eBay

4everctr · ‎06-21-2018

The new sales tax on all of our items will hurt us big time. It increases the price of the item and we get to pay Paypal fees on the sales tax portion. We might also have to pay ebay fees on the sales tax portion. Time to sell locally!

papermoneyforme · ‎06-21-2018

@livadia wrote:
@4everctr wrote:
The new sales tax on all of our items will hurt us big time. It increases the price of the item...
@4everctr, not trying to play devil's advocate here, but another site I also sell on has been collecting sales taxes for purchases by consumers located in WA and PA as a result of new laws that impose an Internet Sales Tax on all purchases made via marketplace sites (like Amazon, Etsy, etc) by any consumer located in those respective states since the first of this year.

I have a few friends and customers in both of those places, so I have asked what they think of having to pay sales tax on Internet purchases and if it had affected their buying habits. The answer was almost unanimously "no." The reason most often cited was: "If I buy something locally, I pay sales tax. I'm used having to pay it so I never give it a second thought."

My guess is that type of response will be pretty typical. If I have any concerns about how today's SCOTUS ruling will effect those who sell on Internet marketplace sites like eBay, it has to do with how the taxes will collected/remitted.

If eBay follows Etsy's and Amazon's lead, then it's no big deal -- the marketplace/platform does all the work. If eBay shoves that responsibility off on individual sellers, I agree -- it will be a nightmare.

However, a lot will depend on how any subsequent laws are written. If they're written like the one in Washington, it states that online *marketplaces* (not individual sellers) are responsible for collecting/submitting the applicable sales tax.

For the sake of small sellers selling here, let's hope that's how things will go...

If and when Ebay has to look after this, be prepared for an increase in Ebay fees!

dr.clockenstien · ‎06-21-2018

tyler@ebay wrote:
@4everctr wrote:
The new sales tax on all of our items will hurt us big time. It increases the price of the item and we get to pay Paypal fees on the sales tax portion. We might also have to pay ebay fees on the sales tax portion. Time to sell locally!
Hi @4everctr - we have a statement about today's decision here.

The Court’s decision is focused on large retailers who engage in a significant quantity of business in a state, and the retailers involved in the case are large, national companies. In other words, it remains to be seen what today’s ruling may mean for small businesses.

As a next step, we are calling on Congress to step in and provide clear tax rules, with a strong small business exemption, to help small businesses take advantage of the Internet to grow and create local jobs.

We expect to have more information and will provide updates as the legal landscape from this becomes clearer. Thanks!

tyler@ebay

Okay,

But that still does not clarify the potential to charge more fees to small sellers to process taxes, even if the seller is not required to pay in to taxes.

ebay is a large national company, and in fact will pay taxes.

I'm pretty sure that this will just be passed on to the sellers, and with all of the other ridiculous fees and requirements, ebay should have to pay out of their own pocket instead of wringing more money out of the users of the site.

"As a next step, we are calling on Congress to step in and provide clear tax rules, with a strong small business exemption, to help small businesses take advantage of the Internet to grow and create local jobs. "

Many, if not most of the sellers are not interested, or able to hire employees.

If they in fact did, at least their employees would do their jobs unlike seller platforms for example.

ekmadonna · ‎06-21-2018

careful there, 6 months ago I received an OFFICIAL warning Privately about using the same "other" venue you just did! Said I was trying to steer others somewhere else or something absurd like that. All I did was mention other venues I sell on. and it was CRYPTIC!

livadia · ‎06-21-2018

@the*dog*ate*my*tablecloth wrote:

I didn't get the impression from my cursory read of Etsy sales tax in WA State that the sellers were paying higher fees because of the taxes.

@the*dog*ate*my*tablecloth

Well maybe, maybe not. The sales tax collection thing started in January. Last week, Etsy announced they increasing FVFs from 3.5% to 5% starting in July AND the fees will also be calculated on sales AND shipping. (Previously, Etsy sellers only played FVFs on the sale price of the item only.)

Of course, there was no mention of the fee increase being connected to the added burden of Etsy handling sales tax collection tasks for WA and PA sales, but I don't think it's outside the realm of possibility that added "service" was part of the reason for the hike.

dtexley3 · ‎06-21-2018

@livadia wrote:
@the*dog*ate*my*tablecloth wrote:

I didn't get the impression from my cursory read of Etsy sales tax in WA State that the sellers were paying higher fees because of the taxes.

@the*dog*ate*my*tablecloth

Well maybe, maybe not. The sales tax collection thing started in January. Last week, Etsy announced they increasing FVFs from 3.5% to 5% starting in July AND the fees will also be calculated on sales AND shipping. (Previously, Etsy sellers only played FVFs on the sale price of the item only.)

Of course, there was no mention of the fee increase being connected to the added burden of Etsy handling sales tax collection tasks for WA and PA sales, but I don't think it's outside the realm of possibility that added "service" was part of the reason for the hike.

Etsy BUYERS pay the WA and PA tax. It's transparent to the seller because the site adds it to the transaction and routes it away during the payment process. The seller doesn't have to calculate, handle, track or submit the sales tax, the site does. The buyer is charged the extra amount and the seller isn't involved. Etsy DOES NOT pay the tax out of their own pocket, but they do likely incur a higher cost of business to handle the sales tax piece.

Member of the Grumpy Old Man crew

donad_ki · ‎06-21-2018

Not sure if it's possible but can you make the settings to exclude certain states like we do with countries?

Also, when you go to congress, tell them the UPU shipping subsidy china India ect get, is killing American small business. It's a unfair trade practice.

Thank you

sell4fun201199 · ‎11-09-2019

isn't the paypal fee $2.99 per $100, not 30cents?

green1eng · ‎11-12-2019

Wow, can't believe some sellers don't know paypal is .30 PLUS 2.9%.

Also I don't think Ebay charges the 10% FVF on sales tax they collect but seller DEFINITELY pays the extra 2.9% on top of their sale price without tax on the tax collected.

I think it's obscene that Ebay charges 10% on their "discounted" shipping costs. So much for the discount after they add 10%! They KNOW how much we pay for shipping that they sell us, yet still tack on the 10%.

Now Ebay is collecting tax, but SELLER gets to pay an extra 2.9% that is not refunded. It doesn't about to much but we're being nickel and dimed to death, with ever increasing ebay, paypal and shipping costs.

It's definitely a different world than when I started on Ebay!!! Meanwhile Chinese sellers continue to enjoy nearly free shipping courtesy of US GOVT POLICY. Naturally our USPS costs keep increasing to pay for their nearly free shipping. Free for them but we get to bend over and take it whether we like it or not. So much for MAGA!!!

Honestly don't know why I keep selling on Ebay. It's a pretty stupid waste of time and money for me but enriches Ebay, PayPal, and USPS greatly.

kh-vince · ‎11-13-2019

Hi everyone,

Due to the length of time that has passed since this thread began, we have locked it from future replies. If this is still an issue that warrants discussion, don't hesitate to begin a new thread here.

Thanks.