate you set for each listing. An ad rate is the percentage of an item's total sale amount (including item price, shipping, taxes, and any other applicable fees).
Here's how the fees work:
Visit our Seller Center to learn more about Promoted Listings Standard.
https://www.ebay.com/help/selling/listings/listing-tips/promoted-listings?id=4164
We all get you are upset and I think most if not all understand it. You simply didn't do your homework before using the tool and assumed something that has never been true about the Tool / program.
4-peepsandpaws
OP2 years agoThank you for your most interesting statement and wishes to you for a beautiful day as well!
anjofak
·2 years agoIf you are buying promotions would that be paying for a service or buying a product?
And is it being taxed?
Hmmmmm
stainlessenginecovers
·2 years agoI don't know what you 'decided' to pay for 'promotions' but it shouldn't be more than 5%. People not seeing your items is because of the way you are titling things.
Don't use
commas
pluses
swirly marks
nwot (this is already shown)
Your titles should be:
what it is
what size it is
what color it is
really no need to put any other info
"Brand Name" Black 36DD Bra Lacy Lace.... would get you more 'clicks' than inputting all that other stuff.
dhbookds
·2 years agobottom line is..........Ebay can charge what they want.......Sellers are free to list or not........
dbfolks166mt
·2 years agoYour assessment of how eBay applies the FVF's is correct. There are hundreds of postings on this forum about the same topic/subject. The sellers choice to use PL is just that a choice. You mentioned the no views if you don't use PL. Not sure why so many sellers are hung up on the views I pretty much ignore it my interest is in actual sales. I have never use PL and never will but lots of sellers choose to do so.
Without PL the FVF's on shipping and sales tax should be factored into your pricing strategy. If you are using calculated shipping the buyer is paying you retail shipping cost, unless you are passing along the discounted rates, and the difference between what the buyer pays you and what you actually pay for the shipping label covers the FVF's.
With regards to the FVF's on sales tax that is generally minimal. If you sell a $100 item to a buyer in a state with 8% sales tax the FVF on the $8.00 in sales tax amounts to 13.25% * $8.00 or $1.08. Easy to factor that amount into you items listing price.
However since you are using PL and eBay applies those PL percentages to the shipping and sales tax you need to factor that into your pricing since eBay is probably not going to change the way they apply the FVF percentages.
mam98031
·2 years ago@4-peepsandpaws
It's hard to blame Ebay for this one. You have been selling off and on for awhile now. Ebay doesn't hide what fees we pay. They are clearly stated on every Order and seen in detail in your MP account. Also stated in the Seller Fee Policy.
Now if any of these were new fees I would understand better, but we have been paying FVF on shipping since 2011 and on sales tax since Ebay became our Money Processor in 2020. Before that we paid the fee to PayPal. Money processors always charge their fees on the total amount received.
The fees I mentioned above have nothing to do with Promoted Listing fees. That is completely separate. With or without them you will pay the normal FVF on shipping and sales tax.
Promoted listings is a voluntary program. I understand it works well in some categories and not well in others. So each seller has to decide for themselves if this is a tool they want to use. While some talk like this is a hugely popular program, the fact is that most sellers don't use it But again, if it works for you, then it is a good tool as long as you are volunteering too much in fees to be paid to Ebay.
chapeau-noir
·2 years agoMany of these posts seem to be missing the fact that it's the FVFs on tax and shipping for the PROMOTION fee that's the problem here.
That is something that was initiated in the last year or so, not 2011.
toomuchstuffagain35
·2 years agoI was wondering when someone was going to mention that.
From the original post, the OP knows about the FVF on shipping & ST, it's the Promo fees on same that is causing the ire.
the-hook-and-the-loop
·2 years agoI mentioned it in message #11 on the thread, 25 minutes after the OP posted. Just like sellers don't read TOS, community members don't pay attention.
marnotom!
