Why is Ebay charging fees on Sales Tax and Shipping? Forcing Managed Payments on Everyone?

[theoldtacklebox]

They are taking 25 to 30%

[stainlessenginecovers]

@theoldtacklebox They are taking 25 to 30%

No, they are not. They take 12.55% plus .30 of the total purchase as stated numerous times by other members in this thread.

If you are applying the fee to just the price of the item, you are doing it wrong.

Just ask the buyer what they paid for that bag of socks. $10 or $16.50 with tax & shipping? They will state they paid $16.50. That is the total that the fee applies to.

[downunder-61]

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@theoldtacklebox wrote:

They are taking 25 to 30%

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NO, they are taking (usually) 12.55% on Item + Shipping + Sales Tax as shown on the Fee's Table for all to see.

If you want to caclulate the fee on only the item price, and come up with 25% - 30% to justify your outrage that is up to you, but does not make it a fact.

[theoldtacklebox]

Thank You ALL, Learned a bunch! 

[mrdutch1001]

eBay's site, eBay's rules, policies and payment structure ...Don't like it? Sellers have a choice...

Sellers can adapt, adjust & carry on OR move on...bear in mind the other large selling venues don't have PayPal as payment processor either, and their fees are based on TOTAL amount of transaction as well.....

[whatmorefabric]

Ebay does  not run Managed Payments,   it is  a company called Aryden.     They have no control over the process.

Ebay provides the information and Aryden does the rest.    

Ebay receives a small percentage of the CC processing fees and the  rest goes to Aryden.

[downunder-61]

Just a quick FYI - eBay does run managed payments, the processor is Adyen, not Aryden and the fee's go to eBay.

Adyen charges a transaction fee of 0.30c that a seller pays, as to the rest, eBay pay's Adyen whatever contracted rate they agreed to.

The rest after fee's and 0.30 goes to the seller.

@whatmorefabric 

[glasser]

Why is Ebay charging fees on Sales Tax and Shipping? Forcing Managed Payments on Everyone?

There is of course a very simple answer: because they can, and it makes eBay shareholders more money.

The more complicated answer is that eBay lost revenue when they spun off PayPal and does not see increasing sales or expanding buyer base as drivers of  enough revenue growth so they need to extract more from what they have.

Someone also posted this: "Ebay does not run Managed Payments,  it is a company called Adyen"

Not 100% true. When the full conversion to MP is complete, per the deal they struck, eBay will have an equity stake in Adyen. eBay could have done many other things to create a payment ecosystem but went with a bolt of traditional third-party payment processor.

[reallynicestamps]

FWIW - Managed Payments is a return to the status quo ante 2015 when PP became an independent entity.

Before 2015, eBay got paid when buyers used PP.

After 2015, eBay paid PP a fee when buyers used PP.

With MP, eBay gets paid when buyers use MP.

Back to the pre-2015 situation.

[mam98031]

@theoldtacklebox 

Had you not noticed that you paid a FVF on shipping for the past ELEVEN years??

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.

Starting August 2nd, PayPal is raising their fees, so they will be as follows:
10.20 Ebay FVF + 3.49 PP Fee = 13.69% plus .49 cent Per Transaction fee

PP is apparently offering different fees to different sellers, likely depending on size. From what I've seen it is between 2.59% and 3.49%.

[mam98031]

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@jth86 wrote:

I TOTALLY AGREE WITH THE STATEMENT TOTAL GREED WITH THE MANAGED PAYMENTS. GET THIS I GOT CHARGED FOR A SHIPPING LABEL THAT PRINTED SO SMALL THAT IT COULD NOT BE SCANED/ WORTHLESS TO ME BUT NOT TO EBAY 'S CLOSE TO BIGGEST RIP OFF IN THE WORLD . AND BECAUSE IT'S PROBABLY RUN BY ARTIFICIAL INTELEGENCE NO ONE KNOWS ANYTHING ABOUT HOW TO FIX IT !!!    N O  O N E !!!    20 YEARS WITH EBAY ALL SHOT TO HELL FOR THE MOTHER LOVERS GREED!!!

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@jth86 

You want to blame Ebay and/or MP for a printer malfunction on your part?  Just check your printer settings.

[mam98031]

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@theoldtacklebox wrote:

They are taking 25 to 30%

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No they aren't, not from ANYONE, even if they had the 5% penalty fee added on it would become that high.

Now I've seen some sellers make the mistake when trying to figure out their percentage of fees they are paying to Ebay to include the cost of shipping.  That you shouldn't do as your shipping costs are NOT in any way a fee charged by Ebay.  It is your carrier costs which is completely separate.

[chapeau-noir]

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@whatmorefabric wrote:

Ebay does  not run Managed Payments,   it is  a company called Aryden.     They have no control over the process.

Ebay provides the information and Aryden does the rest.    

Ebay receives a small percentage of the CC processing fees and the  rest goes to Aryden.

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Adyen.

[north40sales]

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@theoldtacklebox wrote:

They are taking 25 to 30%

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for me, the average fee cost as a percentage of the item usually shakes out @ 13.2 to 13.5%   This is figured by including the FVF from the item plus the transaction fee.   Just make sure your item is priced accordingly to cover the fee load and it will never an issue for you. 

[mam98031]

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@whatmorefabric wrote:

Ebay does  not run Managed Payments,   it is  a company called Aryden.     They have no control over the process.

Ebay provides the information and Aryden does the rest.    

Ebay receives a small percentage of the CC processing fees and the  rest goes to Aryden.

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@whatmorefabric 

It is true that Adyen is the money processor for Ebay's MP program.  However Adyen processes the money within the laws of the USA.  As far as who manages and runs MP, that is Ebay.  

MP functions within the rules set forth by the site and the federal government.  

As far as what Ebay receives from Adyen, would you mind to provide a link to the contract between them that you read to give you the information you have stated here.