mam98031 • Volunteer Community Member • Buyer/Seller since 1999
Oh yes, I'm well aware. And some posters for whatever reason they have, they really dislike MP and want to throw as much shade on the program as they possibly can on threads. Facts don't matter. If they can dream something up that they think at least someone might believe, they will say it. Never allowing the facts to get in their way.
With that said, Casual sellers [those without a store] have the hardest time with this transition. Which is completely evidenced by all these threads. The vast majority of the posters expressing their concerns are Casual sellers. This is a very difficult change for them. But like the rest of us, they have to make the decision if it is better to stay or go.
@oldcoin007 wrote:Hi - Are you actually telling me that ebay adds their 12.55 % fees to the sales tax also? Are we paying 12.55 % extra that includes the amount of sales taxes? I truly don't understand here. I am seriously asking. The buyer pays the tax. I get that part. Then ebay throws a FVF on the seller that actually is higher because ebay is charging 12.55 % on whatever the sales tax is? In plain words, if the buyer pays 100.00 in tax, am I the seller, paying $ 12.55 in FVF on the tax amount? You may consider me dense, but please let me know. Thank you, L
I have REPEATEDLY encouraged you to READ the policies before going around spouting off stuff in which you, by your own admission, do not know the answers to. Yet you keep posting your assumptions. I've given you links many times to help you with this learning process but clearly you don't take a moment to review them.
The policy pages are CLEAR on this subject. Your assumptions are harmful to some members that may just read what you post but never post to ask for clarification because they aren't sure. Continuing to post incorrect and/or incomplete information is harmful not helpful.
Ebay does NOT hide this fact nor have they ever since they started in in August 2020. But it does require sellers to read the policies in which they must work under for MP. One of the most basic things that ALL sellers need to understand is how fees are applied. Unsure why any seller would not strive to understand this BEFORE going active in MP. That simply doesn't make any sense whatsoever to me.
And YES for sellers that are in MP ONLY they will pay the FVF on the sales tax. On the HIGH end of taxes, lets say 10% [most are not this high] on $100, that tax is $10.00. $10.00 times 12.55% [if that is your rate in MP, as it varies], that is $1.55.
Still, this fact doesn't necessarily mean that sellers will experience a fee increase when moving into MP. YES FVFs are higher on sales that have a sales tax on them, but the FVF is LOWER on those that don't. Which it is why it is important to look at a full months worth of sales to get an actual view of the impact of the fees will have on your account. Most sellers will find that MP is much closer to a neutral change in fees.
For myself I did a 6 month comparison with my fees. In each month, I actually paid less in overall fees by about .50%. Not a lot, but still less than before MP. So most sellers, if they will get past their anger over the fees being charged on sales tax, and review a full months worth of transactions, they will likely find the same of very similar results.
@shopsmart247 wrote:You're right, all that money that doesn't belong to them, that the sellers ultimately pay taxes on, is sitting in their account for them to invest. At any given moment, they have billions of our collective crumbs flipping around on the stock market, and of course the returns on those investments are tax free. However, if you look at their books on any given day, they are flat broke, because they write off their profit to zero. Just like Amazon. Even grocery stores do it, that's why corporate owned stores no longer give people a hard time with returns, the sales aren't how they enrich their shareholders. In fact, they love returns because they write them off as a loss. This is the game.
It isn't a "game". These companies spend money, real money, on creating the software to track all these charges, on software that accounts for all these charges, updating the software as needed when states or a portion of a state changes their rates, issuing payments to the appropriate states, etc. It all cost real money to do that and the companies that handle this have every right to be paid for the services they render.
@shopsmart247 wrote:No, they don't make interest on it. They are flipping it around on the stock market for tax free returns.
Are you specifically talking about the sales tax Ebay collects from buyers or are you talking about more than that? And where did you get this information?
@1tuna wrote:thats exactly how MP works.thye add the shipping price in then they add the tax onto that and then they hit it up for the 12.55 %.
to answer your question abouut taxes............. if you sold a nice 1K coin to california they woud have to pay 100 in taxes and your percentage comes out of that
the MP fees come out of the inflated /jacked up numbers
when you sell an item with free shipping to a state with no sales tax then it only looks like better deal with MP
Are you suggesting that the sellers are not adding their shipping costs to the price of the product? Why would a seller do that and how would they expect to stay in business?
All transactions do not have sales tax. Most do, certainly, but there are still states that do not have sales tax. The fees in MP are LOWER than they are in Ebay BEFORE entering MP.
As we all know, sales taxes vary, even within the same state, depending on their address. The high end being about 10%, but fortunately few are at that end. The break even point with fees is if the sales tax is 6% or less. Then they total FVF isn't costing you more because of the structure of the fee.
The FVFs in MP are .55% LESS than they are before entering MP. So for transaction that have NO sales tax or a sales tax rate of less than 6% the FVFs charged in MP are LESS than before entering the program.
Looking at the big picture is the ONLY way to get the accurate view. Looking at single transactions isn't going to provide you with that.
@1tuna wrote:I am not mixed up on MP............I know how it works
if you sell an item to a state with no taxes then it just appears that its a smaller percentage
if you get a payment for 100 with no shipping and no taxes then they take out about $12.55
if they pay taxes first then you are paying fees on those taxes and it just looks like it more of a percentage
I did not say you were mixed up about MP. So I'm unsure as to why you felt the need to clarify that. But OK.
"if you sell an item to a state with no taxes then it just appears that its a smaller percentage" This is incorrect. The percentage does not change. The percentage is the exact same percentage with or without sales tax on a transaction.
For example, using a 12.55% fee:
On a $100 sale, with $20 shipping and $10.00 sales tax = 130.00 X 12.55% = 16.32 FVF
On a $120 sale with free shipping and $10.00 sales tax = 130.00 X 12.55% = 16.32 FVF
On a $100 sale with $20.00 shipping = 120.00 x 12.55% = 15.06 FVF
On a $120 sale with free shipping, 120 x 12.55% = 15.06 FVF
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