Why does Ebay take a commission off the Actual Shipping Cost and the Taxes?

[solid2themax]

When Ebay takes a commission off the Actual Shipping Cost and the Taxes it makes selling a $10 item a waste of time. It is ridiculous that use the shipping service and print labels through Ebay's sight and then they take a commission from that. The premise of this began with people who were manipulating the listings with low item cost and outrageous shipping cost. But if I were to sell an item at $10 (vinyl record) and the shipping cost is $15 with tracking, then here's what I'm left with...

$10 (item) + $15 (shipping) + 12% taxes x 15%(approx. fees) = $5.80 takeaway and Ebay gets $4.20

This is a total commission of 42%

So the game is unfair and there needs to be better Consumer Protections Laws!

Ebay needs to target the Manipulators with high shipping costs and make them pay more fees! Make this Business Fair to those who charge the real shipping costs and are trying to sell with Value intended.

[ypdc_dennis]

You are not a Consumer, you are a Seller.

If you were serious about selling, you should register for GST collection.  GST taxes paid out (on item, on shipping, on fees) would be deducted from the GST paid by the Buyer.  The difference would be paid to the government or (if you export stuff) you file to get a refund from the government. Disadvantage: does require paperwork.

eBay charges their selling fee based on what the Buyer paid.  Not on what it cost the Seller.

Amazon.ca is the same way -- except their fee for tax collection is less than 4% (unlike ebay they handle sales tax separately for the fee calculation).  On the other hand, amazon also adds additional fees to help decrease a Seller's profit margin.