Fees
Absolute disgrace that Ebay takes a 12% or more fee off the postage cost paid by the buyer, should just be off the purchase price of the item, just makes it even more uneconomical for the seller to use Ebay
26 comments
Absolute disgrace that Ebay takes a 12% or more fee off the postage cost paid by the buyer, should just be off the purchase price of the item, just makes it even more uneconomical for the seller to use Ebay
cam-2793
·2 years agoFrom the ATO website:
Hobby or business?
It is important to determine whether you are carrying on a business or pursuing a hobby, sport or recreational activity that does not produce income.
In general, you are considered to carry on a business if the activity:
has started
has a significant commercial purpose or character
has a purpose of profit as well as a prospect of profit
is carried out in a manner that is characteristic of the industry
is repeated, regular or continuous
cannot be more accurately described as a hobby, recreation or sporting activity.
For more info https://www.ato.gov.au/businesses-and-organisations/starting-registering-or-closing-a-business/starting-your-own-business
Or enter QC 31733 into search bar at ATO website.
I used to work for ATO and they do get information from 3rd parties such as eBay, so I really hope you have been declaring income from all sources or when ( not if!) they catch you, you will suffer!
sandypebbles
·2 years agoteriyaki1010 has made it easy for them by posting their 'hobby seller' opinion on a public forum as they have
So yeah, certainly hope they have actually informed the ATO or not liking fees here will be the least of their worries
I doubt it, given their radio silence since this was pointed out to them
teriyaki1010
·2 years agoI agree. I keep bringing this up constantly. The postage I charge is not part of my profit, I need to use to to ship the item. Ebay keeps encouraging and rewarding sellers who offer free postage. The only way i could do that is to include the cost of postage in the price of the listing, which will lead to the final fee being calculated from this amount, which is exactly what ebay does anyway, but it is just NOT right. I am just a hobby re-seller, I don't make much profit as it is, and this Catch 22 situation is chewing away from that even further. Ebay is great platform and lots of things are very good here, but the issue with the fees is just pure greed, and I don't understand why it's necessary, I am certain they would be making enough money of the sellers even without it. Please, I urge all of you to keep complaining to ebay and asking for a change.
eol-products
·2 years agoThe problem is a seller could price their items at $1 and say $20 postage per item and save money if no fees where paid on postage.
sugar249
·2 years agoIts more legitimate for ebay to charge commission on postage, than someone to pickup a 2 year old thread for a rant
springyzone
·2 years agoIt won't change, for the reason eol-products mentioned. There was fee avoidance going on big time before ebay closed that loophole.
Of course there is no such thing as free postage. Not on ebay, not on any sales site. Postage cost always has to be included in the price. I can tell this is happening even in big companies. For instance, I use a site called cashrewards, where I often get a small % discount if I buy from a lot of companies.
Yet when I do buy from one that includes 'free postage', I have noticed the % is never calculated on what I actually paid but on a lesser amount. That difference has to be the allowance for postage.
You're not going to change ebay's policy at this point so you need to make sure you up your prices enough to cover fees and also allow for a profit margin you are happy with.
sugar249
·2 years agoBut they are only a ""hobby'' Seller (lol), they can't be expected to understand that. Ok that was tongue in cheek, as looking at their sales history and number of items listed, I would question their hobby claim, and if they don't understand they should stop trying to run a business.
*sons_n_daughters*
·2 years agoI think the ATO would beg to differ on that one. 758 active listings. 36 items sold in the last 6 weeks. 2.9K items sold overall. I hope you are telling the ATO about this, because if you aren't, they WILL find out, and you'll find yourself in a power of strife. Might be worth checking out the ATO site for what they deem to be a "hobby seller". You aren't it.
As for your issues with the fees, If you sell an item for $20 with $10 postage, you are paying fees on $30. If you sell an item for $30 with "free" postage, you are paying fees on $30. There is absolutely no difference in the fees whether you have a listed postage cost, or so called free postage.
