Taking fees 12.9% with including sale TAX and shipping cost it is not fair

[nakhtarsyed]

Hello ;

I sold out one item on Ebay when payment is received I got shocked  to receive less  payment from Ebay . The selling fees 12.9 % has deducted  selling from total amount  including tax and shipping cost not from actual selling price of item . The Tax paid amount is not mine it is property of  IRS has to submit  by Ebay  and shipping cost amount also  not mine  has to pay to  courier service company . Due to unfair deduction of Ebay I paid  selling fees 14% to Ebay not 12.9 %  to . Please Ebay management deduct your selling fees from the actual selling price of item not from total amount 

[mybigsale]

"FYI when PayPal was  eBays Money  Processor -  they  collected their fees on the ENTIRE amount the buyer paid  - item price, shipping and state sales tax."

Correct :

You paid PayPal a very Low "Transaction fee" - approximately 3% or less - for collecting the money

You paid eBay a high Commission on the item you sold (and shipping because eBay assumed sellers were cheating on pricing) - approximately 10%

"So today yo only  have one total fee per transaction vs two when  sellers  had both  an eBay FVF and PayPal charge - an they were  taken out at different time - now it is pay as you sell."

Correct - instead of paying a transaction fee on the transaction and a Commission on the item (like every other company), eBay "Simplified the Math" by adding the two numbers together - approximately 13%.

Result: eBay is the only company charging an extra approximately 10% commission on TAX as well as the transaction fee (eBays One Fee System).

[morgan7202]

Final value should not include shipping..because that means your paying twice for shipping. Once in the listing costs and then twice at the shipping center. Its **bleep** and eBay is greedy bc ppl sell good other places. Their sales are down so they are ripping off the sites sellers.

[jmsracingengines]

Your also forgetting the massive amount of time ebay sits in your money from every sale. With paypal it was in your account right away now i have waited 5 days or more once the item is already sent to finally get paid.  Its bull**bleep** like most everything on ebay for the seller as far as getting paid goes.  But to take a percentage from an already crooked taxing on sales is beyond me.  Plus the shipping. How the **bleep** do they have that right beyond you who say cause its there site.

[monica-sells]

"...crooked taxing on sales...."

what does that mean?

obviously, you're a bit annoyed waiting for a large sale payment that is being "held" ....I agree, thats annoying,

[donsdetour]

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@jmsracingengines wrote:

Your also forgetting the massive amount of time ebay sits in your money from every sale. With paypal it was in your account right away now i have waited 5 days or more once the item is already sent to finally get paid.  Its bull**bleep** like most everything on ebay for the seller as far as getting paid goes.  But to take a percentage from analready crooked taxing on sales is beyond me.  Plus the shipping. How the **bleep** do they have that right beyond you who say cause its there site.

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PayPal floated you a loan on said funds is the why you got paid instantly. Payments still took time through there system.

If it was illegal to charge on the tax it would have already been taken care of...

[jespra_48]

It is absulute garbage what they are doing to sellers. People wonder why the prices are high and this is why! I sell a item for $85 and get $77 in return and I still have to pay over $5 shipping after my buyer already paid shipping of $7. Then we get hit with a 12.9% tax on the $85 for item and the persons shipping and there tax! How is this even legal????? One day there will be a class action lawsuit I'm sure! Charging us for someone's tax and shipping is so greedy!

[soh.maryl]

Your lack of knowledge about eBay fees and about how eBay works in general is inexcusable because all that information is published in more than one location on eBay.

Shipping:  Your buyer pays YOU for shipping and you then use that money to pay for shipping.

You are not "hit with a 12.9% "tax"".  You are, as the seller charged eBay's final value fee of 12.9% on the total amount the buyer paid YOU the seller.  That would include the item price, the shipping fee and the state sales tax, if applicable.  

As for legality, I bet eBay has an attorney or two on staff who has determined that this is indeed legal.

If you will read the document you signed when you registered to sell on eBay, you will note that you agreed not to engage in any legal action against eBay.  That probably includes a class action lawsuit.

