Why would ebay charge me a transaction fee on shipping if buyer is paying the shipping

[paddygetz]

I choose to have buyer pay for shipping and eBay charges me a transaction fee on that shipping cost which at the end I lose money on the shipping cost. I'm gonna be taxed on the shipping when all that money goes directly to ebay. It makes no sense. I understand charging fees to sellers that sell items cheap with a high shipping price to avoid fees, but I am not charging shipping buyer pays Ebay for shipping. I think it's ridiculous and creative cash grab for eBay.

[eburtonlab]

eBay's fees are calculated on the entire amount the buyer pays, including any shipping or taxes.

You should take that into consideration when deciding how much to charge.

I'm gonna be taxed on the shipping

eBay fees are not taxes. Buyers pay sales tax, not sellers.

[disneyshopper · Accepted solution]

It sounds like you are giving your discount on shipping to the buyer.  Don't do that.  I charge calculated shipping, which means the buyer pays the retail price, but when I print my labels using ebay shipping, I am charged the commercial price.  The different is enough to cover the FVF on shipping + taxes + shipping supplies used.  Go here to opt out of giving the buyer your discount:

https://www.ebay.com/ship/prf