I tried listing my items with "free" postage and sales dropped right off. For some reason, the buyers were happier seeing a postage cost. It also meant that if they want to buy multiple items, they can combine the postage. They could get 6 items for the $10 postage cost, instead of technically paying for 6 lots of postage, under the curtain of "free postage".
Oh, did I mention that you're NOT a hobby seller? If you have top rated seller status, then you are selling too much to be classed as a hobby seller. The fact you mentioned that you are a "reseller" means you aren't a hobby seller, because you are buying to resell. You are a business seller and should be paying tax on your items.
imastawka
·2 years agoThey probably think they are a hobby seller because they have a 'real' job.
More fool them.
supermussolinibros*
·2 years agoEbay actually have an obligation to report to the ATO all sellers that earn over 10,000$ in a year.
If you earn over $20,000 a year then the ATO will deem you are running a business and you will be liable for extra tax - how's that for a hobby.
These numbers could be lower - that's what they were ages ago.
Oh and i think the postage charges are counted in those figures, but i'm probably wrong.
ahtis.ahtis
·2 years agoeBay fees and charges are so unfair. They charge 13.25% fee on total amount that includes item price+tax+shipping cost. As you know eBay already collect the tax money from buyer in full. Seller never receive the tax amount from buyer, but eBay somehow manage to deduct 13.25% fee on it from seller. First they deduct tax money then they deduct fee on it. Like I am paying fees on amount which I never received.
padi*0409
·2 years agoYou should post this on the US boards where you are registered.
sandypebbles
·2 years agoMaybe they did but did'nt like the answer
padi*0409
·2 years agoAsk on the US boards, we don't have state taxes here in Australia.
sandypebbles
·2 years agoRidiculous or not, it's no secret what the fees are
Are you agree to those fees every time you list
Are they a secret on eBay USA?
Fees are shown here in Oz
sandypebbles
·2 years agoSo you said on the other thread you started
You agreed to the fees when you listed
Making the same comment again and again is'nt going to change anything
Especially when you are posting on the forum for a different country
sugar249
·2 years agoWhats more ridiculous is giving buyers positive feedback for a negative transaction.
daydreams_12
·2 years agoGo to US Boards not Aussie
*sons_n_daughters*
·2 years agoI think you mean "Ossie". They pronounce the double S as an S, not like a Z like we do. Even when you tell them it's pronounced "Ozzie", they still pronounce it with an S.
springyzone
·2 years agoI know the US sales tax works differently to here, so you might feel you're being hit by a double whammy. You may feel it is unfair. But the problem is I don't think US ebay is necessarily about to change, so you have to work around the system in place.
Probably your best bet would be to make sure you raise the cost of your products to cover all the fees and taxes so that you are still left with an acceptable profit.
Your other option is to try other selling venues. A lot of people use facebook marketplace but it won't suit everyone.
taylor9231
·3 years agoHi, I agree. I just sold an item for a disappointing $2, and the fee was $2.80 because it included post. Yes, I could have read up on it, and I accept that it is approved by the ACCC, but that does not make it ethical. The answer is, you vote with your feet.
k1ooo-slr-sales
·3 years agonot eBay's fault that you made a loss. They are not a charity.
The fee structure is not a secret document, it is available to everyone . . . even non-members.
sandypebbles
·3 years agoYou should have read up on it
It showed you what the fees would be when listed
You ticked you agreed and proceeded with listing
You choose the price to list at and the postage
The answer is, not to list things and then complain what you agreed to happens
See ya
padi*0409
·4 years agoThere are a great many threads on the boards about this subject, suffice to say it's been in place for many years now and savvy sellers will build all fees into their selling price, so that effectively the buyer pays for those fees not the seller.
teriyaki1010
·2 years agonot quite, if I include the postage fee in the price of the item and offer "free" postage, then my final fee will be calculated from that amount and will be higher than it would be if calculated just from the price of the item alone. It's a catch 22 situation. Ebay should never include the cost of shipment into calculation of final fee, than it would be free. Cost of postage is not the money I am keeping.
padi*0409
·2 years ago