New Fee Structure and Policies for Sellers

[lnohavec-2012]

Okay....I’m really frustrated about eBay’s policies so I’ve pulled my inventory for now. I’m a Top Seller, 100% positive feedback, selling since 1997 and pleased to offer high customer service to my buyers. However, the recent updated policies eBay has forced sellers to agree to are ludicrous, driven by greedy corporate mandates. Holding sellers funds, requiring personal banking info and altering the standard PayPal processes, not to mention, the 12.35% on final sale all factors to that premise. For those of you that didn’t read the entire notification about the changes to the fee structure for sellers, here’s a quick synopsis. eBay now charges 12.35% on the total cost buyers pay....the item, and now added in, shipping and taxes. So, if the item sells for 100.00, shipping is 10.00 and taxes are 9.00, sellers will pay a fee of 12.35% on the total cost buyer paid out ($119.00). EBay’s Fees for $119.00 sale at 12.35% is $17.43. Seller’s profit from a $100 sale is reduced to $82.57. That’s just plan nonsense and double dipping in my book. If I’m in error and incorrectly understand the new fee structure or in calculations, please let me know. I’ve had lengthy discussions with eBay about this, but they’re obtuse and indifferent. I’m searching for another sellers platform as I do not support this type of business model. 

[familysleuth]

I agree completely! This new managed payment system is horrible, as is the policy changes. I, too, am looking for a new site to sell on.

[mtgraves7984]

I’m searching for another sellers platform as I do not support this type of business model.

@lnohavec-2012 

You feel as many sellers do. I chose to adapt. Good luck to you, however you proceed.

[money215]

Because we have always "adapted" Ebay has abused us for years. It's time to fight back! There are other sites out there. They may not be as big as Ebay at this time, but every seller that leaves Ebay will make Ebay smaller and the other site bigger and maybe one day Ebay will finally realize that they are nothing without their sellers and change their ways before they cease to exist, but as long as we "adapt" they will continue their dictatorship!

[releasethekraken_1]

---

@lnohavec-2012 wrote:

Okay....I’m really frustrated about eBay’s policies so I’ve pulled my inventory for now. I’m a Top Seller, 100% positive feedback, selling since 1997 and pleased to offer high customer service to my buyers. However, the recent updated policies eBay has forced sellers to agree to are ludicrous, driven by greedy corporate mandates. Holding sellers funds, requiring personal banking info and altering the standard PayPal processes, not to mention, the 12.35% on final sale all factors to that premise. For those of you that didn’t read the entire notification about the changes to the fee structure for sellers, here’s a quick synopsis. eBay now charges 12.35% on the total cost buyers pay....the item, and now added in, shipping and taxes. So, if the item sells for 100.00, shipping is 10.00 and taxes are 9.00, sellers will pay a fee of 12.35% on the total cost buyer paid out ($119.00). EBay’s Fees for $119.00 sale at 12.35% is $17.43. Seller’s profit from a $100 sale is reduced to $82.57. That’s just plan nonsense and double dipping in my book. If I’m in error and incorrectly understand the new fee structure or in calculations, please let me know. I’ve had lengthy discussions with eBay about this, but they’re obtuse and indifferent. I’m searching for another sellers platform as I do not support this type of business model. 

---

With PayPal, you were paying 12.9% (10% to eBay and 2.9% to PayPal); the only other difference was that eBay's 10% didn't include the sales tax. You do realize you no longer have to pay the PayPal fee, right? 

[lnohavec-2012]

Yes....I understand the dynamics. In any regard, one specific and outrageous new policy is eBay holding funds until “they” determine time to release. From my perspective, there is only one reason to hold.....that is to gain the interest on the millions they hold hostage. Since any proceeds I receive are all donated to charitable institutions and services, I’m personally not affected. However, I’m lucid in the fact that those countless millions pose an attractive investment strategy for eBay, but collectively, at sellers expense. Also ask yourself how many companies are allowed to charge a fee on state sales tax? I’ve yet to audit or solicit applicable public records for such, but I’ll bet states aren’t tracking or may not be aware of this practice. 

[dhbookds]

many companies are allowed to charge a fee on state sales tax? I’ve yet to audit or solicit applicable public records for such, but I’ll bet states aren’t tracking or may not be aware of this practice.

Every time you charge something and let it ride........the cc charges on the unpaid balance which includes sales tax.........plus they charge merchants based on the transaction amount......the same as ebay/paypal/Amazon and the rest IF they are payment processors...........

[money215]

Instead of Paypal you are giving it all to greedy Ebay and in some cases even more than you paid paypal. 

