eBay

amazingabe · ‎02-16-2023

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.

amazingabe · ‎02-16-2023

I have no idea what you are talking about.

View Best Answer in original post

susanb1872 · ‎02-16-2023

So it was OK for you when PayPal charged their fee percent on the entire sale including sales tax?

luckythewinner · ‎02-16-2023

Why do Final Value Fees include Sales Tax?

Because it is a free country and eBay chose to. If the average sales tax is 8% then you are essentially paying an extra 1% of the total. Would it make you feel better if eBay just raised fees to 13.9% instead?

There are other up and coming reseller sites

I cannot make enough money

It sounds like you have found a solution.

ebooksdiva · ‎02-16-2023

If you look through this forum this topic has been asked answered ad nauseam.
Your buyer pays tax for the item they buy from you. The payment processor collects the entire payment from the buyer. eBay collects that tax and remits it to the buyers state and charges the seller a small fee to do that. Final value fees are based on the ENTIRE AMOUNT of the sale.
When you file your taxes the sales tax is NOT included in the 1099, but the fee you paid for it is and can be written off as an EXPENSE.
If you haven’t already done so, you can read all about seller fees Here

monica-sells · ‎02-16-2023

If you were not aware of this policy prior to listing you would have a valid argument....

but it has been this way for years

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I may be way off base here, but if this is your account, you are complaining about an additional .26 cents for 2 sales, that would cost you a lot more if you had to calculate, collect, file and remit that sales tax.

dryophelia · ‎02-16-2023

@amazingabe

You may not be making very much money, but it’s not eBay’s fault.

I see you sold a keyboard for $8 and free shipping. It likely cost about $8 to ship it.
There is no money to be made listing any item under $20.
Free shipping means the seller will pay for shipping out of their pocket.
I saw at least one listing that even offered free returns.

You are taking bigger losses than the spare change eBay is taking to process the sales taxes.

tdrake · ‎02-16-2023

You're selling an item for $3.49 or "best offer" with $1 shipping and you're worried about the fee on the sales tax?

iamalwaysright · ‎02-16-2023

I wonder why I've been seeing this topic on here alot more recently than before. At first I thought it was the same old thread popping back up but the ones I see are actually new ones.

Did ebay do a mass roll out final wave pushing everyone else into Managed Payments recently?

monroe67 · ‎02-16-2023

"iamalwaysright" posted: "Did ebay do a mass roll out final wave pushing everyone else into Managed Payments recently?"

He/she may not be right on this one.
I am pretty sure all eBay sellers are now "in" Managed Payments. IIRC, my selling ID was moved into Managed Payments about 18 months ago, and I felt like I was one of the last ones.

monroe67 · ‎02-16-2023

Why DO Final Value Fees include Sales Tax?

I still think there are provisions in the Marketplace Facilitators laws that allow it. Doing some research just online, I have found one provision in California regulations that seems to say that, but it is in very complex sentence structure -- very legalese -- and I haven't felt like taking the time to study it and try to know what it means in the real world.

However -- I think by now, two or three years into the Marketplace Facilitation laws and processes, if it were illegal, there certainly would have been a few court cases. And if there had been, we on eBay would very likely have learned about them, at least in this Selling forum.

sodelight · ‎02-16-2023

I don't think OP is referring to the processing fee of approx 3%. All marketplaces charge that. Ebay is the only one I know of that charges beyond the processing fee. 13% vs 3% is a big difference and really adds up, which is why ebay does it! You can't compare the paypal fee to the fvf fee ebay takes.

coolections · ‎02-16-2023

Ask yourself another question, why do they charge you up to 15% on shipping. If you are mad now you will really be mad to find that out. Your total fees are around 25% of your listing costs here on Ebay.

janet9988 · ‎02-16-2023

@sodelight wrote:
I don't think OP is referring to the processing fee of approx 3%. All marketplaces charge that. Ebay is the only one I know of that charges beyond the processing fee. 13% vs 3% is a big difference and really adds up, which is why ebay does it! You can't compare the paypal fee to the fvf fee ebay takes.

Ebay does not charge a separate % processing fee. It is one FVF.

You can't compare the Paypal fee to the ebay fee either. The companies do different things. Paypal does not let you use their site to list items.

Lift your left leg at midnight to start off on the right foot. Happy new Year!

buyselljack2016 · ‎02-16-2023

I ran the #'s for a while when switched over to MP.

Even though PP charged a lesser %age on the sales tax, I found the difference in my costs with eBay/MP vs eBay/PP to be so little that it was not worth writing about. YMMV

And before anyone jumps back with............ "but eBay has raised their %age"............................ PP has as well, and for many PP stopped refunding any fees for return refunds, and cancellation refunds, so that has to be tossed into the mix as well when deciding how unfair the MP fees are.