mam98031 • Volunteer Community Member • Buyer/Seller since 1999
@mybigsale wrote:Other payment processors charge a low processing fee. eBay's 1 fee approach includes the low processing fee PLUS A HIGH COMMISSION fee. This point is what is always being missed by sellers quick to accept the fee. What other processor is earning a commission on top of the transaction rate? 12%-15% fee instead of a 2%-3% fee warrants @azmiata_man 's outrage.
Not exactly.
The fees in MP have NOT increased overall fees. The following numbers represent those that do not have a store and the fee rate for most common categories [not all].
Fees BEFORE going into MP
10.20% FVF + 2.9% PP fees = 13.10% plus 30 cent per transaction fee.
In MP the fees are:
10.20% FVF + 2.35% money processing fee paid to MP = 12.55% plus a 30 cent per transaction fee.
Also keep in mind that PayPal is increasing their fees as of August 2nd.
@mybigsale wrote:eBay tries to justify charging a commission on shipping by saying since some sellers abuse the system and they have no way of knowing actual shipping costs they must charge a commission (even though they could easily account for actual shipping paid through eBay).
With tax their only justification is they charge 1 flat fee (which gains their high commission on taxes) to make it easy for sellers to understand. Not a very good reason to be earning a commission on taxes in my opinion.
I understand what you are saying. I'm a Top Rated Seller with eBay since 2000. I am surprised when novice sellers say they are losing money because they now offer free shipping. I am not leaving any time soon. Have a great year selling! May USPS be running in a timely manner this Christmas!
That is a decade old argument and really needs to be retired. It has been over 10 years, it simply is time to get past it. Besides, most other similar sites charge fees on shipping too and long before Ebay was doing it.
Most of the complaints from sellers that have only sold on Ebay so they don't know what other sites have been doing for years. Ebay is the last of the bigger sites to do their own money processing program. So for those of us that sell on multiple venues, this is simply more of the same. In fact some of the other sites have rules that are even harder to get use to.
Many want to concentrate on the increase in fees due to the MP Simplified fee being charged on the ENTIRE amount received from the buyer. But what they refuse to acknowledge is how the Simplified fee is LOWER for sales that have no sales tax or sales tax that is lower than about 8%.
As it true with most policies, if you only want to concentrate on one piece of the policy it is likely that you will not see the overall affect this change will have on any given sellers account. Along with making assumptions about how much it is going to cost them which is likely not true at all.
I did a six month comparison of my sales PRE MP and IN MP. My results for each month was I save a small amount in fees, about .50% in each month. So I see this as much closer to a neutral effect on my pocket as my monthly fees are relatively the same now [as I am in MP] as it was before I entered.
And keep in mind that August 2nd PayPal is imposing a pretty large fee increase so those in MP will be saving even more if they consider what it would have cost them if they were still in PP.
It is just my opinion, but I have to say I get surprised each time I read about a seller going into MP without learning even the basics of how the system works. What the process is and how much it will cost the seller. This information has been readily available since last summer.
https://www.ebay.com/help/selling/fees-credits-invoices/store-selling-fees?id=4809
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