mam98031 • Volunteer Community Member • Buyer/Seller since 1999
@kensgiftshop wrote:
@decola wrote:i also have to pay the processing fee of $0.30 that you don't get back from a canceled transaction.
Did you have a problem when Pay Pal didn't give you the $0.30 back or is it just a problem that Ebay does it?
I asked the same question up thread, but they have not yet responded.
@zarenic wrote:Fees in the managed payments system are more than what they used to be. Currently eBay is collecting the FVF + processing fee on the final cost + sales tax, where prior it was only collecting the FVF on the final sale and then paypal collected 2.9% + .30 on the entire amount. Now we are paying the FVF % on the sales tax too, which is more no matter how you spin it.
Old System
$1000 Sale * Sales Tax Rate 6% = $1060 Total
FVF 10% = $100 (applies only to $1000)
Paypal Fee 2.9% + .30 = $31.04 (Applies to $1060)
Total Fees = $131.04
eBay Managed Payments
$1000 Sale * Sales Tax Rate 6% = $1060
FVF 12.9% + .29 = $137.04
Total Fees = $137.04
I have NO NEED to "spin" anything. I simply have given you the facts of the program. It is your job to decide what you want to do. It doesn't matter to me. I simply gave you correct info so you can make an INFORMED decision.
A couple of things to keep in mind. In April Ebay raised FVF across the board by 0.20%. So after April those still using PP paid a 10.20% FVF if they didn't have a store. If you have a Basic store or higher your FVF was 9.35%
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]. For those with a Basic Store or higher, the FVFs are a little less.
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%.
There are also a handful of states that do not have sales tax. So whenever you make a sale to any of them, you pay LESS in FVF in MP than you did previously. Now this isn't a one for one ratio, meaning you have to have one sale without tax to offset one sale with tax. It is more like 4 sales with no tax to every 1 sale with tax.
If you want an accurate comparison, you need to compare a least a months worth of sales to the old rates to see how you are doing. You will likely find out that you are not paying any more fees overall in MP than you did before.
And since you have your fees a little high in your above comparison your MP fees are a little off as it is not 12.9% but 12.55%. So your total fees on the transaction you stated above would be $133.03.
And 133.03 minus 131.04 = $1.99 increase on fees. So that should be good news to you since you aren't paying as much in new fees as you thought you were.
https://www.ebay.com/help/selling/fees-credits-invoices/store-selling-fees?id=4809
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