FVF of 12.55% on Sales Tax included in fees vs. 2.9% from Paypal and other payment processors

[twist-in-time]

I just paid a FVF on sales tax, out of my control,  (and we all will) 12.55% on a $42.79 sales tax collected for an item I sold.  This is vs. an industry payment processing standard of approx 3%.   PLUS it's very convoluted and vague for sellers to see how the payments to eBay are broken down under these new "managed payments". 

Really unhappy about this eBay.  Are you listening?

20+ yrs seller here.  Very grateful for the platform but I expect so much more and better.  Remain disappointed after all these years you've had to perfect your business.  Please do better. 

[nono-8172]

2.9% on item, shipping, tax 

+ 10.2% on item, shipping

+ 30 cents

versus

12.55% on item, shipping, tax 

+ 30 cents

Isn't that much different, depending on the state tax rate.

[youweresnoozin]

ebays days are numbered with this new **bleep**

[sugarnspice777]

We are being charge across the board almost 10% more on fees from sales tax than we did with paypal.

Paypal did not charge for "no tax states either".

I dislike when some try to convolute the fact we are paying a HUGE hike on tax fees.

It is a big difference from Paypal.  The rate is a lot higher now, they just gave themselves a raise too.

[mr_lincoln]

This is an example used on another thread that proves in certain instances (except the 5 states that have no sales tax) that non-Store Sellers and Entry level Store Sellers pay more in fees in managed Payments (in most categories) then with the eBay-PayPal model.  Granted it is not a lot until you start selling a whole ton of stuff but it is more.  

[nono-8172]

---

@sugarnspice777 wrote:

We are being charge across the board almost 10% more on fees from sales tax than we did with paypal.

I dislike when some try to convolute the fact we are paying a HUGE hike on tax fees. It is a big difference from Paypal.  The rate is a lot higher now, they just gave themselves a raise too.

---

Say you sell your Andy Griffith 1955 to yourself.

 

$14.99 + $4.99 shipping plus 6% tax

$0.61 = 2.9% of $14.99 + $4.99 plus 6% tax

$2.04 = 10.2% of $14.99 + $4.99

$0.30

$2.95 total for PayPal and eBay

$2.66 = 12.55% of $14.99 + $4.99 plus 6% tax

$0.30

$2.96 total for Managed Payments

[nono-8172]

Or your Trident from Atlantis.

$209.99 + $9.99 shipping plus 6% tax

$29.50 total fees for PayPal and eBay

$29.56 total fees for Managed Payments

[twist-in-time]

Sell something for over $500 to a state charging 8% tax and get back to me.  Okay?  

It adds up, it's convoluted and out of the seller's control. 

[nono-8172]

Say you sold your tablecloth back to yourself.

Item: $4,995 way more than $500

Shipping: $32.95

Sales tax: 6%

$154.56 = 2.9% of item + shipping plus 6% tax

$512.85 = 10.2% of item + shipping

$0.30

$667.71 total fees for PayPal and eBay

$668.87 = 12.55% of item + shipping plus 6% tax

$0.30

$669.17 total fees for Managed Payments

A difference of $1.46 in fees.

For the over $5,000 sale.

What's the question?

[soh.maryl]

Sorry to have to tell you this, but nay-sayers have been predicting death for eBay for many, many years, usually with every change, and you will notice that it's not happened yet.  

[powell-memorabilia]

@mr_lincoln 

In your example, some sellers would be paying an increased fee of 0.1%, whilst some would see a 2% decrease.  On balance, that’s great stuff.  I don’t see how sellers are upset.

[annadryl]

These boards have a sparse blue-ish look to them. If they changed it to something more brown-ish, that's it. Ebay is dying and I am SO outta here!

Okay, that was snark, but really... How did my overall fees drop a tad with MP but SO many sellers' fees were doubled?

OP did you forget that when fees were separated that ebay was about 10% and Paypal was about 2.9%? I've been here almost 20 years as well and always understood the two to be separate but both parts of the sum. Now it's just one fee, about them same. And it's not ebay, it's really Adyen.

[powell-memorabilia]

@twist-in-time 

The MP fees, in that circumstance, would be great for those that use TRS+ listings.  

[powell-memorabilia]

@annadryl 

So many sellers had no idea what their fees were - didn’t pay attention to what PayPal charged, and didn’t run the numbers from their monthly invoices from eBay.  

[mr_lincoln]

---

@powell-memorabilia wrote:

@mr_lincoln 

In your example, some sellers would be paying an increased fee of 0.1%, whilst some would see a 2% decrease.  On balance, that’s great stuff.  I don’t see how sellers are upset.

---

@powell-memorabilia   For myself the only thing that irritated me was the way eBay presented the whole program and their implied great reduction in Seller fees ... it was all smoke and mirrors and none of it panned out.  I wish I still had the screen shots of what they said but in regards to PayPal's 2.9% fee they implied Sellers would be paying a lot less so I expected like maybe a point (1% less) but when they finally (let me repeat that "finally") told us what it actually was it went from 2.9% to 2.7% ... for the vast majority of everyday Sellers that's nothing ... 2 bucks on a grand of sales ...