·2 years agoCharging promo fees on just the item price would put at a disadvantage sellers who offer "free" shipping by adding the shipping costs into the item price, though.
chapeau-noir
·2 years agoYes, but that would be up to the seller to mitigate, though. "Free" shipping just isn't free.*
*i.e., do they want to continue with the whole free shipping thing, change the promo rate, etc. At any rate, I can see the OP's point of view.
brightlightbookseller
·2 years agoTo me that's not a hugely significant difference. If one fee is on the whole amount, why wouldn't any others? And why should someone selling with free shipping pay less in PL fees than I do on an item that "costs" the same, because I charge for my shipping?
vintagecraze50
·2 years agoThey usually do not pay any more or less using free shipping or a flat rate shipping fee. Either the item is priced higher to compensate for the free shipping, or the item is priced lower than a competitor with a shipping fee charged. I peruse Amazon a lot for stuff and my eyeballs pop out when I see something I want at a much lower price than te other guy, then I realize I have to pay 49.99 for shipping. Oh well it was thrilling to see it there. LOL!
sapphire_studio
·2 years agoHaving to pay seller fees on the shipping price is extremely old news and something they had to implement a LONG time ago because people were selling things for 99 cents with extremely high shipping in order to avoid fees.
People who have free shipping would be paying more fees (than those who use calculated) if the promoted listing fees weren't taken out of the shipping cost. It levels the playing field and Ebay likes to encourage Free Shipping.
Paying these fees on the taxes is slightly annoying but I am certainly glad I dont have to think about sales taxes at all. That fee is worth it to me for Ebay to take care of all of that.
The Halo program someone just mentioned is definitely a ridiculous money grab by Ebay and in my opinion you cant really defend that policy. It comes off as desperate greed.
chapeau-noir
·2 years agoI'm OK with the processing charges on the entire transaction - it's the way it is, but I'll have to agree that promotional fees included on tax and shipping PLUS the introduction of halo items is just eBay telling us that they can no longer turn a profit any other way, without telling us that they can no longer turn a profit any other way. The explanation of halo items was one of the most egregious bits of marketing flummery I've read in a while.
However, it is also the way it is, and at least promotions are not mandatory.
toomuchstuffagain35
·2 years agoHave to agree.
I also agree with the OP that PL fees should only be charge on the ITEM being promoted, not the shipping & ST, but (hate this saying) it is what it is.
As far as the "Halo effect", the only Halo effect I want is buyers buying more than one of what I have to offer (and I'm NOT paying extra for that).
lakefor94
·2 years agoIn the big picture, FVF on state taxes is the least of a sellers worries. All money is made when you buy and when listed for the correct margin. Just takes math.
hartungcards
·2 years agoMath is almost as hard as taking the time to read the seller fee information, and then when you do, you have to do more math. It's a vicious circle of having to take time and make an effort to make selling on eBay worthwhile. Some people just aren't up to it.
joliztoyco
·2 years agoThere's a whole lot of ex sellers who used to be on eBay that agree with you.
That's why they're EX sellers.
And quit eBay.
The "promoted listings" fiasco is just accelerating that trend.
susanb1872
·2 years agoI don't think any one will "gladly take the hits". It is just an acceptance of the fee structure on ebay. The alternative is to use a different selling platform. I do not want to pull-up-stakes here to start over somewhere else. I also do not use promoted listings.
the-hook-and-the-loop
·2 years agoWhen promoted listings came out, maybe 5 years ago, it was based only on the items price. But eBay decided to turn sellers into their best customers and July 1, 2022 they started "re-calculating" how they figure PL's on the total sale price(same as final value fees). They continue to invent new ways to squeeze sellers for more of their profit margin to where there is none left.
4-peepsandpaws
OP2 years agoThere is no reason to sell because there's nothing left after eBay gets done with you!
It is complete Insanity to charge a fee on taxes and shipping charges! That makes absolutely no sense in ANY world!
hartungcards
·2 years agoIf "there's nothing left after eBay gets done with you," that's your fault for not factoring in the readily-available selling fee information before setting your prices and shipping methods.