[zero29zero]

I have a faint recollection of this being gone over before

All in all the amount the I am charged for completing a sale on ebay is reasonable given the wide exposure it offers

If you disagree you have a multitude of options to sell your stuff

[laststopgeneralstore]

God you people are getting dense. Do you know what a merchant fee is? Probable not, look it up. Visa, Master Card, Discover, American Express etc... All charge a "merchant fee"(same as how eBay charges us a "final value fee") on the ENTIRE amount of the sale which includes, if applicable, shipping & tax. This has been going on for over 30 years now. It's not that big of a deal & if you would rather sit down and have to omit sales taxes collected to all of the different states/counties/towns, be my guest. If you can't handle that fee then you either need to lower your cost of goods, lower your overall expenses or find better and more in demand items that sell for a higher average sale price that you can get for cheap. Other than that, stop complaining. If you had your own brick & mortar store or website you would be paying a "final value fee" as well, albeit it would be cheaper but you would also have to pay for advertising, traffic, space etc.... 14%(and it's not 14%) is peanuts compared to what it would cost to run your own website. Good luck.

[southern*sweet*tea]

::General reply::

Here is a  list of what I call  the "big five" when it comes to third party selling websites and the fees for each.  All use some form of retail payment processing AKA managed payments. 

Ebay charges (in most categories)  12.95% plus 30 cents final value fee on the total the buyer paid including item price, shipping and sales tax.  No fee to list if you use a basic listing and keep within your listing limits.

Amazon final value fees average 15% plus 99 cents of the sale price plus shipping if you don't have a store plus $1.80 if you sell a book (per transaction fee).  Their fees range from 8-45% and is charged on the total amount paid to the seller. They do not charge fees on sales tax.  No fee to list. They charge 7 cents to print a shipping label (at least they used to a few years ago).

Mercari charges 10% on the sale price plus shipping  plus 2.9% plus 30 cents processing fee, so 12.9% plus 30 cents. No fee to list.  They don't specifically state that fees are charged on sales tax, but the 2.9% fee applies to the total amount the buyer pays, so I assume that is what is charged on the sales tax.  Their FAQ is not clear.

Poshmark charges $2.95 final value fee for sales under $15 and 20% for anything higher than $15. No fee to list.  Their FAQ makes no mention whether fees are charged on sales tax or shipping.

Etsy charges a listing fee of 20 cents per listing. Final value fees are 6.5% paid on the sale price plus shipping plus final value fees that vary depending on country. For the US, final value fees are 3% plus 25 cents, so 9.5% plus 25 cents.  If you sell from the US or Canada, fees are not charged on sales tax.  If you sell from outside the US or Canada, fees do apply.

[nakhtarsyed]

Ebay deducts fees whatever  is written the main concern is only Ebay  doesnt  take  their fres from Sale tax and Shipping cost. 

[soh.maryl]

Your original message demonstrates a little misunderstanding regarding eBay fees.

First of all, eBay's final value fee is calculated on the item price as well as the shipping cost and the state sales tax, if applicable.

And that fee schedule is legal.  eBay has calculated based on the shipping cost for at least ten years.

The state sales tax has NOTHING to do with the IRS.  

Fees are clearly explained in more than one place on eBay's site and you can read them before you list.

Doubtful that eBay will heed your plea to stop figuring the FVF on the entire amount the buyer pays the seller.

[zeetejas]

we need to send it to the media and send out to the world. as a homeowner and parent this type of activity should not happen. let say all the sellers approx. 19 million sold $100 including shipping and tax that would be $12.90 each times 19 million which adds up to $245 million dollars. did you know that some sell $35,000 to $70,000 a year do they get a tax break? we as the small seller are getting screwed as soon as a new app come out by by eBay. I have been here 18 years.

[iamheretosellstuff]

This is why I sell all music gear on Reverb.com, 5% fee so screw eBay!

[Anonymous]

I agree, I was shocked on the same situation, must be new management, someone in eBay is making bank.