Final Value Fee Keeps Changing

[polychromebeads]

I've been selling handmade marbles, and most of them sell for the paltry sum of $25.  But what's odd is that the Final Value Fee is different for all of them.  For the last five sales I was charged $3.85, $3.90, $3.81, $3.84, and $3.93 respectively.  Now, I'm not a math whiz - but it seems to me if I'm selling them all for the same price I should be charged the same fee, right?  What gives with the differences?

[mr_lincoln]

Hi @polychromebeads 

The FVFs are levied on the following on a transaction:

1. The price of the item

2. The Paid shipping by the Buyer (unless Free shipping is selected)

3. Sales tax based on the state the Buyer is in, however there are 5 states that have no sales tax.

Your FVFs will vary based on the above.

[polychromebeads]

Did the FVF always include the sales tax?  I was thinking that until recently it didn't, but I pay more attention to selling than payments.

[mr_lincoln]

Hi again @polychromebeads 

When the Marketplace Facilitator Laws went into effect for each state eBay started to collect and remit Sales tax on behalf of the millions of Sellers on their site ... they've been doing it I think for almost 2 years now.

The sales tax is based on the Buyer's state, NOT the Seller's.  The sales tax is part of the total amount a Buyer pays so eBay charges the FVFs on it.  eBay does NOT include the sales tax amount on their 1099-Ks, just so you know.

Here's a link that may be helpful.

Marketplace Facilitator Rules in Sales Tax: What You Need to Know (fonoa.com)

[wooden_flower]

Just to add to what @mr_lincoln described, eBay did not charge the final value on the sales tax until they started processing the payments.  You did pay paypal fees on the tax.

eBay reduced the fee %s when they put the tax in the calculation, so that we are not paying more fee $ becuase of the tax, on average.

[polychromebeads]

Thank you - that explains a lot.  When eBay rolled everything into one (payment processing and FVF) it made figuring it all out much harder, and I think I just forgot about the tax issue.  The lack of detail in their statements doesn't help.

[mr_lincoln]

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@polychromebeads wrote:

Thank you - that explains a lot.  When eBay rolled everything into one (payment processing and FVF) it made figuring it all out much harder, and I think I just forgot about the tax issue.  The lack of detail in their statements doesn't help.

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@polychromebeads 

To get a basic "snap shot" view of earnings you can go to an item in your "See all orders page" and then click the blue transaction number just above the main listing pic ... then on the next page look over on the right and scroll down to the section that shows your Earnings ...

The section looks like this:

From the Order earnings you would subtract your cost of goods plus any values you have for packaging materials, trips to the post office, other costs you factor in, etc.