4-peepsandpaws
OP2 years agoI contacted eBay directly when I was not getting any views and first saw the pay to promote feature to ask them what it was all about. They told me that listings would be bumped up and that I'd be paying a percentage of the price of the item. They did not tell me that tax and shipping fees would be subject to the fee.
I suppose it was very stupid of me to believe what came right out of the mouth of an eBay representative. Thank you for pointing that out.
vintagecraze50
·2 years agoWhen I had my chat with my great concierge service rep they told me start at the lowest promoted rate and then go from there as far as bumping it up. But ALWAYS watch the comparable pricing on items you sell. If you cannot bump your price up worth a higher promoted rate then stay where you are. Eventually people will still see your listing and they will be grateful to buy it at a better price.
mam98031
·2 years agoOr you may have misunderstood them.
the-hook-and-the-loop
·2 years agoDoes it really make a difference? It's just numbers. eBay gets approximately 13% commission of sale price, tax, and shipping. They could easily just call it 20% on the item's price only. The problem with that was, sellers putting up items for $1 and charging astronomical shipping to bypass fees.
monroe67
·2 years ago"There is no reason to sell because there's nothing left after eBay gets done with you!"
My selling ID's most recent sale was for $20.50. The buyer paid $4.94 in postage, which included a 50 cent handling charge I added to the listing. The delivery address was in Delaware, which has no sales tax, so I consider that a stroke of luck. It could just as easily have sold to someone in Los Angeles, where they are paying 10%-plus in sales taxes.
I will get a payout into my checking account tomorrow of $17 and change. Granted, that amount is not going to fill my gas tank or buy a Family Fill-Up Bucket at KFC. But it's $17 I didn't have before, and I don't call that "nothing."
One thing I have chosen NOT to do is promote my listings, at even the lowest possible percentage level. I am a low-volume, generally low-price eBay seller, and not looking to get rich here. I listed one item today, starting at $15.99 for a five-day auction. And the listing has had two views already, less than six hours into its duration. Again -- not "nothing."
To All A Good Night.
brightlightbookseller
·2 years agoI guess we must be imagining our payouts then. Can't believe we haven't been making any money even though our records show profits!
vintagecraze50
·2 years agoIt’s a huge money grab and all I can say is be very careful that you price your items accordingly if you are going to use this program. Probably good to promote some items and items that you have obtained at a very good price so your profit margins remain profitable. The more people use this stuff the more competition and the more people are lured into promoting at higher rates to get seen. It could become a runaway train inflating priced to the point of complete idiocy.
reallynicestamps
·2 years agoThis is how every payment processor since Diner's Club in the 1940s assesses fees.
The assessment is on the ENTIRE payment not on this bit or that bit or the part over there.
Your selling price was $100? And you charged $10 shipping? And the buyer (not you) paid 5% on the purchase in sales taxes?
Then eBay charges you 13.5% on the $115 payment.
KISS.
For this eBay provides advertising around the world 24/7, discounted shipping labels, and processes the sales taxes for more than 50 different tax regimes in the US alone.
We paid based on the entire customer payment since we got our first merchant credit card account with Moneris back in the late 70s /early 80s. Including at first Ontario sales tax, and later the federal sales tax, which we had to process ourselves and pay monthly.
