Selling fees on Taxes

[reddandy_sandy]

I was not aware of fees on selling taxes.  They are charging fees on selling item, plus shipping, plus tax.  This is not fair. We should not be paying fees on taxes.  I only sell clothing at a very low price and today just realized that the final value fee is including the sale of the item, plus the shipping and tax of item.  In the end, it is not worth it to sell.  Very upset!

[katzrul15]

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@reddandy_sandy wrote:

I was not aware of fees on selling taxes.  They are charging fees on selling item, plus shipping, plus tax.  This is not fair. We should not be paying fees on taxes.  I only sell clothing at a very low price and today just realized that the final value fee is including the sale of the item, plus the shipping and tax of item.  In the end, it is not worth it to sell.  Very upset!

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Sorry you are distressed over this.  Did you just recently enroll in Managed Payments?

Your Paypal fees previously included sales tax as well.

So many Sellers never realized their true fees or how much their Paypal fees were before, in addition to their e-Bay fees.

[dbfolks166mt]

     This has been posted on this forum before. The reasons for the fees on shipping are explained in several postings and responses as are the fees on the sales tax. I consider the fees on the sales tax to be a bargain since eBay is handling all the paperwork and remittance of the sales tax to all 50 states. Something that I sure do NOT want to do on a periodic basis. 

[luckythewinner]

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@reddandy_sandy wrote:

Very upset!

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If I had failed to read the fee schedule, I would be upset at myself too.

[jayjaspersgarage]

Hmmm, when I go out to lunch, which is almost never at this point, I include the tax in the calculation for the tip.  

In the end we have more write offs against the income we claim from online sales.  We used to think we were on the ebay speed boat to riches when in reality we are just paddling a canoe.

[jameshen1]

I just have 2 comments.  First, life isn't fair.  Most things aren't so don't bother looking for fair.  Second, you should read and understand all your fees and responsibilities before you list anything.  Sounds like you did not do this and are now complaining when you should have known all along.

[katzrul15]

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@jameshen1 wrote:

I just have 2 comments.  First, life isn't fair.  Most things aren't so don't bother looking for fair.  Second, you should read and understand all your fees and responsibilities before you list anything.  Sounds like you did not do this and are now complaining when you should have known all along.

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Yes.  This ^^^^

OP is not a new Seller, so this is confusing.  Makes sense though if a recent transition to MP.  They had no idea what the fee structures were before MP.  So many Sellers (based solely on the posts on this board) only factored in e-Bay fees.  And never understood they were never really making money.   🙊🙉🙈

[buyselljack2016]

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@dbfolks166mt wrote:

     This has been posted on this forum before. The reasons for the fees on shipping are explained in several postings and responses as are the fees on the sales tax. I consider the fees on the sales tax to be a bargain since eBay is handling all the paperwork and remittance of the sales tax to all 50 states. Something that I sure do NOT want to do on a periodic basis. 

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Never was a requirement for me to keep track of, or remit sales tax to any state other than my own, and as the laws are written for most states, being a small seller (not meeting big "sales thresholds") it would still not be a requirement.   Good that eBay now collects/remits for my state, but the 50 state ( minus some) collection benefit is not really a factor.

[releasethekraken_1]

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@reddandy_sandy wrote:

I was not aware of fees on selling taxes.  They are charging fees on selling item, plus shipping, plus tax.  This is not fair. We should not be paying fees on taxes.  I only sell clothing at a very low price and today just realized that the final value fee is including the sale of the item, plus the shipping and tax of item.  In the end, it is not worth it to sell.  Very upset!

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If you took the time to compare your fees under managed Payments vs. PayPal, you’d find that they’re virtually identical. So apparently it wasn’t worth it to sell before now; why were you doing it?

[buyselljack2016]

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@katzrul15 wrote:

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@jameshen1 wrote:

I just have 2 comments.  First, life isn't fair.  Most things aren't so don't bother looking for fair.  Second, you should read and understand all your fees and responsibilities before you list anything.  Sounds like you did not do this and are now complaining when you should have known all along.

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Yes.  This ^^^^

OP is not a new Seller, so this is confusing.  Makes sense though if a recent transition to MP.  They had no idea what the fee structures were before MP.  So many Sellers (based solely on the posts on this board) only factored in e-Bay fees.  And never understood they were never really making money.   🙊🙉🙈

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Yup, there is a bit of difference in how the "fees" reads with the inclusion of sales tax being part of the simplified fees funds processing, but not really a factor when comparing the "overall" actual fees charged on eBay/MP when compared to eBay/PP

I have not done it in a while, but when I switched over to MP I ran the #'s for a while.  There just wasn't enough difference to get excited about.  Sometimes a bit more when selling to the 10% sales tax states, but that was offset by the lower sales tax areas.

Since I was inducted the fee went up .2%, but PP has also increased their fees for processing funds. 2.9  up to 3.49 seems to be what I have seen.

So there you have it. I agree with you that ....................   They had no idea what the fee structures were before MP  Either that, or they are not comparing "the before" to now  "the now".

[gjs_16]

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@reddandy_sandy wrote:

I was not aware of fees on selling taxes.  They are charging fees on selling item, plus shipping, plus tax.  This is not fair. We should not be paying fees on taxes.  I only sell clothing at a very low price and today just realized that the final value fee is including the sale of the item, plus the shipping and tax of item.  In the end, it is not worth it to sell.  Very upset!

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Yes they are charging fees on the tax they charged on the shipping.

I do however find it strange, as pointed out, that you never realized these fees before...

They've always been there, it's not new, did you not know?

[buyselljack2016]

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@gjs_16 wrote:

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@reddandy_sandy wrote:

I was not aware of fees on selling taxes.  They are charging fees on selling item, plus shipping, plus tax.  This is not fair. We should not be paying fees on taxes.  I only sell clothing at a very low price and today just realized that the final value fee is including the sale of the item, plus the shipping and tax of item.  In the end, it is not worth it to sell.  Very upset!

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Yes they are charging fees on the tax they charged on the shipping.

I do however find it strange, as pointed out, that you never realized these fees before...

They've always been there, it's not new, did you not know?

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Seller may have know about the shipping, but just listing "all areas of fee charges" to drive their point that selling is not worth it.

[maxine*j]

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@buyselljack2016 wrote:

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...  when I switched over to MP I ran the #'s for a while.  There just wasn't enough difference to get excited about.  Sometimes a bit more when selling to the 10% sales tax states, but that was offset by the lower sales tax areas...

... I agree with you that ....................   They had no idea what the fee structures were before MP  Either that, or they are not comparing "the before" to now  "the now".

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YEP!

=

[maxine*j]

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@reddandy_sandy wrote:

I was not aware of fees on selling taxes.  They are charging fees on selling item, plus shipping, plus tax.  This is not fair. We should not be paying fees on taxes.  I only sell clothing at a very low price and today just realized that the final value fee is including the sale of the item, plus the shipping and tax of item.  In the end, it is not worth it to sell.  Very upset!

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If it is not worth it now, it was never worth it -- because the total "take-out" under Managed Payments is about the same as it was under PayPal, if not slightly less.

=

[johnrj1226]

If  you aren't making money now you need to  revisit your TOTAL cost of sales and adjust your prices/policies and desired profit percentage accordingly.

Clothing is  saturated with product and sellers - typical low margins, you way want to find other products to offer.