PLEASE HELP ME UNDERSTAND THIS

[top_end_cards]

When you sell an item you obviously pay fees.  What I dont understand is why does Ebay figure the fee amount from the TOTAL  of the sale.  The TOTAL sale includes shipping and tax .  Yet when they figure the pay out amount it is based off of just the item price.   I dont understand why ebay should get a % of the tax the buyer is paying as well as a percentage of the shipping?   You would think an Ebay seller's fee would be based off of the item price alone.  Why should Ebay get a percentage of the tax that the Buyer is paying?   Please help me understand this.  

[top_end_cards]

If enough people give this a thumbs up maybe Ebay would reconsider.   So all buyers should be wondering the same thing.

[ajs_coins_and_alchemy]

Ok. Let me take my $100 item and list it for 99 cents, with a $100 shipping charge.

I'll pay fees on the 99 cents and collect $100 for shipping. It'll cost me $3.75 to ship. So i just get to keep that $96.25 paid to me for "shipping" and didn't have to pay any fees on it.

EBay has to pay AYDEN (payment processor) to process the entire payment (item, shipping, tax). You are paying EBay to pay AYDEN to process this payment. Ebay also has to collect and remit the sales tax. Would you rather handle the sales tax collection and remittance yourself?

[alcoforever]

You have been on ebay since 2002 and didn't know about this?

[top_end_cards]

Something is wrong with that

[dryophelia · Accepted solution]

@top_end_cards 

The fee a seller pays to ebay on the tax portion is so small. 
There are 11,000 tax jurisdictions in the USA. Selling 5000 items in a year, you could potentially have to remit taxes to 5000 different jurisdictions. eBay does it for you, for about 14 cents for every dollar of tax they processed. 
That’s a bargain. 

Some sellers offer free shipping. 
$100 free shipping or 

$90 for the item and $10 shipping. 
Everybody pays the same fee. 

These  sentences are confusing. 
     When you sell an item you obviously pay fees.  What I dont understand is why does Ebay figure the fee amount from the TOTAL  of the sale.  The TOTAL sale includes shipping and tax .  Yet when they figure the pay out amount it is based off of just the item price.  

eBay fees are based on the selling price, shipping costs and taxes (when applied). Basically, the entire payment you received. They don’t break it down into separate entities. 
The payout is what’s left after eBay takes their fees. 

When shipping costs and the FVFees are close in price, it can look like you were paid out the selling cost of the item. 

If you want a detailed breakdown of how the calculations were done, post your numbers here. There are a few regulars here that love numbers and will break it down for you. 
Include item selling price, shipping costs, taxes, what fees eBay held back and the amount deposited in your account. 

[fab_finds4u]

When you shop in retail stores the store pays the credit card processor  a fee based on the total sale. 

It's  no different processing payments for online sales.

eBay has to  make sure the buyer's payment goes into the right pockets. They don't  do it for free.

When PayPal processed the payment their fee was also on the total the buyer paid.  Didn't  you notice?

[top_end_cards]

Thank you for your answer.. Makes more sense now

[redcarlsen]

Because eBay are scum bags. 

Tax on used goods Is ridiculous in the first place. 

The fees are too high and the way they calculate them is scammy. 

The sooner everybody ditches eBay the better. 

[fab_finds4u]

eBay is **bleep** because your state requires you to pay tax on your purchase?

eBay fought that if you didn't  know.

eBay and PayPal fees in 2012 >>>>> 10% +2.9%  for a total of 12.9% plus .30 transaction fee. Were you happy then?

The fees today, over a decade later is 13.25% plus .30 transaction fee. 

A fraction of 1 percent increase in fees over that long of a time and you're  complaining?

I just don't get how some people think. 

I know if I was running the show if you called me names and accused my company of being shady I would ban you from my establishment. 

Lucky you eBay isn't  me.