Managed Payments

[shootinggallerybooks]

Just my opinion - after 21 years with ebay - and getting paid with Pay Pal....and never a single problem with Pay Pal.  It worked FLAWLESSLY.  

ebay "Managed Payments" was "advertised" as better and would save sellers $$$.

#1 beef:

My total ebay selling fees with "Managed Payments" are HIGHER than they were previously.   As part of the "deal" - ebay raised it's selling commission rates and this more than offset any savings by not going through Pay Pal.

#2 beef:

Under the old Pay Pal system of getting paid --- the $$$ from each sale was deposited into my Pay Pal account INSTANTLY upon the sale.  Thus I had access to my $$$ immediately.  With ebay "Managed Payments" now we have a 2-4 day "PROCESSING" time --- what in the world is that all about???  When you sell something for example on a Thursday - it's not until the following MONDAY that ebay makes what they call a "PAYOUT".  And then it's another 1-4 days before the funds "show up" in your checking account. 

#3 beef:

If I had a question or any issue I could call Pay Pal and within a minute be talking to a REAL person from right here in the USA.  SUPER REAL TIME and INSTANT customer support. 

Try calling ebay to get a real person from the UNITED STATES of AMERICA.   You're super lucky if you can get to talk to anyone and when you finally do get to talk with someone - they are often inexperienced, have difficulty communicating in the ENGLISH language, etc. 

I've been with ebay since 1999 - have made many thousands of sales and have a 100% ebay feedback record.

ebay keeps making "changes" always advertised as for the better.   It's nothing like it was 20 years ago.  I personally miss the old ebay - which was sooooo nice - so TRANSPARENT - so simple.

Just my opinion after 21 years as a loyal and CONSISTANTLY TOP RATED seller.

SGB's       

[rebell45]

Welcome to the NEW, BETTER eBay. Better for them, not you.

[memorylanetelephones]

I've been on ebay since 1996, and I can tell you, every "improvement" that's supposed to benefit the seller is just a smoke screen for creating more income for ebay.

I get a kick out of the bait and switch they did when introducing "managed payments". The rates they gave did show that we would save money, but then the enacted rates are higher, so we're paying more on commissions.

[mam98031]

1.  MP did not increase fees in any category.  The move to simplified fees is likely a more neutral overall move for most of us.  The structure on the Simplified fees is the same for every category.

Example,

9.15 %  Store rate on most categories 

2.9%  Money processing fee with PP

12.05  Total fees

This example will work for any category you sell in, just change the first figure to be what you were paying before MP.

9.15 %  Store rate on most categories 

2.9%  Money processing fee

12.05  Subtotal

-.55%  FVF reduction in MP

11.50%  MP total fee

Now granted starting Sept 1st we now pay a FVF on sales tax, lets say that is 10% of your sale price, often lower.  So you will be experiencing a higher fee on 10% of your sale [or less depending on the state], but the balance of 90% of the sale price will be at the lower rate in MP.

This is likely to create a more neutral impact overall to a seller's fees.  

2.  This is a huge problem for many sellers.  I personally don't mess with daily deposits and do the once a week deposit [processed on Tuesdays].  That has worked very well for me and no ups and downs or problems getting my funds as other sellers are experiencing with the daily transfers that really aren't daily transfers because they only do them on Business days [Monday through Friday].  It takes them about 2 days to clear a payment and make it available for the next transfer and for sellers on daily deposits that is an real issue for payments received from buyers Thursday through Saturday as those aren't going to get paid out until Monday or Tuesday.  

3.  Hard to argue, customer service is overburdened and understaffed.  FYI, PP isn't as fast as they were pre-pandemic either, but they are faster than Ebay is currently.  And Amazon, just forget it.  It is almost impossible to get customer service out of them pre or post pandemic.

[netwizz760]

I miss the old eBay too.  When I first started selling, sellers could leave negative feedback though it was very rare provided the buyer simply paid for the item.

Here are the current formulas

Ebay and Paypal system  Fee Structure : FVF = 10% * (sales price + shipping); Processing = 2.9% * (sales price + shipping + sales tax) + $0.30

Ebay managed Payment: FVF = 10% * (sales price + shipping + sales tax); Processing = 2.35% * (sales price + shipping + sales tax) + $0.30

Increase: 9.45% * sales tax; Decrease: 0.55% * (sales price + shipping + sales tax)

When I first started (before Sales Tax on the Internet):

FVF = 9%  * (sales price);  Processing = 2.9% * (sales price + shipping ) + $0.30

I miss that fee structure.  The buyer did NOT pay any sales tax.  eBay did NOT even charge FVF on shipping either, AND it was 9%.  PaypPal charged their 2.9% on every dollar the buyer paid you + 0.30. 

