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. 

[twist-in-time]

Right.  Do you understand that eBay didn't charge a FVF on sales tax prior to Managed Payments?  Only on the sale price and shipping charges (shipping paid by the customer if seller doesn't offer Free Shipping).  So, the item I sold had a sales tax (paid by the buyer) of $42.79.  That isn't the selling price, that is the sales tax only.  

Prior to Managed Payments I would have paid Paypal 2.9% + 30 cents to process this entire payment (and paid eBay roughly 10% on sales price and possibly shipping).  Now I'm paying eBay 12.55% on this $42.79 tax bill.  I'm sure you can see that paying 2.9% on $42.79 is less than 12.55% of $42.79.   Right? 

Understand now?  I'm not trying to be snarky. 

[releasethekraken_1]

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@twist-in-time wrote:

Right.  Do you understand that eBay didn't charge a FVF on sales tax prior to Managed Payments?  Only on the sale price and shipping charges (shipping paid by the customer if seller doesn't offer Free Shipping).  So, the item I sold had a sales tax (paid by the buyer) of $42.79.  That isn't the selling price, that is the sales tax only.  

Prior to Managed Payments I would have paid Paypal 2.9% + 30 cents to process this entire payment (and paid eBay roughly 10% on sales price and possibly shipping).  Now I'm paying eBay 12.55% on this $42.79 tax bill.  I'm sure you can see that paying 2.9% on $42.79 is less than 12.55% of $42.79.   Right? 

Understand now?  I'm not trying to be snarky. 

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How much did you save on the reduced money processing fee (2.35% vs PayPal’s 2.9%) on the item price plus shipping?

[mr_lincoln]

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@twist-in-time wrote:

Right.  Do you understand that eBay didn't charge a FVF on sales tax prior to Managed Payments?  Only on the sale price and shipping charges (shipping paid by the customer if seller doesn't offer Free Shipping).  So, the item I sold had a sales tax (paid by the buyer) of $42.79.  That isn't the selling price, that is the sales tax only.  

Prior to Managed Payments I would have paid Paypal 2.9% + 30 cents to process this entire payment (and paid eBay roughly 10% on sales price and possibly shipping).  Now I'm paying eBay 12.55% on this $42.79 tax bill.  I'm sure you can see that paying 2.9% on $42.79 is less than 12.55% of $42.79.   Right? 

Understand now?  I'm not trying to be snarky. 

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This puts the hard numbers on AN example ... there are 5 states with no sales tax.  Non Store and Starter level stores would be paying less if they were still with the eBay-PayPal model so you are correct on that score.  Granted it is not a lot but but MP is more in fees on those lower levels.

[releasethekraken_1]

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@releasethekraken_1 wrote:

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@twist-in-time wrote:

Right.  Do you understand that eBay didn't charge a FVF on sales tax prior to Managed Payments?  Only on the sale price and shipping charges (shipping paid by the customer if seller doesn't offer Free Shipping).  So, the item I sold had a sales tax (paid by the buyer) of $42.79.  That isn't the selling price, that is the sales tax only.  

Prior to Managed Payments I would have paid Paypal 2.9% + 30 cents to process this entire payment (and paid eBay roughly 10% on sales price and possibly shipping).  Now I'm paying eBay 12.55% on this $42.79 tax bill.  I'm sure you can see that paying 2.9% on $42.79 is less than 12.55% of $42.79.   Right? 

Understand now?  I'm not trying to be snarky. 

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How much did you save on the reduced money processing fee (2.35% vs PayPal’s 2.9%) on the item price plus shipping?

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Assuming the item price plus shipping was $535 (based on 8% sales tax of $42.79), here’s a comparison of the fees:

$72.81 (MP) vs $71.63 (PayPal).

If you had sold to a buyer in a state with low/no sales tax, MP fee would have been lower than the fees under PayPal.

[twist-in-time]

I never said I was "outta here", maybe go find somewhere else to over-dramatize, okay?

I would have paid $1.24 as a fee on the sales tax under Paypal (2.9%), I don't count the .30 cent fee as I was paying that anyway.  I'm now paying $5.36 to eBay (12.55%) on the sales tax alone.   

If that doesn't bother you, good for you.  No need to comment. 

[nono-8172]

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@twist-in-time wrote:

I would have paid $1.24 as a fee on the sales tax under Paypal (2.9%), I don't count the .30 cent fee as I was paying that anyway.  I'm now paying $5.36 to eBay (12.55%) on the sales tax alone.   

If that doesn't bother you, good for you.  No need to comment. 

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You would have paid $15.51 as a fee on the item+shipping under Paypal (2.9%), don't count the .30 dollar fee as you were paying that anyway. You're now paying $12.57 to eBay (2.35%) on the item+shipping alone.