mam98031 • Volunteer Community Member • Buyer/Seller since 1999
@rugerskick wrote:That doesn't justify ebay including fees on taxes. That money never was anything the seller receives.
The fact that Ebay charges FVF on shipping [sellers do receive this money] happened 11+ years ago. The FVFs on taxes started in 2020 or the date after than when you entered Managed Payments.
Promoted Listing percentage based not just on the price you set for your item/s, but on the total including the shipping, AND the taxes
@akutan_gear
This is a more recent occurrence and has nothing to do with final value fees in general. Promotional fees were always on the item price UNTIL EBAY NEEDED A RAISE a few months back. When they had sufficient members participating and convinced of the perceived necessity to promote and pay more, they upped the game.
Historically speaking, eBay sellers will go along with most anything eBay decides, and it is not different here. Bad ideas for members, be they sellers or buyers, are given low priority compared to new revenue streams for eBay and their good news, enhancements, or new improved, streamlined, or simplified policy announcements.
@shot9067 wrote:
@mam98031 wrote:
@rugerskick wrote:That doesn't justify ebay including fees on taxes. That money never was anything the seller receives.
The fact that Ebay charges FVF on shipping [sellers do receive this money] happened 11+ years ago. The FVFs on taxes started in 2020 or the date after than when you entered Managed Payments.
I am confused about why you always refer to policy changes regarding FVF when the OP is questioning changes made in regards to promoted listing fees/charges? The changes relating to promoted listing fees have all occurred within the last year. The fact that FVF has been charged on shipping for 11+ years, or that it has been charged on sales tax since 2020 really doesn’t have any relevance in a discussion about promoted listing charges. Unless I’m missing something here?
I was responding to specific posts. Not always what the OP has said. There are others posting questions or statements on the thread too.
With that said, you are absolutely correct. The way PL is calculated changed early last Summer [2022] to be on the entire amount the buyer pays like the regular FVF is. Sorry if I added any confusion to the conversation.
@Anonymous
Look at it this way It is DOUBLE taxation as eBay already charges a fee for collecting tax
What? When? Ebay charges their fees within the FVF that is charged when a buyer pays. Where is the other time that we pay a fee on sales tax? Please be specific.
THE REAL QUESTION WHY are some catagories taxed more than other catagories?
How much is charged for sales tax is driven by where the buyer is having the item delivered to. Sales tax is a STATE by STATE thing. Each state has their own rules. In some states some things in certain categories have a higher sales tax bracket and in other categories there may not be any sales tax on them. It simply depends on the laws of the state in which the buyer is having the item delivered to.
Taxes should be taxed at ONE rate for everyone the SAME rate.
That is not a bad idea at all. Take away the ability for each state to set their sales tax rates as the current laws are set and in its place implement a Federal sales tax rate to be the same for all. This has been proposed many times over the last 50+ years that I know about. It never gets very much traction. Likely because states don't like their power taken away.
eBay says it is too difficult to compute one Rate.
I don't know where you are getting that. It simply isn't logical nor does it make sense. There has to be more to it if Ebay actually said anything even remotely close to that.
I think greed is a reality, you have to live with.
If you think your state is charging too much in sales tax, then you need to take it up with your state. Ebay has zero control over that. Ebay doesn't keep any of the sales tax collected, that is processed on to the appropriate state.
I lose more than 21% in the DVD and Books categories,
That simply isn't possible. You don't pay sales tax, the buyer does. The seller pays a FVF on sales tax, but nothing more pertaining to sales tax. So your 21% must represent something else.
It has become murder when I only make 10% and eBay grabs 21% and that is at a 2% rate to help promote within the largest categories.
Ebay does not charge 21% FVFs in books. They charge 14.95% if you don't have a store. It is less if you have a store. As to the Promoted rate, you select how much in additional FVFs you are willing to pay for a sale, so if it is too much of a burden, then simply don't use the tool.
I understand that in saturated categories like you sell in, PL can be very important. It isn't likely however that 2% is doing much for you. However if it makes you feel better, it could very well be worth it.
...the only way to stop the bleeding is to Unionize and I can't imagine what eBay would do if there was a SELLER's UNION.
Now how in the world would be be able to do that as sellers??? None of us are Ebay employees !!! A requirement for form an employee union.
As to your profit margin. I see you have some items you sell with free shipping. Did you remember to increase the pricing due to the recent USPS price increase?
I see on others that you state the shipping price separately you aren't charging enough to even cover your cost of shipping much less the fees associated with the shipping charge to your buyers.
Not making these changes will quickly eat into your previously stated small profit margin and Ebay is not at fault for that in any way. Remember you are allowed to add a reasonable Handling charge to cover fees and shipping supplies.
@timeforfun23 wrote:I changed all of my listings to the dynamic % to boost my sales and it did seem to make a difference. Not as much as I had hoped, but sales did increase. The problem I have is that everything I have read on the promoted listings feature in eBay states the percentage is based off the final sale amount all in with shipping and tax, which, of course I don’t agree with the shipping and tax piece, but regardless, upon checking those sales, the fees appear to be calculated based on my list price not what it finally sold the item for so I am losing money on almost every sale once I give a discount. Just so much shadiness going on it makes it impossible to be a seller these days on any platform.
This is where it pays to read the policy until you fully understand it. Ebay doesn't hide any info regarding how the various Promoted Listing tools work, but sellers do have to read them and make sure they understand them BEFORE agreeing to use them.
To call Ebay shady is really unfair when it was you that didn't learn what you should have BEFORE using the tool.
I'm sorry you got disappointed in the program. It works well for some and not so much for others. But you should learn everything you can about ANY tools Ebay offers before you use them, especially if they affect the amount you pay in fees. Assuming you know is what will cause your current feelings towards Ebay and that is not fair, you have to do your home work.
