Why does ebay take 13.25 % from sales tax collected when they already get % from states

[obob501]

and 13.25 from your shipping

[toomuchstuffagain35 · Accepted solution]

Because they can? Don't fret about it, if they didn't get it that way they'd get it some other way.

[mtgraves7984]

Why does ebay take 13.25 % from sales tax collected when they already get % from states

@obob501 

You've got it backwards. eBay collects and remits the buyers' tax to their states. They don't 'get' a % of sales tax.

[dryophelia]

@obob501 

Why does it matter?

The fees are laid out clearly. Sellers pay XX%.

eBay owes its user base zero explanation what they do with their fortune. Them making money on the money they get from its user base is none of my business. 
No business, as successful as eBay, Walmart, Amazon, Loblaws (Canada grocery conglomerate), etc., got to where they are by pussy footing around and making sure nobody got their feelings hurt. 

[eburtonlab]

eBay takes its fee percentage from the total amount the buyer pays.

eBay could calculate fees differently if it chose to do so, but then the percentage would be different so that eBay could realize the same total revenue.

[lakefor94]

If I had a dollar......

[toomuchstuffagain35]

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@mtgraves7984 wrote:

Why does ebay take 13.25 % from sales tax collected when they already get % from states

@obob501 

You've got it backwards. eBay collects and remits the buyers' tax to their states. They don't 'get' a % of sales tax.

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Sure they do. Most states kick back a % for them collecting & remitting.

[ckimodog]

@lakefor94 

Ditto...we'd all be wealthier. lol.  

[lakefor94]

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@ckimodog wrote:

@lakefor94 

Ditto...we'd all be wealthier. lol.  

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Living on our own islands....

[theteamsetguy]

@lakefor94 ,

For what? Every blue moon?

[soh.maryl]

Can you explain further that ". . .when they already get % from states"?

And, have to ask, so you have been here since April, 2000, and you have just noticed the fee schedule?

[monroe67]

Why does ebay take 13.25 % from sales tax collected when they already get % from states

and 13.25 from your shipping

Congratulations!  You are the first person in the New Year, 2024, to ask this question!  

There will be many, many more!

I have looked into the Marketplace Facilitator laws in my state, California.  I believe that a very strict reading of one of the statutes may actually require eBay, and other Marketplace Facilitators, to retain some sort of compensation for collecting and remitting California state sales taxes to Sacramento.  Of course, this applies only to buyers whose purchases are delivered to addresses within California.  

IF any state allows Marketplace Facilitators (including eBay) to keep a percentage of those collected sales taxes, it is a very, very small percentage.  

About the 13.25 (%, I assume) from your shipping, that's easy:  
It's to stop sellers from charging $10.00 for an item and $340.00 for shipping.
That is called Fee Avoidance and it was rampant in the early days of eBay, when the Final Value Fee was  not charged on shipping costs.  Too many unethical sellers manipulated their listings with obviously incorrect shipping costs and eBay was losing money.  

Each seller and potential seller can choose to accept eBay's fee schedule or not.  

[evelyb30]

That said, taking a percentage of sales tax was one of the many pain points that made me quit selling.  I was here for the fee avoidance and always hated sellers who charged $1 for the item and $99 shipping to avoid paying fees for a $95  item with $5 shipping like honorable sellers.  Buyers didn't care, obviously. 

But... if you don't read something as basic as the fee schedule before selling, on your own head be it.

It will be anyway. 

[stainlessenginecovers]

Because calculating and preparing up to 3600 different counties in the US, the 'various' tax percentages, then remitting the $ for those taxes, 4 times a year (14,000+ total) COSTS MONEY and ebay had to hire a company to do it. 

Besides, 8% of $100 is $8, and 13% of that is $1.04, so it is REALLY costing about 1% of the sale price.

.01c on the $1 isn't too much for them having to do that job. 

[reallynicestamps]

While some states may  pay companies for processing and remitting sales taxes promptly, others do not.

We paid Ontario Canada sales taxes from 1978 when we opened our shop until we closed it in 2014. We were allowed to deduct a small amount of the tax  for getting the paperwork in on time. Around the turn of the millennium ON stopped paying merchants for their labour.

BTW, during all that time we took credit cards through Moneris, who charged us fees for processing the card payments.

The first credit cards were the Diners Club in 1950, and they charged a fee on the ENTIRE payment too, including sales taxes.