The double edge sword of sponsored ads
We all know to drive massive sales we have to use sponsored ads. I believe eBay has obviously programmed that into CASSINI. But there is one thing they aren't pointing out about sponsored ads fees.
One would assume, the sponsored ad is charged based on the item that sells. Say you did a 10 percent ad sponsor on a 100-dollar item. You'd owe 10+13.25% plus .30. But here is where eBay is getting even greedier. They are charging the Ad fee even on the taxes they collect. Those taxes don't cost eBay or you anything. Yet, that 6-9% sales tax rockets their profit on the ad. So, they are effectively robbing you "the seller" of 10% of taxes you had nothing to do with in the first place that should have been a business liability on eBay's behalf.
In the end, this is padding eBay's bottom line massively at the expense of the seller. I love sponsored ads, but that little "tax" on us gets under my skin as not being fair. Just blowing off some steam. |