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eBay Inc. (EBAY) Message Board

  • doublefeebay doublefeebay Apr 24, 2013 9:08 AM Flag

    What percentage of ebay sellers would actually be affected by collecting sales tax?

    The proposed internet sales tax is only required to be collected by sellers selling over $1,000,000.00 a year. Does anyone know what percentage of ebay sellers actually sell that much? I wouldn't think it would be too high. Maybe 10% at most, but probably a lot less. The so called "mom and pop" sellers who are supposed to be driven off by this proposal wouldn't be impacted by the tax because I would think that you would lose the "mom and pop" seller status way before you got to a million dollars.

    How many "mom and pop" sellers are feeling the pain of the ebay fee increase though.

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    • Try less than 1%. Seriously?

    • i think Ebay as a whole is the seller that owes the tax. They are the seller of their site. The sellers on Ebay are only the workers. Do you think every seller can keep track of what they owe to each state. I think it will hit Ebay as a whole. They are the Seller. They will just add additional charges on their invoices or take it when the person pays for an item.

    • I'd bet less than 5% are actually earning over a million per year with eBay but those are the golden children of CEO John Donahoe, those are the ones he wants to protect. If thy have to add 4-8% to every item, it will mean less profits and more customer complaints.

      Diamond sellers like eForCity, undercut prices and survive on less than 10% profit margins by selling in volume. John Donahoe would much rather deal with 1 diamond seller than 1000 mom&pop sellers. Saves eBay money.

      As for the new fees, only a portion will be impacted. This fee raise was carefully calculated how eBay could take additional profit with minimal risk of alienating all sellers and causing negative publicity. I sell in media category and the fee change will actually save me $25-$50 per month, BUT, media category has all but been lost to Amazon. Book, CD and music sellers flock to Amazon because of no listing fees. Who wants to pay 60 cents per year (if you have a Premium store at $50 per month) to keep a slow selling book or CD on the eBay shelf when it's free to list at Amazon? Like most sellers, I'll list something on eBay for 3-6 months, if it's a slow seller, it goes to Amazon or other free listing marketplace. That being said, it's very important to know your marketplaces, fees and sell-thru rates to figure where and when to list.

      • 1 Reply to masterbates649
      • Your comments are dead on. . A friend who still lists on Ebay just forwarded me an email from Donahoe. The whole thing won't "fit", but I'll paste a couple of relevant paragraphs below. It certainly reads like Donahoe is terribly concerned about those Mom and Pop sellers, although his actions over the past years have demonstrated just the opposite. What a mealy-mouthed phony that guy is.

        ...Big national retailers are aggressively lobbying Congress to pass online sales tax legislation to "level the playing field" with Amazon. And, as they compete with big retail, Amazon is advocating for this legislation too, while at the same time they are seeking local tax exemptions across the country to build warehouses. This is a "big retail battle" in which small businesses and consumers have a lot to lose. But eBay is fighting, as we have for more than 15 years, to protect small online businesses and sellers and ensure healthy competition, value, and selection that benefit consumers online.

        The solution is simple: if Congress passes online sales tax legislation, we believe small businesses with less than 50 employees or less than $10 million in annual out-of-state sales should be exempt from the burden of collecting sales taxes nationwide. To put that in perspective, Amazon does more than $10 million in sales every 90 minutes. So we believe this is a reasonable exemption to protect small online businesses. That's what we're fighting for, and what big companies such as Amazon are fighting against.

 
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