Managed Payment is a Total Rip Off

[repurposed-equipment]

Ebay has always treated sellers like **bleep**. Now this mandated use of their "managed payments" is the ultimate slap in the face. The are actually charging fees for sales tax collected, which seems illegal. The payouts are at their whim. The higher the selling price, the longer it takes to "process" the payment and send it out.

TOTAL AND COMPLETE RIP OFF

[divwido]

OK, Bye then.

[dhbookds]

The are actually charging fees for sales tax collected, which seems illegal.

But it's not illegal...........any/all cc charge merchants fees based on the total transaction

The higher the selling price, the longer it takes to "process" the payment and send it out.

That's not been my experience. 

[kensgiftshop]

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@repurposed-equipment wrote:

The are actually charging fees for sales tax collected, which seems illegal.

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So does Pay Pal, other payment processors and credit cards.

The amount of the order doesn't have anything to do with how long it takes the payment to process.

It depends on how long it takes for Ebay to receive the funds from the buyers payment source.

[frodobagginskennedy]

I have no issues with MP.  Been working smooth as silk since I signed up in September

[nkpina2014]

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@dhbookds wrote:

The are actually charging fees for sales tax collected, which seems illegal.

But it's not illegal...........any/all cc charge merchants fees based on the total transaction

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The difference is that cc merchants (and PayPal, as well as other electronic payment processing venues such as BigCommerce, SquareTrade, etc) all charge 2.9%. 

Ebay is charging the FVF, which in most category is 12.15%. 

2.9% is a convenience fee. 12.15% is highway robbery. 

[dryophelia]

@repurposed-equipment  @nkpina2014  

A fellow mentor, @comics-scifi-collectibles gave this great advice to a seller in a similar situation. Hopefully there's some clarification for you as well.

eBay has charged fees on the shipping since 2011 when they started offering 50 free listings. Now we get 200 free listings

Fees are now 12.35% +.30 cents for most categories for sellers that do not have a store and 14.35% + .30 cents for books and DVDs.      This means that the fees are .55% lower than they were which helps make up for the higher fees on the sales tax portion.

The fees are charged on the total a buyer pays including sales tax.  This is normal for payment processors.  PayPal charged their fees on the sales tax too.

To see what your sales total was WITH tax go to payments> summary and click on the order #

This is the total that you need to know to determine if you were charged the correct fees. 

If the sales tax is 5.82% or less then you pay a bit less in fees.  ‌‌  

If the sales tax is more than 5.82% then you pay a bit more in fees.   ‌‌ 

Compare the fees with PayPal vs MP using this estimator tool created by a fellow mentor>  http://www.isdntek.com/ebaytools/SimpleEbayFeeEstimator.htm

 PayPal spoiled us because they used to front the money before it cleared the buyer's funding source, Adyen the managed payments funds processor does not.

If eBay says that it's time to ship then you need to ship.  If you do not feel comfortable with this then you MUST extend your handling time.

You can use pending funds to pay for your shipping labels. The option is at the bottom of the label form.

Check here to see if the buyer's payment says processing>

https://www.ebay.com/sh/fin/summary

It takes about 2 business days for the buyers payment to clear their funding source. Once the funds are available they are paid out to the ACH system. From there the money is transferred to the bank account you provided when you registered for managed payments. It can take your bank 1 to 4 days to deposit the money into your checking account. Larger banks are faster.

I have weekly payouts on Tuesdays and my available funds are paid out and in my bank by no later than 12pm on Wednesday

How payouts work>

https://www.ebay.com/help/selling/getting-paid/payouts-work-managed-payments-sellers?id=4814&st=12&p...

Non store selling Fees>

https://www.ebay.com/help/selling/fees-credits-invoices/selling-fees-managed-payments-sellers?id=482...

[nkpina2014]

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@dryophelia wrote:

@repurposed-equipment  @nkpina2014  

A fellow mentor, @comics-scifi-collectibles gave this great advice to a seller in a similar situation. Hopefully there's some clarification for you as well.

The fees are charged on the total a buyer pays including sales tax.  This is normal for payment processors.  PayPal charged their fees on the sales tax too.

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Nobody is disputing that PayPal charged a transaction fee on the tax collected. They charged 2.9%, which is industry standard. 

Ebay however, now charges 12.55% for tax collected. The difference amounts to anywhere from 0.25%-1.55%, depending on the tax rate of the state you are shipping to, which eliminates or exceeds the new "savings" that Ebay gives sellers. Pre-MP, I paid 9.15% FVF, pre-tax. Post-MP, I'm paying 12.55%, post-tax. 

Here's a clear example - 

Pre-MP using PayPal

Item sells for $100 at a 10% tax rate and 9.15% FVF  

$100.00 Item Sold

$10.00 Tax Collected

-$9.15 FVF (9.15% FVF fee)

-$10.00 Tax Collected (10% tax rate)

-$3.20 Transaction Fee (2.9% + 0.30)  

------

$87.65

MP using Ebay

Item sells for $100 at 10% tax rate and 12.55% FVF  

$100.00 Item Sold

$10.00 Tax Collected

$110.00 Subtotal

-$13.81 FVF (12.55% FVF)

-$10.00 (10% Tax)

-$0.30 Transaction Fee

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$85.89

To paraphrase Joseph Stalin - it's not how many votes that count, but who counts the votes that matter. In this case, Ebay is counting the pennies and sellers are losing.  

Also, FYI - Ebay is lowering fees starting on April 1, lowered to 11.7% for most categories. They have heard this backlash. I still believe that charging the FVF for taxes shouldn't be allowed. I don't mind paying industry-standard transaction fee (2.9%) for taxes collected, but even Ebay's own site states that taxes are not collected or paid by the seller. If they aren't collected by me, why am I paying a FVF on it? S&H gets collected by me, I'll pay the FVF. Taxes aren't, and should be excluded. I have absolutely zero control over the state-based taxes that are levied on things I sell on Ebay. 

[centralbay]

It is a total rip off. Common. 

[j7dobb]

I built a calculator in Excel. I enter the amount I want for the item. The form calculates all the Ripoff EBAY fees and spits out a result (based on a tax table for all states) plus Ebays fees on the shipping and the tax (Final Sale). The Result shows me how much I have to charge for the item on ebay to net the amount desired. The downside to this is that ebay gets even more money and they know it. Total ripoff. Based on previous sales the result has been to the penny. It does not include category, only electronics.

[relove_llamas]

I am a new seller and really disgusted. Mark Z is ruining eBay for sellers. Before Easter I was paid within 4-5 days of sale (still a ripoff) and ebay charging rediculous fees and fees on the POSTAGE as well! So by the time you pay postage and wait on money its such a let down. Then, after Easter they lie to me and I finally find out they restricted my payouts as I alledgedly per the auto algorithym didnt ship out  a tea set within a working day. I bloody well did. It was a **bleep** 4 day Easter weekend when person bought item! So now waiting weeks for paltry trickle down profits. I sold 7  items and only netted ave $10 each after all the ripoff fees. PS I was lied to by agents after 4 hours being transerred in overseas 'call centre' and told my account was restricted as new seller. NO it wasnt. 2 agents told the truth...no resolution though. When got to last agent they ended chat as I asked to speak to a manager. I may as well hawk stuff on sidewalk.