Final Fees Increase

[reb177]

If you read the Winter Seller Update newsletter, you hopefully noticed that eBay is raising most Final Fees from 12.9% to 13.25%.  That plus the addition of State Sales Tax is ballooning the cost of selling on eBay by upwards of 20%.  Sorry, but they are driving me away--it's too expensive!

[rosszonebricks]

Just imagine if they pass the 'national sales tax' of 30% what that'll do to fees eh?

[theteamsetguy]

@Anonymous ,

I would rather pay the 11.60% extra on the sales tax and not have to worry about filing it and remitting to the buyers state. On a $50.00 sale with $4.00 sales the fee is just 46 cents. Well worth it in my opinion to not have to deal with headache of having to file sales tax returns in every state I sell to which is every one. 

Even though I have to spend an extra $1200.00 in fees to eBay I still think it is a bargain to not have to keep track and remit all of the sales taxes my buyers paid last year. Make few mistakes on not filing properly and the fines would probably be close to the $1200.00.

[theteamsetguy]

@aprilmoviebuf2000 ,

Everything is going up. Just went to Subway today. Bought a Forrest ham, smoked turkey, and Italian BMT 12 inch subs without anything else the bill was $37.00. What ever happen to two 12 inch subs for $12.00 they used advertise?

Ordered a quarter pounder value meal with out upsizing was $10.79 the other day. 

My favorite dish at the local Chinese joint use to cost $13.95 before Covid now costs $19.95.

[buyselljack2016]

I can "bulk edit" all my listings to increase the asking price by .5 %. That should cover the change in fees with minimal effort on my part.

With 7 listings you could edit them one at a time in the sellers hub faster than I can bulk edit all of mine in one shot.

[theteamsetguy]

@argy_eyes ,

Correct, eBay’s sales skyrocketed during the pandemic and is now fallen back to what is before. Amazon has been laying off employees because they are going thru the same phenomenon. 

Many people including myself like to shop at brick and mortar stores. Retail sales at brick and mortar stores were way down during pandemic and are now back to pre pandemic levels. I bought stock in Simon Property Group the largest owner of grade A properties and outlet malls in the U.S. during the pandemic when everyone thought all malls were going the way of the dodo bird. Their occupancy and gross sales per square foot in their malls are back to pre pandemic or better in some cases. People only have so much money. If they spend it in the malls they aren’t going to spend it online.

[inhawaii]

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@theteamsetguy wrote:

@aprilmoviebuf2000 ,

Everything is going up. Just went to Subway today. Bought a Forrest ham, smoked turkey, and Italian BMT 12 inch subs without anything else the bill was $37.00. What ever happen to two 12 inch subs for $12.00 they used advertise?

---

Remember the "five dollar foot long"?   

That wasn't too long ago.

[theteamsetguy]

@inhawaii,

I know.

[dhbookds]

@ca_reibo 

we do not have to charge sales tax on items that are shipped out of state. (If shipped to our own state, we would have to charge sales tax, however.)

This is incorrect.........Most states require collection of sales tax in an online marketplace such as Ebay. 

[aprilmoviebuf2000]

---

@theteamsetguy wrote:

@aprilmoviebuf2000 ,

Everything is going up. Just went to Subway today. Bought a Forrest ham, smoked turkey, and Italian BMT 12 inch subs without anything else the bill was $37.00. What ever happen to two 12 inch subs for $12.00 they used advertise?

Ordered a quarter pounder value meal with out upsizing was $10.79 the other day. 

My favorite dish at the local Chinese joint use to cost $13.95 before Covid now costs $19.95.

---

It's insane.  Hubby and I just don't eat out anymore...haven't for at least 2 years.  I don't always blame the establishments though....when their costs go up, the consumer costs go up.  Nothing new there.  
Went grocery shopping today.  Eggs actually went down to $4 a dozen from $8 a few weeks ago.  Still high compared to a few yrs ago though, when eggs in my area were $1.29/doz average.  Now that $4 will be the price that probably sticks around here.  Just the way it is.  

[north40sales]

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@theteamsetguy wrote:

@Anonymous ,

I would rather pay the 11.60% extra on the sales tax and not have to worry about filing it and remitting to the buyers state. On a $50.00 sale with $4.00 sales the fee is just 46 cents. Well worth it in my opinion to not have to deal with headache of having to file sales tax returns in every state I sell to which is every one. 

Even though I have to spend an extra $1200.00 in fees to eBay I still think it is a bargain to not have to keep track and remit all of the sales taxes my buyers paid last year. Make few mistakes on not filing properly and the fines would probably be close to the $1200.00.

---

It's more than just the state sales tax....there are city and municipal tax areas as well as special tax areas that need separate calculations and remittances.  In all, there are over 400 separate taxing authorities in the United States. 

[ittybitnot]

This is incorrect.........Most states require collection of sales tax in an online marketplace such as Ebay. 

@dhbookds 

The Marketplace Facilitator laws require the venue to collect and remit.  Not everyone is a "marketplace" and falls under those regulations. 

[ittybitnot]

Remember the "five dollar foot long"?   

That wasn't too long ago.

@inhawaii 

You are correct.  I remember when everyone thought selling on Posh for 20% of the ITEM PRICE ONLY was wayyyy too expensive, too.  Now it is likely a bargain. 

[mam98031]

@reb177 

What state has a sales tax that is upwards of 20%?  Or are you talking about the FVF percentage we pay plus the percent of Sales tax  = about 20%.

Either statement would be incorrect.  Sellers DO NOT pay the sales tax.  Buyers and ONLY the buyers pay the sales tax.  We as sellers pay our FVF on the sales tax.

Which is no different than it was when we used PayPal as our money processor.  They too charged their fees on the entire amount of money they received to be processed for us.  Pretty normal stuff for money processors.

[soh.maryl]

Other than the fact that eBay's final value fee is charged on the TOTAL amount paid by the buyer to the seller, shipping cost is not related to the price of the item.  So, think about this, no matter what the price of the item is, and no matter what the shipping cost is, no matter what the state sales tax is, the PERCENTAGE  of the final value fee is the same, presently 12.9% in most categories.

If I list my item for $100, plus $10 shipping and the buyer's state sales tax is 10%, the buyer will pay me $121.  If I listed that item for $121, with free shipping and the buyer's state has no state sales tax, like Delaware or Oregon, the buyer will still pay me $121.  

Also, if I sell my diamond necklace for $500, the shipping from Ohio to California, for example, even with insurance, will be a whole lot less than the vintage Singer sewing machine that I sell to a buyer in Indiana for $50.

See what I mean? 

[soh.maryl]

Sorry -- no matter WHERE you ship, if it's to a state which has a state sales tax, eBay will charge the buyer the state sales tax for their location.  If you ship to Oregon, no state sales tax, or Delaware, and a couple of others, your buyer won't be charged a state sales tax.  If your own state has a state sales tax, your buyer in your state will be charged state sales tax.  eBay bases the state sales tax charge on the buyer's delivery location.