FEES FEES FEES

[gigandbit]

I can get that anymore. Ebay it's not what use to be. Hear me out. I sold item for $895 in computer section. My state tax is 6% so apply that to $895 comes to $948.70. 

Now taking out 12.55% FROM TOTAL AMOUNT OF $948.70 we comes to 829.70

Buy I got only $775. 

Do I missing something?

[soh.maryl]

It doesn't really matter that you don't want to pay fees for state tax too.  

Do you think there's any seller here who wants to pay those?

When you sell on eBay, you have to follow eBay's rules.  Surely you know that. 

And you are aware that, when you list with free shipping, you, the seller, have presumably built the shipping cost into the price of the item, right? And that F/S means you use that money to pay for shipping? 

[dq3141]

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@gigandbit wrote:

Okay. It was 12.55%

It's in my fees description for that particular item. 

Okay if it's by state. Buyer from Michigan state and state tax in Michigan is 4.25%.

$895 item price + MI state tax 4.25%=$933

$933 after state tax applied - 12.55% ebay fees = $816

But not $775

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Why do you think you should get to keep the state tax paid by your buyer?

ebay takes the state tax and sends it to the buyer’s state so you don’t have to do it.

$816 - $38 state tax = $778, which is about what you received.

[jayjaspersgarage]

"I sold item January 2nd. So I don't know why even something about December. "

Is that even a question?

[dq3141]

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@gigandbit wrote:

I know all fees and rules. Don't want to pay fees for state tax too. Why it's so hard to get

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We don’t like it either. But your total fees are almost identical to what they were when eBay used PayPal.

[movieman630]

Do yourself a favor, don't drive yourself crazy over trying to figure out the fees.  Know the gross, net, tally up the total fees, shipping, etc. and pay your taxes.  Driving yourself nuts over every penny and expense only makes you crazy and when it's all said and done there's nothing you can do about it anyway.  So really all your doing is fighting a losing battle and assuming eBay is doing something wrong. 

Everything is automated, I know it's hard to trust the system but really trust the system.  If you were around about a decade ago there was a time when ebay audited their system and found some errors in calculations, they issued credits where due.  Bottom line is if you're doing enough in sales you shouldn't have time to go through ever transaction with a fine toothed comb hoping the system made an error and over charged you.  It's simple mathematics in programming. 

[luckythewinner]

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@gigandbit wrote:

I know all fees and rules. Don't want to pay fees for state tax too. 

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The rules are that you pay fees for state tax too. 

You are certainly allowed to not want to pay fees for state tax too.

But that will not change the fact that you will pay fees for state tax too.

[cordell1]

Do you really want to take the time and effort to collect and pay all the states that collect tax?  That percentage you pay on state tax is what you pay ebay to collect and pay all those states that charge tax.  Cheapest accountant I've ever had.  Talk about a pain if I had to submit tax to every state I sold an item.  I'm not unhappy that so many sellers don't understand this line of thinking and want to leave ebay.  I don't mind less competition.  I account for all the fees and the buyer pays them all and my margin remains in tact.  It's not that hard to figure out and nobody likes paying taxes but the tax man has always been around the corner collecting.

[m60driver]

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@jayjaspersgarage wrote:

I can't decide if this is why I don't sleep at night or if I keep coming back for the entertainment value.  I should have operated a school for on-line sellers over the past ten years.  It would be like selling shovels and gloves during the gold rush.

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It could be as lucrative as selling gold sniffing gophers to prospective miners as some Seattle merchants did during the Yukon Gold Rush.

[tmk_gifts_and_collectibles]

I am with you here. I feel like I’m lucky to get anything after the store fee, the final value fee, the additional .30 final value fee, and the promo ad fee (that I seem to need in order to sell anything these days.) I read in another thread a seller stated that the increase in final value fee was to cover the management of payments and equal to PayPal fees. They are incorrect. The .30 is supposed to cover the managed payments. Look at the explanation for the fee. And I don’t really know exactly what PayPal was getting, but it wasn’t as much for me. I also had access to the money the minute it was paid for. Now we are at the mercy of eBay. 

I also recommend to anyone not already doing so, check transactions everyday. I am in school full time and am a small eBay store. I haven’t had time to stay on top of the account. I admit I am way to trusting, and eBay used to be decent to the little guy. When I went into the transactions, I had an advanced ad fee on every item in my store, not just the items sold, but every item. I didn’t even have the average promo ad fee on most of my listings. EBay was taking more than I was bringing in. They tried to tell me that I signed up for these more advanced ads that you pay for as long as they are out there. I am barely getting by. I absolutely wouldn’t pay for ads, especially ones that you pay without selling the item. At first they offered me an apology credit of $20. I argued for hours. I only managed to get credit for the fees they hadn’t taken yet for a total of $50. 

