Managed Payment cost more?

[yekai2012]

Now that I have a few months of Managed Payments, from the net proceeds, it appears eBay managed cost more...Any thoughts?

[inceptions]

Though the costs are assessed differently, the come out to be about the same.

[mam98031]

You are going to have to be more specific.  For most it is a neutral change.  

[big35hurt]

yup! you are correct. we are netting less money as sellers since ebay managed payments charge the seller 12.35% on the total amount of sales tax collected. i watched the managed payments video ebay posted a couple months ago and it illustrated how sellers would be netting slightly more in proceeds. this is obviously not true. and the video is long gone.  

[big35hurt]

https://pages.ebay.com/seller-center/service-and-payments/simpler-fees.html#m22_tb_a1__5

[island-city-gifts]

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@mam98031 wrote:

You are going to have to be more specific.  For most it is a neutral change.  

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It's only a neutral change to "most" sellers of lower priced items, under $10 to $15, which a majority of your listings seem to be. The 12.35% eBay Fee on sales tax for items selling for $30 or more results in higher fees using MP than if the transaction went through PayPal. I've run the "what if" scenario on every transaction since joining MP, and every sale has resulted in higher fees for me than if it went through PayPal, which many other Sellers in MP are also experiencing. eBay's 2.35% Processing Fee may be lower than the PayPal 2.9% Processing Fee, but eBay is collecting 9.45% higher fees on sales tax than PayPal does, which negates eBay's .55% discount on processing fees they tout compared to PayPal, for those of us selling higher ticket items. Ebay is collecting over 4 times the amount of fees on sales tax than PayPal does. If anything, the States benefiting from these taxes should be incurring the fees associated with processing them, not Seller's !

[dbfolks166mt]

As other people have provided good examples on the how and why the MP costs sellers more I won't add to that. I will remind you however that by eBay's own admission MP's only goal with MP was to increase revenues and profits for its shareholders and there is absolutely nothing wrong with that. However, for every action there is an equal action in the opposite direction, in this case it comes at the sellers expense. 

[kingdom1_store]

hello

why?

[kingdom1_store]

hello,

yes

[mam98031]

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@big35hurt wrote:

yup! you are correct. we are netting less money as sellers since ebay managed payments charge the seller 12.35% on the total amount of sales tax collected. i watched the managed payments video ebay posted a couple months ago and it illustrated how sellers would be netting slightly more in proceeds. this is obviously not true. and the video is long gone.  

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@big35hurt 

[pokemart_mi]

Yeah, I was working on ways to ramp up sales and was about to put thousands of dollars in inventory on here. I have decided that with MP I will take my sales elsewhere. Ebay will now be a last resort. I just made 2 sales under $20 a piece and am NOT happy with the 12.35% LET ALONE it being on the final sale value. The fees were about 16% of my list price (mind you, I offered free shipping on top of that)! I'm paying a fee on someone else's taxes? I'll be talking to my accountant to try and understand this better but I think this may have really ruined my hopes for using ebay on a larger scale. Saddening. I would rather deal with PayPal

[buyselljack2016]

I ran the #'s for 50 MP sales on our accounts. (wife's, and mine. "no stores" ) The fees were compared to what would have been charged if still using PP. **

10 of the 50 sales were delivered to "no sales tax" locations. Most "no tax" sales were in the $20-$40 range.

The "50 sale" totals with shipping, and tax varied between $10, and $70. The overall result was an increase in fees of $0.06. (less than $0.05 per $1000) (that was $0.06 on the 50, not on each.)   YMMV 

There were also 2 cancelled sales not included in the #'s that resulted in a wash. Would have been out the $0.30 with either method.

** The fees on my accounts were actually a bit more than the data provided because I was already in MP prior to the switch to "simplified fees" with a lower FVF, and only paying $0.25 per transaction rather than $0.30.

[ntqnut]

where do you think you will sell? im sure ebay buyers are unaware of seller  problems 😞

[mam98031]

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@pokemart_mi wrote:

Yeah, I was working on ways to ramp up sales and was about to put thousands of dollars in inventory on here. I have decided that with MP I will take my sales elsewhere. Ebay will now be a last resort. I just made 2 sales under $20 a piece and am NOT happy with the 12.35% LET ALONE it being on the final sale value. The fees were about 16% of my list price (mind you, I offered free shipping on top of that)! I'm paying a fee on someone else's taxes? I'll be talking to my accountant to try and understand this better but I think this may have really ruined my hopes for using ebay on a larger scale. Saddening. I would rather deal with PayPal

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@yekai2012 

I think there is information you have not considered.  The 12.35% includes your 2.9% you normally pay to PP.  So if you were paying 10% to Ebay and 2.9 to PP, that is a total of 12.9%

[mam98031]

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@ntqnut wrote:

where do you think you will sell? im sure ebay buyers are unaware of seller  problems 😞

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@ntqnut 

As they should be.  It is not good business to try and drag our customers into our business issues.  That is just plain bad business.

Just Google it.  You can find sites.  But we aware that the sites similar to Ebay all have a money processing program and most release funds every couple of weeks.  Amazon, Etsy, Offerup, Mercari, Poshmark, etc.  

It is just really the matter of adapting.  MP will grow and change in time with things improving in the future.  If your sales are good enough here, it isn't likely that changing venues will help.