mam98031 • Volunteer Community Member • Buyer/Seller since 1999
@chinaarts wrote:I started to sell on ebay since 1999
I just say long goodbye to ebay.
22 years....
the fee is over10% on new payment system
on high value item e.g. camera and lens, it is 100% not work
endup only big chain as amazon can survive......
no more small retailers........
Amazon fees are much higher is many categories, so be careful.
The fees for most sellers did not go up when we entered MP. What some sellers seem to miss is that they are NO LONGER paying the 2.9% Paypal fee.
The fees in MP have NOT increased overall fees. The following numbers represent those that do not have a store and the fee rate for most common categories [not all].
Fees BEFORE going into MP
10.20% FVF + 2.9% PP fees = 13.10% plus 30 cent per transaction fee.
In MP the fees are:
10.20% FVF + 2.35% money processing fee paid to MP = 12.55% plus a 30 cent per transaction fee.
Starting August 2nd, PayPal is raising their fees, so they will be as follows:
10.20 Ebay FVF + 3.49 PP Fee = 13.69% plus .49 cent Per Transaction fee
PP is apparently offering different fees to different sellers, likely depending on size. From what I've seen it is between 2.59% and 3.49%.
@downunder-61 wrote:Most likely focusing on the $ value rather than the actual % rate
For someone who has had the amount of sales and been here as long as they have, not sure what fee's are suddenly killing them ?
For most sellers that I see post something like that, it is because they forget they use to pay 2.9% to PayPal for money processing.
@buyologist-3 wrote:And let's remember the added 5% if there's ANY problems such as shipping, returns and more, no matter who's at fault. They can show up as a mystery! I'm sure many attribute this as part of MP, so that can be confusing, too.
Any seller that considers the 5% penalty fee as part of MP is simply misinformed. MP is a money processing program ONLY. It has nothing to do with anything thing else to include the fees charged. Ebay sets those fees.
https://www.ebay.com/help/selling/fees-credits-invoices/frais-pour-les-vendeurs-particuliers?id=4822
@buyologist-3 wrote:(Smiles!) Not according to the speech by 'bay in the Quarterly Report.
It is likely you misunderstood something. The penalty fees were charged to sellers that qualified for them for as of June of 2019 which is before most sellers were even in MP. Ebay started onboarding sellers in groups each month, starting in July 2020 with a goal of having all seller in MP by the end of 2021. Therefore it can't be a fee because of MP since it applied BEFORE most sellers were even in MP.
@obambi1234 wrote:Ebay charges the seller their fees based on total sale amt. incl. shipping and sales tax. If your shipping is very high, lets say $100, sales tax adds say another $7 to that and 12.9% fees off of that means instead of $100 to pay for shipping, you only wind up with 87% of $107 which comes out to 93.09. If it costs you $100 to ship, you just lost about $7. If it costs you less, you might be able to come out ahead, but you have to charge customer that extra money to give to ebay. On top of that, next week USPS and Fedex are increasing their fees by anywhere from 6 to 9%. After so many years on ebay its going to come to a point where large shipping corporations and ebay will wind up with more money for your merchandise you just sold than you did. Thats when I close the account. Example: an item that sold for $15 costs $15 to ship. My profit--- $5, their profit--$10....
Ebay does NOT change their fees based on the total sale amount. The fees are the same rate in each category as it is a percentage of the sale. The percentage doesn't change.
Not every state has tax on shipping. Some do and some don't.
Every year in January the Carrier raise their fees. This has been going on for years. Which means we have to charge our buyers more for shipping. Of course they don't like it, but they do get use to it as they do every year.
If you plan to close your account because shipping is increasing, I can't say that makes sense to me. When a vendor raises their costs on ANY business, that business needs to increase their prices. That really is basic business.
"Example: an item that sold for $15 costs $15 to ship. My profit--- $5, their profit--$10...." How the heck do you figure that? Why are you charging shipping at the exact amount you pay the carrier for? Why do you get to deduct costs from your number to come up with your net profit but you don't allow the Ebay number to do the same? Of course I know you don't know what their costs are but you seem to be assuming that there are no costs to Ebay and that would not be true at all. This site doesn't run itself and is my no stretch of the imagination free to operate and maintain.
