SELLER FEES

[jooki22]

Couple of years ago I inquired about this....and yes, I see that Ebay is still assessing the final value fee with tax included. My question still is: Isn't this somehow illegal or unscrupulous? Now paying a fee of 13.6% on the tax....then subtracting the tax from the sale total. Is that not double charging? I'd think that 13.6% should be enough for Ebay to get the few cents they need for "processing the tax".... Just doesn't feel right...

[heckofagame]

First, the fees associated with selling are clearly presented for all to read. If you sell something, you agree to those fees, therefore, it is not illegal. 

Second, it's not double charging. They only take fees for the tax once. Collecting the tax is not a fee.

And thirdly, if you think that remitting sales tax too potentially hundreds of jurisdictions only costs a few cents, you should undertake that task yourself. Hire a full-time accountant and see if they will work for a few cents. 

I hope this helps.

[luckythewinner]

My question still is: Isn't this somehow illegal or unscrupulous?

The answer is the same as you got last time - that is how eBay chose to calculate fees. 

It is not illegal.

[hartungcards]

"Isn't this somehow illegal or unscrupulous?"   The answer is still, "no."

"Is that not double charging?"  The answer is still, "no, it isn't."

[richard1rst]

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@jooki22 wrote:

Couple of years ago I inquired about this....and yes, I see that Ebay is still assessing the final value fee with tax included. My question still is: Isn't this somehow illegal or unscrupulous? Now paying a fee of 13.6% on the tax....then subtracting the tax from the sale total. Is that not double charging? I'd think that 13.6% should be enough for Ebay to get the few cents they need for "processing the tax"....

Just doesn't feel right...

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You are looking at the wrong end of the horse.

eBay is NOT assessing a fee on the taxes (or the shipping or any other specific amount).

The credit card processing company is the one assessing the fee. And it is ON THE AMOUNT OF MONEY THEY PROCESS. The processing company neither knows nor cares what the breakdown of the amount is. It is irrelevant WHAT the money is for. That is the way it is in every business that accepts credit cards. In a restaurant, for instance, even the tip you add on for the server is part of the total and the fee is due on that amount as well. 

[jonathanbrightlight]

@richard1rst  that's not accurate.  eBay is assessing their Final Value Fees on the total amount, including the taxes.  It is not just a credit card processing fee and it is not someone other than eBay doing so.  There's nothing wrong with it, but trying to shift the responsibility off eBay isn't a truthful statement.

[monroe67]

"Couple of years ago I inquired about this....and yes, I see that Ebay is still assessing the final value fee with tax included. My question still is: Isn't this somehow illegal or unscrupulous?"

No.  It is not illegal.  Neither is it unscrupulous, because fees are clearly spelled out in eBay's User Agreement.  There's a link to seller fee information that you can click on e-v-e-r-y time you are ready to list an item.  You probably should click on it and study it.  

"Now paying a fee of 13.6% on the tax....then subtracting the tax from the sale total. Is that not double charging? I'd think that 13.6% should be enough for Ebay to get the few cents they need for 'processing the tax'.... Just doesn't feel right..."

The only thing different today from your question a "couple years ago" is that, about one month ago, eBay slightly raised the percentage of the Final Value Fees (FVFs) on many categories.  I am glad to see that you know the current FVF percentage.  

As for sales taxes, your buyers pay them.  Then, eBay immediately deducts them so that eBay can send them to the buyers' states' sales tax authorities.  eBay is required  to do this because of the laws of the 45 states that charge sales taxes.  

If eBay's fee structure doesn't feel right to you, you still do have Free Will.  YOU may choose to (try to) sell on eBay or elsewhere.   

[kensgiftshop]

You'll get the same answers as you did a couple years ago.

No, it's not illegal.

[monroe67]

"You are looking at the wrong end of the horse.

eBay is NOT assessing a fee on the taxes (or the shipping or any other specific amount).

The credit card processing company is the one assessing the fee."

But then -- how is eBay staying in business if eBay does not, as you say, 
                  "assess a fee on the taxes . . . shipping" and "other specific amounts[s]"?

Especially since eBay's Final Value Fee (FVF) is defined, in the eBay User Agreement, thus:

"This fee is calculated as a percentage of the total amount of the sale, plus a per order fee. . . .
The total amount of the sale includes the item price, any handling charges, any shipping costs collected from the buyer (some exceptions apply), sales tax, and any other applicable fees."