Customer Claims there is "Sales Tax" on Potential Purchase?

[josfod_0]

I just recently reduces an item yet again to try to list a competative price on Ebay and I've about had it. I dont think its viable to maintain selling here if Ebay keeps up these greedy tactics. I remember an Ebay back in the day where the fee to sell here was a mere FEW PERCENT . Now its 13% , regardless of how expensive or small the item is ( which makes no sense, why does Ebay get $130 from a $1000 card I sell for doing NOTHING except letting Me use Their platform. There should be reduced fee rates for people who sell more volume. Its just pure greed. Now I have a customer saying there is another $25 fee for something He is trying to buy off Me? How much can You gouge us Ebay before people switch platforms and stop selling here? How is anyone supposed to profit on a small business with these rates when usually they only sell things with a 15% to 20% profit margin? Its just sad

[femmefan1946]

except letting Me use Their platform.

Because they let you use their platform.

There should be reduced fee rates for people who sell more volume.

There are. Store fees per item fall the more items you list.

There are discounts on FVF for Store subscribers and for TRS.

Now I have a customer saying there is another $25 fee for something He is trying to buy off Me?

Internet (state or provincial) sales taxes on his entire payment, including shipping.

Most of these taxes are like the Canadiand Goods and Services tax.

EU and Australian buyers also pay these fees, just as they would in local shops.

before people switch platforms

These taxes are from the buyer's government , whether federal or provincial/state.

They apply to almost all online venues which handle more than $30,000 annually in payments.

EBay handled that much in an hour.

How is anyone supposed to profit on a small business with these rates when usually they only sell things with a 15% to 20% profit margin?

You just identified the real problem.

You can't make a profit on a 20% markup.

Low value items should have a markup of 100% to 1000%.  The norm in jewelry shops is 400%.

And you have to identify all your costs.

Selling online is a real job, if you want to make money at it, even as a side hustle.

[mrdutch1001]

The taxation is NOT an eBay thing and if taxes and fees are a deal breaker for you to list and sell on eBay or any other worthy online selling site, then perhaps it is time to reasses ...Selling on eBay or any site for that matter is by CHOICE....and as a seller you either agree, accept, adapt, adjust and carry on OR move on!

[brettjet38]

@josfod_0 

I remember an Ebay back in the day where the fee to sell here was a mere FEW PERCENT 

I have been on here since 2001 and it was never just a FEW PERCENT.

Now its 13% , regardless of how expensive or small the item is ( which makes no sense, why does Ebay get $130 from a $1000 card I sell for doing NOTHING except letting Me use Their platform. 

Yep, you are paying for their services and access to the millions of potential Buyers. If you want to go get those Buyers yourself, go build your own website and attract your shoppers using your great business insights.

There should be reduced fee rates for people who sell more volume.

There are when you have a Store and sell "Volume" that is like 1000s of items a week or day...

Its just pure greed.

No, it's called running a business, eBay is in operation to make $$$, are you?

Now I have a customer saying there is another $25 fee for something He is trying to buy off Me?

That's called SALES TAX and there are threads that go into great detail about it, and you can thank your elected officials for that as it was in last year's Canadian budget.

How is anyone supposed to profit on a small business with these rates when usually they only sell things with a 15% to 20% profit margin? Its just sad

What is the point of even selling for a 15%-20% profit margin, it requires a lot of time and effort to sell on eBay and no serious person would do that for "pennies".

[33nhl]

Sadly if you are an average hobby seller like my self you have to start using other free sites to sell sports cards. Selling now on Ebay you really have to add the potential fees that ebay will collect into the price. Thus if i want $100.00 for an item i will sell it for $120.00 or more, cause Ebay will take that $20.00 in fees.

I have no problem paying the ebay fees that now come to about 14% as you as seller pay fees on the tax portion a buyer now pays for item purchased and it dont matter if the item is new used or for scrap yard buyer is charged tax on and then Ebay charges fee on that tax, No wonder Ebay changed to its own payment system to collect more $$$$ from sellers and nothing more.

I use to sell and still sell on ebay as hobby  if it was as a business i be nuts cause what company pays 14% in fees from there sales and profits.  Yes it is the price we have to pay to list n this platform but believe me many are selling far more then on Ebay on other FREE platforms such as kijjiji Facebook and no fees to list or when you sell an item. Buyer is happy seller is happy cause in the end if the buyers are the ones paying the extra $$$  in fees Ebay collects and many are asking to sell items offline  and bast way to do that is in your pictures you can type in your Facebook or IG and buyers can and will find you on those site to sell an item for less and offline from Ebay.

If there is a will there is a way, so just look further to selling elsewhere instead of just on Ebay.

If Ebay wants to collect its 14% in fees then it has to bring me buyers that will pay my asking sale price if not then ebay does not collect $$$$

[femmefan1946]

cause what company pays 14% in fees from there sales and profits.

Oh my sweet summer child.

You have never had a brick and mortar business have you?

We paid our landlord $9000 a month rent for our shop (in the 90s when I was active in the business, more in the 21st century when I was less involved) PLUS a percentage of our sales. This is something shopping malls came up with and has spread to other landlords.

Then there was heat, hydro, insurance, garbage because our city taxes did not cover trash collection, and city and federal taxes.

And we won't get into wages and payroll taxes, which we might also consider a fee for doing business.

 Believe me, and any other shopkeeper, 14% is a doddle and 20% is a bargain.

While I think Loblaws is exaggerating when they claimed a profit margin of 2%, most businesses are closer to that than to an 80% profit margin, or even 20%.