Ebays money manage program SUCKS

[oldworldcolletables]

Im a seller on ebay for many years ..have earned the right for my sales money to be instant...ebays so called better answer for money management ..mean i now cant sell coins..and the buyer with get the item before i even see the money..this may work for ebay..but not for me!!!!!!!

[buyersresort]

costs will be greater for most

use $1 initially. 

item cost $1 + sales tax example 8.25% = 1.0825 * 12.35 = approx 13.43% it was 13%

now add the transaction fee or whatever they call it. Since its percentage effect varies with item value lest say the item was $50.  0.30 fee / 50 item value = .006 that's another 0.6%  now in this case the fees are a tad over 14%

They also can take you fees before you get paid as I understand it. Now they also get the benefit of the float on all those dollars. That's a hefty increase in collections for EB. The extra fees we pay and the extra 2.35% not going to paypal.

[mam98031]

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@buyersresort wrote:

costs will be greater for most

use $1 initially. 

item cost $1 + sales tax example 8.25% = 1.0825 * 12.35 = approx 13.43% it was 13%

now add the transaction fee or whatever they call it. Since its percentage effect varies with item value lest say the item was $50.  0.30 fee / 50 item value = .006 that's another 0.6%  now in this case the fees are a tad over 14%

They also can take you fees before you get paid as I understand it. Now they also get the benefit of the float on all those dollars. That's a hefty increase in collections for EB. The extra fees we pay and the extra 2.35% not going to paypal.

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If you include the 30 cent transaction fee in your calculation to get the percentage of the FVF, it will never be accurate and it will cause your percentage to be all over the place because the 30 cents is a fixed amount that applies to a purchase whether it is worth $10 or $1000.

PP's fee was also 30 cents.

[buyersresort]

I understand your comment on the transaction fee, I stated the same in my original post. I also used $50 item value as an example and it was stated as such.

[buyersresort]

Understood and I don't intend to argue the existence of the new fee schedule. The intent was just to show an example of the effect of the changes a seller will experience.

I am not a tax expert or a legal expert but I have to  wonder if the fee calculation including sales tax is even legal in all states. I know in Texas (in the past, not verified recently) that collecting a fee for collection of state sales tax did not fall in the permit-able charges that could be passed along. This may be different now, I don't know. It's also possible a skilled legal team could find a way to make it permissible. If I moved a lot of dollars I would contact my state sales tax office and ask.

[buyersresort]

My apologies for the extra post. I tried to add this to the previous one but couldn't

Using the mentioned numbers:

10% (the posts example tax rate) * 10% (final value fee) = 1%

12.55% + 1% = 13.55%

add the 0.30 and fees for shipping cost as well (I know shipping was already previously included)

Cost are not in many/most cases offset. I know this seems small to many but in times of possible declining sales and margins it can matter. 

Speaking for myself I would have preferred EB just raise the percentage so it seemed a bit more transparent. Again, only my opinion.

[mam98031]

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@buyersresort wrote:

Understood and I don't intend to argue the existence of the new fee schedule. The intent was just to show an example of the effect of the changes a seller will experience.

I am not a tax expert or a legal expert but I have to  wonder if the fee calculation including sales tax is even legal in all states. I know in Texas (in the past, not verified recently) that collecting a fee for collection of state sales tax did not fall in the permit-able charges that could be passed along. This may be different now, I don't know. It's also possible a skilled legal team could find a way to make it permissible. If I moved a lot of dollars I would contact my state sales tax office and ask.

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Every other money processor [including PP] has charged fees on sales tax.  CC's charge fees to the retailers also based on the total amount of the charge, which would include sales tax.

The structure of the fees in MP also give use a small credit on the FVF for 90+% of the transactions [product & shipping] in an effort to minimize the impact of charging the FVF on sales tax.

