Sales tax

[244kelly]

I guess sales will be going down,who going to pay 30% for sales at ebay

[femmefan1946]

The buyer pays sales tax.

The buyer also pays for shipping, even if the seller offers Free Shipping, which just means the cost of shipping is included in the asking price.

So the buyer will be paying the price, the cost of shipping and Canadian sales taxes.

You as a seller pay final value fees on the entire payment from your customer, which includes a 30c non-refundable service fee.

[femmefan1946]

On your $90 card for example the seller paid

$90

plus shipping of  $10

plus his State (if he were in the USA) sales tax - let's pretend that's 5%.

So he would be billed $105.00.

On that your fees would be 12.9%  of $105 or $13.50 plus that 30c service charge.

At the moment, Canadian buyers are not charged sales taxes so your Canadian customer would be Billed $100 and your fees would be $12.90 plus 30c.

Come July, an Albertan customer would pay the same as our fictitious US customer but a BC customer would pay $113 and your fees would be $14.57 plus 30c.

What seems to confuse a lot of occasional sellers, is that they don't realize that shipping charges are paid by the Buyer not by the seller.

[lotzofuniquegoodies]

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@femmefan1946 wrote:

The buyer pays sales tax.

The buyer also pays for shipping, even if the seller offers Free Shipping, which just means the cost of shipping is included in the asking price.

So the buyer will be paying the price, the cost of shipping and Canadian sales taxes.

You as a seller pay final value fees on the entire payment from your customer, which includes a 30c non-refundable service fee.

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According to eBay 70 % of sellers ship for free.

Trying to remember the last time I found anything from an US seller that shipped free to Canada. I mean where it wasn't built into the selling price.

-Lotz

[femmefan1946]

Any item that does not have a separate shipping cost ("free" shipping) has the shipping cost built into the selling price.

The seller may not realize this.

Because Americans are so hung up on tracking, which is a Seller Protection, few will offer cheap untracked shipping outside their own country.

But the USA is still the world's largest economy, so the 70% does not surprise me, even if most of it is domestic shipping.

[lotzofuniquegoodies]

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@femmefan1946 wrote:

Any item that does not have a separate shipping cost ("free" shipping) has the shipping cost built into the selling price.

The seller may not realize this.

Because Americans are so hung up on tracking, which is a Seller Protection, few will offer cheap untracked shipping outside their own country.

But the USA is still the world's largest economy, so the 70% does not surprise me, even if most of it is domestic shipping.

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I'm thinking it's more the buyers not realizing  shipping is built in vs the sellers.

-Lotz