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fees

Does anyone notice when they sell something and put the correct amount for shipping ....that we are in a whole taxed for the item sale & shipping price together...so now if you add up what's left and you gave a discount and still have to pay the price of shipping that is the rate at the post office that you posted .and ebay took their fees.....you lose money ....

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Re: fees


@partfinds wrote:

It is confusing to see sales tax on the seller part. It is buyer’s part and if Ebay takes care of it then it should be shown in the details (on the seller part). I was confused thinking it was sales tax charge to me for service ebay sold me or something. I saw from other posters that I am not the only one confused.


Personally I think some people are making more out of this than is warranted or necessary.  Sales tax showed in Paypal too.  But it seems that because Ebay is doing certain things that some never paid attention to while in PP, it is suddenly new and maybe even wrong.  

 

And you are right, you aren't the only one with these issues.  That doesn't mean any of you are right, it simply means that while in PP many simply did not pay attention to the details.  But when they moved over to MP, they did and suddenly Ebay was doing all kinds of things wrong that weren't happening in PP, which was really made up of a bunch of assumptions and the lack of paying attention to the details.  


mam98031  â€¢  Volunteer Community Member  â€¢  Buyer/Seller since 1999
Message 61 of 75
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Re: fees

It should be illegal for eBay to make a profit (or markup) sales tax.  Maybe it is illegal.  No other online or brick and mortal retailer does this.  

 

If you buy something at Walmart or Target for $100 and sales tax is $10, Walmart or Target charges you $110.  They can't just decide to charge you $11.26 instead of $10 for sales tax (a 12.55% markup on the sales tax owed) and then keep that extra $1.26 for themselves.  That is what eBay is doing here and it's outrageous.

Message 62 of 75
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Re: fees

You just noticed?????   It has always been that way except now eBay collects the fee and not PP.

 

Hey, but then again, I started taking Credit Cards when I was in business 40 years ago and if you don't figure credit card processing and bank fees into your business model you got a problem.  Why do you think you can buy gas as much as a dime a gallon cheaper with cash instead of credit? LOL you think the gas station is giving you a deal out of the kindness of their hearts?

 

Anyhow, if you are just now realizing this then you should sit down and look over your operation's finances, there's probably other things slipping by ya.

 

 

Message 63 of 75
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Re: fees


@k33dd4nch wrote:

It should be illegal for eBay to make a profit (or markup) sales tax.  Maybe it is illegal.  No other online or brick and mortal retailer does this.  

 

If you buy something at Walmart or Target for $100 and sales tax is $10, Walmart or Target charges you $110.  They can't just decide to charge you $11.26 instead of $10 for sales tax (a 12.55% markup on the sales tax owed) and then keep that extra $1.26 for themselves.  That is what eBay is doing here and it's outrageous.


Well yes and no.  Credit cards charge their processing fee on the total amount charged and that does include sales tax.  Paypal charges their fee based on the full amount, regardless if any of the payment has sales tax in it.

 

When you are at the B&M making a purchase, you are the Buyer, NOT the seller.  So not an accurate comparison.  But the fees the B&M pays is accurate to compare to the seller and as I stated above they do pay fees on taxes and have since the beginning.

 

So if anything illegal is going on here, what law is Ebay breaking and what about all the other's that do the same.

 


mam98031  â€¢  Volunteer Community Member  â€¢  Buyer/Seller since 1999
Message 64 of 75
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Re: fees


@k33dd4nch wrote:

It should be illegal for eBay to make a profit (or markup) sales tax.  Maybe it is illegal.  No other online or brick and mortal retailer does this.  

 

If you buy something at Walmart or Target for $100 and sales tax is $10, Walmart or Target charges you $110.  They can't just decide to charge you $11.26 instead of $10 for sales tax (a 12.55% markup on the sales tax owed) and then keep that extra $1.26 for themselves.  That is what eBay is doing here and it's outrageous.


You do know that when you use a credit card/debit card at one of those stores and sales tax is involved, the store pays a fee to the payment processor on the sales tax portion also.

And when you pay your credit card bill, they also charge you a fee on the sales tax portion.

Have a great day.
Message 65 of 75
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Re: fees

@k33dd4nch 


When talking about the Walmart scenario, you have to know, you, the eBay seller, is the Walmart. 

Your customer and the Walmart customer are on the same playing field. 


You and Walmart are on your own field. 

