UNFAIR! Ebay adds buyer's sales tax to final value fee, then charges sellers more!

[auntiejosattic]

UNFAIR!  Ebay is taking more in seller final value fees by adding in the buyer's sales tax to the sale total, then charging the seller fees on the higher amount.  This stinks!  Sellers have nothing to do with the buyer's sales tax.  Sellers should be charges fees based on their sale price without the sales tax.  Greedy, ebay - not nice.

[mrdutch1001]

...and u just discovered this now???

eBay announced quite some time ago sales taxes were included in the fees as part of the re-organized fee scheduled using the Managed Payment system...

Fact is, This all started when sellers were still using PayPal and it was PayPal that was gaining those extra pennies/dollars...

[kensgiftshop]

@auntiejosattic 

Was it unfair when Pay Pal did the same?

[toysaver]

I try to determine all the possible fees for selling when I price a listing and basically pass them on to the buyer.

[katzrul15]

@auntiejosattic 

This ID shows you have been on e-Bay since 2004......Paypal charged their fees, that included sales tax for quite a few years before the MP transition.  Did you not factor your Paypal fees into your overall costs to sell on e-Bay?

As a Seller, I do not want the "burden" (and it would be a behemoth) of "collecting" and "reporting" sales taxes to all the entities that require same. 

For me as a Seller, it is a small trade-off, because otherwise, it would be much more costly for me to be compliant by law. 

[redmodelt]

Might what to go back and read about the fees and what they are based on, so you can factor that into your selling price.

[mybigsale]

@kensgiftshop 

Acceptable when PayPal charged a few percentage transaction fee (as most all processors do).

Unacceptable by eBay when the fee covers the few percentage transaction fee AND the rest of the high percentage eBay fee covers their COMMISSION on the Tax (they also include their commission on shipping).

I believe eBay is the only vendor whos fee on Tax and Shipping includes a profitable commission on top of the fee that covers the transaction fee. 

[jayjaspersgarage]

Just be sure to write off ALL the fees when you file your taxes.

[house*of*paws]

Hi @auntiejosattic 

EVERY payment processor bases its fees on the total amount of the buyer's payment ... so eBay is merely following the crowd.  [PayPal did it as well.]  It's one of the reasons that eBay reduced (slightly) the fee percentage from what it was with PayPal /eBay combined fees.

[mybigsale]

@house*of*paws 

Not really... eBay is the ONLY vendor (that I am aware of) to charge a fee that includes a processing fee AND a commission fee ( their one combined rate) on both Tax and Shipping.  PayPal just charged the processing fee portion.

[kensgiftshop]

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@mybigsale wrote:

@house*of*paws 

Not really... eBay is the ONLY vendor (that I am aware of) to charge a fee that includes a processing fee AND a commission fee ( their one combined rate) on both Tax and Shipping.  PayPal just charged the processing fee portion.

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You don't remember Pay Pal charging the $0.30 processing fee plus the percentage?

[mybigsale]

Yes I do, eBay also charges the .30 processing fees.  The extra 9 or 10% on eBays %fee is the commission they earn (otherwise the percentage would be 2-3 %+.30  like PayPal and "Everyone else").  That "commission" portion should only be on the item you are selling.

Sellers deal with it by charging the customers and life goes on.

[house*of*paws]

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@mybigsale wrote:

Yes I do, eBay also charges the .30 processing fees.  The extra 9 or 10% on eBays %fee is the commission they earn (otherwise the percentage would be 2-3 %+.30  like PayPal and "Everyone else").  That "commission" portion should only be on the item you are selling.

@mybigsale 

My guess is that it would make things too complicated having TWO separate calculations.  Instead, eBay reduced the total fee  (12.55% from 12.99% previously w/ PayPal) to compensate on being charged a fee on the sales tax.

[annadryl]

It's a small percentage of a percentage, work it in. It's what we all do. It's not a huge deal.

[gjs_16]

Oh but they also add tax to the shipping and then tack the FVF onto that!

UNFAIR!