Ebay calculation

[brewerkz]

Hi,

I am still struggling with following the money

Sales price     $50.00 (vintage bicycle part)

shipping             $6.25

taxes                    $3.94

total                    $60.19  (buyer pays)

ebay                      $.030 fee

ebay                      $7.55 fee 12.55% x 60.19

net                          $52.61 .....what I expected to receive from ebay

however received $48.40 to my bank account

what am I missing ? In the report I downloaded from ebay, I don't see the ebay charges layed out and payment to my bank account in the  spreadsheet, which would help.

[mtgraves7984]

Did you possibly buy a $4.21 shipping label from your Pending payout?

[caldreamer]

EBAY holds back $6.25 shipping (this money is held for you) so when you print label you will have "pending funds" available to print label. 

[dirk12955]

Are you expecting to receive the sales tax $$$

eBay gets that and forwards it to the state.     

[fern*wood · Accepted solution]

The sales tax won't go to you.

[dhbookds]

Sales price $50.00 (vintage bicycle part)

shipping $6.25

taxes $3.94

total $60.19 (buyer pays)

- 3.94  (sent immediately to the state.

56.25 Total 

ebay $.030 fee

ebay $7.55 fee 12.55% x 60.19

net $52.61 .....what I expected to receive from ebay

however received $48.40 to my bank account

[shopposh45]

Hi, I think it may be the tax...

Total: 60.19

Less fees (7.55 + .30) = 7.85

Net before tax: 52.34 

Then I think the tax comes out of the 52.34 (52.34 - 3.94) = 48.40

I'm not 100% certain if this is correct, but just my guess. 

Have a good day!

[gracieallen01]

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@shopposh45 wrote:

Hi, I think it may be the tax...

Total: 60.19

Less fees (7.55 + .30) = 7.85

Net before tax: 52.34 

Then I think the tax comes out of the 52.34 (52.34 - 3.94) = 48.40

I'm not 100% certain if this is correct, but just my guess. 

Have a good day!

---

But, wouldn't that mean that, like free shipping, a seller should roll the tax into the price of the item or end up paying the tax for the buyer's state - coming out of the net?

[gatefold]

Sales price     $50.00 (vintage bicycle part)

shipping             $6.25

taxes                    $3.94

total                    $60.19  (buyer pays)

ebay                      $.030 fee

ebay                      $7.55 fee 12.55% x 60.19

net                          $52.61 .....what I expected to receive from ebay

SHOULD READ LIKE THIS:

Total Buyer Paid-60.19

Total Net to Seller-56.25 (60.19 (-) Tax collected 3.94 = 56.25)

Fees (12.55 X Total) + .30 = 7.85 

56.25-7.85 magically equals the correct amount of 48.40

[nobody*s_perfect]

You receive buyer's payment, minus sales tax minus eBay fees:

$60.19 - 7.85 - 3.94 = $48.40

[drvsway2fast]

You did not take out the actual shipping you paid to ship the item.

[nobody*s_perfect]

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@gracieallen01 wrote: ... But, wouldn't that mean that, like free shipping, a seller should roll the tax into the price of the item or end up paying the tax for the buyer's state - coming out of the net?

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No.  eBay charges the tax based on the selling price (and what the buyer paid for shipping and handling, depending on the state). So the seller can't roll it into selling price or into shipping and handling, because eBay will just add it on top of that anyway.

[gracieallen01]

@nobody*s_perfect 

So, the seller is technically paying the state tax for the buyer and the buyer is just paying the 'retail' price, rather than the buyer declaring it on their state/income tax.  It isn't like going into a store and buying something for retail and paying the added amount (tax) that the seller declares to the state? 

Hmmm, glad I retired when I did.

[dhbookds]

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@drvsway2fast wrote:

You did not take out the actual shipping you paid to ship the item.

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Seller receives the $48.40 into his ebay account..........the actual shipping is deducted from that.  The Original Poster was questioning how the $48.40 was arrived at and did not state the actual shipping cost, so I did not consider it. 

[dq3141]

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@gracieallen01 wrote:

@nobody*s_perfect 

So, the seller is technically paying the state tax for the buyer and the buyer is just paying the 'retail' price, rather than the buyer declaring it on their state/income tax.  It isn't like going into a store and buying something for retail and paying the added amount (tax) that the seller declares to the state? 

Hmmm, glad I retired when I did.

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You’re overthinking this. eBay collects the appropriate tax from the buyer, and sends it to the buyer’s state. How does that equate to seller paying the sales tax for the buyer?