Each change it is more greedy.  In reality, eBay should NOT be charging us FVF on Shipping either EXCEPT they claim it is because folks would do things like sell $0.99 item with $10 shipping, which was very rare for a seller to do something like this to any extreme.

***

An appropriate formula if eBay wasn't greedy would be:

FVF = 10% * (sales price + (listed shipping - actual shipping) ); Processing = 2.9% * (sales price + shipping + sales tax) + $0.30

Simply PUT, if a seller charges MORE than the actual cost of the label, charge the FVF on the excess.  This would ensure eBay gets their cut.

You can deter sellers from charging more shipping by providing an estimator in the listing tool based on (Listed Shipping - Calculated Shipping), so if eBay thinks it should cost $5 to ship but you list $7, eBay could make a notation you are charging $2 over the Calculated shipping and that is estimated to increase the FVF $0.20

Moreover, this could incentivize sellers to use eBay labels.  eBay could provide a different formula being they do not know what you paid for a label through say Pirate Ship... basically, you suddenly pay FVF on shipping if you don't' use their system... if you use their labels they make something there.

[oldold-timer]

My eb monthly fees are up 2-5% with mp's that was advertised to save most sellers on fees.  Plus,  fees are taken out of pending funds, so I can no longer pay with my 1.5% cash-back credit card. 

[buyselljack2016]

@netwizz760 

"You can deter sellers from charging more shipping by providing an estimator in the listing tool based on (Listed Shipping - Calculated Shipping), so if eBay thinks it should cost $5 to ship but you list $7, eBay could make a notation you are charging $2 over the Calculated shipping and that is estimated to increase the FVF $0.20"

So what %age should eBay charge me for the items that I sell with "shipping included"????

Allowing eBay to "think", and set our shipping rates would be a fools errand.

[buyselljack2016]

I ran the #'s for 50 MP sales on our "non-store" accounts. (wife's, and mine)

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)

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" only paying $0.25 per transaction rather than $0.30.

[bosmingfarg]

I was happy with Paypal as well. I stopped selling, and only buy through Ebay using my Paypal  card. I didn't feel like the rigmarole was worth signing up for mangled payments, and being told that Ebay would be taking over my returns. My stress level kept going up every time ebay announced a 'bonus' deal for sellers.  Lower fees ? a few 'pennies' blah blah. I'm selling on marketplace now. I am a senior, and ready to keep life simple.  

[shootinggallerybooks]

I USED to get an additional 1% off FVF as I had a ebay store - GONE!!!  No more STORE final value discount.

I could care about Amazon customer service - I don't sell there!!!

Pay Pal customer service (least my experience) UNCHANGED since C19 - you get to talk to someone in the USA who's language is ENGLISH.

I USED to get 1.5% off my total ebay fees as I paid with a CASH BACK credit card.

COMMISSION on SALES TAX - that's really nice.  

Now we have PROCESSING TIME before $$$ is transferred to us.  I have seen 3 day processing times during the week, and have experienced 4 day processing times on Friday and Saturday sales.  What's up with that???  Processing time +'s a HUGE INTEREST FREE LOAN to EBAY!!!!!!  Now they are sitting on millions of dollars every day that isn't theirs - interest free. 

These are all FACTS - bottom line IS it's costing me CONSIDERABLY MORE now to sell on ebay with MANAGED PAYMENTS that were SUPPOSED to save us sellers $$$ and make life easier.  NEITHER TRUE!!!

21 years on ebay - it's NOT the same as it once was - much higher selling costs - a thousand changes geared to protecting the seller or making more $$$ for ebay.  No where's near a friendly place for SELLERS as it once was.   PERIOD!!! 

[muskingum_relics]

you are joking I hope !!!! because there is nothing better about ebay !

[jiglo9954]

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[valueaddedresource]

Don't forget that eBay touted an average 25% savings for sellers in Managed Payments.  Has anyone actually seen anywhere close to that?

Our numbers for August were nowhere close to that and most of the "savings" came from our TRS+ discount.

https://community.ebay.com/t5/Payments/Comparing-New-Managed-Payments-Fees-to-Old-eBay-PayPal-Fees/m... 

Will be interesting to see how September numbers work out with sales tax included in FVF calculation and now the extra international fees added in for Puerto Rico & US territories and orders shipped to freight forwarders as well.

And yes, I do understand that PayPal also charges similar fees, I'm just pointing out that eBay charging them too is going to make it much harder for them to continue with their claims of sellers seeing significant savings with MP.

The cynic in me has to wonder if it wasn't a calculated move to make these changes effective September 1st to give the first big wave of inductees from July/August a few weeks of lower fees to soften the blow and then slowly ratchet it back up.