eBay


I have recently sold some audio equipment on eBay and noticed that eBay charges 13.25% on the sale of the item sold, but they also charge that same % on the sales tax that they collect! 🤔 is this legal? This just seems strange to me. 🤷🏻‍♂️

thedoc2004

@ OP

That was part of the User Agreement when you sign up, so it's legal.

A little background around fees on shipping. Years ago, sellers tried to circumvent ebay fee system by selling an item at a very low price $1 and charge a shipping $1000 (for demonstration purposes) because ebay charges fee only on the Sell Price, not shipping fee. To solve this problem, fee on shipping cost was added.

In my experience, ebay has often charged too much for sales tax for my state.  When questioned their response was basically “we’re not going to change anything”

@cfa88

Now that was a well written, productive post that educates and enlightens. Makes perfect sense to me, and I would do the same. Thanks for the informative post. 
 

Best-

If purchasing an item from a different country, watch the conversion rate eBay offers to you. Perform a quick currency swap price  online. Every time I have checked before a purchase, eBay has undervalued the USD. Having the credit card company set the conversion rate vs eBay doing so saved a significant amount of money. 

Many missed the point of this.  Don't know if it is legal but it isn't ethical.  their fees should be based on sales price (and they used to be).  Then the figured out that most won't notice if they charge the fees on the shipping  too.  So if your shipping is $10, you'll have to charge $12 or pay $2 yourself.  I guess they argued that they do this so you won't sell a $10 itm with $2 shipping for $2 with $10 shipping.  So 1% of ebay sellers tried to work the system and the other 99% get to pay and ebay reports an earnings gain.

As for sales tax, ebay keeps all of that and sends it to the state etc.  so I don't think they are charging fees on it.  But if they caluculate your fee based on it, then they are really just adding a defacto fee increase.

Jerry