Why does ebay charge the sellers final value fees on sales tax the buyer owes and ebay takes directy

[gotstuffguys]

Why does ebay charge the sellers final value fees on sales tax the buyer owes and ebay takes directy from the buyer!  So if i sell a pricy item and the sales tax is $50 ebay is charging me 13.25% on the SALES TAX THE BUYER PAID AND EBAY TOOK IMEDIATLEY...I NEVER TOUCHED IT!  I just came back to selling on ebay but wont be staying long as they are getting CRAZY at this point.  I have a feeling the federal government might step in on this one in the very near future as Ebay is charging SELLERS final value fees on BUYER PAID SALES TAX!  I didnt collect this money...it NEVER was put into my account especially my bank account and they even tell you SALES TAX EBAY COLLECTED FROM BUYER DIRECTLY  so why are we paying a FINAL VALUE FEE on SALES TAX?  RIDICULOUS and this will im sure end up back firing on them as its just plain WRONG to charge me/seller a final value fee on sales tax that was paid directly to ebay from the buyer!  WRONG WRONG WRONG! Will be talking to some folks about this one for sure as this is just plain thievery!  If i sell an item for $100 plus $15 for shipping the final value fee should really be on just the $100 but they started dinging sellers on shipping payments about 10 years ago and now this latest system is charging the SELLER a final value fee based on money the seller never collected or received any part of???  NAAAAHHHHH!  This is crazy and ive been around here for 23 years folks and these people are getting to where they just do as they please when they please but charging me fees for a buyers owed and paid sales tax is NUTS!   This new system in the last couple years is insane!

[stainlessenginecovers]

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@gotstuffguys wrote:

The buyer is not paying the fees...

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The buyer IS PAYING the fees. The FEES come out of the SALE of the item.

If you are not figuring this way, you are simply doing it wrong.

Selling Cost - (Fees + Cost of Item+ Shipping Costs+ Taxes (Fed/State/SE)) equals

PROFIT in your pocket.

You have to figure ALL COSTS to get to a SALE price to get to a PROFIT. 

It's a shame that people don't remember paying the local newspaper $50 just to LIST an item in it in a 1"x2" ad. No guarantee of a sale, or a view. What you get is JUST THE AD.

Want to 'pay to play'?? Make the Ad BIGGER and pay $150 for a 2" x 4" Ad. Up front. No guarantees of anything.

Fast forward to the 90's- Consignment Stores would take upwards of 50% of the selling price. 

[gotstuffguys]

I live in a state with no sales tax so if a state wants to hammer on their people for buying on line then hammer on them and not me.  Im ok with being charged reasonable fees but ebay is making billions of dollars a year by lobbing all of these extras onto us!  Ive been around here 23 years and sold one biz i had here that had over 100k feedbacks/listings sold and if i was running that here today i wouldnt be running it here today!  Its just getting more and more expensive to sell when items dont bring premiums here.  

[gotstuffguys]

Just like they do with any other ludicrous entities that try to get over on its constituents.  Seen them go after way less then being charged fees for moneys we never receive.  Its not us that is due to collect these fees its ebays job and they are making us foot the bill...all of it...not even a reasonable set up.  

[gotstuffguys]

Macys doesnt pay a fee on sales tax in my state! So next example? We dont charge sales tax in our state so if an out of state buyer wants to buy my items and ebay has been held responsible for collecting state sales tax then thats on them.  Our stores in Oregon dont pay fees on moneys they dont collect.  

[gotstuffguys]

Never had to collect sales tax via PP on ebay transactions or any other for that matter. 

[stainlessenginecovers]

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@gotstuffguys wrote:

PP never charged me/us anything on buyer paid sales tax as WE NEVER RECEIVED the sales tax into our account and PP only charges on what you RECEIVE.  Next.....

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Yes; they did. At the end of PP being the processor and ebay having to 'collect' sales tax; the FULL amount the BUYER paid was the amount PP used to figure their fee. 

PP just never gave you a 'detailed' break down so you were not aware of it. 

(and of course, this is sales tax paid by the buyer to the state the BUYER lives in and has NOTHING to do with what state the 'seller' lives in)

[gotstuffguys]

and what it really boils down to is that the fees have doubled and tripled ALONG with these extras they now put on us s instead of being 5% final value fee and 2% for processing...its now a total of 13.25% which is HUGE! EBAY is not starving and they were making billions back when they only charged half of what they charge now.  And no cap until above a $7500 item! LOL!  The extra charges just make the total that much harder to take! So i guess the real frustration boils down to massive fee increases over the years, caps have been basically tossed away, charged on fees on shipping which we were not  years back and now having to pay final value fees on money i never touch just take the total fees taken that much crazier! LOL!  With the number of sales DAILY that ebay has they would make billions at charging a flat 5% on all sales with 2% to handle the money...THEY WOULD STILL MAKE 100s OF MILLIONS INTO THE BILLIONS YEARLY! 13.25% total on every penny weather we touch it or not is nuts!  Again, they would make LOTS of money capping at 5% plus 2% to process moneys.  What ever im over it.  Already listed a bunch of items elsewhere were i do well selling.  Not like i do it for a living anyway....Good luck to you all that are trying to make a living out of this place! YIKES!

