eBay fees adding up to 75% of gross profit

[brickcanada]

I sold an item with a gross profit of $20.40. eBay charged 20.8% for whats supposed to be an 11% ad fee and 28.7% final value fee which I've heard is only supposed to be 13.5%. After shipping label and regional taxes eBay has taken over 75% of my gross profit. Why has eBay overcharged on ads and final value?

[flipistics]

Fees are based on the full transaction. That means the total the fees are calculated on includes the item price, the shipping (with some partial exceptions), and the tax (if applicable).  So if you sell an item for $20 with $20 shipping + tax, the fees will be calculated on $40 instead of $20. If you have promoted listings turned on, you might also get additional fees from that (again, on the item, shipping, and tax).

[brickcanada]

Oh so shipping can add more to the tax in the final price? For example 10% eBay tax on the main item would eBay charge 20% tax after shipping was factored in?

[femmefan1946]

Oh so shipping can add more to the tax in the final price?

First.

EBay does not charge a "tax".

Private companies charge "fees" and governments charge "taxes". Keep that straight to prevent future confusion.

Now.

EBay charges its fees on the buyer's Total Payment.

And that includes the buyer's local sales taxes.

Some sales taxes include both the product and shipping on the product.

Not all.

So if  Texas charges sales tax on both, a payment made up of purchase of $10 plus shipping of $10 plus 5% sales tax would be ? Right $21 and an eBay fee of $23.31
But Delaware which has no sales taxes would only charge $20. and the seller's eBay fee would be $22.20.