https://go.moneris.com/choosemonerisgo?utm_medium=cpc&utm_source=google&utm_id=Mar-23-106-1683656197&utm_key=1&utm_campaign=f2f+choose+and+save+offer+f2f+acquisition+f2f+choose+and+save+offer+won+lp&utm_content=original+products+and+services+google+search+cta+moneris+sem+ao+ma+brand+net+new+en+english&cmfc=proactive&dsch=paid&trgtaud=prospect+merchants&cstjrnstg=awareness&cstprs=+&cmpobj=acquisition&cmpfcs=product&cmpsgm=in+person+payments&cmpprnt=f2f+choose+and+save+offer&cmpnm=f2f+acquisition&cmpsub=f2f+choose+and+save+offer+won+lp&cntapp=original&cntpll=products+and+services&cntheme=google+search+cta+moneris+sem+ao+ma+brand+net+new+en+&cntlng=english&utm_campaign=branded_search&gclid=Cj0KCQjw6KunBhDxARIsAKFUGs-kPk2-_f9FwqoEtGXJ7OScWZD0zqfVH5905zrK42uZCwTodM6Gh0saAjAHEALw_wcB
4-peepsandpaws
OP2 years agoSo I take it you're fine with that. It doesn't matter if your shipping to high tax state or a low tax state or your buyer chooses overnight shipping or snail mail. You'll gladly take the hit?
Interesting
hartungcards
·2 years agoNobody is taking any "hits" here. This is how payment processing works across the board.
dolcetreasures
·2 years agoWhat payment processors take 13+% on tax?
hartungcards
·2 years agoThe ones that eBay uses, which is why it's clearly stated in the Final Value Fee information. Before managed payments, PayPal did it too.
isaiah53-57
·2 years agoNo, PayPal charged 2.9% of the sales tax, not 13+%... or 23% if you are promoting at 10%...
the-hook-and-the-loop
·2 years agoYou should not be set up in any way that a buyer can choose overnight shipping and you eat it. You either charge for shipping or build it into the price. You select the shipping service that the buyer will get if they purchase your item. Of course, you can offer upgrades if they want to pay.
Unfortunately, many on this community forum and eBay think that their practices and policies are "industry standard". They fail to realize how it sends buyers and sellers running as fast as they can from eBay.
4-peepsandpaws
OP2 years agoI stand in amazement at some of the responses that I've received. They just take it laying down, which is how eBay gets away with it. I've been on this Earth a very long time and in no way, shape, or form have I ever seen anybody get commissioned on taxes and shipping fees.
I honestly can't believe that they even dreamed up the idea to do such a thing and it's even worse that people think it's okay!
BTW, regarding your comment about if they want to pay for upgraded shipping, we will have to pay the promotional fee on the upgraded shipping too! That was what eBay told me. If somebody wants overnight shipping we have to pay the promotional rate for the listing. If the buyer wants upgraded shipping, it cuts into our payout! Can they possibly get any greedier???
downunder-61
·2 years agoOf course most of us here are amazed that you are amazed by the fvf on shipping!
My amazement is how could you not know given the TOS are there for all to see (before listing) and that eBay have been charging shipping since 2011 😄
Have you heard of Managed Payments yet?
monroe67
·2 years ago"I have to plead ignorance as I never dreamed in a million years that a company would even attempt to get away with something so egregious. I never even thought of such a thing! Taxes and shipping fees being commissioned to eBay?
Sorry but what the heck? OMG"
-- and --
"It doesn't matter if your shipping to high tax state or a low tax state or your buyer chooses overnight shipping or snail mail. You'll gladly take the hit?"
It's not "gladly tak[ing] the hit" as much as accepting the reality of trying to sell on eBay.
Is it possible that the OP has been away from selling on eBay since before the US Supreme Court's 2018 decision in South Dakota v Wayfair? That decision started allowing states to impose sales taxes on online purchases on Marketplace Facilitator websites such as -- drumroll -- eBay. Every year since then a few more states decided to start this process. Now 45 states and some specific local areas of Alaska impose sales taxes on things that are purchased online and sent to their states.
At least Alabama, California, and Iowa -- the only three states I have looked into -- have provisions in their tax codes that allow Marketplace Facilitators, such as eBay, to do these tax calculation and collection processes "for a consideration." Meaning that eBay is, In True Fact, legally allowed to charge a fee -- "consideration" -- for doing this sales tax work.
