Calculating promoted fees not happy

[gail.dew]

Just received notice of calculating fees for promoted listings as including taxes postage the whole lot.  Im sorry but your losing the plot ebay.  The costs are getting prohibitive to do business.  This is a very bad move.

[jellybirddesigns]

It only applies if you set a promotion on a listing.

If you don't have any promoted listings, you don't have to worry.

It's totally your choice.

[roxe_scentedwax]

I have some promoted listings but I won't be paying for a promotion fee on a listing I haven't promoted with this new system in June... Time to opt out of promoted listings I think, it's getting too expensive to sell on ebay.

They certainly don't look after the seller, a lot have gone broke over the last couple of years even with the increased activity due to covid. Just ebay cashing in once again at the sellers expense. Amazon is starting to look real good, at least I get a better sell price with no cheap **bleep** competition.   

[jellybirddesigns]

@roxe - Amazon is more expensive to sell on. Will cost you $49.95 a month for a selling plan and around 15% in fees. It's also a merciless platform - spend time on their forums, you will be horrified if you think Ebay is bad.

As an alternative - don't offer free postage on your items, especially your low cost ones. You need to be making money, not giving it away. Maybe change your overall postage to $3.00 to minimise your losses.

Promoted listing are entirely optional.

If your items are hand made, you should also list them on Etsy - you will get better prices there. Have them in both places to maximise your income.

[gutterpunkz05]

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@roxe_scentedwax wrote:

I have some promoted listings but I won't be paying for a promotion fee on a listing I haven't promoted with this new system in June... Time to opt out of promoted listings I think, it's getting too expensive to sell on ebay.

They certainly don't look after the seller, a lot have gone broke over the last couple of years even with the increased activity due to covid. Just ebay cashing in once again at the sellers expense. Amazon is starting to look real good, at least I get a better sell price with no cheap **bleep** competition.   

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The changes only relate to items you  opt to promote, and relates solely to the promotion fee portion of the sale.

If you actually have any current promoted listings, you can cancel the promotions effectively refusing to pay the increase.    You can do nothing and pay the increase if the item sells via a promotion only.

OR  you can fiddle with your price structures and agreed promotion % figures, to make ebay work for what you are prepared to pay.

[gec2002]

"and relates solely to the promotion fee portion of the sale."

Only until 31st May

eBay

"We wanted to let you know that starting on June 1, 2022, we’ll be changing how Promoted Listings Standard ad fees are calculated and updating our marketing program terms. As a result, you may see some changes in your ad fees.

Currently, these fees are based on the final price of the item, but starting June 1 they’ll be calculated based on the total amount of the sale, using the same basis we use to calculate final value fees "

[japatech]

I think this may be illegal under Australian Tax Law. It sounds as if ebay will be receiving a cut of the GST. The ATO does not allow vendors to take a percentage of the GST for expenses or profit. If ebay are calculating the promoted rate on the GST then they are effectively profiting from the GST. The GST is supposed to be a flat rate of 10% paid directly to the ATO. They are not allowed to take a cut.

[gail.dew · Accepted solution]

I agree totally thats my solution to.  Im not against businesses making money its this keep slugging percentages on top of taxes postage etc what is that about.  Just not being real with their sellers.

[gail.dew]

My thoughts to

[gutterpunkz05]

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@japatech wrote:

I think this may be illegal under Australian Tax Law. It sounds as if ebay will be receiving a cut of the GST. The ATO does not allow vendors to take a percentage of the GST for expenses or profit. If ebay are calculating the promoted rate on the GST then they are effectively profiting from the GST. The GST is supposed to be a flat rate of 10% paid directly to the ATO. They are not allowed to take a cut.

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For  years, the ebay FVF  for standard sales has been calculated on the Total sales invoice, IE;   The sales price + shipping  + any additional fees.   This has the full approval of the ACCC, so hard to see it breaching any Australian Laws.

This system of calculating FVF  will remain unchanged for standard sales

Now for promoted sales,  when an item sells via a promotion,   The standard sale FVF ( as above) applies

+  an additional  fee (charged seperately) for the  priveledge of selling via promotion, and is charged at an agreed rate.   Currently  this  fee only applies to the actual item price, but under the new Fee, will apply tp the total invoice, exactly how it is calculated for  standard sales, 

So again  it is hard to gather how a ,fee structure, for standard sales currently operating with the full approval of the  ACCC, will somehow be illegal when the same fee structure is applied to  promotion fees.