New to manage payment and WOW!!! did the fee's go UP BY MORE THAN 40%!!!!!!

[nickdo3d]

Here is a example of a $25 item before and after the change to managed payments. I can understand a small increase but more than 40% more is ridiculous!

Total on a $25 item:

Was 2.90

Now 4.10

2.90 x 40% = $1.16 (so more than 40% more)

Can someone please explain whats going on?!

Now I know I had a paypal fee (total $1.14 on this item) so this is only slightly more expensive but I thought eBay whole selling point of managed payment was more money in the sellers pocket.

[mam98031]

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@mach128 wrote:

Yes, that is how managed payments is better and saves you money. 

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I'm thankful it isn't a fee increase overall.  For many of us our monthly fees have not changed because we are in MP.

[elegantfinds-5]

Just started today with Manage Payments.  Somethings seem better and some really don't like.  What I don't like so far is,  you can't see the amt. of people watching your item.  I liked that because if I see a lot watching wouldn't  lower the price before auction ends.  

When you say on the above:

 (purchase price + shipping costs + sales tax) plus 30 cents per transaction. 

Is this shipping cost included right away or when you actually print out the shipping label?

 We are charged a fee on the sales tax Ebay collects?

Thanks!

[mam98031]

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@elegantfinds-5 wrote:

Just started today with Manage Payments.  Somethings seem better and some really don't like.  What I don't like so far is,  you can't see the amt. of people watching your item.  I liked that because if I see a lot watching wouldn't  lower the price before auction ends.  

When you say on the above:

 (purchase price + shipping costs + sales tax) plus 30 cents per transaction. 

Is this shipping cost included right away or when you actually print out the shipping label?

 We are charged a fee on the sales tax Ebay collects?

Thanks!

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@elegantfinds-5 

MP has nothing to do with whether you can see how many watchers you have on any given listing.  MP is just the money processor.  You should be going wherever you did before to see your watchers.  For me, I go to my Seller Hub and then Active Listings.  I can see all my info there.

The FVF on shipping has NEVER been about how much the shipping actually costs you.  It has ALWAYS been driven by how much the buyer pays.  That has not changed in MP.

[c34web]

eBay has really hindered doing any level of commerce with them. 12.5% on selling price and on the tax and on the shipping is asinine. They have zero regard to what retail markups are and have put the squeeze on small sellers for years and only promote stolen or cheap chinese goods that have 100% markup. I personally am done with eBay and will move on to other platforms. 

[mam98031]

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@c34web wrote:

eBay has really hindered doing any level of commerce with them. 12.5% on selling price and on the tax and on the shipping is asinine. They have zero regard to what retail markups are and have put the squeeze on small sellers for years and only promote stolen or cheap chinese goods that have 100% markup. I personally am done with eBay and will move on to other platforms. 

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Try not to throw stones until you actually understand the mechanics of how the fee structure works.  Moving into MP is not going to raise the fees for most sellers.  It is much more of a neutral change in any given month.  Yes some transactions will cost a little more and others will cost a little less.  Overall it will likely work out to be a neutral change for most sellers.

[marksgizmo100]

I am a long term eBay seller that is also upset about the new managed payments. Being a top rated seller, my eBay fees where 9% plus the 2.9% paypal fee plus $0.30.  So I will do the math on a $25 item. 

Before managed payments: $2.25 ebay fee + $0.73 paypal fee + 0.30 = $3.28

After managed payments: $3.23 ebay fee + $0.30 = $3.53 

Went from 13.12% fees to 14.12% fees.  So 1% doesn't seem like much, but with the increase in shipping (approximately 4.5%) and the upcoming 0.2% fee increase April 2021, we are looking at a 5.7% decrease in profits. THAT IS HUGE! I have trouble hitting the 50% profit line with all of these expenses, and this was prior to the increases.  With the every growing applications for used item sales, I am surprised eBay is doing us in like this.

[mam98031]

@marksgizmo100 

Before MP you would have been 9.15% X $25 = 2.29 + $25 x 2.9% PP fee + .30 = 3.32

After MP  $25.00 x 12.35% = 3.09 + .30 transaction fee = 3.39

[comix4u]

I believe that unless you have an Enterprise store or are a top-rated seller meaning one business day handling and free returns for 30 days that you will realize an increase in fees. As someone who doesn't have a store and sells items that range and cost from $3 to $400 I've definitely noticed a change in fees. They are consistently higher than PayPal for sure. Additionally why am I being charged a fee on taxes? That seems a bit absurd. It's a tax on my tax.

Between the increase in fees, now requiring that I give buyers three business days to pay which has harmed me several times with people who bid on my auctions, there updating my business policies for shipping and payments and returns without my consent, not fixing it despite my complaints, and then telling me they understand. The support person made it even worse by making suggestions that would cost me more money. This was my second call to resolve the same issue that I was told was a high priority the first time.

Furthermore what kind of company says if it hasn't been fixed in a few days call us back? Isn't that what managers are for? They don't pay me to supervise their staff. I pay them for their service. I've run businesses for years. Not once did I tell a client if we haven't done our job in a few days please let us know. Instead it's we will have it fixed by day "x".  

