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.

[eburtonlab]

No matter how eBay sets up fees, there will always be some items at some values for which it is just not worthwhile to sell if you are shipping retail, trying to make a profit and you value your time.

[mrdutch1001]

"When Ebay takes a commission off the Actual Shipping Cost and the Taxes it makes selling a $10 item a waste of time."...

Guess that depends upon how much was invested to procure said item that one is listing & selling...

Many of my $10 or less items were sourced for 50c and a few in the $2-$3 range, so although the profit margin isn't much on some items, it is still worth my while if they sell...For example a recent sale of an $11 item, total fees were $3 but the item's original cost to me was less than $1.

I don't sell for the income...I sell for the extra $$ for items no longer needed/no longer wanted...

What's unfair? Selling on eBay isn't a game...Selling on eBay is a choice a person makes...eBay is just the selling platform...take it on or don't...use it or lose it>your choice...

The choice is there>to make a few $$ or hang onto an item you don't want...

Of course you can always use FB Marketplace> get the lowballers, the no shows, the re-shedulers, the "Can you deliver?" requests, the time wasters,etc...

[solid2themax]

Sounds Like you got yourself quite a Hobby! Open your eyes though and look behind the curtain!

[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.

[lotzofuniquegoodies]

@femmefan1946 

I've seen it as a flat fee when you make a purchase but not that I can recall based on the total. A number of food court restaurants are big on that model. Similar to when you use one of those crazy fangled generic debit machines. 

[femmefan1946]

As a buyer you would not see it at all.

What you are likely thinking of is the merchant, who is paying Moneris a service fee putting their own service fee onto the customer's bill.

Moneris is charging the merchant for the machine ( I've been doing this so long, I almost typed "the click click machine"  remember those?) and for the processing of the customer's payment, including for most cards, almost immediate access to the funds.

[reallynicestamps]

You are not paying taxes on taxes.

You are paying a fee to a private company for the service of collecting and remitting taxes to the appropriate governments.

That's governments.

With an 's'.

Something over 200 different ones-- did you know that NYC has a municipal sales tax?

And FWIW.

When eBay charges us their fees on our buyer's entire payment, they are following the Standard Practice of payment processors going back to the arrival of the Diner's Club card some 75 + years ago.

[lotzofuniquegoodies]

Are you aware of any other businesses that charge a fee for collecting tax on behalf of a business? Personally I've never run up against any others.

[femmefan1946]

Moneris charges merchant account holders a fee for processing credit card payments that is based on the entire payment, not how the payment is broken down.

[solid2themax]

If I pay a tax on shipping and then taxes are charged again on the shipping cost, then I pay taxes again on the Fees - TAXES ON TAXES is for REAL!

[raanana]

Actually we do pay taxes on taxes,fees on taxes and taxes on fees.