final value fee

[nitoy3]

Can anybody explain whys is the Sales tax included in calculating the FINAL VALUE FEE>

Thanks

[bonjourami]

Because Ebay charges a fee for the total sale, which includes collecting the sales tax and dispursing it to the correct state. Would you rather do that yourself?

[ryry-jj]

Ebay basically charges for the service of collecting and remitting the sales tax for sellers so we don't have to.   There is a percent in there as well for the cost of processing money/payment made 

[kibble-net]

-Payment processing. If you had a merchant account with your own website, you'd be paying them 3% plus a fee per transaction, and that includes the sales tax.

-Tax processing. Ebay collects sales tax in every state that requires it, and then takes care of all of the accounting and tax filing. If you have your own website, paying an accountant to do this will run you about $200 per hour - and there's a lot of states to file with.

Best practice is to add a small handling fee to your orders if you're concerned about this portion of the FVFs cutting into your profits.

[reallynicestamps]

This has been Standard Practice in the payment processing industry since Diner's Club invented the credit card in the mid-50s. 

You are paying fees on the payment, not the parts of the payment. 

[soh.maryl]

This isn't new, but not sure exactly how long it's been in effect, would guess it's a few years.

You've been a member since November 24, 2006.

Just curious, what caused you to just notice this? 

[monroe67]

"Can anybody explain whys is the Sales tax included in calculating the FINAL VALUE FEE>"  
                                Because that's the way eBay has decided to create their fee structure.  

You've apparently sold very close to 10,000 items -- at least, you've received 9,845 feedback comments.  It's kind of surprising that you have not accepted this part of eBay's terms and conditions.  

This type of question comes up every couple of weeks, it seems.  There's often a slight variation in the wording of the question.  Sometimes the OP questions the legality or the ethics of eBay's decision to retain a Final Value Fee (FVF) on the total paid by eBay buyers.  Sometimes the OP warns eBay that people will stop trying to sell things on this platform because of this blatant money grab.  

Let me try to pose a few other questions, trying to make an ironic analogy:
          "Say, OP, why is a picture of a dog your eBay profile picture?  Why not a cat?  Are you prejudiced against cats?  Everybody knows cats are better than dogs.  I believe the Ancient Egyptians worshipped cats and many people still do.  Nobody else has a picture of a dog as their profile picture.  You are really risking your sales on eBay by using a picture of a dog.  Cat worshippers might boycott your listings and tell all their cat-loving friends not to buy from you either."

Seriously, though, it's perfectly fine for you to post a picture of your dog, possibly even as a watermark in the photos in your listings.  But if you want to continue as a successful seller on eBay, acceptance of the Rules of the Game is a better way to go.  

[duffy4444]

   Please read down about a hundred posts here on this subject, which has been really beaten to death. There you will see all the explanations, ad nauseam... I've gotten really tired of seeing so much time wasted on this non-issue.

Cheers, Duffy  

[inhawaii]

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@nitoy3 wrote:

Can anybody explain whys is the Sales tax included in calculating the FINAL VALUE FEE>

Thanks

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Because that's what ebay wants.

Because it's legal.

Because you agreed to it.

[christworks]

@nitoy3 How else do you expect them to pay off the little green men that really run eBay?

[johnrj1226]

Surprised  you have  just discovered this been in effect going on 6 years (when all sellers  had  to sign up on to Managed Payments.

[kensgiftshop]

Yes, because Ebay says it is.