Ebay's new Payment Management

[totogirl11]

I am trying to let Ebay know about how I feel about this new experience and I hope I came to the right place.

I also submitted feedback on the link that  a Ebay representative provided me but it didn't allow me to write more than 1000 letters so I thought I will reach out here too. I hope anyone who has the same experiences can share their thoughts, too. Thank you in advance. 

I recently switched to Ebay's new payment option and I found out the final value fees cost more than before. I am not very happy about this. I have been selling on Ebay for decades and I was very happy with PayPal and Ebay’s cooperation. Weeks ago I received emails daily from Ebay asking me to switch from Paypal to Payments for better user experience and more importably less fees. Everything looks promising so I ditched Paypal and signed up. In addition, I don't see I have an option because Ebay said that I will not be able to post new listings if I don’t sign up so I left with no choice. My newest sale has a charge of 0.3 which I am not familiar with and a significant increased of final value fees. From what I see, the new transition benefits Ebay more than to the individual sellers. We get charged more. The fund is not ready for the next day which means I am not feeling comfortable to send my orders on the same day. My customers need to wait longer to get their package. I fee like I am tricked into signing up. I talked to a representative on Ebay and realized no matter how much my order is, I will be charged for a fixed fee 0.3 per transition. I found this is not reasonable at all. Most of my listings are less than 10 dollars and that means the new way of charges put me in a position of losing more money than the sellers who sell expensive items. I wish Ebay can reconsider how they charge they sellers so we will stay with you. If this continues, we will start looking somewhere else to sell.

[kensgiftshop]

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@totogirl11 wrote:

I will be charged for a fixed fee 0.3 per transition.

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Did you have a problem with Pay Pal charging the extra $0.30?

[totogirl11]

I didn't have the problem with Paypal because they charge by percentage and ebay charged less with Paypal. The new issue now is that not only Ebay charges $0.3 but they also increased the final value fees. I don't sell expensive items on ebay so this is a big issue for sellers like me. The fees add up. If I sell expensive items like over 100 dollars. 0.3 fixed charge would be insignificant but it does to me if my items are cheaper. Paypal seems charging more but the payment we get is instant.

[veronicabooksandart]

Once you sign up, there is no way to ratchet the information you gave them back.
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Since eBay is still the best place to market items that sell for less than $10, I'd try to make the best of it.

Use Excel to what-if-analyze your listings. Start your price high and periodically lower it until you reach a price point that cannot go any lower. Then let it sit there until it sells.

[varebelrose]

Wait till OP finds out he is also paying full final value fee (vs the tiny percentage PP charged) on the sales tax the buyer paid, as well.

[totogirl11]

I have been selling on ebay for a long time so I know what the price I have to pay. But I simply wanna know if everyone’s experience because I am not happy so far.

[totogirl11]

Ok, do the sellers pay the sale taxes now? I have not seen that in my statement yet. I know before I switched Ebay asked buyer for the sales tax.

[veronicabooksandart]

Buyer pays sales tax.
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There's nothing to like about MP.

My advice is: if you haven't signed up, don't; if you have, deal with it.

[totogirl11]

The deadline is 5/28 so I dont have a choice.

[stainlessenginecovers]

If ebay increased the percentage; even using PP, the cost would still increase? I don't understand your issue.

Old Way: Ebay 10% + PP 2.9% + .30

New Way: Ebay 12.35% + .30

Where is the variance? (please don't say 'on taxes)- 10% of $1 is .10c and could be/should be an amount passed on to the customer in the sales price. 

[reda3615]

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@totogirl11 wrote:

I didn't have the problem with Paypal [also charging a $0.30 fixed fee] because they charge by percentage and ebay charged less [a 10.2% FVF] with Paypal.

The new issue now is that not only Ebay charges $0.3 but they also increased the final value fees [to 12.55% but I no longer pay PayPal th 2.9%].

I don't sell expensive items on ebay so this is a big issue for sellers like me. The fees add up. If I sell expensive items like over 100 dollars. 0.3 fixed charge would be insignificant but it does to me if my items are cheaper.

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Take a cheap item for example, your $5.00 power cable, free shipping, buyer pays 6% sales tax = $5.30

With PayPal:

$0.15 = $5.30 x 2.9% PayPal fee

$0.54 = $5.30 x 10.2% eBay FVF

$0.30 = PayPal fixed fee

$0.99 total fees

With Managed Payments:

$0.67 = $5.30 x 12.55% Managed Payments Simplified FVF

$0.30 = eBay fixed fee

$0.97 total fees

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@totogirl11 wrote:

Paypal seems charging more but the payment we get is instant.

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Previously, you got the buyer's payment instantly, then kept or spent eBay's fees for 30 days until the invoice arrived.

Now @totogirl11 eBay takes their fees instantly, you get paid within 7 days, and there's no invoice to pay.

[reda3615]

With PayPal:

$0.15 = $5.30 x 2.9% PayPal fee

$0.51 = $5.00 x 10.2% eBay FVF

$0.30 = PayPal fixed fee

$0.96 total fees

[veronicabooksandart]

Perhaps... the invitation link is a trap door; once clicked, they drag you in.
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If you haven't clicked on the invitation link - don't touch that dial!

I ignored it like the plague and pulled my listings well in advance.

But yes, otherwise, I believe they consider you to have accepted the terms regardless whether you comply with the data submission requirements.

In other words, they already have most of your your data. MP gives them license to use it however they please.

[varebelrose]

"do the sellers pay the sale taxes now?"

No, of course not, the buyer does. But the seller still pays a percentage of that total amount that the buyer paid. Under PP, the seller would pay 2.9% of the total including sales tax, which was NOT part of the FVF on the eBay fee. Under MP, you now pay 12+% on everything INCLUDING the sales tax.

This may be insignificant on most sales, but if you have a $1000 sale to a high tax state it may very well be quite an amount.

[darkfae2015]

Previously, you got the buyer's payment instantly, then kept or spent eBay's fees for 30 days until the invoice arrived.

Now @totogirl11 eBay takes their fees instantly, you get paid within 7 days, and there's no invoice to pay.

true no invoice... Unless you have a shop subscription then you get hit with it about the 30th/ 1st of each month .. Also if you had those subscriptions set to a yearly amount instead of monthly you will charge an extra fee to drop or change that subscription