I've been on managed payments for a few months, and ebay's accounting is accurate. After an actual sale is completed, I have another section on my spreadsheet where I can run the actual sale numbers, just to make sure everything is accounted for. I have my spreadsheet set up to calculate an estimated profit, assuming a worse case scenario of a 10 percent state sales tax. Ebay let's you know if they have collected sales tax, but they don't make it easy to understand. In some states, it's zero, and in other states it's almost 9.5 percent. The tricky part for sellers is that we cannot know ahead of time what the sales tax will be, because that depends on which state the buyer is located in. The formula would be (FVF% x sale price) + (FVF% x shipping) + (FVF% x sales tax). Basically, ebay is charginging FVF on the sale, AND charging FVF on the shipping, AND charging FVF on the sales tax. I had to create my own spreadsheet to figure it all out. eBay fees including taxes does not seem to be a Supreme Court requirement, but a way for eBay to collect/inflate a higher fee (that was not blatantly advertised to sellers).Įxample: Sale Price = $50, State Taxes =$5, Final Value Fee = $50 x 12.35% = $6.18 + $.30 = $6.48 A $50 sale has a fee of $6.48, based on the sale price.Īctual Fee system: Sale Price = $50, State Taxes = $5, Final Value Fee = $55 x 12.35% = $6.79 + $.30 = $7.09, A $50 sale has a fee of $7.09 based on the sale price and the buyer's state taxes collected on behalf of the seller.Īccording to eBay they have to charge the $7.09 and not the $6.48, because the Supreme Court forces eBays fee system to be like this and not corporate greed. This was because of the Supreme Court and not because of Corporate Greed, conflating a complex system.ĮBay can easily charge seller's a final value fee purely based on the transaction price and collect and remit states sales tax collected on that transaction. It (supposedly) forces eBay to have a fee based system based off of the transaction cost PLUS the sales tax that eBay collects, instead of just being off the transaction cost and the sales tax being collected not being included in the fees eBay charges sellers. That's why the fees are varied and don't make sense on initial review.ĮBay's customer support from the "Management Payment team" claim that eBay has to charge seller's like this due to the Supreme court decision regarding South Dakota. EBay's final value fee is based off the sale price + the buyer's state tax amount, not just the sale price.
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