Since I resell comic books I've been considering leaving here and going to Hipcomic as they only charge 10%. As well as doing what many other former sellers have done which is go to Whatnot and complain about eBay or call evilBay.

[mam98031]

@comix4u 

"I believe that unless you have an Enterprise store or are a top-rated seller meaning one business day handling and free returns for 30 days that you will realize an increase in fees."  The TRS discount for what you describe is 10% of the Fee Charged.  So for every $1.00 in FVF the seller would get a 10 cent discount.

FVFs for Basic and above stores are the SAME.

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

Ebay's fee structure is different, but the amount you pay in fees are the same.  For most non store owners they pay 12.9% FVF with a 30 cent per transaction fee to Ebay.  You pay no other fees to anyone else.

Back when we were using PayPal as our processor we paid the following.

10% FVF to Ebay + 2.9% fee to Paypal for a total of 12.9% plus a 30 cent per transaction fee.  Now Paypal charges a 49 cent per transaction fee.

When we used PayPal, they also charged their fee on the entire amount of money processed to include sales tax.

Before Ebay RECENTLY gave us the ability to Cancel a transaction for a non paying buyer we had to wait LONGER to process an unpaid dispute.  In total about a week.  Now we can file for a cancellation due to non payment and 4 days have passed, on day 5 you can file the cancellation.  So this process is shorter.

https://www.ebay.com/help/selling/getting-paid/resolving-unpaid-items?id=4137

There is more to selling that just the fees.  There are some sites that charge less than Ebay but do they get the traffic, will you get the sales?  Traffic is your number one consideration, not the fees.  You won't survive long on some site that charges less but you get less sales too.

[comix4u]

What if I am not a top rated seller?  I do not offer next business day shipping or free returns. The top rated seller was only one scenario that I mentioned. My point was unless I opted to offer those features that I now pay more. Please provide an example where I am not a top-rated seller. That's an apples to apples comparison. As sellers we were told that switching to eBay payments would lower our fees by as much as 25%. Check the old advertisements. Only now that PayPal charges $0.49 instead of $0.30 will I realize a significant savings on selling low cost items. I don't think that eBay owns crystal ball.  Also, please see eBay page with regard to fees as on sales tax. It reads:  "The total amount of the sale includes the item price, any handling charges, the shipping service the buyer selects, sales tax, and any other applicable fees." No need to use all caps to say "same".  I know how to read and that word is one that I know how to spell and exists in my repertoire of synonyms and comparisons.

Your reply also fails to address my other comments with regard to now requiring three business days for payments, the immediacy of deposits after sales, how eBay changed my policies, and more.  I can no longer leave negative feedback for buyers who bid on my items at auction and had the winning bid and didn't pay.  On several occasions that caused the item to sell for less or not at all.  Blocking them doesn't let other sellers know that this person doesn't pay.

I agree that fees only tell part of the story. Part of what I am saying is that there is a strong new competitor with a great deal of exposure, allows for social interaction a sense of community, better customer service, and easier returns, but that I prefer eBay for many reasons. It's disappointing to me that in the face of new competition eBay is implementing less seller friendly rules and requirements. That I didn't realize a savings of 25% on my fees feels disappointing. My plan is to stay with eBay.  In general I feel happy to sell on here.

[comix4u]

Also, I just looked at the items you sell. We are in completely different markets. Comic books have many other selling venues besides eBay. Some of those venues have been existence for years and also yield high exposure. The one app that I referenced has really caught on as expanding into new marketplaces. You'll see that those sellers already have thousands of followers. On average their items sell for less unless you lie about its value or grade. Lying about grading is rampant on eBay in terms of comic books. Sellers use that as a tool to pull in viewers or dupe those who don't know any better. It's truly shameful as some buyers have no idea about the market.

[mam98031]

@comix4u 

As I explained in my other post.  Being TRS has no affect on the FVF that Ebay charges.  Now if a TRS has their listings to allow for 1 day shipping and 30 days or more return policy with seller pays shipping, they get a 10% discount on the FVF they are charged.  That is a perk of being TRS and offering those terms. 

BTW TRS do NOT have to offer the terms I explained above.  You can be TRS with zero listings qualifying for the discount.  Which is what you do.  Nothing wrong with that.  That 10% discount doesn't add up to much unless you sell a whole lot of stuff.  Otherwise it just doesn't add up very fast at 10 cents per $1 of FVFs [not sales].  So if you pay about $100 in FVFs to Ebay each month, you will save approximately $1.29 each month in fees.

OMG it isn't just you.  ALL sellers can not leave negative FB on a buyer and have not been able to for almost 15 years.  It is really past time to get over this.

"Blocking them doesn't let other sellers know that this person doesn't pay."  Likely because blocking a buyer was never intended to do that for you.

"That I didn't realize a savings of 25% on my fees feels disappointing. "  What?  How do you or can you save 25% on fees?

[kh-cathy]

Hi everyone,

Due to the age of this thread, it has been closed to further replies. Please feel free to start a new thread if you wish to continue to discuss this topic.

Thank you for understanding.