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Pay to Promote... We have to pay on tax and shipping fee TOO?

I couldn't believe my eyeballs when I contacted eBay today because I thought that my payouts were ridiculously low.

 

I've been paying to promote my listings because otherwise they get absolutely NO views.  My payouts have been ludicrously ridiculously low and I was trying to get to the root of it.

 

As it turns out, when we pay to promote our listings, even though we have no control over the tax base and whatever state it goes to or the shipping that somebody chooses, we have to pay a percentage on the tax or the shipping and not JUST the item being sold!

 

I had to ask the question multiple times in many different ways before it finally sunk in that eBay is really taking us for a ride with this promoted listing nonsense!  

 

WHY do we have to pay a percentage of the buyer's tax and whatever shipping they choose as a promoted listing fee???   Isn't the fee of the price of the item plus they're enormous selling fees enough for eBay?  That is complete insanity!  Yet eBay has been getting away with it.  

 

Am I the only one that feels this strongly about this?  When I pay to promote I have to sit around praying that the buyer chooses the cheapest shipping option and is in a cheap state for taxes otherwise I have to pay extra money just for the listing???? 

 

eBay has gone too far.  

 

 

 

Message 1 of 74
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73 REPLIES 73

Pay to Promote... We have to pay on tax and shipping fee TOO?

No, you are NOT the only one 'wondering' about this.

 

You are ALSO NOT the only one that doesn't 'simply' research what costs are PRIOR to listing items. 

 

This site could EASILY just charge you 20/25% of the 'selling fee' and be done- but this is a 'simplistic' way for them to do it (not to mention that 'processors have been charging on the amount the Buyer PAYS since credit cards were invented in the 1940's).

 

It's simply NOT hard.

 

FVF.jpg

Message 2 of 74
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Pay to Promote... We have to pay on tax and shipping fee TOO?

Oh my god, really?

Message 3 of 74
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Pay to Promote... We have to pay on tax and shipping fee TOO?

I know.  That's why I asked the question in so many different ways to the agent that I got today and it finally sunk in that we are paying a percentage on the buyer's tax as well as the shipping that they choose.  We have no control over which state we are selling to and whether or not they have a high tax base or not and I like to give the buyer the option to choose what shipping they want.  What, pray tell, what happened if they wanted overnight shipping???  Holy 💩

Message 4 of 74
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Pay to Promote... We have to pay on tax and shipping fee TOO?

I'm somebody that came back into eBay after several years of being idle.  My listings were getting absolutely no views whatsoever and I couldn't figure out why.  I tested by listing things that ridiculously low prices and then ridiculously high prices to see if anybody would view them and I figured out that the only way to get views was to pay to promote.

 

When I did that I found that my payouts are ridiculously low!  I'm not even breaking even and I'm selling my own stuff!  I'm not a reseller.

 

 

Message 5 of 74
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Pay to Promote... We have to pay on tax and shipping fee TOO?

It sinks in much faster if you read the selling fees yourself, rather than talking to an agent.

Message 6 of 74
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Pay to Promote... We have to pay on tax and shipping fee TOO?

I have to plead ignorance as I never dreamed in a million years that a company would even attempt to get away with something so egregious.  I never even thought of such a thing!  Taxes and shipping fees being commissioned to eBay?  

 

Sorry but what the heck?  OMG 

Message 7 of 74
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Pay to Promote... We have to pay on tax and shipping fee TOO?

This is how every payment processor since Diner's Club in the 1940s assesses fees.
The assessment is on the ENTIRE payment not on this bit or that bit or the part over there.

Your selling price was $100? And you charged $10 shipping? And the buyer (not you) paid 5% on the purchase in sales taxes?

Then eBay charges you 13.5% on the $115 payment.

KISS.

For this eBay provides advertising around the world 24/7, discounted shipping labels, and processes the sales taxes for more than 50 different tax regimes in the US alone.

 

We paid based on the entire customer payment since we got our first merchant credit card account with Moneris back in the late 70s /early 80s.  Including at first Ontario sales tax, and later the federal sales tax, which we had to process ourselves and pay monthly.

 

https://go.moneris.com/choosemonerisgo?utm_medium=cpc&utm_source=google&utm_id=Mar-23-106-1683656197...

Message 8 of 74
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Pay to Promote... We have to pay on tax and shipping fee TOO?

So I take it you're fine with that.  It doesn't matter if your shipping to high tax state or a low tax state or your buyer chooses overnight shipping or snail mail.  You'll gladly take the hit?

 

Interesting 

Message 9 of 74
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Pay to Promote... We have to pay on tax and shipping fee TOO?

Nobody is taking any "hits" here.  This is how payment processing works across the board.

Message 10 of 74
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Pay to Promote... We have to pay on tax and shipping fee TOO?

When promoted listings came out, maybe 5 years ago, it was based only on the items price. But eBay decided to turn sellers into their best customers and July 1, 2022 they started "re-calculating" how they figure PL's on the total sale price(same as final value fees). They continue to invent new ways to squeeze sellers for more of their profit margin to where there is none left.

Message 11 of 74
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Pay to Promote... We have to pay on tax and shipping fee TOO?

I don't think any one will "gladly take the hits". It is just an acceptance of the fee structure on ebay. The alternative is to use a different selling platform. I do not want to pull-up-stakes here to start over somewhere else. I also do not use promoted listings.

Message 12 of 74
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Pay to Promote... We have to pay on tax and shipping fee TOO?

You should not be set up in any way that a buyer can choose overnight shipping and you eat it. You either charge for shipping or build it into the price. You select the shipping service that the buyer will get if they purchase your item. Of course, you can offer upgrades if they want to pay.

 

Unfortunately, many on this community forum and eBay think that their practices and policies are "industry standard". They fail to realize how it sends buyers and sellers running as fast as they can from eBay.

Message 13 of 74
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Pay to Promote... We have to pay on tax and shipping fee TOO?

There is no reason to sell because there's nothing left after eBay gets done with you! 

 

It is complete Insanity to charge a fee on taxes and shipping charges!  That makes absolutely no sense in ANY world! 

Message 14 of 74
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Pay to Promote... We have to pay on tax and shipping fee TOO?

I guess I'm one of those idiots that never dreamed that a big corporation like eBay would be able to get away with such snaky and slimy tactics.  

 

Going back to my sales days I wish I could have made commission on the taxes that people paid on their $50,000 - $225,000 office equipment.  

Message 15 of 74
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