New US fee attached to selling fees - Retail Delivery Fee - Minnesota/Colorado
Summary: lotzofuniquegoodies shared information about a relatively new fee, the "Retail Delivery Fee," affecting sellers on platforms like eBay for sales in Minnesota and Colorado. They noted that the fee hasn't been formally announced by eBay, and there are exemptions, but it's unclear how these are applied. jtg204 mentioned noticing a 42-cent fee for a sale to Colorado, noting it appears under 'Other' in their fee details, with minimal impact on the seller fees. marnotom! clarified that this fee is actually paid by buyers and added to the seller's final value fee (FVF). lotzofuniquegoodies expressed the need for clarity on how these fees are itemized or included in overall seller fees, encouraging sellers to check their sales to see how these charges are applied. The discussion reflects broader concerns about increasing fees in the US and Canada.
Stumbled across this discussion. Unsure how long it has been applicable or appearing with the seller fee breakdown. Pretty sure it has never appeared as an announcement directly from eBay. As per link 2 there are exemptions. If they are being applied appropriately is anyone's guess.
https://community.ebay.com/t5/Selling/What-s-this-new-charge-the-buyer-paid/m-p/34843507#M2502537
https://taxfoundation.org/blog/retail-delivery-fees-states-transport-budget/
Colorado: Started 2022. July 2024 0.29
https://ledgergurus.com/colorado-retail-delivery-fee/
Minnesota: July 2024 - .50
https://www.revenue.state.mn.us/retail-delivery-fee
Ever feel like we are being junk fee'd to death. It's been in the news with both the Canadian & US government as of late.
-Lotz
PS. To anyone who has recently sold to either MN or CO you may want to check if this charge was applied to your fees and how much. If it is it "should" display on the customers ps.
Legal mumbo jumbo:
“If a retail sale is made through a marketplace and the marketplace facilitator (such as Amazon, eBay, etc) is required to collect sales tax from the purchaser, the marketplace facilitator is also liable for the retail delivery fee if the purchased item is delivered by motor vehicle. A marketplace seller who is not liable for sales tax on the sale is also not liable for the retail delivery fee.”
marnotom!
·1 year agoIf by "we" you mean sellers, in this case it appears that the buyer is paying the fee and eBay is remitting it.
I guess from a seller’s perspective it would add about five Canadian cents to the FVF.
lotzofuniquegoodies
OP1 year agoWould need to see the fees charge and see how it is being applied or is just getting rolled into the other fees and not expressed as a line item.
jtg204
·1 year agoHere's what mine shows for a Colorado sale...
jtg204
·1 year agoHadn't noticed it, my recent one was 42 cents CAD collected from buyer, for parcel sent to CO.
Shows as 'Other' on my fee details, so the seller fees is about 6 cents with tax without any promotion fee.