[thesaddletree]

I agree with you. In addition it has been over a month, 7 hours on the phone and reps I cannot understand  they still cannot seem to accept my banking information.  They tell me what to do and I do it. There's nothing left to document with.  At this point I am just not comfortable with all the personal and business info they want. They are not a bank and I question the security of all this private information in their hands. During 15 years of busines, no one ever had issues with my documentation, only ebay. In addition I am in New Hampshire and ship from NH where there is no sales tax and yet ebay charges the customer for the tax and in my final value fee. Our state tax department has serious questions on this and are looking into it. 

I also wish there was a better platform to sell on and if anyone finds one let us all know. Those of us who helped build ebay are now being treated as profit making entities for ebay only with no regard. It has been hard enough since they let the cheep Chinese sellers in but scamming the very people who helped make ebay a giant by holding and manipulating their money and raising their fees is just wrong.

[releasethekraken_1]

---

@thesaddletree wrote:

 In addition I am in New Hampshire and ship from NH where there is no sales tax and yet ebay charges the customer for the tax and in my final value fee. Our state tax department has serious questions on this and are looking into it. 

---

Sales tax is charged to the buyer based on where the package is being DELIVERED, not where it's shipped from, and it's paid out to the state where the package is DELIVERED, not where it's shipped from, so the fact that YOU don't pay sales tax is irrelevant. And if your state tax department actually has "serious questions on this and are looking into it" (which is extremely unlikely), then they're a bunch of idiots who should be replace as soon as possible.

[lnohavec-2012]

Of course....however, charged items and “letting it ride” as unpaid balances have no bearing in this discussion. Retail establishments charge sales tax but they do not “add a fee” to collect tax at time of purchase....eBay is. Lending institutions, banks, credit unions all provide credit cards and applicable fees are charged on unpaid balances. True, but not under discussion here. Basic context is: Sellers receive monies paid for the item (less 12.35% fee), monies released at eBay’s discretion. No revenue is collected by the seller for the tax/shipping; instead, eBay now penalizes the seller an additional 12.35% on the tax and shipping fees added to the total sale. Double standards in my book....

[go-bad-chicken]

---

@lnohavec-2012 wrote:

eBay now charges 12.35% on the total cost buyers pay....the item, and now added in, shipping and taxes. So, if the item sells for 100.00, shipping is 10.00 and taxes are 9.00, sellers will pay a fee of 12.35% on the total cost buyer paid out ($119.00). EBay’s Fees for $119.00 sale at 12.35% is $17.43. Seller’s profit from a $100 sale is reduced to $82.57. That’s just plan nonsense and double dipping in my book. If I’m in error and incorrectly understand the new fee structure or in calculations, please let me know.

---

@lnohavec-2012 

Your calculations are off a bit.

New ebay MP fee of 12.35% + $0.30 =

$100 + $10 + $9 = $119

$119 x .1235 = $14.70 + $0.30 = $15.00 NEW eBay FVF

But on April 01, 2021 that will change and the new eBay MP fee rate will go up to 12.55% and therefore you will pay:

$119 x .1255 = $14.70 + $0.30 = $15.23 NEW eBay FVF as of April 01, 2021

Old method

OLD ebay FVF of 10%

$100 + $10 = $110

$110 x .10 = $11.00 OLD eBay FVF

PayPal fee of 2.9% + $0.30 =

$100 + $10 + $9 = $119

$119 x .029 = $3.45 + $0.30 = $3.75 OLD PayPal Fee

$11.00 + $3.75 = $14.75 Old Method

So the new method right now cost you $15.00 or $0.25 more.

And then the NEW NEW method (04-01-2021) will cost you $15.23 or $0.48 more.

[lnohavec-2012]

Thank you. I will go back and check fees eBay charged me based on the above. Last sale at $325.00, no listing fee, free shipping, my final revenue received was $281.00. Ebay charged me $44.00. Appreciate the info and clarity as do many following this post.

[go-bad-chicken]

---

@lnohavec-2012 wrote:

Thank you. I will go back and check fees eBay charged me based on the above. Last sale at $325.00, no listing fee, free shipping, my final revenue received was $281.00. Ebay charged me $44.00. Appreciate the info and clarity as do many following this post.

---

I'm just guessing here but it looks like this transaction had approximately $29.00 in sales tax charged to the buyer.

[essential*joy]

Exactly. Ebay has atrociously painful customer service, their app is incompetent, and now they want free access to deep identity information. No way! Hell will freeze over before I give eBay access to my most essential identity data. They have my name, address, phone number, email, and banking details. That’s already more than I should be dishing out to a multibillion dollar company that can’t even provide decent customer service as it is! 
Im looking into alternative online  marketplace options for selling my wares. As far as I’m concerned, eBay is dead to me