cancel
Showing results for 
Show  only  | Search instead for 
Did you mean: 

fee on shipping

eBay would do Sellers and buyers a great service by discontinuing fee on shipping.  eBay proports to not charge for collecting funds so a fee on shipping cost does not support this affirmation.  To add insult to injury eBay reports shipping as income to the IRS!  Check your 1099-K.  

Message 1 of 5
latest reply
4 REPLIES 4

fee on shipping

First of all, the reason that there are fees on shipping is that people used to sell items worth far more than 99 cents for 99 cents and charge 50-100 dollars in shipping to avoid FVF on the items, so they had to find a way to nip that behavior. 

 

Second, shipping you collect is actually gross income. You can offset that on your schedule C with a shipping expense.

 

Message 2 of 5
latest reply

fee on shipping


@gpaj5 wrote: ....  eBay proports to not charge for collecting funds ....  

eBay never said any such thing. The Managed Payments system is all about eBay charging for processing sellers' funds.

 


@gpaj5 wrote: ... eBay reports shipping as income to the IRS!  Check your 1099-K.  

The IRS requires eBay to report all of the funds that they process for you. As noted in the other post, you can deduct your actual shipping expenses on your tax form.

Message 3 of 5
latest reply

fee on shipping

Ebay is supposed to report ALL income that you got.  You then take away the expenses like the shipping, the ebay fees, etc. Etc.  Ebay is doing it correctly.  If you sell elsewhere and accept Paypal,  Paypal will be doing it the same way.  ALL online selling platforms MUST report ALL income received.  When you file your taxes, you then deduct ALL of the expenses from the income received.

Message 4 of 5
latest reply

fee on shipping

"eBay would do Sellers and buyers a great service by discontinuing fee on shipping."

How would that benefit buyers?  

Many times, eBay buyers who are only buyers are completely unaware of the fees that eBay collects from sellers.

Unless you are thinking that, well, sellers have to raise their prices to compensate for the eBay fee, and buyers (have to?) pay those raised prices -- so if the fee on shipping was discontinued, sellers would reduce their prices and buyers would have the benefit of lower prices.   

 

Almost, sort of, like, the reduced cost of eBay fees for sellers would kind of just trickle down to buyers?  

 

Nice theory, but I don't think that has worked exactly that way in areas other than selling on eBay.  

Message 5 of 5
latest reply