Computer mistakes seem to be an issue for that and other issues, or at least that is what I am told. I was a Top Rated Seller, when they knocked me down to Above Average for late shipping. I ship the same day or next day. I ship through eBay, so the tracking and all is right there. They said it was a computer error, and they could remove the defect but not fix the level. They took the items off the list for late shipping, but the percentage is still there. This they have done multiple times. It makes a difference in the amount of sales. My sales went way down and I can’t sell enough to get back up. 

eBay used to be a place for individuals and small businesses to sell and be successful. It just isn’t anymore. I have to charge more to make anything. I even do free Priority shipping, but I can’t compete. I have to chop my prices just to sell and am at the point of just trying to get what I paid to put money back in my pocket.  I have heard the advice and comments from other sellers, but they are not small sellers but high quantity sellers. It’s not the same.

The fees are the icing on the cake. Maybe there is someone out there working on a new platform for the little guys. A girl can dream! Lol

Good Luck to All of the Sellers out there! 

[soh.maryl]

Perhaps you think you know all fees and rules.  But what you've posted here would indicate you may be missing a little knowledge.

The final value fee is charged on (1) the item price; (2) the shipping fee; (3) the state sales tax based on the buyer's delivery address.  

The buyer pays YOU for shipping.  YOU use that money to pay for shipping.  You don't keep that money.

Nor do you keep the state sales tax money.  

It does not really matter that you don't want to pay fees for state sales tax too.  

[luckythewinner]

Current eBay fees under Managed Payments 

12.55% of $948.70 plus 30 cents  = $119.66

You get $775.39

Old eBay fees + current PayPal fees: 

10% of $895 to eBay, 3.49% of $948.70 plus 30 cents to PayPal  = $122.90

You get $772.09

Old eBay fees + old PayPal fees: 

10% of $895 to eBay, 2.9% of $948.70 plus 30 cents to PayPal  = $117.31

For a short time you would have gotten $777.69, but PayPal raised their fees. 

You are more than $3 better off with Managed Payments than you would be if eBay still charged 10% and allowed PayPal. 

Feel free to correct me if my numbers are wrong. 

[firesteel_surplus]

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@jayjaspersgarage wrote:

I can't decide if this is why I don't sleep at night or if I keep coming back for the entertainment value.  I should have operated a school for on-line sellers over the past ten years.  It would be like selling shovels and gloves during the gold rush.

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Entertainment value for me....pure entertainment value. Some days I even bring popcorn to eat.

1099s and fees (on taxes and shipping....WHEN DID THEY START THAT???) are two of my favorite topics to pop up. Oh...and the classic Class Action Law Suits. I join every one. Just in case someone actually follows through. I want my $8.47 after lawyer fees.

What are yours favorite topics?

Oh...and I do try to help out when I can....even on my favorite topics.

Mike

Firesteel Surplus

[reallynicestamps]

My state tax is 6% so apply that to $895 comes to $948.70.

Sales taxes are paid by the Buyer not the seller.

And they are paid in the state the Buyer has the purchase shipped to.

Online sellers (not just eBay) are charged fees on payment processing of the entire payment, including taxes and shipping.

If the the sale was $895, sales tax (paid by buyer but processed through Managed Payments) was 5% or $44.75, shipping was $100, the buyer paid  $1039.75.

And the seller paid $130.88 in fees.

The seller received $764.51 , the buyer's state got $44.75, and the shipping company got $100.00.

[dq3141]

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@tmk_gifts_and_collectibles wrote:

I read in another thread a seller stated that the increase in final value fee was to cover the management of payments and equal to PayPal fees. They are incorrect. The .30 is supposed to cover the managed payments.

So you think your buyer's payment to you is being processed for 30 cents? When PayPal used to charge 30 cents PLUS 2.9% of the total payment? Wow.

Look at the explanation for the fee. And I don’t really know exactly what PayPal was getting, but it wasn’t as much for me.

Yes, it was. And why would you comment when you admit you didn't know what the fee was?

When I went into the transactions, I had an advanced ad fee on every item in my store, not just the items sold, but every item.

If you had that, it's because you added it.

 I am barely getting by.

You're barely getting by, but you didn't know what your fees were under PayPal, and you don't know what your fees are under Managed Payments, and you don't know what options you've chosen. Shouldn't you be paying closer attention to those important details?

I even do free Priority shipping, but I can’t compete. I have to chop my prices just to sell and am at the point of just trying to get what I paid to put money back in my pocket.

That's a business failure. You're either trying to sell the wrong things, or paying too much for your stock, or a combination of both. No one said you can list whatever you want here and make a profit.

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[soh.maryl]

Look on the bright side:  It seems to have been a long time since we've heard from one of the unfortunate motor vehicle purchasers who paid for their jet ski with eBay gift cards.