The fees in MP have NOT increased overall fees. The following numbers represent those that do not have a store and the fee rate for most common categories [not all].
Fees BEFORE going into MP
10.20% FVF + 2.9% PP fees = 13.10% plus 30 cent per transaction fee.
In MP the fees are:
10.20% FVF + 2.35% money processing fee paid to MP = 12.55% plus a 30 cent per transaction fee.
Starting August 2nd, PayPal is raising their fees, so they will be as follows:
10.20 Ebay FVF + 3.49 PP Fee = 13.69% plus .49 cent Per Transaction fee
PP is apparently offering different fees to different sellers, likely depending on size. From what I've seen it is between 2.59% and 3.49%.
when the shipping corporations like UPS Fedex USPS start making more profit than me on shipping MY merchandise that I paid for , not they, that's when the deal becomes ridiculous.
What? You feel that you should profit as much on the shipping you charge a buyer as the carriers that are in business to provide that service? Do you also feel you are selling shipping services or are you selling the products you list? That does seem ridiculous to me.
If you are trying to say that carriers make more profit than you do as a seller of products on Ebay, that would be an easier problem. That is on you. YOU set the pricing for your products. If you aren't allowing for enough profit, then maybe you should consider selling something else.
Can you imagine selling cars and the transporter that delivers them makes more profit than you do??
Well it sounds like the carrier is doing a better job of pricing out the service they provide than you are doing with the products you sell.
I own inventory not them so for them to make equal or higher profit on MY merchandise is the line in the sand I will draw. That was the example of 15 dollar item and 15 dollar shipping in case u too dense to understand it.
Insulting me because we have different viewpoints is completely unnecessary and unacceptable. You need to understand your responsibility in this process. You set the $15 for your product. You don't like it, change it. Carriers have no responsibility to make sure that those that use their services make as much as or more profit. Simply not their job, it is yours.
Also sales tax is counted into the final fee value. Another scam.
Not a "scam". You paid it for years with PayPal. Why didn't you get upset with them and consider it a scam. Or is it just because Ebay is doing it.
@countrypleasures wrote:Bottom line..... Ebay is making more money in fees. They are charging fees on the "total" sale. Which means they are getting their 12.55% on the sale, 12.55% on the shipping and 12.55% on collecting the sales tax as well as another .30 per sale. Any "savings" you get on using ebay shipping labels is going to them too. Furthermore, it is playing round robin in trying to figure their new managed payment system. Nothing is on one statement anymore. The shipping cost comes right out of your account, so the NET they pay you does not deduct the shipping. Ebay is very competetive with the millions of items now, so a seller has to list an item for less to compete for the sale in the first place. Shipping keeps going up and up, so take this into consideration as well, so the buyer is really looking at the total cost. I have lost many a sale because the shipping is so high and I still aim to charge actual shipping with no handling fee to make it affordable for the buyer! So, I am making less money as I used to. Besides Ebay has turned into an Amazon wanabe and even Ebay can't compete with #1 Amazon. I've been selling on ebay for 23 years now, and it is not at all what it used to be. I have accountants for friends and they see the game they are playing to put more money in their pockets. At this point in time Ebay is not working for you, you are working for Ebay.
Best to understand how the new structure actually works. The only thing we are paying more on is sales tax fees. We use to only pay 2.9% to PayPal but now we pay the 12.55%. So 12.55 - 2.9 = 9.65% increase on sales tax ONLY. However as you can see below we pay slightly less on the Product and shipping.
The fees in MP have NOT increased overall fees. The following numbers represent those that do not have a store and the fee rate for most common categories [not all].
Fees BEFORE going into MP
10.20% FVF + 2.9% PP fees = 13.10% plus 30 cent per transaction fee.
In MP the fees are:
10.20% FVF + 2.35% money processing fee paid to MP = 12.55% plus a 30 cent per transaction fee.
Starting August 2nd, PayPal is raising their fees, so they will be as follows:
10.20 Ebay FVF + 3.49 PP Fee = 13.69% plus .49 cent Per Transaction fee
PP is apparently offering different fees to different sellers, likely depending on size. From what I've seen it is between 2.59% and 3.49%.
