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Ebay's offering me their new payment option and I realized another consequence of Sales Tax
amwldcoin
Posts: 11,269 ✭✭✭✭✭
You have to pay paypal fees(or eBay's processing fee) on sales tax that is collected. Doesn't seem like much but this will add up. pennies here and pennies there soon become dollars etc.
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That is nasty. No doubt they see it as the upside to this new law. I wonder if it is legal to charge a few on a tax.
Anyway, this brings up another question I had - I went to pay for something in eBay through PP but the redirect to the PP payment page did not work. So, I used the eBay payment option. To the buyer it is more or less transparent, but how does the seller get paid when the buyer pays through eBay and not PP?
It's a direct deposit to your bank account. Not so sure if I'm going to try this. Do I want to give ebay access to my bank account? Yeah...open another account. They are very unclear...saying buyers will be able to pay with paypal...it's misleading to say the least from your account. So ebay thinks they can get paypal to reduce their rate when ebay is screwing with Paypal's business? They say they are working on it but it will be slow( If you don't read between the lines and read closely you assume folks can still pay with paypal). They are cheaper! No transaction fee, 2.7%, and If I understand no fees if an item is returned.
I intend to ask if it's all or nothing...Paypal or eBay's processing system or will both be available if I sell something. I'll update if I find out.
This is the beginning...as I predicted before, they will dangle a teaser rate...become established....then your wallet better watch out!
so shipping wasn't enough, now they want sales tax cut as well?
I think we’ve reached the end of the beginning of the Internet age. The genius and agility of the Internet lies in its largely unregulated nature (hmmmmm, sounds like Liberty). Encumber if with enough bureaucracy and taxes and it will slow down innovation and productivity.
Translation...we are toast.
The fees on shipping pi@@ me off to no end.
I think there may be a class action suit against eBay for this.
It is just the most recent in a long line of fee hikes. How much will the market bear? They apparently intend to find out.
For what? Standard CC practice. You pay the fee on the total amount of money transacted.
And the fees on shipping are made necessary when people started charging $1 + $99 shipping
To the original point... you do not pay PayPal fees on the sales tax eBay collects for other states. You never see the money, eBay peels it off the transaction before it gets to you.
Not the CC fees but the final value fees.
And the people who charged $99 for shipping should have been taken care of in some other way.
Not cool to penalize legitimate sellers.
When you shop at a furniture store and sales tax is collected and you pay with a CC who eats the CC fee for the sales tax? The store or the taxing jurisdiction? My bet is the store eats it. If the furniture store was supposed to collect 6% then I imagine that the state wants the FULL 6% and not a fraction less. For someone like WalMart I'd posit that CC fees on sales taxes whacks $100 million from the bottom line.
It's charged to the CC linked to my PP account so eBay may eat the fee.
I just checked and eBay is collecting sales tax, so they are charging more than they should or eating it.
I also noticed my 'refunds' get final value fees back, but not listing fees for that sale.
Can you confirm this? It's been awhile back but the only transaction I've had where a tax was applied was to Australia. So far I don't think I've had a sales tax charge to a buyer in the states yet. I will say I haven't checked but it was boldly presented on the sale I had to Australia.
It is specifically addressed in eBay's payment system that you will pay the fees on any sales tax charged.
Will local and regional coin shows make a comeback, where cash is king?
That may far fetched but I like the anonymity.
"If I say something in the woods and my wife isn't there to hear it.....am I still wrong?"
My Washington Quarter Registry set...in progress
@specksynder is correct. That money never hits the PayPal system at my end.
Easy to say. Hard to do. What's a legitimate "handling" fee? What if I charge $2+ $5 shipping & handling but it only costs $3 to ship it? What if I charge $2 + $10? $40 + $12? eBay did the only reasonable thing they could. As a seller, it doesn't bother me, I just figure it into what I charge the customer.
Well yeah that is all correct. Problem is their was an advantage to selling online for a couple decades. Fair or unfair, there it was. Now it is gone.
Ebay is history.
Try owning a B&M before you make that claim.
What part of my claim has anything to do with owning a B&M shop?
Because the cost structure of eBay is still lower than almost any other sales venue. It is cheaper than Amazon for a retailer. Even if it lost all the coin business with it's crappy margins, eBay will endure.
Frankly, it is not eBay that will suffer. I imagine it is the bid/ask spreads in the coin market that will be forced to expand. You can pay Heritage or Stacks, 20-25%, you can pay Amazon 20%, you can pay GC 15% (or more for cheap stuff, less for expensive stuff), or you can pay eBay 10%. The alternative? The very expensive B&M or the very challenging (and shrinking) show circuit.
Well there's eBay's way of offering a sneaky discount when it's not!
Only Apmex and MCM and the handful of anointed metal dealers can profitably sell a Saint on Ebay. That was once an important and high dollar volume category for online sellers. Now costs $200 plus in fees to turn an MS66 coin and if the guy returns it tack on $90 for your trouble.
Glad that you found a space that is profitable. Have watched others drop one by one over the past decade. There are not many categories that carry 50% gross margins on Ebay 25-30% is a stretch.
Their greed, stupidity and the tax mans arrival will seal Ebay's fate.
profitably sell a Saint on Ebay. That was once an important and high dollar volume category for online sellers. Now costs $200 plus in fees to turn an MS66 coin and if the guy returns it tack on $90 for your trouble.
Again, your eBay blindspot has you ignoring everything I said.
There is almost NO PLACE cheaper to take your Saint, especially for a part-timer. Maybe GC for that one item. But good luck with a $100 item, it'll cost you 20% on GC. On a $50 item, it will cost you 25% on GC and STack's/Heritage won't even touch it.
Not on coins in my state, but I have to eat card merchant fees for the sales tax I collect. My accountant says nothing I can do about it but deduct it as business expense. Whatever, I don’t sweat it. It’s all baked into the price.
I just had a customer ask me to remove the tax as coins are exempt in their state. I didn't even know ebay was charging it.. They have already paid. Is there any way to change it before they pay? Or after? Or do they have to contact ebay about it?