Why are Shipping Charges so Expensive?

[Retiredguy2]

When I buy something online, it is almost always through Ebay and I ONLY buy from sellers who offer free shipping. I agree that in many cases shipping charges are a huge ripoff ESPECIALLY for a small item. I am an old fart so please bear with me when I relate a story about mail order from Sears back in the middle '80's many times they would ship me a large package weighing up to 15 pounds for about $3 or $4...I recall buying a pair of 15" snow tires from them back in '86 and they shipped them UPS home delivery for about $3.95 per tire. I recently ordered a pair of ink cartridges off Eaby and the seller was in New York and they shipped them 2 day priority mail for free and their price was lower than most other Ebay sellers. BTW my spouse also ordered several ink cartridges from a different Ebay seller about the same time and they were shipped from a Michigan location and yet they did not collect sales tax so I agree about the point others make about sales tax being complicated.

AND...for what it may be worth, my opinion is that collecting sales tax for online sales is a pure ripoff and greed from the government...and it p****s me off big time.

 

[mark02tj]

In GENERAL, you are charged sales tax if you live in the same state in which the vendor has a facility. Amazon Prime used to be great for me - they have a facility in Louisville KY which is 1 day shipping to where I live in OH. And, no sales tax. But, back in June or so Amazon opened a warehouse in OH so all of the sudden my Amazon costs went up 7%.

To be fair though, TECHNICALLY Ohio has a law where you're supposed to pay "use tax" (same as Sales tax) on things that you bought from out of state without paying sales tax. There's even a question on the personal income tax return where you're supposed to list what you should have paid in sales tax and then remit it. I'm guessing the compliance rate for that is approximately 1% for individuals (businesses are often audited by the State for this). On a side note (and not intending to derail the thread!) - does anyone remember that you used to be able to deduct sales taxes on your tax return along with state and local income taxes? Now you have to take the choice of either one of them, but not both.

 

[Retiredguy2]

Good post, Mark...same situation here in Michigan you arte supposed to pay a use tax laughing what a laugh. Here in Michigan the deduction for sales taxes is such a farce most do not bother to fiddle with it. While this may be off topic, tell you guys something: For FOUR DECADES I paid income taxes and property taxes to Michigan with the understanding I would be able to deduct property taxes I paid as a deduction on my state income tax when I got older and could claim a Homestead Property Tax Credit...yet when I got old enough to take the credit I was only able to for ONE YEAR because Social Security kicked in.

 

[CCWKen]

Either you don't understand tax law or I don't understand what you're saying. I doubt is has anything to do with Social Security. You are normally able to take tax credits for the year you are eligible, not for ALL previous years once you become eligible.

I don't pay sales tax on anything I buy for the farm. I just replaced a $181 suction hose on the dozer and was glad the local shop ASKED if it was for a farm. I was still in "sticker shock" mode and didn't think of it at the time. Saved a few bucks there.

There's more to shipping than getting a package or letter from point A to point B. As wages go up, so does the cost of shipping. Just wait until the minimum wage hits $15/hr. and see where the prices go. The POTUS wants to see higher wages but can't understand how it will affect retail prices.