eBay

gothamcitytoys · ‎09-08-2022

I saw another thread where people were wondering why they were apparently being overcharged on FV fees. Turns out it's just a "technicality" . It's just that ebay seemed to find yet another way to improve their bottom line by passing this cost onto both buyers and sellers without skipping a beat.

For example: A sale of 349.92(350) is not the FV. The Final Value is the selling price PLUS SALES TAX and shipping.

So the FINAL VALUE FEE is 379.66(380). So I'm paying $48.98(49) and NOT $45.14

But the bottom line is that the buyer is willing to pay 380 total so is factoring in Sales Tax already.

So what used to be a ENDING SALE of 380.00 with a 49.00 fee netting me 331 is now a 350.00 sale (really a 380 cost to customer) with a 49.00 fee netting me 301!!

Ebay does not lose anything SELLERS assume all the cost.

I used to make 331 and now I make 301 for the exact same transaction and eBay loses NOTHING.....PRICELESS

lamber9347 · ‎09-08-2022

@gothamcitytoys wrote:
See answer above and folks if you're not an Ebay shill there is no need to come to the defense of a multibillion organization and if it doesn't apply to you then just pass it by.

Nope, sorry. You don't get to post in a public forum and then tell others not to post a response unless they agree with you....

dbfolks166mt · ‎09-08-2022

Yet another seller that does not understand or know how to calculate cost and revenue. Not defending eBay but the FVF's are being applied exactly like the published policy states you just forgot to read the details. As a note you are not "netting" $331 or $301. Your gross is $379.66 and your net is the gross minus: eBay fees, shipping cost, COGS, and other expenses. That will give you your pre tax net revenue.

gothamcitytoys · ‎11-02-2022

Obviously I'm referring to my net return after ebay's final value fee not factoring in my COGS etc. because my pretax revenue is not relevant to the topic. So yes technically it's not the complete picture of my net.

buyselljack2016 · ‎11-02-2022

After nearly 2 months we are back where we were 😊

When I run my #'s I see very little difference in the fees with eBay/MP vs. eBay/PP

Have to throw all the fruit in when making comparisons, or the salad is incomplete.

gothamcitytoys · ‎11-02-2022

I understand that they are certainly performimg a service by remitting tax revenue but a FV fee on half the sales tax might be more appropriate as it is certainly all automated anyway. And I'm sure ebay is given some massive compensation and tax incentives for remitting revenue in a more streamlined way than quarterly national sellers. I'm not blaming ebay for sales tax. But in certain categories, added sales tax is a serious consideration in spendable income as much as a commission at an auction, and it affects how much one is willing to bid, so sellers gross less.

gothamcitytoys · ‎11-02-2022

Who said anything about PP or MP?

It's pretty plain that 12.9% is the same as 10% + 2.9%

wastingtime101 · ‎11-02-2022

@gothamcitytoys wrote:
A sale of 349.92(350) is not the FV. The Final Value is the selling price PLUS SALES TAX and shipping.
So the FINAL VALUE FEE is 379.66(380). So I'm paying $48.98(49) and NOT $45.14
So what used to be a ENDING SALE of 380.00 with a 49.00 fee netting me 331 is now a 350.00 sale (really a 380 cost to customer) with a 49.00 fee netting me 301!!
I used to make 331 and now I make 301 for the exact same transaction and eBay loses NOTHING.....PRICELESS

I don't understand your math. $48.98 ($350 sale + $30 for shipping + tax = $380 sale) - $45.14 ($350 sale) = $3.84

How are you figuring your profit is decreased by $30? The fee difference when you include shipping and tax on the price is less than $4.

GLORIOUS!

Reminder: USPS rates change Sun Jan 18 / USPS closed Mon Jan 19

gothamcitytoys · ‎11-03-2022

My wording was awkward I suppose but what used to be a 380 sale is now a 350 sale because buyers are factoring sales tax in when bidding at least in my category of vintage collectibles. I know this probably has very little relevance in some categories. And eBay knew this would happen. So, eBay is levying a fee on a 380 sale but subtracting it from 350. You can't call it a Final Value fee if it has a tax added. That's a FINAL COST FEE maybe but in no way should that be allowed. They should add a monthly subscription fee for tax remittance based on volume. And yes the sales tax is a penalty. Because as a small seller unless I meet the threshold of basically 100K in any state (some less) I am not liable for it outside my own state.

soh.maryl · ‎11-03-2022

"The state sales tax is a penalty?" How do you figure? The state sales tax is charged, by law, in about 46 states. The funds go to the treasury of that state to fund various costs of the state like roads, education, legislature etc. You, the seller, do not pay the state sales tax on your sales, the buyer pays the state sales tax based on the percentage charged in his particular location.
When you buy those sox, motor oil and shampoo at WalMart, do you as the buyer, consider the state sales tax you pay on your purchase to be a "penalty"?

And could you please explain your statement about meeting a 100K threshold?

rosszonebricks · ‎11-03-2022

@gothamcitytoys wrote:
Because as a small seller unless I meet the threshold of basically 100K in any state (some less) I am not liable for it outside my own state.

eBay sales are in the Billions. You are but a small cog in their business. However, any logical reasoning doesn't have to answer this.

eBay is complying with the LAW. This was NOT their idea.

gothamcitytoys · ‎11-03-2022

"eBay is complying with the LAW. This was NOT their idea."

eBay INDIVIDUAL SELLERS sell billions. eBay is more a service provider than a vendor and increasingly operates like a bank.* And if eBay was complying with the law I would not have to provide sales tax on remote sales and would be given an exemption. It's an overreach of the law. And hardly a cog in anyone's business model, I am an autonomous entity who oversees an S Corporation which is also an autonomous entity.

*It's no coincidence it's starting to "vault" collectible items with the aim to treat them like currency exchanges.

gothamcitytoys · ‎11-03-2022

It's a penalty since it it negatively affects the bidding on certain used, collectible, antique items and demands that sellers adapt it even if they would be exempt based on their sales volume.

I am not Walmart or Home Depot.

gothamcitytoys · ‎11-03-2022

And could you please explain your statement about meeting a 100K threshold?

Almost any given state has a threshold of 100,000 (500K in Ca.) in sales that an OUT OF STATE vendor has to make IN THAT STATE in any given year before they have to collect or remit sales tax in that state. So if I sell online or by mail order to Ca. say (outside of eBay) I do not have to collect nor remit sales tax until I actually make 500,000 in sales in any calendar year just to California!

But since ebay's COLLECTIVE SELLERS certainly do I am somehow supposed to? That's punitive. I am not a collective called eBay but an individual business which sells on ebay as are you. It's actually a very overt way to eliminate any edge that small businesses hold over mega corporations which are no doubt in line with eBay on this because they have been forced to do so for years as they sell billions and would like to eliminate small businesses.