Fees on Tax

[mystery_spot]

Adding Tax before calculating the final value fee seems to be a scam business practice

[pargran3]

No. It isn't. See any one of the hundreds of threads already posted on this topic.

[dhbookds]

Part of the charge (fvf) is for handling the money........accepting it, doling it out to you and the state...... they shouldn't charge for that?

[ms.rodriguez*]

Is it a scam when you buy something online at Macys and use your American Express card to pay and Macy's gets stuck paying a fee on your sales tax and your shipping fee (assuming you live in NY where shipping is taxed) to American Express?  No.  It's always been done with credit cards.  The difference is that the ebay fee is higher than the credit card processers.     You need to sell your items to cover ALL of your fees.  Add 50 cents or dollar or whatever amount to either the starting price or the shipping price and you are set to go. 

This is a normal business practice and honestly, there have been many,many posts covering this.

[mystery_spot]

They would increase their sales if they got rid of that, who else can profit from sales tax like that ?

[joliztoyco]

Yes. It is. See any one of the hundreds of threads already posted on this topic.

[eburtonlab]

They would increase their sales if they got rid of that

You, too, could increase your sales by lowering your prices.

Much like you, eBay is interested in maximizing overall profits, not sales.

[stainlessenginecovers]

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@mystery_spot wrote:

They would increase their sales if they got rid of that, who else can profit from sales tax like that ?

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Did you read the post you replied to? All stores do it (pay a processor on the TOTAL at the register) and have for decades. 

[kensgiftshop]

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@mystery_spot wrote:

They would increase their sales if they got rid of that, who else can profit from sales tax like that ?

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How would it increase sales?

Most buyers don't know/care if we have to pay a fee on the sales tax collected.

Pay Pal, credit cards and other payment processors, it's nothing new.

[ebooksdiva]

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@mystery_spot wrote:

They would increase their sales if they got rid of that, who else can profit from sales tax like that ?

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eBay does not profit from collecting sales tax. If that is true show us all the proof behind your accusations.. The states collecting the taxes get the tax money. The payment processor charges a fee to collect the tax and remit it to the the states that require the tax. If you can’t understand how fees work, then maybe you should stick to selling your wares out of your garage. 

ETA What I don’t get, is how can you be a seller for all this time and just now notice the sales tax. 

[boilergeek]

I do not know how this is even LEGAL to charge commission on an item including TAX!!!!!    EBAY has gotten very hungry over the years.  This should be an illegal practice.

[joliztoyco]

Really?
Because I bought several items from "Macys" for Christmas presents. Paid for the items and sales tax when I checked out.
And they sure as heck didn't try and charge me a 12.9% "fee" for handling the sales tax they collected.
Only Ebay gets away with that crap.  
Tell us more......

[69heathery]

People use to list at low prices and really high shipping to avoid final fees.  Ebay now charges for the total due to this bad practice.

[doc-holmes]

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@joliztoyco wrote:

Really?
Because I bought several items from "Macys" for Christmas presents. Paid for the items and sales tax when I checked out.
And they sure as heck didn't try and charge me a 12.9% "fee" for handling the sales tax they collected.
Only Ebay gets away with that crap.  
Tell us more......

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No, but if you paid by cc the card issuer sure charged Macy's a fee on the taxes you paid. Granted, it's far less than 12.9%, but they were charged something. YOU weren't charged because you were the purchaser, not the merchant. 

[monroe67]

"Adding Tax before calculating the final value fee seems to be a scam business practice"

Are you only now aware of this because your state

-- Missouri -- 

has only just this year, 2023, begun to require marketplace facilitators, like eBay, to calculate, collect, and submit sales taxes to Jefferson City ??

Haven't you sold things on eBay to buyers in states that decided years ago to participate in the LAWS that require marketplace facilitators to collect and send sales taxes to those states' taxing authorities?  Never sold anything to a buyer in Iowa or Oklahoma?  Illinois?  New York?  California?  Because when you did, eBay took/kept a percentage of the 6% sales tax paid by a buyer in Ames, Iowa, or the 10% sales tax paid by a buyer in Los Angeles, California. 

eBay does impose and collect final value fees from sellers.  Those final value fees have two components:  (1) A percentage, which varies from around 6% to around 15%, but is usually 12.9% and (2) 30 cents per order.  The percentage is calculated on the total amount paid by the buyer. 
Read it again:  The TOTAL AMOUNT Paid by the Buyer.  

Successful eBay sellers accept the fees that eBay imposes.  
Successful eBay sellers adjust the prices they ask for their products to allow for final value fees.