Ebay is greedy and it sucks!

[mouser]

I was considering pulling all my stuff down because of eBay's new managed payment greed, but instead I've just had to increase all my prices.  I really don't care if I ever sell again on eBay because I lose too much on each sale with they're new Managed Payment system so rather than cut off my nose to spite my face, I'll just charge outrageous prices to make anything on the sale.  I'm probably not alone and eBay will suffer in the end.  I have many other venues to sell my records an CDs and make more per sale so I'm probably not going to hurt like eBay is.

[ed8108]

So you don't care if you ever sell again on eBay, realize that your time is too valuable too waste, so price your stuff to sell.

[albertabrightalberta]

Have you compared the prices you're paying on ebay with MP compared to what you paid before PLUS paypal's fees? 

The total you're paying now is pretty close to what you paid before; now it's just ebay who's getting paid.

[magic*moonbeams]

If you are that upset then you should probably leave eBay.   I don't see the MP as greed, just a minor inconvenience compared to having the money immediately with PayPal.  I agree with many eBay sellers that their terms generally suck, but until someone comes along that makes a competitor that has the same business ethics that eBay originally had...   what else can we do?  Suffer though it I guess because a lot of people are just dealing with it at the time because of the economy.  

My biggest beef with eBay right now is their lack of advertising.  I see Amazon and Etsy commercials on TV 12 times a day. Where are the eBay commercials?  Sellers pay enough to afford some advertisement.

Just sayin.... 🙂

[mam98031]

@mouser 

Your problems making a profit isn't likely to have anything to do with MP and/or Ebay fees.  There isn't a fee increase when you enter MP anyway.  So since you had a problem with your pricing before you entered MP it is understandable that it followed you when you entered MP, but MP isn't the cause.

You need to look at how you price your items as that is fully within your control.  But don't get too greedy!  Since apparently you consider someone trying to make a profit as meaning they are "greedy".  That certainly describes me.  I want to make a profit and I do make a profit selling here, which is why I stay.

[partybagworld]

I agree with the greed comment, i assume those who have commented so far have higher value items for sale and probably never benefited from micro payments with Paypal which i assume, like us, you did.

We have seen a 37% increase in COS since the introduction of managed payments, which combined with the latest increase in shipping from RM has left us wondering how our future on eBay might look. 
It is worth making sure you're continually reaching out to the MP support team, there is little they can do to change anything right now, but i know they are getting hundreds of calls a day and gathering the data to fight the case.
Many of the MP team i have spoken to are very aware this is an issue and acknowledge something has to be done. But if people don't keep calling, the topic will go cold.
I wish you and your business all the best!

[darthalba]

These comments are strange as compared to what I would have paid through Paypal I pay around the same to slightly less.

What I do not understand is why people prefer to pay a middle man? PayPal is outdated and not required.   PayPal now have all the same restrictions that you bank has so to use a middle man for payments instead of paying direct just silly. 

[greyhair67]

I don't have any issues with taking PayPal out of the loop.  But eBay effectively increased fees by adding sales tax to the "final value" they use to charge their fees.  (The only exceptions are sales to the handful of states that charge no or nominal sales tax.)  The amounts are small - from a few cents to a few dollars for each sale, but they add up.  In addition, eBay gets to use your money for several days before you receive it and they don't pay you any interest.

So all in all the move to managed payment was a net negative to sellers.

[greyhair67]

Your calculation misses the critical factor.  You may benefit from a 0.55% reduction  on the non-sales tax part of the FVF but you are paying 12.35% on the sales tax.  Almost all of the time your total fees will be higher under managed payments.  Here's a simple example using a sales tax rate of 7.5%, which is about average in the US.  (As was done in the above example I've ignored the $0.30 fixed charge since it doesn't affect the analysis.)

Assume a sale of $100 including shipping:

Prior fees (12.9% of $100):         $12.90

MP fees (12.35% of 107.50)        $13.28

Even with a tax rate of 5% MP costs more ($12.97 vs $12.90)  and there are less than half dozen states with no sales tax or a tax rate under 5%.  So eBay is making more money on this change, not to mention the interest free loans we now have to provide to eBay due to delayed remittances.

[auctionpet]

Your calling ebay greedy, yet you raised all your prices. Sounds like the same thing. Sorry.

[island-city-gifts]

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@greyhair67 wrote:

Your calculation misses the critical factor.  You may benefit from a 0.55% reduction  on the non-sales tax part of the FVF but you are paying 12.35% on the sales tax.  Almost all of the time your total fees will be higher under managed payments.  Here's a simple example using a sales tax rate of 7.5%, which is about average in the US.  (As was done in the above example I've ignored the $0.30 fixed charge since it doesn't affect the analysis.)

Assume a sale of $100 including shipping:

Prior fees (12.9% of $100):         $12.90

MP fees (12.35% of 107.50)        $13.28

Even with a tax rate of 5% MP costs more ($12.97 vs $12.90)  and there are less than half dozen states with no sales tax or a tax rate under 5%.  So eBay is making more money on this change, not to mention the interest free loans we now have to provide to eBay due to delayed remittances.

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Except that your calculation misses the critical factor of not including the 2.9% fee on the 7.5% sales tax charged by PayPal that you omitted in the "Prior Fees", which would be a total of $13.10, not $12.90. The "Prior Fees" would've been eBay 10% of $100 + PayPal Fees 2.9% of $107, not $100.

[scrubdesignz_europe]

Someone forgot to mention, eBay forcing currency conversions...  with 7% fee. We're in Central Europe, we WANT GBP.   We need GBP, for suppliers in the UK, but they're payong out in MP with EURO, which we simply have to convert back to GBP, through out bank is another 2.6%.   Another considerable cost.   The service is down the toilet, complexities, threats, after 16 years, we're pulling the pin.  4 accounts, we'll be saving up to €5000 is eBay fees per month, that goes a long way in Social media and other promotions... with the stress and constant threats from eBay.    It's a good feeling.   You should try it, eBay is not what it was, and only getting worse.

[plx.mid.y4rrly]

No you are not alone.  I am retired from my wholesale golf business and selling off remaining inventory which is mostly used by golf courses.  Because we have sold the items which are popular for golfers to purchase our sales volume has dropped.  They threaten suspension on  a regular basis.  They now take 12% on every order "PLUS" a 6% penalty. 

I now avoid making purchases on ebay as a direct result of their greed.  Have started using Mercari and FB Marketplace.  I also make almost all online purchases with Amazon as a result.  I bought a new HVAC system for under $4000.  I did not bother to compare ebay.  The price was much better than any local HVAC dealer and I hired 2 guys to remove the old system and install the new one.  Final cost around $5500.  Our neighbor had a popular local company replace his system for over $7,000.

[plx.mid.y4rrly]

Pricing stuff to sell sounds a lot like lower the price.  There is a point where ebay makes more in fees than many sellers make in profit. 

[fab_finds4u]

What is Managed Payment greed?

In 2012 sellers paid 10% to eBay and 2.9% to PayPal,  plus .30 for a total of 12.9% in fees.

In 2022 the fees in most categories are 12.9%.

While everything else has increased over the years eBay has remained stable. Wonder why nobody ever cries about USPS annually raising fees? Sometimes twice a year. Meanwhile USPS is losing and damaging packages and delivering late while they're charging more for crappier service.