Actually, many sellers who post here on this forum see this fee as one of the greatest bargains in online commerce. I know I for one don't want to keep track of sales taxes in 46 states and DC, and keep track of which states also charge sales taxes on the shipping costs of purchases mailed into their states. And I also don't want the pressure of keeping the few cents of taxes for Austin, Texas, separate from the few cents of taxes to be sent to Albany, New York, and whatever penalties I might pay if I, as a low-level individual seller, am unable to send those sales taxes to those state treasuries on the appropriate date.
Actually, I guess then I am glad to let eBay keep only 13.25% of $1.58 cent sales taxes paid by my buyer(s). That comes to 21 cents. IMO, yes, eBay is entitled to 21 cents for doing that work on that sale, so that I don't have to do it.
So, OP: one thing the OP you can do is control the thing(s) you can, one of which is the percentage level at which you choose to promote your listings. Those promotion fees may be hitting you worse than eBay's standard Final Value Fees are.
vintagecraze50
·2 years agoBe certain that when you list items from now on that you factor into the cost of the item including the shipping. There is a place on your listings template where you prepare yourself if a buyer wants expedited, or super expedited service. You click on the carrier and service and then PLUG IN THE COST that the buyer will pay you ON TOP of the item price that you list it for. There is NO SUCH ENTITY AS FREE SHIPPING.
vintagecraze50
·2 years agoAnd this is why selling on the internet can get more costly at times. But, brick and mortar have their own problems as well with rent electric etc etc.
4-peepsandpaws
OP2 years agoI think you've misunderstood. I'm talking about the fee that we pay to promote what we list. We have to pay that fee not just on the item that we sell but on the tax collected and on the shipping cost. For example if you list your item and the item cost is $60 and the shipping cost is $10 and the tax is another $7 and you pay 10% to promote it, you are not paying $6, which is 10% of the cost of the item, you are going to pay $7.70. eBay charges us to promote the tax and shipping, not just the item being sold.
vintagecraze50
·2 years agoRight. That is their system, that is the way they do it now. I set some of my listings at the 2 percent minimum and keep my prices in line with market values and we are actually much lower than , MARKET to get this stuff to sell on here. It would be a huge mistake to market all of your items this way or to use HUGE PROMOTION FEES, unless you can jack that price up very high and you expect that that price will be appealing to buyers. I see people on here probably using a very high percentage rate and putting this stuff up here at prices that will NEVER sell.
isaiah53-57
·2 years agoOf course we all know that ebay didnt ALWAYS charge fees on shipping and sales tax - As a facilitator, not a money processor, I look at their decisions to first hit up the shipping cost and then later, sales tax as rate hikes.
Aside from that you say for these (exorbitant) fees a seller gets:
advertising around the world 24/7
HAHAHAHAHAHAHA....ohhhhh thats a good one
discounted shipping labels
You can get discounted shipping labels anywhere with a likelihood of being better than what you get here.
and processes the sales taxes for more than 50 different tax regimes in the US alone.
I would estimate 80% of the people selling here would not even need to file state sales taxes due to minimum state thresholds and tax exempt statuses.
joliztoyco
·2 years ago"Aside from that you say for these (exorbitant) fees a seller gets:
advertising around the world 24/7
HAHAHAHAHAHAHA....ohhhhh thats a good one"
I laughed at it also.
The only "advertising" I see is other seller's "promoted listings" placed smack in the middle of my auctions.
That kind of "advertising" doesn't do a dam thing for MY sales.
It only benefits eBay's profit margins.
"advertising around the world 24/7"??
That's rich. 🤣
mam98031
·2 years agoSo because you don't see the advertising that Ebay does, that equals there is none???
While I believe Ebay can and should do a better job with advertising, I don't agree that they don't do any.
hartungcards
·2 years agoOh my god, really?
