eBay Adds Regulatory Operating Fee For UK & Some EU Countries
The costs of increasing regulation add up and eBay is passing them on to sellers as part of the latest business seller update for the UK and some EU countries, effective April 8.
The new fee will be an additional 0.35% of the total sale (on top of final value and other fees) and is subject to VAT where applicable. eBay UK community staff have confirmed the fee will apply to both business and private sellers.
To address the rising costs associated with the increasing number and complexity of regulations, including consumer and environmental protection, as well as new taxation and customs measures, we're introducing a new regulatory operating fee.
From 8 April 2024, this new regulatory operating fee will apply to all sales from listings on the following sites: UK, Austria, Belgium, France, Italy, Ireland, Netherlands, Poland, Spain, and Switzerland.
How the regulatory operating fee is calculated
This fee is calculated as a fixed percentage rate (0.35%) of the total amount of the sale (which includes the item price, postage, taxes and any other applicable fees), and is subject to Value Added Tax (VAT), where applicable.
Important points from the FAQ:
How will the regulatory operating fee affect refunds and fee credits?
We’ll apply credits for regulatory operating fees on full refunds, partial refunds, and cancelled orders.Is there a cap on the regulatory operating fee?
Currently, there’s no cap on the regulatory operating fee.Will the regulatory operating fee apply if I don't list directly on the mentioned sites, but a buyer in one of these countries purchases my items?
No, the regulatory operating fee will not be charged in this case. The fee applies to all sales from listings on the following sites: UK, Austria, Belgium, France, Italy, Ireland, Netherlands, Poland, Spain, and Switzerland.
eBay says this fee is necessary to address the rising costs of complying with regulations, environmental and consumer protection laws, and new tax and customs measures - like extended producer responsibility in France, single use plastics bans, and new tax reporting requirements as a result of UK digital sales reporting legislation.
The company has been dealt some expensive lessons in the compliance arena recently, paying a historic $59 Million settlement to the US Drug Enforcement Administration to resolve allegation regarding illegal pill presses sold on the site.
Liz Morton
They're also still embroiled in ongoing litigation brought by the US Environmental Protection Agency for illegal pesticides, dangerous chemicals, and emission-control cheat devices sold through the platform, with multiple shareholder lawsuits potentially waiting in the wings.
In addition to those lawsuits, eBay is subject to at least 3 years of independent compliance monitoring in the US and a $3 Million fine as part of a deferred prosecution agreement for criminally liability in connection to the 2019 cyberstalking of journalists Ina and David Steiner of EcommerceBytes.
Can US sellers expect to see additional fees to pay for eBay's compliance mistakes coming soon too?
The rest of the February 2024 Business Seller Update for the UK is fairly mundane and echos much of what was included in yesterday's update for Australia, including Sell It Faster features in Active Listings tab, enhancements to multi-user account access, and saving drafts for 75 days.
What do you think about eBay passing the costs of compliance on to sellers with the new Regulatory Operating fee? Let us know in the comments below!
