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Why do Final Value Fees include Sales Tax?

This is unfair and very anti business. In a large way...stealing money from the little guy. Ebay is a billion dollar enterprise? So why steal money This way? There is NO value of the used item by the way of added the tax to the total value. When will wealthy corporate men and women have enough? There are other up and coming reseller sites coming up and soon they will start to bite your market share. To many examples of corporate greed and their fall from grace is littered in our history to ignore this. Stop the practice. I like ebay. But I cannot make enough money to make the effort I will and have joined others and soon as the years go by they will collectively take over and eBay will be a foot note in history. Like the others. 

Message 1 of 51
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Re: Why do Final Value Fees include Sales Tax?

@amazingabe ,

 

In your example the FVF on the 25 cents sales tax amounts to 3 cents. Not a big deal in my opinion. Add 1% of the sales to price to you shipping and handling charge to offset the fee on sales tax.

Message 46 of 51
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Re: Why do Final Value Fees include Sales Tax?

I agree!  They state that my final value fee is 13.25%.  However, when they include sales tax and shipping costs onto that, it rises significantly.  The last item I sold I actually ended up paying 18%! They are lying to people about what their final value fee percentage is.  They are making money off of items we make no money on. What a sham. 

Message 47 of 51
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Re: Why do Final Value Fees include Sales Tax?

Ebay is not lying. Here is what is shown in their info that I cut and pasted:  

The final value fee is calculated as a percentage of the total amount of the sale, plus $0.30 per order.

The total amount of the sale includes the item price, any handling charges, the shipping service the buyer selects, sales tax, and any other applicable fees.

Message 48 of 51
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Re: Why do Final Value Fees include Sales Tax?

"They are lying to people about what their final value fee percentage is.  They are making money off of items we make no money on. What a sham."

Read what the eBay User Agreement says about the Final Value Fee.  
eBay is not lying.
Sellers who think eBay is lying -- how to say it, how to say it -- 
Maybe those sellers have not read the explanation very carefully.  Maybe those sellers don't understand the explanation.  

This is what eBay's User Agreement says, with some colored text added :

"Final value fees.

 

We charge one final value fee when your item sells, and you don't have to worry about third-party payment processing fees. This fee is calculated as a percentage of the total amount of the sale, plus $0.30 per order.

The total amount of the sale includes the item price, any handling charges, the shipping service the buyer selects, sales tax, and any other applicable fees."


eBay adds up the total in order to tell the buyer how much money the buyer will have to pay.
That is the total amount of the sale:  The total amount your buyer pays.  
That total amount of sale is also the figure from which eBay calculates the percentage part of the Final Value Fee (FVF) eBay retains from the sale.  There is also a second part of the FVF:  thirty cents ($0.30) per order.  

Message 49 of 51
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Re: Why do Final Value Fees include Sales Tax?

Ebay is now an arm of the federal Government. They are revenue coll

ectors for the IRS now.

Message 50 of 51
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Re: Why do Final Value Fees include Sales Tax?

"Ebay is now an arm of the federal Government. They are revenue coll

ectors for the IRS now."

Very clever.  But wrong.
eBay is no more a "revenue collector for the IRS" than your local 7/11 or Walmart is.  

Message 51 of 51
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