Coming late to ebay's sales tax boondoggle.

[khentiamentiu]

I just discovered that ebay applies it's 12.9 % final value fee not only to the final sale, and shipping and handling, but to California SALES TAX! Yes, I know that many of you already knew this, and I'm sorry to bring it up again, but I do have a related question. If one thinks that this is price-gouging on ebay's part, whom does one contact other than ebay to get a legal opinion on this?

[monroe67]

"A class action suit lawyer."  

Good luck with that. 
Here's what eBay's User Agreement says about class action lawsuits with highlights in red:  

1. Prohibition of Class and Representative Actions and Non-Individualized Relief

YOU AND EBAY AGREE THAT EACH OF US MAY BRING CLAIMS AGAINST THE OTHER ONLY ON AN INDIVIDUAL BASIS AND NOT AS A PLAINTIFF OR CLASS MEMBER IN ANY PURPORTED CLASS, OR REPRESENTATIVE OR PRIVATE ATTORNEY GENERAL ACTION OR PROCEEDING.

[khentiamentiu]

For the record, simply put for those of us who do not believe that legalese is the only way to define the English language, price gouging is "Charging customers too much money," according to Merriam Webster. For those of you who think that price gouging only applies to essential goods and services, do a little more research before you try to show off. As for Ebay's policies, the best solution apparently is to take my sales elsewhere. And to those of you who replied politely to my question, thank you.

[oldskoolmadskilz]

IRS just announced that they will not enforce the $600 rule this year

[ms.rodriguez*]

When you buy something in Macys and use your AMEX card, Macy's pays fees to AMEX including the sales tax.  This is normal practice.  Do what Macy's does,  price your items so that it covers ALL of your fees.....

[pcobra93]

LOL....corporations write that junk in their Terms and Conditions all the time...means little if nothing in the legal system.

[valueaddedresource]

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@ms.rodriguez* wrote:

When you buy something in Macys and use your AMEX card, Macy's pays fees to AMEX including the sales tax.  This is normal practice.  Do what Macy's does,  price your items so that it covers ALL of your fees.....

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@ms.rodriguez* assuming Macy's doesn't have lower negotiated processing rates, they're likely paying about 2-3% for that. Pricing in ~13%  vs ~3% is not insignificant, again especially considering that no other marketplaces charge their full commission fees on the sales tax amount.

For those who say it's just pennies...remember that buyers are often price comparing  across multiple marketplaces/sites and sometimes pennies are more than enough to sway the purchase decision.

[monroe67]

"LOL....corporations write that junk in their Terms and Conditions all the time...means little if nothing in the legal system."

Gosh, that's not what I learned in the Corporate Law section of my (ABA approved) paralegal courses.
Nor what I saw done in any of the law firms I worked for as a paralegal/legal assistant/secretary, over the course of 21 years.
Even during the year I worked for a major nationwide law firm that specializes in class action lawsuits, I never heard of a judge in the "legal system" disregarding any term or condition of a written contract. 

I've been retired for about 10 years now.  Maybe things have changed.  But somehow I don't think so . . . .

[ms.rodriguez*]

True and obviously Macy's sells millions.  But if sellers keep complaining about fees, they need to either raise price or quit and get a job.  Fees are NOT going down.  Postage will only go up.  New mostly higher rates start Jan.22, 2023.  You can bet your first born's life, that there will be another postal increase next Jan. 2024.  So you have no choice but to raise rates.   You will probably need to stop selling really cheap items if there is not enough profit after paying the fees.     Complaining will not help.   As long as ebay has no competition, they will continue to sell.  I sell used toys.  NO other platform is as good as Ebay to sell those items.  

[valueaddedresource]

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@ms.rodriguez* wrote:

True and obviously Macy's sells millions.  But if sellers keep complaining about fees, they need to either raise price or quit and get a job.  Fees are NOT going down.  Postage will only go up.  New mostly higher rates start Jan.22, 2023.  You can bet your first born's life, that there will be another postal increase next Jan. 2024.  So you have no choice but to raise rates.   You will probably need to stop selling really cheap items if there is not enough profit after paying the fees.     Complaining will not help.   As long as ebay has no competition, they will continue to sell.  I sell used toys.  NO other platform is as good as Ebay to sell those items.  

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@ms.rodriguez* postal increases effect all shipments, regardless of where you sell, so it's not exactly an apples to apples comparison.

"Fees are NOT going down....So you have no choice but to raise rates." - yes but why do sellers have no choice but to raise rates to cover their costs for the specific issue being discussed in this thread, which is fees on sales tax?

It is purely because eBay has made a business decision to try to profit off of their marketplace facilitator tax collection obligation by applying the full commission fee on the tax amount - something that once again let me say no other competing marketplace has done.

I see lot of people focusing on their individual sales or just saying oh it's only a few pennies here or there, what's the big deal?

But looking at the bigger picture, if eBay is making business decisions that long term may have the effect of increasing average prices in general here vs other marketplaces, that may drive buyers away and have an impact on the overall marketplace, whether or not it impacts your individual sales.

For those who don't have a problem with it, that's fine, but there's no reason to talk down to or dismiss those who do, which is what I've seen from several people in many threads on this subject. There are some very reasonable questions/concerns/objections to this practice that members here have every right to express.

[oldskoolmadskilz]

I'm amazed at the lengths people go to defend ebay's fee structure.  If they aren't making ridiculous amounts of profit off this, they're doing something drastically wrong.