My experience w eBay payments

[goldens5]

I just received $235 on a sale of $275. That's 14.5% in fees versus 13.0% with PayPal.  (an increase of 1.5%). The money was transferred to me today (72 hours after the sale) with a note saying to expect the funds in my account in 3-5 days.

I think that eBay payments is a brilliant concept and I would like to see the following improvements:

1. it would be great if eBay eliminated fees on shipping. It would make eBay more competitive.

2. It would be great if eBay used new technology such as Blockchain to improve payment processing and speed up the payment process. Right now there is a perception that eBay may be working the float but my hunch is that this may be an area of improvement w technology.

[lacemaker3]

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@goldens5 wrote:

I just received $235 on a sale of $275. That's 14.5% in fees versus 13.0% with PayPal.  (an increase of 1.5%). The money was transferred to me today (72 hours after the sale) with a note saying to expect the funds in my account in 3-5 days.

...

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Did you remember that the fee is calculated based on the total amount of the payment, including the cost of shipping and sales tax (12.35% for most categories up to $7,500). Often sellers try to calculate a percentage based on the sale price only, which results in varying percentage. The other possibility is that the item might have been in a category that has a higher percentage, such as books (14.35% on total amount of the sale up to $7,500 calculated per item, and 2.35% on the portion of the sale over $7,500).

https://www.ebay.com/help/selling/fees-credits-invoices/selling-fees?id=4822#section2

PayPal also calculated their fees on the total amount of the payment, including sales tax. There is a difference because PayPal only charged 2.9% on the sales tax, while eBay charges their full percentage on the whole amount. The break-even point is about 6% sales tax rate, which is probably the average sales tax being collected.

[releasethekraken_1]

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@goldens5 wrote:

I just received $235 on a sale of $275. That's 14.5% in fees versus 13.0% with PayPal.  (an increase of 1.5%). The money was transferred to me today (72 hours after the sale) with a note saying to expect the funds in my account in 3-5 days.

I think that eBay payments is a brilliant concept and I would like to see the following improvements:

1. it would be great if eBay eliminated fees on shipping. It would make eBay more competitive.

2. It would be great if eBay used new technology such as Blockchain to improve payment processing and speed up the payment process. Right now there is a perception that eBay may be working the float but my hunch is that this may be an area of improvement w technology.

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I don't see a $275 sale in your history. I see one for $299 and $19.99 shipping. Did you accept a $275 offer? If so, eBay's 12.35% fee would be charged on $275 + $19.99 + whatever sales tax the buyer paid.

Assuming they paid no sales tax, your fee would be $36.75. Under PayPal, your eBay+PayPal fees would have been $29.50+$8.86 = $38.36.

eBay will not eliminate fees on shipping, because up until 2011, when they added that fee, sellers would set a very low item price and a very high shipping price to avoid fees.

[goldens5]

Got a very nice note that, at the end of the day, says eBay has raised its rates. 

[releasethekraken_1]

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@goldens5 wrote:

Got a very nice note that, at the end of the day, says eBay has raised its rates. 

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eBay had not raised its rates at the time of your sale. But if you're satisfied with what you think is the explanation, great.