4-peepsandpaws
OP2 years agoI know. That's why I asked the question in so many different ways to the agent that I got today and it finally sunk in that we are paying a percentage on the buyer's tax as well as the shipping that they choose. We have no control over which state we are selling to and whether or not they have a high tax base or not and I like to give the buyer the option to choose what shipping they want. What, pray tell, what happened if they wanted overnight shipping??? Holy 💩
hartungcards
·2 years agoIt sinks in much faster if you read the selling fees yourself, rather than talking to an agent.
4-peepsandpaws
OP2 years agoI have to plead ignorance as I never dreamed in a million years that a company would even attempt to get away with something so egregious. I never even thought of such a thing! Taxes and shipping fees being commissioned to eBay?
Sorry but what the heck? OMG
inhawaii
·2 years agoIt happens every time you use your credit card for a slurpee, a tank of gas or a mail order purchase.
The credit card processor charges their fee on the TOTAL SALE including tax and shipping (if these is any).
4-peepsandpaws
OP2 years agoI guess I'm one of those idiots that never dreamed that a big corporation like eBay would be able to get away with such snaky and slimy tactics.
Going back to my sales days I wish I could have made commission on the taxes that people paid on their $50,000 - $225,000 office equipment.
hartungcards
·2 years agoAre you referring to the "snaky and slimy tactics" that are readily available to anyone in the User Agreement and Final Value Fee information that you've chosen to ignore?
4-peepsandpaws
OP2 years agoWhen I first started using pay to promote I was told it was on the price of the item. Nobody ever told me that I'd be paying to promote tax and shipping fees. I contacted eBay because my non promoted items were not getting any views and they told me that I could pay to promote and it would bump the listings up and that I would be paying on the item itself.
THAT is what I was told by eBay when I contacted them initially. But I truly appreciate the insulting nature of your response to me.
vintagecraze50
·2 years agoIt used to be that way where the percentage was just the cost of the item that sells. NOT anymore.
mam98031
·2 years agoWhomever it was that told you the promoted fee is on the price of the item should have expanded that a bit so it was better understood to be whatever the buyer pays in total. The PL fee is and extension of the FVF we already pay. If you had read the policy page on the program you would have been able to answer your own question instead of having someone else confuse you on the issue.
mantle1951
·2 years agoLet's say you sell item for $10.00 and assume tax is 7%, this means buyer pays
$0.70 in taxes. As a seller Ebay charges us final value fee of around 13% so we pay approx. $0.09 in " commission" to Ebay on that tax, its pretty insignificant if you ask me. Hope this helps.
bonjourami
·2 years ago"Going back to my sales days I wish I could have made commission on the taxes that people paid on their $50,000 - $225,000 office equipment. '
Well, if you were the payment processor, you would have!
snoopwiz
·2 years agoIn a bar/restaurant, your customers food/drink bill was $100, the local tax was $13, the tip was $20, totalling $133, the owner has to pay the agreed upon rate (3-4% or so) to the credit card company. Not just for the $100 meal and drinks but, also on the tax and also on the servers tip. ALL money processors do that. Have done that. Will continue to do that. eBay, is in fact the money processor on all transactions on their venue. This is not an eBay thing, or a Amazon thing, or a Pizza Hut thing. Its a processing fee.
stainlessenginecovers
·2 years agoNo, you are NOT the only one 'wondering' about this.
You are ALSO NOT the only one that doesn't 'simply' research what costs are PRIOR to listing items.
This site could EASILY just charge you 20/25% of the 'selling fee' and be done- but this is a 'simplistic' way for them to do it (not to mention that 'processors have been charging on the amount the Buyer PAYS since credit cards were invented in the 1940's).
It's simply NOT hard.
4-peepsandpaws
OP2 years agoI'm somebody that came back into eBay after several years of being idle. My listings were getting absolutely no views whatsoever and I couldn't figure out why. I tested by listing things that ridiculously low prices and then ridiculously high prices to see if anybody would view them and I figured out that the only way to get views was to pay to promote.
When I did that I found that my payouts are ridiculously low! I'm not even breaking even and I'm selling my own stuff! I'm not a reseller.