Final Value Fee calculations.

[rusticnook1]

Oct 24 2020.  I need assistance calculating FV fees on a sale.  Based on the 10% FV on the final sale cost plus shipping, I am never able to get the same calculation Ebay does.   They say it does not calculate FV on sales tax, but it appears that way. 

Here is an Example;    On Oct 22, A buyer purchased and paid  $7.50 for an item, and paid  $3.50 for shipping.  I calculated the FV based on $11.00 at 10% and arrived at $1.10.    Ebay calculation calculates at $1.23.

Here is the kicker!   Sales tax was .91 cents.   If I add in the sales tax and re calculate at 10%, it comes to $1.19.  Of course sales tax is not used in FV calculations, so, is anyone able to tell me where the extra .13 cents comes  from in Ebay's calculations? 

This may appear like a silly question but for much larger sales, the same thing occurs but on larger amounts.  If it is a valid calculation, than It should be indicated somewhere for us to see. 

Richard 

[nobody*s_perfect]

https://www.ebay.com/help/selling/selling-fees/store-fees?id=4809

According to the basic help page about fees for store subscribers who are in managed payments, they do charge FVF on sales tax:

We charge one final value fee when your item sells, and you don't have to worry about third-party payment processing fees. This fee is calculated as a percentage of the total amount of the sale, plus $0.30 per order.

The total amount of the sale is the entire amount the buyer pays, including any handling charges, the shipping service the buyer selects, sales tax, and any other applicable fees. 

[mam98031]

You are in MP now, so the FVF is calculated on the entire sales amount to include sales tax.

[eunster1313]

Store selling fees for managed payments sellers

https://www.ebay.com/help/selling/fees-credits-invoices/store-selling-fees-managed-payments-sellers?... 

[reallynicestamps]

Some categories are charged more than 10% FVF.

Some sellers pay less because they have TRS standing  or Stores or are selling in subsidized categories.
Although 10% is the FVF on shipping, if the seller offers Free Shipping , she will pay the same FVF for the shipping costs that she includes in her asking price. (Which might be more or less than 10% as noted.)

But there is a difference between eBay fees and Paypal fees.

When if comes to Paypal, sales to buyers with accounts in your own country will be charged 30c plus 2.9%.

But this is applied to the WHOLE payment, including the internet sales taxes charged to the buyer on her invoice, but never touched by the seller.

Overseas buyers are another question.

The PP fee rises to 4.4% for non-US buyers.

Here's a kicker- if the buyer is overseas but uses a freight forwarder* based in a state that charges internet sales tax, the fee on the INS will also be 4.4%.

* In spite of this freight forwarders are the second most secure addresses you can ship to, just behind postal mail boxes and well ahead of street addresses which are vulnerable to porch pirates and other scams,

[rusticnook1]

Thank you! 

I do see where I should have calculated using 12.35%.  However, using the scenario above at $11.00 and adding .91 sales tax, my calculation comes to $1.47.  The fee charged was $1.53.  Thus a difference of .06 cents.  

The difficulty is not seeing the actual charges per specific amounts in the reporting we receive.

Using your information, I  just calculated another sale from today (see order #)  This time my calculations were higher than Ebay's by  .7cents

Sale of $12.60 +Shipping paid of $5.10 + Sales Tax of $1.08= $18.78   x .1235 = $2.31.  Ebay fee was $2.24

Order number 02-05950-25850    

Richard W

[mam98031]

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@rusticnook1 wrote:

Thank you! 

I do see where I should have calculated using 12.35%.  However, using the scenario above at $11.00 and adding .91 sales tax, my calculation comes to $1.47.  The fee charged was $1.53.  Thus a difference of .06 cents.  

The difficulty is not seeing the actual charges per specific amounts in the reporting we receive.

Using your information, I  just calculated another sale from today (see order #)  This time my calculations were higher than Ebay's by  .7cents

Sale of $12.60 +Shipping paid of $5.10 + Sales Tax of $1.08= $18.78   x .1235 = $2.31.  Ebay fee was $2.24

Order number 02-05950-25850    

Richard W

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18.78 x .1235 = 2.32 + .30 transaction fee = 2.62 total fee.

Go to your Seller Hub, hover over the Payment Tab, select All Transactions.  You will see exactly what was paid to Mp for the transaction.