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mam98031 • Volunteer Community Member • Buyer/Seller since 1999
PayPal is 2.9 % + 0.30
If your $360 sale netted $309, there would have been $51 in fees. Even with 9.9% sales tax, I can not get the fees that high. So, next question is whether the buyer used a foreign credit card or is located outside of the US.
With a foreign credit card and no tax, I can get the fee up to $50.70
If this is a foreign card, then PayPal would have charged 4.4% +0.30.
https://www.paypal.com/us/webapps/mpp/merchant-fees
Did you purchase a shipping label on eBay? Was the label cost subtracted directly from your payout?
@dollarl5148 wrote:Leave eBay ASAP! My fees went from 10-12% to 40.3%-46% after managed payments. All final valuation fees increased. Final valuation fees are taken off your $ right as the item sells. They tell you your bill will decrease but fail to tell you the final valuation fee is also taken off the sale of the item immediately. Total fees increased over $125 per month. 1099’s are also now being sent out to people living in certain states if you sell less than $20,000 AND 200.
There is clearly a misunderstanding on your part in how the fees work. When change happens, which it always does, the bigger the change the harder the transition is. This is a huge change and learning the actual facts instead of making assumptions will certainly help you get through it.
First, The reason you got a 1099K would be from a REQUIREMENT by the state you live in. Ebay must comply with that requirement whether or not you agree with it. If you want that changed, you need to get the attention of your state representative to get that ball rolling.
Please note: a number of sellers who reside in states with additional reporting requirements have received a 1099-K, even if they have not met the 200/$20,000 threshold above:
- Arkansas - $2,500 in gross payments with no threshold on the number of transactions
- District of Columbia - $600 in gross payments with no threshold on the number of transactions
- Illinois - $1,000 in gross payments and a minimum of 4 transactions
- Maryland - $600 in gross payments with no threshold on the number of transactions
- Massachusetts - $600 in gross payments with no threshold on the number of transactions
- Mississippi - $600 in gross payments with no threshold on the number of transactions
- New Jersey - $1,000 in gross payments with no threshold on the number of transactions
- Virginia - $600 in gross payments with no threshold on the number of transactions
- Vermont - $600 in gross payments with no threshold on the number of transactions
You are able to view and download your eBay Form 1099K in the following places:
https://community.ebay.com/t5/Payments/Form-1099-K-Detailed-Report/m-p/31575590#M106915
As to the fees. The only way you can possibly get that high is if you are also adding in your shipping charges. Look at the details of the numbers and you will likely find this to be true. And of course your shipping charges doesn't belong in the calculation.
In MP we pay a 30 cent per transaction fee just like we did when we were in PP.
@dollarl5148 wrote:I am going off the ebay reports as to my percent of selling costs. That has gone from 10-12% to 40.3-46.7% over the years I have been selling. It has gotten WAY out of control. A 1099 is from the IRS which is Federal. I understand the threshold that my state has put in place. I want nothing to do with it. Leaving ebay at the end of this year. Cancelling store in April. Thank God and not worth it anymore, not worth the headaches, not worth the VERY little $ made. Ebay has become trash.
It is great to look at the reports but that doesn't mean you should disregard the details of that report, which it will tell you if you look. Those numbers INCLUDE your shipping costs and that has NOTHING to do with the percentage of fees that Ebay / MP charges. So you have to do your part and look at the information more closely. It does tell you but you have to review the stuff.
AS to the federal and state requirements, Ebay is just following their legal obligations.
I looked at your dye listing for $3
Calculated shipping cross-country is $5.75
That would give an order total of $8.75
But then there is the tax, which you don't see in your order.
If the tax rate is 8%, your total payment processing would be $9.45.
eBay has downloadable reports in seller hub and I think they break down the whole payment in one of those reports.
@giftbylinda wrote:I switched to MP a few months ago and now I am finding that the FV fee is based on a higher total than what the actual order total was including tax and shipping and handling. Just today, my order total was 8.75 including tax, shipping and handling. However in Transaction details, it tells me my fee was based on 9.45. My fee was 1.19. If it was on the actual total, I'd be able to follow it. But now I can't. Even going into the eBay help it says it's based on the lowest shipping offered, which is what the buyer selected. I paid 1.19/8.75=13.6%! And now with MP if I refund the buyer, I have to ask eBay to step in to return my fee (minus the .30)?? So are they determining the lowest cost shipping to the most far away location regardless of where the buyer actually was? Very annoyed.
I think this is just from some misunderstandings. Lets see if we can give you some clarity.
First, here is the policy page for seller fees for non store owners in MP. This is the place to start so you get a better understanding of the process.
https://www.ebay.com/help/selling/fees-credits-invoices/selling-fees?id=4822#section8
Just like PayPal did, MP charges the fees on the TOTAL amount received from the buyer. And sometimes that total amount is going to have sales tax paid by the buyer on the payment being processed. So this means that on sales that have sales tax on it above about 8% your FVF are going to be a bit higher in MP than it was before when you used PP.
HOWEVER, for transactions you have that have no sales tax on them or a percentage lower than 8%, you will be saving money on the transaction verses what you use to pay when you used PP.
Just as PP always charged their fees on any amount of sales tax in the payment being process, so does MP. PayPal has ALWAYS charged their fees on whatever amount was received for processing, without regard as to how that payment was broken down.
Now with that said, I doubt there is many sellers that are actually happy with MP charging the FVF on sales tax. I sure know I'm one that doesn't like it.
But the impact to your overall fees is not likely to cause you harm in any way. The MP fees are LOWER than they were before entering MP. So for transactions that have a sales tax rate of 6% or lower, there is no fee increase on that transaction and some will actually even be less. For those that have no sales tax on the transaction, those all have less fees.
Which is why when you are trying to determine what impact MP is having on your Ebay fees, you need to look at a full months worth of transactions or more. It is the only way you are going to get an accurate answer because some transactions will be more and some will be less. But overall in a month you are likely to find that they fees are much closer to a neutral change.
For myself I did this comparison for a six month period. Each month I found that I saved about .50% in fees over what I use to pay before entering MP. I personally see that as a pretty neutral change. My monthly Ebay fees are simply NOT higher in MP.
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.
@dippy-dawg wrote:I know that your posting is over 10 months old, but I just stumbled upon it. I have been on and off eBay for many years and the reason that they started including the shipping charge as part of the FVF is due to the fact that there were many high volume sellers selling their wares for literally a penny then charging a $20.00 shipping fee. This was done so that the buyer can look at the overall picture and think I just paid $20.01 for this item and it was a great deal even. As for the seller, they have the mindset "We only have to pay the FVF on a penny and screw eBay." Therefore, eBay started charging a FVF on the shipping as well.
That is the simple way to look at it. But historically speaking not the entire story. It is how it ended up but not the entire struggle with that problem.
Once upon a time Ebay had a department devoted to tracking down and sanctioning sellers operating as you described above. Other members were able to report misbehaving sellers and if Ebay agreed, the listings would be removed and the sellers dealt with. Then Ebay disbanded this department a few months before they announced the FVF change to include shipping.
So Ebay decided they no longer wanted to take on the expense of having department just to monitor this behavior and instead imposed a FVF on shipping. That was a move by Ebay that was financially rewarding to them to be sure.
Surprisingly through this changeover to MP there were many sellers that simply had no idea that for the last 10 years they were paying a FVF on shipping. It came as a total surprise to them to find this out and then further realize they had been paying it even when payments went through PP. Crazy but very true.
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