SO THEY IS AN ADVANTAGE TO THE BUYER, WHEN SHIPPING IS 90% OF THE TOTAL PRICE? IN SOME STATES?
So some states actually differentiate between shipping and item purchased? Item I was looking at, the seller(who ain't hardly got any ratings) was selling 2 tennis rackets, which would be 20 oz and cost around $10 to ship Fedex to most places in USA. Yet they had shipping $100 BUT in SOME states, if the seller do this and lets say: item is $10 and shipping $100 and it sells. Then in one of those states, with 7% taxes, then the buyer pays only $110.70 as opposed to someone in another state with don't care, and that buyer pays $117.70 So in this bizarre scenario the buyer benefits by $7 but the seller will have the same FVF So if a buys knows this obscure information, it would be more attractive to them? If this is true, then does it apply to? Amazon when you buy heavy object and there is a $50 ship charge?
luckythewinner
·9 months agoSo in this bizarre scenario the buyer benefits by $7 but the seller will have the same FVF
Not quite the same FVF. Since the sales tax amount is lower, the seller would pay a FVF fees based on an amount that was $7 less.
SO THEY IS AN ADVANTAGE TO THE BUYER, WHEN SHIPPING IS 90% OF THE TOTAL PRICE?
There is an advantage to the buyer anytime there is a shipping amount and it is not taxed. But obviously the advantage increases as the shipping amount gets larger.
There is an even bigger advantage to the buyer if they live in a state like here in NH, where there is no sales tax at all.
jonathanbrightlight
·9 months agoIs there a reason you posted about this a second time in the last few days?
https://community.ebay.com/t5/Selling/WHAT-IS-ADVANTAGE-TO-CHARGING-4-10-TIMES-MORE-THAN-ACTUAL/td-p/35422037
ten_o_nine
·9 months agoI am trying to move to a state where the math actually makes sense.
jdbelt1960
·9 months agoYou are actually trying to move to a state based on their tax policy? Sad.
albertabrightalberta
·9 months ago@rosemary6525
Some states don't collect sales tax on shipping so for buyers in those states, it's more cost effective for them to pay for shipping separately. Then they'll only pay sales tax on the item price.
But if the buyer is in a state in which shipping is taxable, they won't save anything whether shipping is charged separately or included in the price of the item.
$100 plus $10 shipping for total $110 :
Shipping tax exempt state: Buyer pays tax on $100
Shipping taxed state: Buyer pays tax on $110
$110 (free shipping) for total $110:
Shipping tax exempt state: Buyer pays tax on $110
Shipping taxed state: Buyer pays tax on $110
In the above examples, for buyers who have packages shipped to states in which shipping is exempt, it will be less expensive for them to purchase items from listings that charge for shipping.
rosemary6525
OP9 months agoNO I have sold 6 items in those aforementioned states who supposedly distinguish between shipping and item cost and EBAY charged tax on ALL
jonathanbrightlight
·9 months agoIs it more likely that eBay is violating state laws and getting away with it, or that you misunderstood the breakdown of the taxes charged to the buyer?
monica-sells
·9 months agoHow did you calculate that number? (in other words, how did you determine the "actual sales tax rate" for the jurisdiction of the mailing address?)
Sales tax in OH for example is 6%, but it is 8.75% in the jurisdiction I live in, and it is 7% 1.5 miles away from me in the next city/county.
soh.maryl
·9 months agoAm in Ohio and can tell you that state sales tax can vary widely. In my location, it's about 6.5% currently; however, in some locations a little south, it's even less than that. Then there is state sales tax if you are in or near Cleveland, some as high as 7.8%.
jdbelt1960
·9 months agoI provide a discounted flat shipping amount. Yes I swallow some cost. I would not worry about taxes or you would go crazy.
caldreamer
·9 months agoStates Where Shipping is Generally Exempt
A significant number of states generally do not tax shipping, provided the charge is separately stated from the product’s price on the invoice. This category includes Alabama, Arizona, California, Colorado, Florida, Idaho, Iowa, Louisiana, Maine, Maryland, Massachusetts, Michigan, Missouri, Nevada, Oklahoma, Utah, Virginia, and Wyoming. For instance, Colorado generally exempts transportation and delivery charges if they are distinctly itemized and separable from the sales transaction.
rosachs
·9 months ago"if they are distinctly itemized and separable from the sales transaction."
I wonder if eBay actually bothers to itemize when determining sales tax. If they consider the entire purchase price to be the price of the product, it would be a moot point.
I've also been reading about states that ADD a tax for delivered goods.... to account for the wear-n-tear on the transortation infrastructure (roads). Not sure how they collect that, but I've heard it's being done.
-Bob.
jonathanbrightlight
·9 months agoThey do itemize for sales tax purposes because the laws require it.
rosemary6525
OP9 months agoNo it AIN"T I just sold to one of those states u mentioned sales tax was collected