Managed Payments Fee Calculator

[joshscardsnmore]

Does anyone know of a managed payments calculator I can use. I just switched over to managed payments today and the fees arnt making any sense to me. 

[eunster1313]

Selling fees for managed payments sellers

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

[pilesofgoodies]

Sellers are getting hit HARD with the new managed payments. eBay promised seller fees would be less with managed payments. NOT TRUE! I hope all sellers look closely at the fees we are being charged.  Store subscription sellers were paying 9% final value fee before. Now it is much more. Sellers are even being charged a % on the sales taxes paid by buyers. Sellers also have to pay an extra .30 for every item shipped through eBay's Global Shipping program. WHY? Oh, because they can. Look at the new fee calculator and see if sellers are actually saving money with eBay's new improved managed payment program. 😡

[valueaddedresource]

@joshscardsnmore  - as of September 1st, eBay is applying the new "simplified" fee on the total amount of the sale including sales tax.

If you have a store subscription, it looks like most of your items would have an 11.5% simplified fee.

https://www.ebay.com/help/selling/selling-fees/store-fees?id=4809 

So your FVF should be 11.5% of the total amount including shipping & sales tax, plus $0.30 per order.

[mad4disneytoo]

and if the buyer is registered in another Country they have tacked on another 1.65% international fee,  

[otterent]

Not true. They charge me 13.3% fvf

[warbunny]

Yeah, I noticed something wasn't right when I first switched over, but now it's December and things are clearly off. 

Example, I sold several of the same item in the same category and from the same listing to three different buyers, but FOUR different fees were collected from the same amount!!

Example: The item in the same listing and category sold for $13.74

Buyer 1: fees came to $2.07

Buyer 2: fees came to $2.10

Buyer 3: fees came to $2.13

Buyer 4: fees came to $2.15

Taxes are collected by eBay and are irrelevant to this new system for sellers.  If there's a base percentage + $.30 per transaction. How can the same amount result in 4 different fees being collected; all of which are well over the advertised fee amount.

None of this makes sense.

[warbunny]

Turns out eBay's double dipping!!

eBay's final value fee is based off the sale price + the buyer's state tax amount, not just the sale price. That's why the fees are varied and don't make sense on initial review.

eBay's customer support from the "Management Payment team" claim that eBay has to charge seller's like this due to the Supreme court decision regarding South Dakota....  It (supposedly) forces eBay to have a fee based system based off of the transaction cost PLUS the sales tax that eBay collects, instead of just being off the transaction cost and the sales tax being collected not being included in the fees eBay charges sellers. This was because of the Supreme Court and not because of Corporate Greed, conflating a complex system.

eBay can easily charge seller's a final value fee purely based on the transaction price and collect and remit states sales tax collected on that transaction.  eBay fees including taxes does not seem to be a Supreme Court requirement, but a way for eBay to collect/inflate a higher fee (that was not blatantly advertised to sellers).

Example: Sale Price = $50, State Taxes =$5, Final Value Fee = $50 x 12.35% = $6.18 + $.30 = $6.48    A $50 sale has a fee of $6.48, based on the sale price.

Actual Fee system: Sale Price = $50, State Taxes = $5, Final Value Fee = $55 x 12.35% = $6.79 + $.30 = $7.09, A $50 sale has a fee of $7.09 based on the sale price and the buyer's state taxes collected on behalf of the seller.

According to eBay they have to charge the $7.09 and not the $6.48, because the Supreme Court forces eBays fee system to be like this and not corporate greed.

[central-vacmasters]

Its sucks, I know; however, if your processing a credit card transaction locally (POS sale on a POS terminal) you would still be paying a % on the sales tax your customer is charged to process that payment through your POS terminal...

HOWEVER, it is complete **bleep** that eBay is charging us the full FVF on the sales tax that the buyer is charged/paying! The FVF should only apply to the actual FINAL sale price of the item being sold. It should not include our shipping expenses (eBay added the shipping too because "some" sellers were abusing the system by have a $1 BIN sale price with a $55 shipping charge)  and it should defiantly NOT include local sales tax!

[worldwide*local*guy]

I had to create my own spreadsheet to figure it all out. Basically, ebay is charginging FVF on the sale, AND charging FVF on the shipping, AND charging FVF on the sales tax. The formula would be (FVF% x sale price) + (FVF% x shipping) + (FVF% x sales tax).

The tricky part for sellers is that we cannot know ahead of time what the sales tax will be, because that depends on which state the buyer is located in. In some states, it's zero, and in other states it's almost 9.5 percent.  Ebay let's you know if they have collected sales tax, but they don't make it easy to understand.

