Sneeky Final Value & Shipping Fees increase to 10.9%

[capricorntrading]

Don't know if anyone was made aware of the increase of the Final Value Sale and Final Value Postage has now increased to 10.9%

I have 3 different accounts and none have received any notification of fees increasing.

Another ripoff from eBay.  Sellers are the only reason eBay exists.  The way eBay keep leaning towards the Buyer almost makes selling here near impossible to make a profit.

[k1ooo-slr-sales]

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@porcelain_dolls_by_me wrote:

The irony is the "Nextflix tax" WILL NOT BE PAID BY Ebay, rather the the seller of goods which are about 99% Australian citizens.

That is, EBay will still not be paying any tax on their Australia derived income.

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once the Netflix taxes come rolling in the government will have a realistic idea of how much money eBay are making from Aussie sellers.  Think about it, multiply the Netflix tax collected by ten and they will know how much the fees are that eBay are 'earning' from those sellers who pay the Netflix tax.  Finding a way to convince eBay to pay company tax on those 'earnings' will be difficult because if it was easy they would already be paying.

That Netflix tax might be the catalyst for finding a way to have them pay their fare share of company tax, which would be a windfall for all Australians as the government would have another

[collect247]

40% should do lol

[jeni!!]

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@porcelain_dolls_by_me wrote:

... the "Nextflix tax" WILL NOT BE PAID BY Ebay, rather the the seller of goods which are about 99% Australian citizens.

[emphasis added]

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I'd be surprised if 99% of sellers on Aus Ebay are Australian. Many advertise their goods as being in Australia (mostly dishonestly IME) while they are located in Asia (according to their profile).

I wonder whether these sellers will have to pay the GST on Ebay fees? Or will this be another area where overseas sellers have lower costs (postage being the other one, as Australian taxpayers subsidise postage on parcels that come from o/s and are forwarded by Australia Post)?

[lyndal1838]

If they list on ebay.au then they will be paying the GST as all sellers do who are listing on the site.

[digital*ghost]

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@jeni!! wrote:

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I'd be surprised if 99% of sellers on Aus Ebay are Australian. Many advertise their goods as being in Australia (mostly dishonestly IME) while they are located in Asia (according to their profile).

I wonder whether these sellers will have to pay the GST on Ebay fees?

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GST is (and always has been) a tax on Australian consumers, so the answer to that question is no, overseas sellers who list on eBay AU will not have GST added to their fees. Australian sellers can't avoid it by listing items on other sites either, because it's charged on any fees generated by an account registered in Australia. 

Not all Aussies will pay it, either. Sellers who are already GST registered will have no added GST. 

(PS - eBay gave 30 days notice, other sites less than 2 weeks. I haven't seen a single TV ad - because I don't have a TV  - so the news was probably easy to miss for many). 

[lyndal1838]

Believe me Digi, if you have a TV you cannot miss the ads for the new Tax.   They are driiving me crazy and I have a great ability to tune out when ads of any sort come on.

[jeni!!]

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@digital*ghost wrote:

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GST is (and always has been) a tax on Australian consumers, so the answer to that question is no, overseas sellers who list on eBay AU will not have GST added to their fees....

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Thanks DG.

That's what I assumed--that it would be based on where the seller account is located.

No TV here either. but I did see Ebay's terribly worded emails.

[*tippy*toes*]

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@k1ooo-slr-sales wrote:

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@rocket2retro wrote:

In essence, although sellers pay the tax, eBay will pay with the potential loss of sellers.

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I think that the smarter sellers, especially those who only do Buy-Now items, factor in all of the costs associated with selling when setting the price of their items.  They need to add in final value fees (including Netflix tax), PayPal fees, cost of postage, packaging etc.

For those who run auctions, they need to increase the start bid amount to take the Netflix tax and all other costs into account.

As with all the changes in eBay over the years, there will be those who are able to cope with the changes, and others who will fall by the wayside.  The trick is to ensure that you are not one of the ones who falls by the wayside.

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The ones that do crumble will be the ones that buy at retail price and try to mark up to make some kind of profit. The ones that pay $20 for a $20 item and then list it for $22 plus postage. Some of these people do see their products but the profit margin is so minimal, that even a few cents extra in fees is going to cause them to be in the red by the time the other fees have been paid. They may not stop selling straight away. They'll offload all their stock first, then stop selling.

Then there are those who make a large profit on the items they sell, so can absorb the extra fee added. If I buy something for $1, sell it for $30 including postage, the fees would be close enough to $3. The 30c extra I pay on that is still going to give me a great profit, so I probably wouldn't change my prices. If I was buying for $1 and selling for $2, then I probably would (maybe).

[lizzyamelia]

I think the issue is that now we are paying GST twice for the postage component which is wrong on all levels.

NETFLIX tax is for DIGITALLY delivered downloads supplied by a foreign source NOT for physical items sold over the internet But this is just ebay increasing their fees.

[davewil1964]

We are paying GST on eBay's FEES, not the postage, not the goods. eBay's FEES.

Have a look at your account.