T/F: sales tax unknown, and so seller fee unknown at time of listing?

[brecs]

(Brand new seller)

As best I can tell, the seller fee on an item is based on the total amount the buyer pays, including sales tax.  The sales tax rate to a U.S. buyer could range from 0% to almost 10%. So the seller doesn't know the eBay fee until the item sells, and not at the time the seller sets a price.

Right?

[hartungcards · Accepted solution]

Right.  Just estimate 7.5%.  You win some, you lose some, it all evens out in the end.

But congratulations on properly understanding the FVF system as a new seller.  This may be a first.

[mtgraves7984]

Right?

@brecs 

Right. 🙂

[hartungcards]

And thank you for not complaining about paying a FVF on the sales tax.  This may also be a first.

[bashort]

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@hartungcards wrote:

And thank you for not complaining about paying a FVF on the sales tax.  This may also be a first.

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It sucks to pay ebay fees on sales tax.

Your are welcome

[hartungcards]

Yeah, we've heard that non-starter complaining from you many times.

[duffy4444]

@brecs wrote:

(Brand new seller)

As best I can tell, the seller fee on an item is based on the total amount the buyer pays, including sales tax.  The sales tax rate to a U.S. buyer could range from 0% to almost 10%. So the seller doesn't know the eBay fee until the item sells, and not at the time the seller sets a price.

Right?

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@brecs:

   Yes, that's right. You understand it a lot quicker than many other new sellers do.

   Now go back to the other thread you posted today and look at what I said (#10) about a new seller with relatively low feedback listing a high-value item. The scammers will be licking their chops at you and your proposed listing of a ~$2500 item.

Cheers, Duffy

[soh.maryl]

Perhaps I am mistaken, but your message here sounds like you want to base your price on whatever amount the state sales tax will be when your buyer pays.  Why? You don't get to keep those funds, they are sent by eBay to the state treasury of the state where the buyer's package is delivered.

And you clearly understand how eBay fees are calculated, so I guess I don't understand the purpose of your question.  

[soh.maryl]

Why does the amount of state sales tax matter to a seller?  

[hartungcards]

I think the OP is astutely trying to figure in the FVFs before setting a price -- just like any experienced seller would.

[hartungcards]

Uh.....because, as the new seller has correctly pointed out, the sales tax amount will create an additional FVF deduction from his payout.

[monroe67]

"Why does the amount of state sales tax matter to a[n eBay] seller?"

The amount of sales tax is, of course, paid by eBay buyers and sent to the state in the buyers' delivery addresses.   

The OP, a new eBay seller, understands that his Final Value Fees (FVFs) to eBay are a percentage of the total amount paid by the buyer.  That total amount includes sales tax.  

Therefore, any eBay seller will pay more in FVFs to eBay when he/she sells something to a buyer in Los Angeles, California (who pays 10% or slightly more in sales tax) than if he/she sold the same thing to a buyer in Salem, Oregon (who pays no sales tax).  

I applaud the OP for knowing this aspect of eBay's FVF procedure at the beginning of his eBay selling venture.  

[mam98031]

I understand and respect your concern, but look at this realistically.  Lets say you sold something for $100 with free shipping.  So the buyer pays you $100 plus a 10% sales tax which is a total of $110.00.

$10 x 13.25% Ebay FVF = 1.36

So depending on what price range you are planning to sell your items at, it could be just pennies difference or a few dollars.  One would hope on a $100 sale that $1.36 in additional fees would not hurt you.

Also important to know, we have a half dozen states that do not have sales tax and the average sales tax for the rest of the states is about 8%.

Your fees on sales tax should not negatively impact your ability to make money here.  Unless you are not applying all your costs to the price you post your items for sale.

[hartungcards]

In a related post today, the OP has informed us that:

"I will be listing an item of equipment, for ~$2,500"

[mam98031]

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@hartungcards wrote:

In a related post today, the OP has informed us that:

"I will be listing an item of equipment, for ~$2,500"

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Thank you.  Maybe they will come back and tell us this and more.  Sometimes new sellers have plans to post an expensive item but don't realize their Selling Limits won't allow it.  Or maybe they got their selling limits high enough to accommodate the higher priced stuff.  We need @brecs to participate in their thread.