I have my spreadsheet set up to calculate an estimated profit, assuming a worse case scenario of a 10 percent state sales tax. After an actual sale is completed, I have another section on my spreadsheet where I can run the actual sale numbers, just to make sure everything is accounted for. So far, everything is good. I've been on managed payments for a few months, and ebay's accounting is accurate. It's just that it is very hard to follow the money, so to speak.

[rconnoll]

Assessing the FVF on the shipping charges is criminal. We aren’t making any profit on shipping. Cumulative FVF’s fir my last few items are at 14%!!! 

[valueaddedresource]

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@warbunny wrote:

Turns out eBay's double dipping!!

eBay's final value fee is based off the sale price + the buyer's state tax amount, not just the sale price. That's why the fees are varied and don't make sense on initial review.

eBay's customer support from the "Management Payment team" claim that eBay has to charge seller's like this due to the Supreme court decision regarding South Dakota....  It (supposedly) forces eBay to have a fee based system based off of the transaction cost PLUS the sales tax that eBay collects, instead of just being off the transaction cost and the sales tax being collected not being included in the fees eBay charges sellers. This was because of the Supreme Court and not because of Corporate Greed, conflating a complex system.

eBay can easily charge seller's a final value fee purely based on the transaction price and collect and remit states sales tax collected on that transaction.  eBay fees including taxes does not seem to be a Supreme Court requirement, but a way for eBay to collect/inflate a higher fee (that was not blatantly advertised to sellers).

Example: Sale Price = $50, State Taxes =$5, Final Value Fee = $50 x 12.35% = $6.18 + $.30 = $6.48    A $50 sale has a fee of $6.48, based on the sale price.

Actual Fee system: Sale Price = $50, State Taxes = $5, Final Value Fee = $55 x 12.35% = $6.79 + $.30 = $7.09, A $50 sale has a fee of $7.09 based on the sale price and the buyer's state taxes collected on behalf of the seller.

According to eBay they have to charge the $7.09 and not the $6.48, because the Supreme Court forces eBays fee system to be like this and not corporate greed.

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@warbunny  - sounds to me like that rep was feeding you a line.

Yes most payment processors do charge processing fees on the total with tax.  This is not mandated by the supreme court or any state laws and was happening long before the Wayfair decision.

Typically most payment processors charge somewhere in the neighborhood of 2-3%.  PayPal currently takes 2.9% of the total including sales tax.  Amazon does not charge fees on Marketplace Facilitator collected tax and charges 2.9% on just the tax amount only for seller collected tax, choosing to keep that part separate from their standard selling fees.  eBay could absolutely choose to do the same.

Previously in MP, the FVF and payment processing fees were separate. The move to a single "simplified" fee that applies to the total including sales tax was 100% eBay's choice and 100% because it benefits eBay, don't let them tell you otherwise.

[Anonymous]

Yes, many defenders of this, including Ebay's own customer service, are either mistakenly or deliberately wrong on the math.

The math:

$100 item

10% sales tax tax

0.55% savings on FVF = $0.55 saved

12.35% FVF on sales tax = $1.235 increased 

Previous PP 2.9% on sales tax = $0.29

$0.55 - $1.235 + $0.29 = net loss of $0.975 vs previous

Just give us back the old PP structure and take 2.9% on the sales tax, instead of 12.35% on the sales tax that gives them a 9.45% PROFIT on sales tax, and we'll call it a day.  I'll even deal with the delay in receipt of payments.    

[mam98031]

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@pilesofgoodies wrote:

Sellers are getting hit HARD with the new managed payments. eBay promised seller fees would be less with managed payments. NOT TRUE! I hope all sellers look closely at the fees we are being charged.  Store subscription sellers were paying 9% final value fee before. Now it is much more. Sellers are even being charged a % on the sales taxes paid by buyers. Sellers also have to pay an extra .30 for every item shipped through eBay's Global Shipping program. WHY? Oh, because they can. Look at the new fee calculator and see if sellers are actually saving money with eBay's new improved managed payment program. 😡

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You are no longer having the separate fee to PP which was 2.9% plus 30 cents per transaction.

Now in MP you have 11.5% plus 30 cents per transaction.

So PRE MP you paid 2.9% PP fee plus 9.15% Ebay fee = 12.05% plus 30 cent per transaction fee.

In MP you pay 11.50% plus 30 cent per transaction fee.  

The MP simplified fee is 0.55% LESS than what you paid before MP.  Not a great deal, but a little bit of savings.

[mam98031]

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@mad4disneytoo wrote:

and if the buyer is registered in another Country they have tacked on another 1.65% international fee,  

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Yes this is absolutely correct.  It is 1.65% in MP.  It was 1.50% in PP.  So a very slight increase.