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

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

 

"their fees should be based on sales price "

It is, the total sales price. What the buyer actually pays for the item and that includes taxes & shipping costs. It's the same as if you bought it from a store. For example: The retail price of the generator on the shelf has the shipping to the store, taxes paid, etc. built into the retail price on the sticker and (if you are a sales tax state) more tax. eBay is just a big store that shares it's info because it's participants are both buyers & sellers on the same venue.

BTW: The buyer does pay 13.25% of the added sales tax.

I haven’t had any problems with eBay and I’ve sold and purchased quite a bit. They charge their commission and my state sales tax. I don’t see what’s wrong with that. It’s mind boggling that they can expose your items to a huge audience of buyers interested in just what you’re selling. And that’s what you’re paying for. If that’s not a good deal for you sell your things another way. 

@thedoc2004   List  on AudioMart where it is free.  I have sold every item I have ever listed on that site.  Why pay any fees when there is a site dedicated to Audio equipment.  Ebay may give you exposure, but AudioMart gives you exposure to the right audience.  IMHO   

The OP's point about eBay being unethical in the way they charge their fees is understandable but I look at it a little differently. 1) The fee structure is transparent; it is in their user agreement, 2) As pointed out above it circumvents any games a seller might play with pricing and shipping, 3) If eBay didn't charge a percentage on shipping and sales tax they would just raise their fee on the price of the item. Instead of 13.25% perhaps they would charge 15%.

I've sold quite a bit of stuff on eBay over the years and even though I'm irritated at some of their policies, I continue to use them. One of the most important benefits they provide is that they have negotiated very attractive shipping rates. If you book you own shipping you will see that it is much more expensive than going through eBay.

You may have a complaint about charging fees on shipping and taxes but IMO the fee that eBay charges compared to the service they provide is still a bargain. I'm old enough to remember the days before eBay when selling a piece of stereo gear was a big hassle. You took your component to your local stereo store (if you had one) and stood there powerless while they offered you 20% of its value if they would take it at all. Your only options were to put it in the closet or take it to Goodwill. So you took a deep breath and mumbled "OK." Paying around 15% or so to achieve an honest auction value for an item is a much better alternative in my experience.