Ebay fees not making sense?

[corya1984]

Ok. I understand ebay final value fees and getting their fee total from the entire anount after tax. What i don't understand is why they deduct the fees from the sold price and not the total value of the sale. It's like they get to have it both ways. I sold am item for $325. Buyer paid 345.48. Ebay charges me 13.25%  And a .40 transaction fee. $46.18 total. If they are going to fee me from the amount after tax then why do they subtract the fees from the sold amount before taxes  and not the final value after tax, 345.48?

[slippinjimmy]

check your calculator.......

345.48 x .1325 +.40 = 46.18

[mybigsale]

 @corya1984 

f they are going to fee me from the amount after tax then why do they subtract the fees from the sold amount before taxes  and not the final value after tax, 345.48?

Because while eBay throws in the taxes to calculate your fee, none of that money is actually collected by you or distributed by you (or credited to you). Your actual share of the money before fees is the item cost and the shipping fees (or item cost with free shipping). So your fees need to be paid with the before tax amount. 

[corya1984]

Yes. Those are the exact amounts itemized in my transaction info. It still does not answer my question as to why they calculate my fees based on the amount after tax but don't deduct the fees from the amount after tax. Neither I nor ebay sees the tax money. So if they are going to calculate my fees based on the amount after tax then why not subtract the fees from the amount after tax?  Why should I receive $278.82 and not 299.30? It's only fair if  ebay fees me based on amount after tax ebay should subtract my fees from the amount after tax.

[buyselljack2016]

$325

  - 46.18

 =  ??.??

[corya1984]

Thanks everyone, This wasn't about the math. I understand the math. I just didn't understand why they fee the amount after tax but don't subtract fees from the amount after tax.  I suppose this is just my " welcome to ebay" moment. I get it. It just seems unfair. Ebay gets to take advantage and benefit ftom the amount after tax but I don't. Got it. I'll be sure to pad ebay's after tax taxation into my prices going forward.  Thank you for your replies.

[wastingtime101]

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@corya1984 wrote:

Ok. I understand ebay final value fees and getting their fee total from the entire anount after tax. What i don't understand is why they deduct the fees from the sold price and not the total value of the sale. It's like they get to have it both ways. I sold am item for $325. Buyer paid 345.48. Ebay charges me 13.25%  And a .40 transaction fee. $46.18 total. If they are going to fee me from the amount after tax then why do they subtract the fees from the sold amount before taxes  and not the final value after tax, 345.48?

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Why do you think it would make a difference?

Let's look at this, I'll use some dummy numbers for an example.

Item is $100, tax is $7 and shipping is $15

Buyer paid total $122.00

eBay takes 13.25% + $0.40 in fees on $122 =  $16.17

What's the difference between:

$122 - $7 tax sent to buyer's state = $115

$115 - $16.17 fees = $98.83 payout to seller

Versus:

$122 - $16.17 fees = $105.83

$105.83 - $7 tax sent to buyer's state = $98.83 payout to seller

I don't see a difference @corya1984 .

[mybigsale]

@corya1984 

Why should I receive $278.82 and not 299.30? It's only fair if  ebay fees me based on amount after tax ebay should subtract my fees from the amount after tax.

Seller fees on state tax is not a policy I agree on. However, the problem doing it your way is now eBay would be giving you all the State Tax. If you let eBay take the State Tax back out and send it to the state you will be where you started with the before tax amount minus fees.

[slippinjimmy]

345.48 Buyer total payment

-46.18 eBay Fees

-20.18 Sales Tax sent by eBay to the buyers State Treasury

-------

278.82 eBay Payout to you (less any shipping labels you might purchase on eBay)

[corya1984]

If the item costs $122 they pay a .0825% sales tax equaling  $10.06. Total is 132.06 ebay takes 13.25% on amount after tax equaling $17.49 in fees. Ebay then subtracts the 17.49 in fees from $122 equaling 104.51. If ebay took the fees out from amount after tax 132.06- 17.49 it would equal 114.57 payout. Do you see what I'm getting at. They make a higher profit basing fees off total value but don't subtract fees from total value. Hence ebay benefiting from taxes and the seller does not.

[lacemaker3]

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@corya1984 wrote:

If the item costs $122 they pay a .0825% sales tax equaling  $10.06. Total is 132.06 ebay takes 13.25% on amount after tax equaling $17.49 in fees. Ebay then subtracts the 17.49 in fees from $122 equaling 104.51. If ebay took the fees out from amount after tax 132.06- 17.49 it would equal 114.57 payout. Do you see what I'm getting at. They make a higher profit basing fees off total value but don't subtract fees from total value. Hence ebay benefiting from taxes and the seller does not.

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In this example, if eBay gave you $114.57, that would mean that you received the sales tax that the buyer paid. You can't keep the sales tax.

eBay deducts both the fees and the sales tax from the total payment. They keep the fees, and send the sales tax to the buyer's state.

[buyselljack2016]

Yup, that is how it works.

You understand correctly.

It is what it is.

[reallynicestamps]

Your fees are based on the amount eBay processes.

Which is also the amount the BUYER paid.

However, that amount is disbursed to the shipping company and to the state tax agency.

You get the processed amount less the shipping label you bought and less the tax the buyer paid.

The buyer was charged $100

Plus shipping of $10

Plus taxes at 5% or $5

So they paid $115.

Your fees are $115x 13.5%=$15.52+40c= $15.92

The tax goes to the state. You never see it, because eBay sends that directly to the state. You don't have to. Nor do you have to for 49 other states (not counting various city and county sales taxes). And eBay also charges and processes taxes for 10 Canadian provinces and three Canadian territories, not to mention countries in Europe, Asia, Africa, and South America as applicable.

So that 13.5% is a service fee.

[inhawaii]

I thought the same thing.

There is no difference.

[corya1984]

I think my problem was that the last time I sold on ebay was 2016 before the internet tax went into effect. Ebay still has the same final value fee policy but uncle Sam has to take his cut now too.  It's not ebay's fault. I get it now. Thanks everyone!