New eBay Fees Will Include Commission on Sales Tax

by: pace306

Shanna

Mercari IS what eBay SHOULD be - online sales without the theft, deception and palace intrigue.

They also CORRECTLY charge the buyer sales tax and not involve the seller.

As for my reply to a certain OTHER young women - please thank your protector who refuses to publish posts when I reply to YOURS.

As someone who (for what ever reason) can get all upset and riled up about stupid rules - you dont seem to ever be able to get up and UNEQUIVOCALLY state that the actions that eBay does is THEFT.

Not just "not nice" "what can you do""if you dont like the rules dont sell there" or stuff like that.

Theft is theft. period.

by: Lightning

PayPal has been taking a fee on the sales tax since October.  Everybody is suddenly up in arms that eBay proposes doing the same thing.  So ok for PayPal, NOT ok for eBay?

The difference is that eBay is going to be charging a lot more than 3% of the tax amount.  But that's just a matter of degrees.  Wrong is wrong.  If it's wrong to do it now, it was wrong before, but everyone let it slip by.  Not happy now, though.

by: Frank Abagnale

Whenever a company "simplifies things",  what they really mean is that their charging you more. Remember when ebay had commission tiers??? It was something like $0 to $75 was a certain rate, then $76 to $250 was a bit lower and $250 and higher was even lower. Then they "simplified" the commission rate to a standard rate which of course on the higher side.
   

by: Marie

@Lightning

There is a world of difference between what PP charges and what Ebay will charge.  As you know PP charges 2.9%.  Ebay is going to charge 2.9% for their money processing AND A FVF on the sales tax.  Which is 8.6% and up on just the sales tax, the amount depends on the category.  That is an enormous difference.  And no site that I'm aware of charges a FVF on Sales Tax.  I could be wrong, but I'm not aware of one.  Personally I see no comparison on this between Ebay and PP.  They are completely different in this fee structure.

by: toolguy

eBay's next money grab will be from buyers.

Once in managed payments and eBay is the record of sale they'll start having sellers print labels without the seller seeing the amount charged to the buyer.

Only after the fact of the label being printed will sellers see how much eBay charged "THEIR" customer for shipping. If shipping is $8 and eBay gets it for a discounted $7 they'll charge the buyer $8 and the seller fees on $8. . . .eBay's going to get the shipping discount in the future and not the current seller.

It's the last squeeze before out rate fee hikes!

by: Lightning

@Marie
It IS a big difference.  I think that is why eBay is considering the total fee, and possibly will adjust it down a bit to compensate.  When they started charging a fee on shipping, they did the same thing.  My fees went down overall when they started charging a fee on shipping, because my overall rate went down a percent, or was it a half a %, and I was already providing free shipping.  

They are probably trying to assess how much the fee goes up with the sales tax included, and then pull the entire number back with a small general % reduction.  That's the only way they can be claiming it will possibly cost sellers less.  Of course, it could be none of those things and we are left flapping in the breeze.  

This is what happens when you don't have hard numbers to compare, so it shouldn't even have been brought up, or out, until the entire strategy could be presented and THEN evaluated.  Everything we talk about in the meantime will be guesses and speculation, so let the games begin!

by: Marie

@Lightning

Well that would be great, but I think it is quite doubtful.  Did you read Brian's response as to why they are going to charge a FVF on sales tax on the thread Ina linked in the article?  

by: CanBrit

"If your registered address is not in the US, please refer to the fee page for your country of residence for your International fee information.
Seller currency conversion charge"

They haven't even addressed those with an American address and a second address in another Country. OMG, this is too laughable. I don't think anyone realizes the hit they are going to take in July. Hahahahahahaha

by: Lightning

@Marie
I read the article, but I didn't read deep into a 24 page thread.  What I see from the example in the letter is taking a 9.14% FVF and s 2.9% processing fee to get a total fee of 12.04% + 30 cents, those being the current rates.  Then going to a single LOWER rate of 11.5% +30 cents.  Yes, they have ignored the sales tax in the example, which I believe to be irresponsible, since it is the ENTIRE reason for assigning a new lower rate.  It's like they are burying the headline, and I think it is because THEY don't even get it.  

