eBay

smashpenny · ‎02-22-2022

I, like many of you, think that eBay's Final Value Fees are getting too high.

However, my issue for the moment is the way the fees are calculated. I just sold an item for $1,150. After the buyer paid, the total amount, with shipping and sales tax, came out to $1,273. My Final Value Fee was based on that amount, even though I personally didn't collect the sales tax (eBay did). My total fees for this sale were $160 (which is 12.55% of the sale including shipping AND sales tax, plus a $0.30 eBay fee).

I understand why eBay bases the FVF on the total + shipping (because in the old days, people would sell something cheap and then charge hundreds in shipping fees in order to bring down the FVF). But why the sales tax???

This sale ended up costing me an additional $13. It's not the end of the world, but maybe some who understands the policies better can explain it. Why should my FVF include the sales tax?

Side note: I really miss when all categories had tiered FVFs (where larger amounts got a reduced FVF). Some categories still have this, but it was really nice when it was across the board.

Thoughts on sales tax being included in the FVF calculation?

Thanks!

american-photography · ‎02-22-2022

Nothing can be done about it.

Since Ebay acts as the payment processor they can collect the fees now instead of PayPal or another processor like Visa or Mastercard.

Like you and everyone else, retailers have to pay a payment processing fee every time you swap your credit credit at the store (usually 2-3%).

Unless consumers and retailers rise up and resist these fees, there is nothing anyone can do.

donsdetour · ‎02-22-2022

cost money to process money is the why the fee on tax.

Come back and let us know if you have claims of item not received or as described or payment dispute on the item you sold... I expect such with that one....

smashpenny · ‎02-22-2022

@donsdetour wrote:
Come back and let us know if you have claims of item not received or as described or payment dispute on the item you sold... I expect such with that one....

Thanks... why... because of the low feedback? I hate high-value transactions with low feedback. The guy's account is 3 years old, which helps a little. I sent this one FULLY insured with signature required and took pictures of the packing job just in case.

Thanks for the info on the fees. I guess that's right... eBay has to pay to process the transaction, including the sales tax, but it doesn't seem fair. I don't think I should be charged a fee for something I never see (like the sales tax).

mehemoh · ‎04-26-2022

I noticed this, too, and it doesn't seem right. At first I thought, oh well, I'm not paying the sales tax anyway. The seller is. But then I realized the fee to the seller is based on the total of transaction. So although I'm not paying the sales tax, the FVF percentage I'm paying is higher because it's included in what I'm charged. So basically, eBay collects sales tax from the seller and sends 100% of it to the corresponding state. Then eBay includes it in the total transaction to calculate the FVF to the seller. So who's paying the 12.9% fee? Answer: the seller. It doesn't matter who pays the sales tax. The issue is who pays the fee. It gets added to the total amount of the selling fee. So it costs the seller for eBay to collect sales tax from the buyer and eBay is actually making money from the sales tax.

soh.maryl · ‎04-26-2022

You did not read the information about final value fees before listing your item?

smashpenny · ‎04-26-2022

Huh? I’m not sure I understand. Your comment.

Yes, I understand the terms and the FVF. I just wonder why I’m paying a fee on funds that I don’t keep. I understand why I owe FVFs for the sale price (i. e. The money I get), but I’m disappointed that I’m paying up to 15% of the shipping fees and the sales tax that is not mine.

donsdetour · ‎04-26-2022

@mehemoh wrote:
I noticed this, too, and it doesn't seem right. At first I thought, oh well, I'm not paying the sales tax anyway. The seller is. But then I realized the fee to the seller is based on the total of transaction. So although I'm not paying the sales tax, the FVF percentage I'm paying is higher because it's included in what I'm charged. So basically, eBay collects sales tax from the seller and sends 100% of it to the corresponding state. Then eBay includes it in the total transaction to calculate the FVF to the seller. So who's paying the 12.9% fee? Answer: the seller. It doesn't matter who pays the sales tax. The issue is who pays the fee. It gets added to the total amount of the selling fee. So it costs the seller for eBay to collect sales tax from the buyer and eBay is actually making money from the sales tax.

Old topic but:

If the seller had to collect the taxes for each state: well over a 100 different districts to have to do, and file the stuff: just think of the time involved to do such; not counting each one could then audit etc....... Cheap for eBay to do it..

redmodelt · ‎04-26-2022

Look at it this way, you are paying eBay to do the bookkeeping and distribution of funds to 1000s of different taxing districts. If I did the math right; Item $100 x .07% sales tax = $7.00 for the buyer. 12.9% of that $7.00 would cost about .10 for seller on the additional $7.00 paid by buyer for sales tax. .07% was used as a ballpark, the tax rate is all over the place depending on where the item was shipped.

katzrul15 · ‎04-26-2022

@smashpenny wrote:
Huh? I’m not sure I understand. Your comment.

Yes, I understand the terms and the FVF. I just wonder why I’m paying a fee on funds that I don’t keep. I understand why I owe FVFs for the sale price (i. e. The money I get), but I’m disappointed that I’m paying up to 15% of the shipping fees and the sales tax that is not mine.

None of us likes the calculation for FVFs. But we live with it to sell here.

Why is it this way? Because e-Bay says it is.

Seller displeasure rarely results in changes, especially when tied to fees, payments, money related policies.

....... "The Ranger isn't gonna like it Yogi"......... Boo-Boo knew what he was talking about!

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redmodelt · ‎04-26-2022

I think I had the decimal point in the wrong place, maybe more like an extra .90 cents on the $7.00.

redmodelt · ‎04-26-2022

The fees being charge on shipping has been in place starting back in about 2008. Keeps sellers from selling for $1.00 with $90.00 shipping, which is why it was changed, they were doing that to avoid FVF's.

karenamarie · ‎05-23-2022

EBay is charging 13% on total money collected and then subtracting that number from the item cost plus shipping. If you divide the amount that actually hits your bank account by the total money ebay collected, the difference is actually about 21%. So I don’t care how they frame it, total ebay fees are 21% not 12.9%