mam98031 • Volunteer Community Member • Buyer/Seller since 1999
@ulfesharpe wrote:The buyer didn't pay that amount to the seller, the seller never sees the tax.
So what are you really defending? That the seller pays a fee for an amount he hasn't earned.
How nice.
NOT "defending". Simply stating the facts. Whether or not anyone likes that facts is different. But the facts are what the facts are.
@glasser wrote:
Agree on CS. I went through a lot hoops because my bank account got rejected. Why because it was a brokerage account and they can't be used. If they had that info upfront, or even when I first tried to sign up would have saved some agita. I had to open a new bank account as many people did. That's a big ask of eBay.
I do a lot of education and awareness work. You have to assume that people don't read. So if you really want to reach them you have to be creative and proactive and persistent. People click user agreements without ever reading them all day long. You can email someone 100 times and they still say I didn't see it. eBay's written materials are not that good.
eBay is forcing the change the burden is on them to a 110% effort to make the process easy, understandable, and supported through best in class in CS. They expect us to the same with people we sell to. They should set the same bar for themselves.
While I absolutely agree with you that Ebay could have and should have done a better job with this. That still doesn't excuse sellers from learning the facts about the program. If they couldn't find the information they should have been asking on threads and stuff. Knowing that MP handled their money is still surprises me how many sellers enter the program without even knowing the basics. That is on the sellers as the information is readily available to everyone.
But Ebay's response to MP Customer Service is such a failure, there is just no way around that.
@48hrs-clothing wrote:eBay are wrong in how they are calculating taxes/ amount they are charging buyers.
eBay should collect actual tax plus their fees add these to the item amount and collect total from buyer.
Not a difficult adjustment to make on eBay's site.
End result will be that eBay makes their money without penalising their seller who had not calculated and added this additional hit when pricing their item.
Following is an illustration of how I believe this will work.
Item Price including post $100-00
eBay's FVF 12.5%
Actual tax to collect $20-00
eBay collects tax + handling $22-86 from buyer
Buyer pays a total of $122.86
eBay earns $15.36 + $0.30
Buyers contribution towards FVF $2.86
Sellers contribution towards FVF $12.50 + $0.30
Seller receives in pay out $87.20
I respect that is your opinion. But Ebay nor any other site is likely ever to do that.
I'm sure you are aware that PP charged their fee on sales tax.
It is certainly an interesting time on Ebay right now. They started onboarding sellers in large groups in July of 2020. They now have almost all US sellers onboarded and as a site wide count they are at about 75% of all sellers worldwide.
During this time, much to my surprise, many sellers come to the boards concerned / complaining about the fees they are paying in MP. Now this is something quite natural for the most part however many of these same sellers, seasoned sellers, are complaining about fees they have been paying for years as if they didn't know they were paying them before. Come to find out, they clearly didn't realize what they were paying BEFORE MP. I find this shocking.
"Makes no sense to charge a final value fee on taxes, it's legal but absolutely **bleep** concept since sellers don't claim a profit on it, the state does." Paypal charged their fee on the total amount of money received, which included sales tax. They have always done this. So if you accepted this with PP, why is it suddenly wrong that Ebay does it? That is not to say that I like it any better than you do, because I don't but it isn't that unusual.
"Love to see eBay charge a fee on giving the state their tax and see how that goes!" Most if not all of the states Ebay is legally required to collect and remit sales tax for give them a small discount on the amount they collect to accommodate the costs that Ebay incurs complying with the laws of that state.
" I simply state in auction that eBay now charges profit on sales tax which is not a profit I make, so therefore I have to pass it on and I increase my prices adopting a policy if it sells cool, if not no biggie it can sit. Eventually if everyone adopted this method, eBay would probably be forced to change because buyers would stop buying and go elsewhere, eBay would see their sales go through the floor. I highly recommend it because money is the only thing that will make eBay not be a **bleep**. Money talks and bullsh_t walks so they say." I've looked at many of your listings and I don't see this stated on any of them or on any of your sold items. When did you start this practice?
While you may feel this is a good idea, it is actually a very poor business decision to make. Trying to drag your customers into a dispute / disagreement you have with a vendor [Ebay] is simply poor business practices. The likely result of this will not be for Ebay to learn a lesson as you hope but for you to learn a lesson that this is not a good idea because it will likely negatively impact your sales. Buyers don't want to me in the middle of something between you and Ebay and it is unfair to try and insert them into it.
I sell on multiple sites and have for years. Ebay is not the most expensive and ALL of the larger sites similar to Ebay have all had their own money processing programs for years. Ebay is the last of the larger sites to bring theirs site wide.
You should really take a closer look at the fees as the new structure of them is NOT likely to cost you more in a Months period of time. Certainly comparing a single transaction will often show you that you pay more than you did before MP, but there are also transactions you pay less. Overall in a months time it is likely to be a very neutral change. I compared six months worth of sales and found this to be true as have many other sellers. If you want to know the accurate numbers, it is something you need to do.
Now with the increase in the PayPal fees, we are actually saving more money in MP.
The fees in MP have NOT increased overall fees. The following numbers represent those that do not have a store and the fee rate for most common categories [not all].
Fees BEFORE going into MP
10.20% FVF + 2.9% PP fees = 13.10% plus 30 cent per transaction fee.
In MP the fees are:
10.20% FVF + 2.35% money processing fee paid to MP = 12.55% plus a 30 cent per transaction fee.
Starting August 2nd, PayPal is raising their fees, so they will be as follows:
10.20 Ebay FVF + 3.49 PP Fee = 13.69% plus .49 cent Per Transaction fee [PP is now apparently offering their main fee rate depending on the size of the seller as they are sending notifications from between 2.59% up to 3.49%]
"I would the say biggest difference is 12.35% either way being applied across taxes opposed to PayPal 2.9% in the past. They were doing it as a handling fee but on that portion you're seeing a nearly 10% increase in margins that have nothing to do with your seller profit."
I'm unsure of your math.
The fees in MP have NOT increased overall fees. The following numbers represent those that do not have a store and the fee rate for most common categories [not all].
Fees BEFORE going into MP
10.20% FVF + 2.9% PP fees = 13.10% plus 30 cent per transaction fee.
In MP the fees are:
10.20% FVF + 2.35% money processing fee paid to MP = 12.55% plus a 30 cent per transaction fee.
Starting August 2nd, PayPal is raising their fees, so they will be as follows:
10.20 Ebay FVF + 3.49 PP Fee = 13.69% plus .49 cent Per Transaction fee
PP is apparently offering different fees to different sellers, likely depending on size. From what I've seen it is between 2.59% and 3.49%.
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