11.5% fee on sales tax?

[craigsfinds]

Could someone explain why ebay is charging sellers an 11.5% fee on sales tax? A have years of accounting experience and this looks highly unethical. 

From ebay's help page: The new final value fee is calculated on the total amount of the sale, inclusive of tax, shipping or handling, and any other applicable fees. 

[buyselljack2016]

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@craigsfinds wrote:

Got it. Thank you! I should have done the math rather than assume 11.5%-12.35% fee on tax would end up costing a lot more. 

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Yup, it isn't much of a change.

Have run many of the #'s on my wife's account. She is pre registered, waiting for her # to come up.

Depending upon the tax rate, and sales $ level, her fee increases will vary from around .2 (point 2)to .4 (point 4)% compared to current eBay/PP fees.

I am already in MP.  Have run the #'s. My fees will increase .2 to .9 % when simplified fees kick in for my on Wednesday.

We do not have eBay stores. Our business models will be able to withstand the increase on the items that can not withstand the less that one $ per $100.

[alcoforever]

@mam98031

I'm deducing it as a logical explanation for what ebay is doing with the switch to MP.  As for ebay not having made anything from MP, I doubt that is true.   First Mr. Iannone mentioned it in his investor conference call.   Second, ebay is charging us 2.7% as a money processing fee but what if Adyen is only charging ebay, say, 2.0% money processing fee?  Lots of money for ebay in that slight edge.

[mam98031]

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@alcoforever wrote:

@mam98031

I'm deducing it as a logical explanation for what ebay is doing with the switch to MP.  As for ebay not having made anything from MP, I doubt that is true.   First Mr. Iannone mentioned it in his investor conference call.   Second, ebay is charging us 2.7% as a money processing fee but what if Adyen is only charging ebay, say, 2.0% money processing fee?  Lots of money for ebay in that slight edge.

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You can't have it both ways.  Claiming unless they made this change to charging fees on sales tax they can't make a profit on MP to saying that they made a profit the past couple years when they didn't do that.

I do not find that your assertions are "logical" at all.  

Your guessing again with no facts.  IDK nor do you what the contract between Ebay and Adyen contains.  Nor do we know what Ebay's contracts are with the various CCCs for processing fees.

[qtazza]

They are not interested in simplifying bookkeeping. If they are, they are doing a truly atrocious job. 

[lightlily_arts]

Actually the fees charged on shipping by eBay and PayPal or Managed Payments do cancel out the discounts.  The only categories over 20% are First Class Mail and Priority Mail.   There is no discount for Media Mail or Parcel Select.  With Fedex the best discount is with 2 Day Service.  I understood  PayPal charging fees on the total transaction as that was an industry standard for payment processing.

However, eBay charging Final Value Fees on state taxes portion is just wrong as we are paying a fee for money we never receive as part of our transaction.  Over the years time this will add up significantly especially if you are getting sales from states with high sales taxes.  If it were not for the fact I'm selling on eBay's platform no one would have to pay sales taxes as I don't meet that threshold in any state other than California.

Fees on shipping and taxes were just another way for eBay to grab money from sellers.  So to offset those fees you have to raise your prices.

[flimflam10061]

It's a disgrace, however, they have no real competition, so like comcast they do what they want.

[kh-cathy]

Hi everyone,

Due to the age of this thread, it has been closed to further replies. Please feel free to start a new thread if you wish to continue to discuss this topic.

Thank you for understanding.