[mam98031]

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@buyersresort wrote:

My apologies for the extra post. I tried to add this to the previous one but couldn't

Using the mentioned numbers:

10% (the posts example tax rate) * 10% (final value fee) = 1%

12.55% + 1% = 13.55%

add the 0.30 and fees for shipping cost as well (I know shipping was already previously included)

Cost are not in many/most cases offset. I know this seems small to many but in times of possible declining sales and margins it can matter. 

Speaking for myself I would have preferred EB just raise the percentage so it seemed a bit more transparent. Again, only my opinion.

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No.  The fees are as I previously stated in my post #17 on this thread.  Your fee is 12.35% not 12.55% and what is this additional 1% that you want to add.  

The 30 cents is not a shipping cost.  It is a transaction cost in MP which is exactly the same as it was in PP.  There is no change one direction or the other with this fee.  And it applies to a sale that is $1.00 or $10,000.00.  

Only some sellers are experiencing declining sales, others are doing just fine and some are experiencing high sales.  It is a mixed bag and it always has been.  MP doesn't change that nor does it have an effect on how many buyers are out there buying.

[zero*spot]

Pre Managed Payments -  which started for me today, I had $23.85 in my Paypal account from every $ 24.93 sale.

After the first sale today in MP, I get $21.29 from the sale on hold until I ship. Thats $2.56 less per sale. 

So I ask....... How is this better for me again?????? Keep pressing people, and people will just walk away. Not worth being a whore and pimped out by eBay. It will get to the point where I would rather have ZERO $$$ and still have my pride.

[buyersresort]

If its 12.35% instead of 12.55% then I stand in error on that account. Thanks for the pointer.

As far as the rest goes just try to re-read it and think in over. It may  become more clear.

[wrong66]

Better re-do your math. On a sale of $24.93, with 10% eBay fees and 2.9% PayPal fees +$.030, you would have roughly $21.65, not $23.85. You're making this hard on yourself.

[lauras_loft]

Venmo is not a good idea with selling on eBay, too risky!

[buyersresort]

The note I got in my ebay messages 'inviting' me to participate indicated the managed payment payment management system is required so other options are not available to sellers. Please feel free to correct me if I'm wrong.

[zero*spot]

Its funny, Numbers and figures dont lie. Im telling you what is in my paypal from one single transaction. Then what was in my eBay pending after one single transaction . After MP, Unless you can see into my paypal, ??? Your math doesnt add up. As much as you would like it to . Its not that difficult , really.  But, we will let that go.

[zero*spot]

Also -  Sales Tax is different with different buyers in different states. This changes Paypal deposits in little ways.  But Its resolved.  A competent eBay rep explained it correctly. I never was told that all fees that I had paid previously every month for sales transaction fee, are ALREADY removed from the total I am now getting from Managed Payments. This also included Promotional listing fees as well as final value. This is why it was less than when I was getting my money via Paypal. I went to look at my fees after every sale on the old seller fee page and it didnt increase. So then I contacted eBay and they explained that the fees are all inclusive and taken out from what I am left with as  managed payment amount given to me. They need to make that more clear so people dont freak like I did. 

[mam98031]

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@zero*spot wrote:

Pre Managed Payments -  which started for me today, I had $23.85 in my Paypal account from every $ 24.93 sale.

After the first sale today in MP, I get $21.29 from the sale on hold until I ship. Thats $2.56 less per sale. 

So I ask....... How is this better for me again?????? Keep pressing people, and people will just walk away. Not worth being a whore and pimped out by eBay. It will get to the point where I would rather have ZERO $$$ and still have my pride.

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@zero*spot 

You are making some assumptions that aren't correct.

MP does NOT hold money because you have not yet shipped.  MP is a basic money processing program only.  It doesn't do anything else and it doesn't hold payments because you haven't shipped.  

As to your fees.  MP pulls a Simplified Fee from the payment you received from your buyer.  The Simplified fee includes your normal FVF paid on Ebay plus the money processing fee you use to pay to PP.  And there is a 30 cent per transaction fee just like there was when you used PP.