This is for seller on Basic Plan who had sales on MakerPlace:
Have you tried to calculate what the fee suppose to be for each sale (4% Referal fee, 3% + 0.20 transaction fee), and compare to what the amount Michaels taking out from each sale?
I have noticed fr my 2 orders that each order Michaels has taken out more than what my caluated the fee should be. The first one was $0.08 and 2nd one was $0.06 more.
Here is for the 2nd order ($28.50):
My caculation the fee shoul be: $1.14 ($28.50x4%) + $0.86 ($28.5x3%) + $0.20 = $2.20. MakerPlace took out $2.26 from my payment of the order.
SInce I only had 2 orders and the amount were small (total of $0.14) , I haven’t borther to inqire about the difference with MakerPlace, but just wondering if anybody have found similar issue, or did I caculate something wrong?
Thanks Wade for the explaination. That did adds to the correct number now.
If that’s the case, it effects sellers on both Basic & Professional plans.
Now the question is why is the seller paying 3% to Micheals on the tax?
Is there any info on MP website states the 3% transaction fee is on tax as well? I treid to look for it, but couldn’t find it (maybe I wasn’t looking at the right places?).
Amazon charge us all kinds of fees, but they don’t charge us extra on the tax collected. That makes me wonder if this 3% transaction fee on tax could be a incorrect coding on MakerPlace?
Wade, since you had good sales on MP and I assume also paid 3% transaction fee on all the tax collected, have you tried to find out from MP why the sellers are paying 3% on tax? If it’s a mistake, you might be able to get some of the money back.
I did a bid more digging and found the following info:
(a) Referral Fees. We will earn a referral fee equal to a percentage of the gross sales proceeds from the sale of Products (i) including all shipping and handling, gift wrap, and other charges, and (ii) excluding only those taxes separately stated and charged (the “Referral Fee Percentage”) from each Product sale through the MakerPlace Sites (the “Referral Fee”) as further set forth in the Fee Schedule.
(b) Transaction Fees. We will earn a transaction fee equal to (i) a percentage of the gross sales proceeds from the sale of Products and Classes, including taxes charged, shipping and handling, gift wrap, and other charges, and (ii) a nominal flat fee for our hard costs related to processing the transaction (the “Transaction Fee”) as further set forth in the Fee Schedule.
So, 3% on tax is what they intented to do, not a mistake in coding.
I’m assuming Amazon has this baked in their 15% since they provide a fee per unit amount before tax. Then they add that fee to shipping (at basically no cost to them, which is what they easily fund A-Zs)
I would not disagree that this is the intent - it is, after all, left rather-nebulously open-ended a loophole in Wayfair, re: acceptable levels of remuneration which can legally be passed on to end users (and/or sellers) by the Marketplace Facilitators - but I’ll be surprised if the mishmash of confliction in various States of The Union’s legislation enacted in the wake of that SCOTUS decision doesn’t eventually get a rehash by The Nine.