The new total rate is lower so that even after eBay charges it's new rate on the (now additional) sales tax figure, it comes out to about the same fee as before.  Don't forget that the sales tax amount is nowhere near the amount of the sale, therefore having less weight when applying a percent to it.  It's a percent of a percent, some impact, but kinda small.  It looks like in the end, a pretty level result.

by: Shanna

When you sell to high sales tax states like California and NY, the tax can be more than the shipping costs!

by: Marie

@Lightning

I know it is a long thread.  Interesting but long.  However Brian was only on the first part of the thread, no more than half it. I'm not sure exactly, but he has been gone for days.

Ebay isn't ignoring sales tax.  They openly admit they will be charging a FVF on Sales tax.  The new rates are NOT lower UNLESS you take out sales tax.  Then they would be lower.  But when you consider sales tax, it is a fee increase.

I haven't forgotten that sales tax is not equal to the sale price of the item.  Nothing I've posted suggest that.  Using any category that has a 9.15% FVF currently and adding 2.9% for payment processing is 12.05%.  For items in these categories the new simplified fee is 11.5% which is a savings of 0.55% BEFORE sales tax.  

This will certainly be more expensive for seller that have sale tax applied on high priced items than low.  That is true.  But it isn't a fee decrease for most sellers.  Some certainly, especially if sales tax isn't involved.  But Ebay says most sellers will experience a decrease in fees.  I'm not buying it.

It can't be level.  We have never had a FVF on sales tax.  

by: notfunanymore

@marie, just curious, how long are you selling on eBay?

by: Lightning

@Marie
I didn't say eBay was ignoring the Sales Tax aspect, I said the example given was ignoring it.  They used a non-tax sale.  The sales tax being added to the mix would change it upward, and that would vary by item price and state.

If it was a $100 item (including shipping) in a 10% sales tax state, the fee would increase by $1.15.  As it is now, the fee would be roughly $12.05 plus 30 cents, so $12.35.  With the new plan, it would be 11.5% of $110, $12.65 plus 30 cents, total $12.95.  So it would go up SOME if that much tax is on the sale.  You would have to try different item amounts, different state taxes, no taxes, and you could get a better idea of the impact of the comparison.

There is a big range of taxation, including zero, so it just depends where it lands on the wheel of fortune.  I think it's pretty close, not a big deal.  And to get rid of the quarters charged for added line items, I'll TAKE it.

by: Shanna

Marie, lying Brian Burke intentionally used an example without sales tax, when confronted with that fact, he did what any other eBay employee would do, he ran away and hid under his desk.

If Brian Burke told me the sky was blue, I would have to assume the apocalypse was upon us and the sky was now red.

by: Ina

Diving deeper into the new eBay fees that are coming July 20, 2020: https://bit.ly/2WIeYOE

Or just check the home page: "eBay Ties Payment Fees to Commissions in New Fee Structure"

by: ShortSeller

Dear ebay,

Your timing sucks. You are behaving like human scum.

by: pace306

Further More:

eBays OWN words say they cant/arent collecting ANY fees on tax collection (since they get a credit for doing as much already)

"Once eBay starts to collect tax in the required states, no action is required on your part, and there will be no charges or fees for eBay automatically calculating, collecting, and remitting sales tax. The collection process will apply to all sales with delivery in the required states whether the seller is located in or outside of the United States."

https://www.ebay.com/help/policies/selling-policies/ta
x-policy?id=4348

by: toolguy

@pace306

Policies change

Just like this one is changing July 20th from not paying a fee on taxes to paying a fee on taxes.

At least they've given plenty of notice for sellers to prepare for what's coming!

by: ShortSeller

Since the board is so intent on pumping share prices so they can enrich themselves via their stock options why don't they just drop the ruse and start charging sellers a direct fee to pay bonuses.

by: pace306

"Policies change"

Its not a policy change - its black letter law - look it up if you'de like