eBay charged MORE for the listing than the item SOLD FOR!

[sincitygpk]

THIS IS JUST ONE REASON WHY SHIPPING AND TAX SHOULD NOT BE INCLUDED IN THE FINAL VALUE OF AN ITEM. I have had two auction listings recently that sold for 99c. eBay failed to charge the buyer sufficient shipping on the first one. I follow through with the sale and take a loss on both shipping and actual value of the items. Then eBay charges me $1.16 for the listing! IT ONLY SOLD FOR .99 AND IVE ALREADY EATEN THE LOSS. IT WOULDVE BEEN CHEAPER TO GIVE THE ITEM AWAY! How is this legal? Why is tax added to the final value? So I’m being taxed on the tax by eBay. 

[dryophelia]

@sincitygpk 

As an average, a seller should aim to get a payment of $18-$20 from the sale price and shipping, in order to be “profitable”. 

There is zero money to be made selling an item for 99 cents unless there is padded shipping costs. 

eBay doesn’t/can’t change the shipping set up by the seller. 

[inceptions]

How is this legal? Why is tax added to the final value? So I’m being taxed on the tax by eBay.

• It's legal because eBay provides detailed information regarding fees which you agree to when you list your item.
• Sales tax is assessed on item price + shipping based on each state's sales tax laws which eBay is required to collect on their behalf and remit back to them.
• You are not being taxed on the tax (not even sure what you mean by that), but you pay your Final Value Fee on the total payment which is customary for payment processors (all of the payment is processed - not just part of it). eBay is no exception.

You cannot make any money selling items for $0.99. You need to do what every seller needs to do, and that is to build all of your costs of selling the item (plus any profit you wish to make) into the selling price.

http://pages.ebay.com/help/sell/fees.html

eBay failed to charge the buyer sufficient shipping on the first one.

You are the one who set up the shipping parameters in the listing. If the buyer was not charged enough, you need to figure out what you did wrong in the setup.