BMerTmWU1!~~_7.JPG "lotzofuniquegoodies"){kind=avatar}
@lotzofuniquegoodies wrote:Re: Fee Calculator
Does it resemble something like this?
This may be a good starting off place? You can always tweak after.
-Lotz
This new "Simplified" FVF/MP implementation is really something, there are so many variables in play now. This guy points out just one of a whole host of tricky aspects.
Why is eBay turning Sales Tax collection into a profit making scheme via Managed Payment's "Simplified Fees"? eBay is taxing the sales tax which it collects at a VPR or Variable Percentage Rate based on the category a seller is selling their item in. How is that fair?
If a seller sells a widget for $1,000.00 and the sales tax collected is $100.00 (10% sales tax) then.......
With the way that things currently are with PayPal the seller would pay $2.90 on that $100.00 of sales tax collected.
Evan Amazon only charges its sellers 2.9% on sales tax collected.
With eBay's new SIMPLIFIED FEE structure for sellers who will be enrolled into Managed Payments starting in July, a VPR or Variable Percentage Rate is assessed for sales tax collection depending on the item's category in which it is sold.
So in the example I am going to show a few different variable percentage rates that eBay sellers who are store subscribers will be paying for the same $100.00 of sales tax collected by eBay.:
Collectibles Category - 11.5%: the seller will pay $11.50 on that same $100.00 of sales tax collected.
Video Game Consoles Category - 6.35%: the seller will pay $6.35 on that same $100.00 of sales tax collected.
Heavy Equipment Category - 3.85%: the seller will pay $3.85 on that same $100.00 of sales tax collected.
Book Category Category - 14.35%: the seller will pay $14.35 on that same $100.00 of sales tax collected.
So now a Book seller is expected to pay eBay $14.35 for every $100.00 in sales tax collected. Which is $8.00 more than the Video Game Console seller and $10.50 more than the Heavy Equipment seller for the same $100.00 of sales tax that eBay is collecting!
THAT IS NUTS!
Why is the percentage rate charged for sales tax collection not a fixed percentage rate?
Why should a Book seller have to pay eBay $14.35 for every $100 in sales tax collected and the Video Game Console seller only have to pay $6.35 for every $100 in sales tax collected?
Is the Video Game Console seller better than the Book seller in eBay's eyes?
Does eBay expect some sellers to carry another seller's water for them?
What about the Collectible Shoe Seller who sells shoes with a price over $100.00? Those sellers pay 0% in FVF.
Does that now mean that Collectible Shoe sellers will pay 0% in fees on the sales tax collected by eBay?
Many of those shoes sell into the tens of thousands of dollars.
How does that work?
I find it rather funny that all the things being said about Managed Payment were said back in 2006 when the Acceptable Payments Policy started and all sellers were required to offer and accept PayPal.
One would think if there are actual savings to be had with managed payments eBay would show examples of how this possible. It would be better advertising than sellers trying to rationalize the math on their own. Hey...Just sayin'!!!
-Lotz
Featured Posts
