FVFs for eBay store subscribers with managed payments vs subscribers without managed payments.

[dvesn]

Why are fees higher for store subscribers with managed payments than they are for store subscribers without managed payments??  In stamp category, FVF for subscribers with managed payments is $.30/item plus 8.7% of sale price. Subscribers without managed payments are charged 6.35% of sale price with no per item charge.  I would think eBay would be trying to encourage sellers to switch to managed payments not to opt out!!

[divwido]

No, your data is incorrect somewhere.  Store Subscribers who have free listing left pay less.  That 30 cent fee should apply to both ways.

[tools*]

The Managed Payments fee is higher because it's a combination of the final value fee and the payment fee. The "classic" final value fee doesn't include the PayPal fee.

[mtnangel555]

With managed payments, FVF is the item + shipping + sales tax + $.30. With the old PayPal system, eBay had their FVF on item + shipping and PayPal had the 2.9% of the transaction + $.30. I have sold under both systems and have found managed payments to be more expensive for sellers. As of 4/1/21, eBay is raising the FVF's.  See link below for more information. Also, per eBay, in 2021 all sellers will be required to be on managed payments.  Ebay changed my account last year to managed payments and I was not allowed to opt out if I wished to continue selling on eBay, as their opt option was you will no longer to be able to sell on eBay if you do not enroll in managed payments. I miss the old days of eBay!

https://pages.ebay.com/seller-center/seller-updates/2021-spring/financials.html

[shado-x]

The only confusing error that I see is the zero fee allotment for sellers whose payments are managed through eBay.  For a Basic Store, the Zero insertion fee listings allocat[ed] per month for auction-style listings say 250/$0.25, but I thought that was 250 free, then a $0.25 charge after they have been used up.  It is true to a point that select categories under fashion & collectibles are free, but there is no asterisk pointing that out.  Hope eBay can make that clearer 'cuz my auctions are charged all the time.....lol.  Would love to have free auctions listings too, but I get it back with the lower FVF fees.

https://pages.ebay.com/seller-center/seller-updates/2021-spring/fees-update.html

[nkpina2014]

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@dvesn wrote:

Why are fees higher for store subscribers with managed payments than they are for store subscribers without managed payments??  In stamp category, FVF for subscribers with managed payments is $.30/item plus 8.7% of sale price. Subscribers without managed payments are charged 6.35% of sale price with no per item charge.  I would think eBay would be trying to encourage sellers to switch to managed payments not to opt out!!

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You are correct, but incorrect at the same time. 

With MP, Ebay is taking the transaction fee into account, which is why the FVF is higher. 

With non-MP, Ebay isn't taking the transaction fee, but PayPal does. Which is 2.9% + 0.30. When you add 6.35 + 2.9, you get 9.25%. 

So for the most part, MP is saving Ebay users some money. The issue comes when Ebay/MP users assign the FVF to the taxes paid (which they do). Instead of 2.9% transaction fee on the taxes, sellers now pay the 8.7% (or higher) fee for the taxes.