Ebay charges state sales tax on small sellers.

Posted by: Beakybird

Ebay charges state sales tax on small sellers. - 01/17/20 03:47 PM

Well, they charge the buyer, and whoa! I'm going to avoid Ebay like the plague.

I sold two PSR-S970's in just over a month. One had two medium sized chips broken off on side. The other had a very small chip in one corner. Both were sold with my amassed style collection.

The more damaged S970, I sold on Craigslist. I eventually sold it for $775. I had to drive 15 minutes to meet the guy at a McDonalds, but everything was smooth.

I sold the S970 in better condition on Ebay. I started the auction off at $800 + $59 shipping. It sold today, and I was delighted when I saw that the buyer paid $1038 through PayPal.

But then, I saw that there was only $918 in my bank account. The buyer in California had to pay $85 sales tax to Ebay even though I live in Illinois. Plus they took out the 3% Paypal fee. Now after 10% seller fees on the item and on shipping, I'm going to get $826. After shipping, I'll end up with about $775 net - the same as I got for the more damaged keyboard on Craigslist where I got paid cash.

I could have done better on Craigslist or Facebook Marketplace - or selling here on Synthzone. Over 25% of the final sales price was eaten up by sales tax, Paypal fees, seller fees, and shipping. Holy mole!
Posted by: leeboy

Re: Ebay charges state sales tax on small sellers. - 01/17/20 04:07 PM

All sellers will just have to raise their prices....I used to like e-bay, now it's last resort. The greedy get greedy'er.
I wish she would get some serious competition!
Posted by: TedS

Re: Ebay charges state sales tax on small sellers. - 01/17/20 04:33 PM

Another web site would still collect taxes, if required by law. It's the state that's greedy. I get that they were losing tax revenue to internet sales, vice brick-and-mortar retail stores. But now they're double-dipping... Tax the buyer when it's sold brand-new retail, and then tax the next buyer when it's resold as used. And again, and again like the Monkey's Paw! Seems like kind of a gold mine, eh? What are they going to do with all of the extra revenue?

I don't like Craigslist. Anyone could mug you or hold you up at knife point and take the goods without paying. Maybe you could meet them in the parking lot of the local police station?
Posted by: Beakybird

Re: Ebay charges state sales tax on small sellers. - 01/17/20 04:50 PM

On the first sale through CL, we met at McDonald's, and there were 4 police sitting down right there. Lots of cameras too.
I put the keyboard on a table by an outlet, and demoed the keyboard at a low volume.
I agree that sales tax isn't Ebay's fault, but they own PayPal, and overcharge for fees.
I live in a big metro area, and I ain't using Ebay for anything over $100.