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Final Value Fees on Shipping and Taxes Inherently Unfair

I've read many comments on Final Value Fees placed on orders which are to not the item itself, but to sales tax and shipping in total. I've read the complaints. I've read the explanations. The unfair truth is in the math itself. I do large orders. I do small orders.  The following example is on a $6 item which included free shipping and $.41 tax:

What you earned

Order total

$6.41
eBay collected from buyer
Sales tax
-$0.41
Selling costs
Transaction fees
-$1.47
Shipping label
-$4.81

Order earnings
-$0.28
On this particular order you see that I made $0.28. Ebay made $1.47.  Absurd right? Why? Because Ebay made more money off the sales and shipping in combination with my item than I did on just the real value of the item. Totally unfair. I know it's their platform. And I appreciate the opportunity to sell on this great plafform, But sellers are  being taken advantage of. 
Message 1 of 19
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18 REPLIES 18

Re: Final Value Fees on Shipping and Taxes Inherently Unfair

I was shocked to discover Final value charges included shipping (which most sellers DON'T make money on). THEN I discover, by mistake, that sellers are ALSO charged a final fee on what buyers paid for sales tax. Seems like it should be against the law. What is going on with eBay? EVERY TIME they 'improve'  (HA-HA) the buying & selling experience...the SELLERS GET SCREWED! Don't they realize-if the sellers LEAVE...Their buyers have nothing to buy!?!? It should be fair to both sides.  If sellers can leave negative or neutral feedback-the sellers should have the same option. It is hardly worth it anymore. And next year the limit for filing with the IRS is something like $500??? It used to be $24,000! WHAT IS GOING ON???

This was my last sale. which I only made $171 on.

  • Item price
    $200.00
     
  • Sales tax
    $20.50
     
  • Fees based on
     
    $220.50
Message 16 of 19
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Re: Final Value Fees on Shipping and Taxes Inherently Unfair

If you look more carefully...it looks like it 'COST' you 28 cents so you paid to have the person get your item.

It shows -$0.28

AND-eBay has found a way to charge a fee for postage which was never charged to the buyer?  If we dig further-what more can we find? This has to be a GROUP effort-so eBay is forced to answer for their Very UNFAIR charges. eBay no longer has a MONOPOLY-there are many other venues to sell your products-and I am hearing a lot of BUYERS and SELLER are getting disgusted with how this company is run. Check out my eBay <dave8237> next week. I have probably been 'CANCELLED' - lol. Won't make a difference in MY life-but many sellers COUNT on this site to make a living.  A LOT of people WANT to work-rather than get hand-outs. We should be supportive - rather than SELFISH, and help the country grow and give sellers the opportunity to feel they are contributing to society. It's a slippery slope. Should the PUBLIC be aware of whether eBay pays taxes? I, for one, would like to see some numbers.  Why isn't anyone asking?

Message 17 of 19
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Re: Final Value Fees on Shipping and Taxes Inherently Unfair

eBay posts information about how the FVF is charged so not sure why it's a surprise to any seller.

The fact that the FVF is charged on shipping as well as the item price has been shown since about 2008, so hardly a new charge.  The fact that FVF is charged on state sales tax as well has been several years so should not be surprising.

So many people post here and feel that those fees should be against the law.  Don't you imagine that eBay has a legal staff that has determined that it's legal?

Message 18 of 19
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Re: Final Value Fees on Shipping and Taxes Inherently Unfair

I agree with you, it doesn't seem quite right.  I don't mind paying the final value on the item, but I hate paying it on the item + postage + tax.  If I sell a $2 item and charge $1 postage, eBay charges a fee on $3 , not just the $2.00 item. 

Message 19 of 19
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