Why do Final Value Fees include Sales tax?!?!?

[mlsiler]

I find it incredibly unfair and would go so far as to doubt it is even legal to collect additional fees for FVF on the sales tax that is charged to the BUYER and yet we get hit with approximately 13.25% fees for the taxes. WWTAF?!?!! And yes you may say it's just a few bucks but it adds up and I am betting eBay makes tens of millions of dollars in these fees every year, year after year. We as the consumer of their product feel at the mercy of fleabay and shrug off the extra $3, $5 or $10 but should we? and do we have to? Or can we gather and start a class action suit?

[chapeau-noir]

I am from the Department of Redundancy Department.

[western-supply]

They made that change last summer, so I guess its legal

[mlsiler]

I am ok with being charged a fair fee of 3-4% processing but today I was charged 13.25%. That’s simple theft. Additionally, my guess is that eBay pays 1-2% max due to their volume. Or more than likely they own the bank that process their transactions costing them essentially nothing and passing excessive fees on to Sellers netting themselves tens of millions in additional profits each year. 

[mlsiler]

Get your point but shipping ended up costing me $10.45! The guy lives like 0 miles away 😃

[johnson_junk_company]

They include it to cover the cost of collecting the tax and sending it along to the correct state. 

[johnson_junk_company]

All of that wasn't to collect sales tax, but I totally agree, fees are outrageous. They claim eBay is cheaper than some of the other platforms, but I was just charged 14.75% on a book sale! One of the spring changes was increased fees. Just more money gabbing by corporate America, unfortunately. 

[chapeau-noir]

@johnson_junk_company  I sympathise about the media fees.  I have no idea why they jacked them so high - for the longest time they were cheaper than other fees, 5%, which meant booksellers here could give Amazon a run for their money, then they went I think to 10% then to 15% - which mean that it was useless to try to sell most books here anymore. Bookselling for me was a flourishing business for a while.

[semawebso_0]

I guess you can join all the others that said they were going to start a class action suit.

Come back and let us know how it goes because we haven't heard anything from any of them about it.

Have a great day.

[secondlifetreasures-llc]

Class action lawsuit? You realize that you agreed to this fee structure when you opened your account and are reminded of it every time you list an item. A lawyer would laugh at you over this. Maybe read the terms and conditions the next time before you click agree.

[buyselljack2016]

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@western-supply wrote:

They made that change last summer, so I guess its legal

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Last summer???

I've been paying fees on the sales tax for a couple of years 🙂

[slippinjimmy]

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@buyselljack2016 wrote:

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@western-supply wrote:

They made that change last summer, so I guess its legal

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Last summer???

I've been paying fees on the sales tax for a couple of years 🙂

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Yes, anyone in Managed Payments has been paying fees on Sales Tax for almost 3 years (Summer 2020). Announced in May 2020, effective as of July 20, 2020.

https://www.ecommercebytes.com/2020/05/09/ebay-ties-payment-fees-to-commissions-in-new-fee-structure...

If you read the link you will also see that eBay adjusted the regular FVF rate at the same time to reduce the impact of fees on sales tax.

[theteamsetguy]

@mlsiler ,

Ebay does not own the payment processor. The payment processor they use is Adyen and the are a publicly traded company. The stock symbol is ADYEY. 

The 2.5% Adyen charges to process payments is split between the Adyen, eBay, MC, Visa, Amex, and Discover. Most of the 2.5% goes to Visa, MC, Amex, and Discover. 

I’ve owned stock in Visa for years. Best business model in the world. They get a small percentage every time someone uses their credit or debit cards with no credit risk. The credit risk is born by the banks issuing the cards. Look at a chart of stock of Visa and you will see it continues to go up consistently over many years. Same with MC and Amex. Warren Buffet has owned Amex for years.

[hartungcards]

Uh......what?

[annadryl]

Ebay charges the same processing fees as almost absolutely everyone else. Life is so unfair! It's all illegal!

Bakhmut just got carpet-bombed with phosphorus incindieries. No doubt many innocent civilians are dead, maimed and homeless and I'm sure somebody (not me) should sue somebody.

Some one (else) just sue somebody!

[theteamsetguy]

@johnson_junk_company ,

I’m so sick of people claiming how greedy corporate America is. People have to realize publicly traded companies are required to maximize value for the shareholders. 

Instead of complaining about corporate America start putting money in the market. If one invest $100.00 per month in a S&P index fund for 40 years you would have over a million dollars. If you work for a company that matches 50 cents on the dollar you would have over 1.5 million.