[gotstuffguys]

Ebay didnt even start collecting sales tax until 2020...this new ebay system has been around since 2021 so PP didnt collect sales tax fees for more than a year when and if they did.  Like i said its more about the total of it all and this was just the last straw i guess???

[gotstuffguys]

and it sure does make a difference where you live when we dont charge sales tax here and i was talking to the lady who was talking about Macys and other vendors collecting fees on sales tax.  Stores dont collect fees on moneys they dont touch and we dont charge sales tax in this state.  Anyway...like i said in the last...its more about the fees getting to be so high in general and then they want to pass of ALL of the crap on to us when they are making BILLIONS off of us!  Just like they will certify shoes for free?  That is nuts...they will certify authenticity of shoes for free which means fedexing to NY to be certified, then boxed up in special box and certs and then shipped onto the buyer!  If they are doing that for free then they are making disgusting amounts of profit on us! LOLOLOLOL!

[kensgiftshop]

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@gotstuffguys wrote:

Never had to collect sales tax via PP on ebay transactions or any other for that matter. 

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I did years ago, and yes, they charged a fee on the sales tax portion also, just like all other payment processors.

The only difference between them and Ebay, Pay Pal fee's were a lot cheaper and didn't hurt as bad as Ebays fee's.

[stainlessenginecovers]

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@gotstuffguys wrote:

Ebay didnt even start collecting sales tax until 2020...this new ebay system has been around since 2021 so PP didnt collect sales tax fees for more than a year when and if they did.  Like i said its more about the total of it all and this was just the last straw i guess???

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That is not correct.

Ebay started collecting sales tax Jan 1, 2019 and Paypal was still the processor until June 1, 2021 so that was 2-1/2 Years that Paypal collecting Sales Tax for Sellers/Ebay and Paypal CHARGED on the TOTAL collected; just like the processor for any Brick/Mortar Store collecting sales tax would charge the retailer. 

Regarding the 'shoe authentication'; they obviously pay that using 'some of the fees' and the plan, like any good business, would be to 'increase' those fee dollars by having the authentication, both being able to advertise it as well as giving people that warm/fuzzy feeling that they are not buying fakes.

As example: Before Authentication ebay would make $5,000,000 in fees

After Authentication, (and after paying the increased costs associated, $2,000,000) makes $10,000,000 in fees so due to the Authentication Program, they are up $3,000,000 

[monroe67]

Regular readers will know that I often have responded to this type of screed.
But not today.
As of the time I type this, there are 26 posts in this thread.  The OP is the author of 14 of them.  That is more than 50%.  
This seller's mind is made up.  Nothing I could say will calm his outrage.  

[kensgiftshop]

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@gotstuffguys wrote:

and it sure does make a difference where you live when we dont charge sales tax here and i was talking to the lady who was talking about Macys and other vendors collecting fees on sales tax.  Stores dont collect fees on moneys they dont touch and we dont charge sales tax in this state.  Anyway...like i said in the last...its more about the fees getting to be so high in general and then they want to pass of ALL of the crap on to us when they are making BILLIONS off of us!  Just like they will certify shoes for free?  That is nuts...they will certify authenticity of shoes for free which means fedexing to NY to be certified, then boxed up in special box and certs and then shipped onto the buyer!  If they are doing that for free then they are making disgusting amounts of profit on us! LOLOLOLOL!

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No, the store doesn't collect fee's, but the payment processor does to process the payments.

Just like when you use your credit card, the fee's they charge you is based on the total amount you paid that they processed.

[jameshen1]

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@monroe67 wrote:

Regular readers will know that I often have responded to this type of screed.
But not today.
As of the time I type this, there are 26 posts in this thread.  The OP is the author of 14 of them.  That is more than 50%.  
This seller's mind is made up.  Nothing I could say will calm his outrage.  

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Yep.  The op isn't looking for answers.  Just want to vent and convince everyone that they must agree with him or they are wrong.  

[monica-sells]

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@monroe67 wrote:

Regular readers will know that I often have responded to this type of screed.
But not today.
As of the time I type this, there are 26 posts in this thread.  The OP is the author of 14 of them.  That is more than 50%.  
This seller's mind is made up.  Nothing I could say will calm his outrage.  

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Couldn't agree more......blinders on...reality off....

at least we know for sure oregon is a no sales tax state.....woo-hoo