Walmart may use Moneris (for instance) as their payment processor. 
eBay uses Adyen. 
Again, these companies have THEIR own field. 

Message 66 of 75
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Re: fees

I doesn't matter who is who in my scenario or who the payment processor is.  Nobody, anywhere, marks up the sales tax they charge by 12.55% and then pockets that markup as a fee for using their service. 

 

I would be willing to bet my eBay earnings for 2021 that if many state's Attorneys General found out that eBay was adding a 12.55% fee to their state's sale tax, we would be seeing one or more lawsuits.

Message 67 of 75
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Re: fees

Payment processors charge a percentage of the whole payment amount.

Message 68 of 75
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Re: fees


@k33dd4nch wrote:

I doesn't matter who is who in my scenario or who the payment processor is.  Nobody, anywhere, marks up the sales tax they charge by 12.55% and then pockets that markup as a fee for using their service. 

 

I would be willing to bet my eBay earnings for 2021 that if many state's Attorneys General found out that eBay was adding a 12.55% fee to their state's sale tax, we would be seeing one or more lawsuits.


Nobody is marking up sales tax by 12.55%.

 

The fee is charged on the TOTAL amount the buyer pays. The total amount. What is included in that amount is irrelevant.

 

Good luck with your AG, let us know how it goes.

The easier you are to offend the easier you are to control.


We seem to be getting closer and closer to a situation where nobody is responsible for what they did but we are all responsible for what somebody else did. - Thomas Sowell
Message 69 of 75
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Re: fees


@k33dd4nch wrote:

I doesn't matter who is who in my scenario or who the payment processor is.  Nobody, anywhere, marks up the sales tax they charge by 12.55% and then pockets that markup as a fee for using their service. 

 

I would be willing to bet my eBay earnings for 2021 that if many state's Attorneys General found out that eBay was adding a 12.55% fee to their state's sale tax, we would be seeing one or more lawsuits.


It does matter as I explained up thread a few posts.  In fact your example was good with the exception that you don't want to acknowledge that the B&M is equal to a Seller on Ebay.  Not sure why, but they are in this story of yours.  And those B&Ms DO PAY A FEE as the SELLER on taxes on every single credit card transaction, I'm not sure about Debit Cards, but likely there is a similar fee.  

 

You are however correct that Ebay's fee for a non store owner in certain categories is 12.55% and that is higher than a processing fee by a credit card.  However Ebay does have to pay those credit card fees too.

 

I think you will find a lot of people that would take that bet.  I get it that you don't like it.  None of us really do.  But because we don't like it does not make it illegal.  Tell us WHAT law are they breaking???  You aren't the first one in the past 17 months that has said this.  And when asked for what law, they either tap dance around it or will not reply.  This has been policy for sellers in MP for over 17 months now, you'd think that by now someone would be able to find it if it fact it exists.


mam98031  â€¢  Volunteer Community Member  â€¢  Buyer/Seller since 1999
Message 70 of 75
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Re: fees

The state taxes charged are based on the buyer's location,Not your state.  Also eBay doesn't charge federal taxes.  Those are paid by you when you file your Federal taxes.

 

eBay charges the final value fees based on the gross sales amount.

Message 71 of 75
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Re: fees

No!  Sellers pay any federal taxes when they file their tax returns.

Message 72 of 75
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Yes. A lot of sellers noticed this long ago.

Message 73 of 75
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@iamalwaysright wrote:

Yes. A lot of sellers noticed this long ago.


@iamalwaysright 

 

And they learned that they need to correct their pricing to cover fees.  Again, the FVF on shipping has been happening for over ELEVEN years.  NOT a new issue.


mam98031  â€¢  Volunteer Community Member  â€¢  Buyer/Seller since 1999
Message 74 of 75
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Re: fees


@k33dd4nch wrote:

It should be illegal for eBay to make a profit (or markup) sales tax.  Maybe it is illegal.  No other online or brick and mortal retailer does this.  

 

If you buy something at Walmart or Target for $100 and sales tax is $10, Walmart or Target charges you $110.  They can't just decide to charge you $11.26 instead of $10 for sales tax (a 12.55% markup on the sales tax owed) and then keep that extra $1.26 for themselves.  That is what eBay is doing here and it's outrageous.


1) eBay doesn't charge fees to buyers, so your Walmart example is irrelevant from the buyer's perspective.

 

2) When you buy something for $100 + $10 sales tax at Walmart, Walmart's credit card processor charges Walmart a % on the whole $110.

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