Ebay charging sellers fee's on taxes collected when is enough?

[karens-outlet]

I sold an item for $88.00 plus 10.65 shipping.

Ebay charged me Ebay fees on the $88.00, on the $10.65, plus they charged me fees on the sales tax the buyer paid of 6.16 plus there .30 cents. Total fees of $13.45

My question to all sellers, if your not aware of this scam by Ebay, look at the fee's they are taking.

Its bad enough we as sellers are paying actual shipping and Ebay takes there fees from shipping but now they are basically doing double taxation. Taxing the buyer sales tax and charging the seller for the sales tax by additional fees.

I hope some lawyer out there sees this. It seems very shady and greedy. Double taxation.

[chapeau-noir]

If you use their labels it does exceed eBay's cost because Mercari's labeling system is so wonky, they don't have media mail, etc.  But it's cheaper to sell there if you use your own labels, but one isn't covered by their protection program.  It's also a LOT slower there, at least for me.  So we're kinda paying for eBay being much bigger with wider reach.

[e-dollzone]

Found this out on the two sales I made since the first of the year.  Disgusting!!!  Florida does not charge sales tax to buyers who are out of state.   I'd like to see proof that they have forwarded the sales tax they collected from the buyer to Tallahassee.  Florida only charges sales tax when item is bought and shipped to a Florida address.     

[johnrj1226]

In response to this comment

"the store doesnt charge the buyer additional money because they collected the tax.

its just part of the sale."

every  credit  or debit card purchase at a B & M store the store is charged a processing fee on the total amount pa charger - include any  local, county or state sales tax by the money processor.  That cost  has to recovered in the price of the product some where.  Stores love cash sales same amount as a cc transaction but no MP  charges  = they make more - this is why you see a lower price at gas stations for cash sales.  Even at  most estate sales the add on an extra fee to cove MP costs on card purchases.  The store does  submitted sales taxes to the various authorities.   Most retail stores  live on small margins  grocery chain stores traditional average 3.5% profit.  Walmart used to make 6.5% - now they are down to the 3.5% range.  Stores like Aldi and Dollar Tree have cut into their sales profit margins over time.

[stainlessenginecovers]

@e-dollzone   Yes, Florida does not charge tax to an item shipping from Florida to Texas. Texas charges the tax, and ebay collects those tax dollars. 

So even if you live in Florida, and you sell to Ohio or California or any most other state, Ebay is required to charge, collect and remit those taxes.

[stainlessenginecovers]

Charging on the full amount a buyer pays is just the simplest way to set up a programming system. It averages to $1 fee for every $100 sold and if the USSC just allowed states to 'collect' from any entity shipping items into their states, every seller would be responsible for collecting and remitting reports and the Sales Tax $ up to 4 times a year x 45 states? Would be a bookkeeping and time consuming nightmare every 3 months. 

It's well worth the $1 per $100 to NOT have to deal with that. 

Ebay could just charge 15% or 20% of the item and lock in a shipping amount so sellers could not 'finagle' the shipping costs like they used to years ago (sell for $1 with $99 shipping cost to avoid seller fees). 

Overall would cost sellers even more using a higher percentage. 

[lepke1979]

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@e-dollzone wrote:

Found this out on the two sales I made since the first of the year.  Disgusting!!!  Florida does not charge sales tax to buyers who are out of state.   I'd like to see proof that they have forwarded the sales tax they collected from the buyer to Tallahassee.  Florida only charges sales tax when item is bought and shipped to a Florida address.     

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And if you were selling to someone off of eBay via your website or something. Then you can get away with that. But eBay has to collect sales tax for all states the item goes to if that state has sales tax. So if you were to sell something to me in California via eBay, I'd have to pay 8.75% sales tax.

Used to not be the case, but Amazon and eBay lost that battle over sales tax about a decade ago.

[janet9988]

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@karens-outlet wrote:

You all have missed the point. I have 3 sites on Ebay. I have sold on Ebay for over 25 years as a hobby of sorts.

My point has been missed. As a seller we are paying final fees on items sold, if we charge shipping we are being billed fees for shipping even if it was the actual amount , now they charge fees on taxes collected.

By the time one gets done we lose about 20% just to fee's while the fat cats at the top draw million dollar salarys off the sellers backs.

Im sorry but for me I think Ebay has gotten a bit greedy.  If you go to a brick and morter store and purchase item you pay the tax, the store doesnt charge the buyer additional money because they collected the tax.

its just part of the sale. 

this might seem like just a small amount but add it up over a year, see how much it comes to.

I can see from the comments you all just roll with it, dont question it just accept it.

I can not just accept without questioning. 

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A brick and mortar store  pays fees on the full payment the buyer pays.

INCLUDING SALES TAX)

The SELLER pays the fees.. The fees are built into the the price of the item.

JUST LIKE EBAY.

.

[this*old*attic]

@karens-outlet 

Here, I’ll make your day….

Hobby deductions when filing taxes were done away with under Trump.

The new 1099 reporting laws means you’ll be 1099’d by any money processors that moved a mere $600 for you. The IRS will know what funds passed through your hands.

***tiptoes quietly away***

[this*old*attic]

@windyman55 

I wish I could drum up the energy to point out what a DECADES OLD & TIRED RESPONSE that is, to an answer you don’t like. NOT. A. Drop. Of. Originality.

[fashunu4eeuh]

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@karens-outlet wrote:

Wow you must work for Ebay.

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A poster hasn't arrived until they’ve been accused of being an eBay mole.

[wildpitchsports]

Hasn't this been happening for years?

[johnrj1226]

Once upon a time and  long ago like in the 1970s American Express was  the only credit card company that charged a money processing fee to the merchants on any purchase of anything by a customer.  This why some merchants would not accept AX cards,  Visa, Master card joined in to keep up withe the Joneses.  Voila or por fin they finally accepted AX in  even in Mexico (traveled there on business  for 5 years in the late 80's/early 90's.).  Feel very confident that all the merchants increased their prices to cover this added cost of doing business.  On top of that you  had to pay off  your AX card charges each and every month - later AX  joined the the Visa, Master Card company by offered a line of standard  credit card where one could make monthly payments monthly  at a  very high interest rate and build up a lot of debt  if you weren't careful  or just foolish.

[johnrj1226]

Feel very strongly that if this was an illegal practice by eBay or any other on-line venue  some lawyer would have been all over it.  Plus any  large or small company say $200 -$300 million dollar a year company  probably has a  a legal counsel on staff that reviews every written policy, document that is implement or published before it is issued.   Companies I worked for certainly did.  Don't think your post on these eBay community boards will stimulate any one to take on the task not even the great -

[omgitlightsup]

The right time and people to have complained about this to was a year ago when your legislators lowered the threshold to $600, alas.

[downunder-61]

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@omgitlightsup wrote:

The right time and people to have complained about this to was a year ago when your legislators lowered the threshold to $600, alas.

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What does that have to do with Sales Tax?

@karens-outlet 

Thanks for the post Karen