eBay collects hidden fees: Sellers pay fees for buyers' taxes

[joeblackfox]

Recently, I double checked the fees collected by eBay and was surprised. Instead of 15.3% (13.3% selling fee + 2% Ad fee) eBay charged 17%. I opened the payout breakdown, did some math and found out that eBay charges selling and ads fees on buyer's taxes.

eBay collects state taxes from buyers (the tax amount depends on the state) and immediately deducts them from the payment. Sellers never get this money. But eBay applies selling and Ad fees to taxes. I think it is wrong and unfair.

[modlerailwaysales]

Im noticing hidden charges all the time. SO Im concentrating on selling elswhere now...........also.....the Links on ebay go to the wrong pages. They are ruining what was good. Its what sociopaths do

[dbfolks166mt]

     There is at least one posting a  week about the FVF's applied to taxes. It's common business practice and every CC company does it when they apply the merchant fees to the purchase. Following is the canned answer I post. 

       You can blame the 2018 US Supreme court decision in Wayfair vs South Dakota for this one. The ruling basically stipulates that states may charge tax on purchases made from out-of-state sellers even if the seller does not have a physical presence in the taxing state. After the Courts decision individual states began to pass individual state laws regarding sales tax on interstate ecommerce sales. Missouri was the last to do so effective January 2023.

     That being said I have always considered the eBay FVF's on sales tax to be the best accounting bargain around. If you sell a $100 item to a buyer in a state with 8% sales tax the FVF on the $8.00 in sales tax amounts to 13.25% * $8.00 or $1.08 if you are promoting at 2% that adds another $.16 so the total FVF on the sales tax is $1.24. 

     For that $1.24 eBay keeps track of the 10,000 various state, county, city, parish, municipality..... sales tax rates, and laws, and applies and collects the proper sales tax from the buyer. The sales tax percentage may also vary depending on the type of items you are selling since some states, counties, cities…. Tax different items differently. Food and clothing for example. EBay then remits those collected funds to the 45 states with sales tax laws on whatever periodic basis is required. There is NO WAY I want to take on that burden as a seller for $1.24 +/- out of a $100 sale. "

[forgottenape]

it hasnt been hidden your just now realizing it theirs a difference

[mam98031]

---

@modlerailwaysales wrote:

Im noticing hidden charges all the time. SO Im concentrating on selling elswhere now...........also.....the Links on ebay go to the wrong pages. They are ruining what was good. Its what sociopaths do

---

Ebay has NO "hidden charges".  What happens is that some sellers aren't aware of what the fees are because they don't learn about the different fees.  So when they get charged a fee for something they weren't aware of, it suddenly becomes a "hidden" fee.

It is your responsibility as a seller to know the fee structure on Ebay.  It is really pretty simple and not complicated at all.  But if you don't feel you need to do that, then it is on you.

Also on EVERY transaction you have, the details of the fees charged are stated on the Sales Order and you can see them on the Summary page of your MP account, on the right side.  Since Ebay took over being our money processor, they have been very transparent and detailed in showing us the fees charged.  But you do have to look to see them.

 https://www.ebay.com/help/selling/fees-credits-invoices/selling-fees?id=4822

FYI, this is a very old thread.

[kh-vince]

Hi everyone,

Due to the age of this thread, it has been closed to further replies. Please feel free to start a new thread if you wish to continue to discuss this topic.

Thank you for understanding.