Talk of The Villages Florida - View Single Post - Proposed Internet sales tax
Thread: Proposed Internet sales tax
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Old 04-26-2013, 10:12 PM
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Quote:
Originally Posted by Bogie Shooter View Post
Ebay charges a final value fee on the selling price plus shipping of 10%. Pay pal charges a fee on selling price and shipping of 3% plus $.30 per transaction.
Actually the history of why they charge the selling fee as the total of the bid plus the shipping is simple. People figured out that one way to avoid the fee when it was just based on the bid price was to list an item worth say $50 and list the shipping at $40. Then the winning bid would be only $10 and the seller would pay his 10% of the $10 or a big one dollar. Ebay figured that scam out and made the fee due on the total charge including shipping.