Odd Math

[ganymede_dragon]

I just sold an item for $502.  after shipping and sales tax, the item came to $562.67.  eBay takes 12.9% of this number ($72.58) and subtracts it from $516, or the amount of the item plus shipping.  If eBay's 12.9% is based on $562.67, why isn't that 12.9% taken from $562.67?  

[inhawaii]

Ebay's 12.9% is taken from the TOTAL:  item price + shipping + sales tax

So in your scenario ebay's  12.9% fee should come from $562.67.

[ebooksdiva]

Yes it's very simple math

Your buyer paid $502.00 for the item $14.00 for shipping Plus Tax

 Ebay charges you Final Value Fee based on Purchase price PLUS Shipping PLUS tax

12.9 % of the TOTAL SALE plus 30 cents 

Selling fees | eBay

[fern*wood]

That figure should reflect the deduction of the sales tax which has to be accounted for also. 

[lacemaker3]

@ganymede_dragon,

I think you're confused because of the sales tax, which is included in the buyer's payment and then also included in the deductions because eBay sends it to the buyer's state. So the sales tax has to be subtracted from the total payment as well as the eBay fees (and shipping label, if you pay for it from available funds). Here's how the fees are calculated for that sale:

BUYER'S PAYMENT:		Amount:	Calculated on:  (comments)
purchase price		$    502.00
shipping cost		$      14.00	(cost from Terapeak)
subtotal		$    516.00
sales tax	9.0%	$      46.67	subtotal  (at buyer's rate)
total payment		$    562.67
FEES & DEDUCTIONS:
variable final value fee	12.9%	$      72.58	total payment
fixed final value fee	$      0.30	$        0.30
total eBay fees		$      72.88
sales tax		$      46.67	(sent to buyer's state)
shipping label		$             -	(if purchased with available funds)
total deductions		$    119.55	(total eBay fees + sales tax + shipping label)
PAYOUT:
payout sent		$    443.12	(total payment - total deductions)

[ganymede_dragon]

Right.  I understand how eBay comes up with $72.58.  What i don't get is why that $72.58 isn't subtracted from $562.67.  

[lacemaker3]

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@ganymede_dragon wrote:

Right.  I understand how eBay comes up with $72.58.  What i don't get is why that $72.58 isn't subtracted from $562.67.  

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The $72.88 eBay fees are subtracted from the total payment $562.67. But, so is the sales tax, which eBay has to send to the buyer's state. The seller can't keep the buyer's sales tax.

[monica-sells]

In theory it is subtracted from the total sale of 562.67. 

But the Sales Tax of 46.47 is also subtracted from that TOTAL SALE of 562.67 and forwarded to the buyers stae of residence.

[fern*wood]

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@ganymede_dragon wrote:

Right.  I understand how eBay comes up with $72.58.  What i don't get is why that $72.58 isn't subtracted from $562.67.  

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Doesn't matter, because after you subtract the sales tax, the end result is the same.   Try it and see.

[ganymede_dragon]

Understood.  Thank you.  

[ganymede_dragon]

ok.  thank you!

[ganymede_dragon]

Oh, ok.  Thanks!

[ganymede_dragon]

Awesome break-down.  Thank you!  I was befuddled by the tax, yes.  

[ganymede_dragon]

Thank you!