New Seller amazed at the fee structure on eBay...

[beto-ea]

I noticed that selling a DVD now is 14.5% and the shipping cost to me and the tax to the buyer is added to my gross and charged by eBay?!  

Can they actually be serious? I guess so...Visions of G. Bush senior with VOODO ECONOMICS..

I am getting charged for my paying the postage and the sales tax the buyer pays...

[dentalsales4u]

It's been this way for a while now.

I like it, the fee for selling, processing payment and paying each state it's tax, which I have NOOOO desire to do. I'm thankful eBay does this for us.

Final value fees

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 includes the item price, any handling charges, the shipping service the buyer selects, sales tax, and any other applicable fees.

[monica-sells]

Can they actually be serious?

10-4...if they were not so upfront about what the charges are I would agree with you.....

the total is (and has been for awhile) the number used for computing the final value fee....

[ardrighuiniall]

Postage is not taxable if it is USPS.  It is a federal service and sales tax exempt.  It is only taxable if you are collecting the stamps as a collectibles product instead of a service.  Our state is getting its tax on all internet sales now... for quite some time.  Who knows if eBay is actually remitting the tax to the states as they are supposed to.  Just wait for an audit lol.  The exorbitant eBay fee structure caused me to quit selling some time ago.  I have been an eBayer for 30 plus years.  I have more profit and less aggravation selling in antique malls.  Ironic since eBay is supposed to be economical and convenient... NOT!!

[monica-sells]

@ardrighuiniall 

eBay does not allow the sale of U.S. postage stamps except for collectible or replica...

Forever stamps cannot be sold (except by eligible sellers)

but you already knew that....right?

"...Who knows if eBay is actually remitting the tax to the states as they are supposed to..."

pretty serious accusation there

[hartungcards]

You're getting charged exactly what the User Agreement says you're supposed to be charged.  The shipping cost to you and the tax to the buyer are not being "added to your gross," they're part of the gross transaction, which is what processing fees are based on.  And if you're "getting charged for paying the postage," then you need to seriously rethink your cost structure, for both the item and whatever you're charging the buyer (if anything) for shipping.

[monroe67]

"Postage is not taxable if it is USPS."

Maybe.  Maybe not.  

Some of the 50 United States do consider postage as a taxable item.  Those states do tax USPS postage or other shipping (such as FedEx) when you buy an item that has to be delivered to you, from a catalog or Amazon or QVC or from a seller on eBay.  
Other states do not consider postage to be a taxable item.

The way you state with such certainty, "It is a federal service and sales tax exempt," suggests to me that you live in a state which does not tax postage.  So do I.  My closest relative, however, lives in a state which does tax postage.  I clicked on "View listings" under your name in the original post and didn't see any listings, so I don't know what state you live in.  

Many states do, in fact, charge sales tax on postage for purchases that have to be delivered to buyers' addresses within that state.  Texas, for example.  That's just one I know off the top of my head.    

[candwtaylor · Accepted solution]

I agree with you about the fee structure.  It is getting out of hand. If you get tricked into promoting an item, it can cost you nearly or over 25% in final selling fees.  

[dirk12955]

I'd rather know about the 25%  going in and make sales,

Than go find a site for a lower %  and make no sales.   

eBay is not for everybody or every kind of merchandise.    I've tried a few other selling sites to either save money 

or expand (Or both)  and failed terribly.

[slippinjimmy]

---

@candwtaylor wrote:

I agree with you about the fee structure.  It is getting out of hand. If you get tricked into promoting an item, it can cost you nearly or over 25% in final selling fees.  

---

How do you get "tricked" into using Promoted Listings? It's a choice a seller makes with the costs know UP FRONT and the choice of the rate made by the Seller!

[monroe67]

"I noticed that selling a DVD now is 14.5% . . . ."

Are you positive?  
You used the word "now" in that first sentence, so I assumed you were quoting the newly revised Final Value Fee (FVF) percentage for eBay sales of DVDs.  You know, the new percentages that went into effect one week ago, seven days ago, on February 15, 2023.  I don't sell in the DVD market, so I looked up those percentages.  

And you are mistaken about "14.5%."  

The FVF percentage for sales of DVDs pre-(before)-February 15, 2023, was 14.6%.  
eBay's fee increase of 0.35% (for some categories) went into effect on February 15, 2023. 
That was an increase of less than one-half of one percent.  
Therefore, the current FVF percentage for sales of DVDs is 14.95%.

It is very, very important to post true and accurate and up-to-date information on these pages.  Lots and lots of potential sellers may be looking at these boards, or even current sellers who might be venturing into the DVD market.  So many people seem afraid, somehow, to look at eBay's User Agreement which will tell them the official information from the horse's mouth, as it were, from eBay itself.  

[monica-sells]

"tricked"

explain how you were tricked

[ardrighuiniall]

You mis-read my post.  I responded to a seller who said their "final valuation fees" to "gross sales" charged by Ebay global shipping program included taxing their shipping costs (assuming some of these are US postage fees on this side of the pond).  My observation was that if this included United States Postal Service costs these are a Federal service and therefore tax exempt.  I own an Antique Mall and am well aware of the law regarding sales of US postage stamps.  The person posting implied they were being taxed for gross sales which already included taxes paid.  Ie., tax on taxes.  Their final line: "George Bush - Voodoo Economics."  Just observing that Uncle Sam would not be happy to hear that Ebay Global is taxing USPS postage costs.

[ardrighuiniall]

I (wrongly?) assumed this was a federal and not a state law since it regards a federal entity (USPS).  I have no experience in other states and defer to you.  In my case WA state treats any online purchase as having occurred within the state so even if the transaction occurrs out of state or abroad the law applies.  The exception are Oregon and Canada which our state allows tax free purchases when proper forms and id are provided.  As Ben Franklin said... "Death and Taxes..."

[ardrighuiniall]

When I started 30 years ago my fees worked out to around 10 percent.  When they started nearing 30 percent I gave up.  It is hard to pass savings on to customers that you are not getting from eBay.  Inflated postage costs were the straw that broke the camel's back for me.  I guess I am sounding like an old fuddy duddy. lol  We sold a 40 dollar item at our store this week and woefully under estimated the shipping which was 80 dollars... not expedited or first class mind you.  By using a smaller box we got it down to 40 dollars.  Now our only worry is breakage lol.  It seems crazy to me that an items value should double with shipping costs.  Enter Amazon Prime.