eBay collects and remits sales tax from buyers in all US states that require it. FVF is calculated on item + shipping, not on tax.
What this calculator does
Important: sales tax collected by eBay does NOT increase your FVF. Tax is handled separately.
How it works
Average US sales tax: ~7.3%. Buyers pay this on top of your listed price.
When to use this calculator
This tool is most useful during planning and review cycles: setting targets, evaluating performance, or comparing options. Standardised metrics make comparisons across periods or business units reliable.
Common mistakes
A common mistake is comparing metrics that use different definitions — gross margin versus net margin, revenue versus profit, customer count versus paying customer count. Always confirm the definition of each input before comparing results across periods or sources.
Real-world scenarios
A product manager calculates gross margin for a new product line: manufacturing cost £8.50, proposed retail price £24.99. The calculator returns a 66% gross margin — above the company's 60% threshold, confirming the pricing is viable before taking it to the finance team.
Frequently asked questions
Does eBay sales tax increase my fees?
No. eBay charges FVF on item + shipping only. Sales tax is collected from the buyer and remitted separately.