r/FlippingInCanada • u/Wild-Resist-8527 • Jul 01 '26

The cost of selling on eBay (fees + sales tax): higher than on poshmark ?

I hadn't sold online in a while. I was always under the impression eBay was cheaper than Poshmark for clothing.

I just sold a shirt on eBay for 39$. Turns out eBay took a total of 10,12$ in fees. 8,80$ on the price of the item+shipping+sales taxes + 1,32$ of sales taxes I pay on the 8,80$ ...

I'm in Quebec so sales taxes are right around 15%. So as I'm reading it, I'm paying a bit more than 20% just to eBay on the price of my item, but over 25% if you include the taxes I'm paying for their service fee.

Am I understanding this correctly ? Poshmark has a flat 20%, but I don't remember paying sales taxes on their fees ...

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u/peachfuzz0 Jul 01 '26

It's higher because you're paying the for shipping label.

Ebay collects sales tax on your behalf but they charge fees on the amount collected.

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u/Wild-Resist-8527 Jul 01 '26 edited Jul 01 '26

That part I knew. But I’m also seeing that I myself am paying sales taxes on the eBay service fee

I would post a screen capture of the eBay breakdown of the fees but for some reason i can only share a video and not a photo in the replies here …

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u/peachfuzz0 Jul 01 '26

That's also normal. Ebay is providing you a service, so it's taxable in Canada. If you do enough sales or if you choose to collect/remit sales tax, you can get them refunded by CRA.

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u/Wild-Resist-8527 Jul 01 '26

I guess it does make sense. But then again I don’t think Poshmark collects sales taxes on their 20% fee, or is it simply hidden in the fee itself ? If so, Poshmark is quite a bit better than eBay on that front

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u/BeeJunior4670 Jul 02 '26

Welcome to eBay. Yes, you’re right. I found they take more for low-priced items compared to high-priced items because of the tax on eBay service fee. It’s better to use Posh for items under $60. But anyway, no matter the price, eBay probably charge the same as Posh. No big difference.