question on final fee

[surfcity_tix]

I switched over to the new Managed pmt option where I no longer use paypal and have ebay linked to my bank account.  When I received he email from ebay about this new payment option, it said the following:

We now manage the end-to-end selling experience on our marketplace, including payments.

This means:

• No more PayPal payment processing fees. • You get paid directly to your bank account, not your PayPal account. • Most sellers will pay the same or less than before.**

so now I sell my first item after signing up and it sold for $860 plus $43.65 shipping fee.  The total transaction was for $903.65.  I see under my account that ebay has made $782.82 available that will be sent to my bank and a fee for this sale of -120.83.    Where does ebay come up with the fee of 120.83 for this?  I would expect the final fee to be the standard 10% which would be around $90.   Under my account, it only shows the fee of -120.83 and no detail behind what makes up that amount.  So frustrated and not sure what is going on.  Does anyone know why the higher fee than expected?

[dhbookds]

I suggest you start reading about MP:

here is the fee structure if you don't have a store:

https://www.ebay.com/help/selling/fees-credits-invoices/selling-fees-managed-payments-sellers?id=482...

remember that you are no longer paying paypal 2.9% plus 30c..........

[surfcity_tix]

thanks for the quick reply and good info.   i did not realize the MP had a higher final fee of 12.35%

but i also looks like my final fee is based on this:

$860 final bid price

$43.65 shipping

$68.80 NY tax

$972.45 = total paid by buyer

12.35%  of the $972.45 plus .30 = $120.39 which is very close to the fee for this listing.  I get that I pay 12.35% on the final bid price as well as shipping.  But how can I be charged a final fee on the tax?  I am missing some other fee or something is wrong.  Ebay can't charge me a fee on the tax, right?   

[surfcity_tix]

I just read that the final fee amount does include the total sale to the buyer which include tax and shipping.  I dont think that ebay or paypal ever had any of their % fees included the sales tax in their fee calculation, but i could be wrong.   Sellers are paying a fee on the tax?  

Still, it is very misleading to me as a seller to get the email from ebay saying signup for MP and there will be no more paypal fees, and most sellers will pay less than before.  It did not see it say anywhere on the email that if you signup for MP, your final fees will be 12.35% and will now include sales tax in that calc.....  

[buyselljack2016]

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@surfcity_tix wrote:

I just read that the final fee amount does include the total sale to the buyer which include tax and shipping.  I dont think that ebay or paypal ever had any of their % fees included the sales tax in their fee calculation, but i could be wrong.   Sellers are paying a fee on the tax?  

Still, it is very misleading to me as a seller to get the email from ebay saying signup for MP and there will be no more paypal fees, and most sellers will pay less than before.  It did not see it say anywhere on the email that if you signup for MP, your final fees will be 12.35% and will now include sales tax in that calc.....  

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Some sellers will pay a little less. Those are likely stores, and/or "top rated-plus" sellers that get a 10% discount on FVF's.

PP charged their fees on the entire payment including sales tax.

The break even point for me (no store, not TR +) is when the sales tax rate is 5.82%.  Your sale to NY may be at a rate above that, so would be a bit higher.

[janet9988]

It is kind of deceitful the way ebay worded it.

Yes you no longer pay Paypal fees. BUT instead those costs are now being paid out to  EBAY  via higher final value fees. General FVF under managed payments are now 12.35% PLUS the .30 cent processing fee. So the fee just shifted by raiding the FVF by 2.35%. Now you also pay 12.35% on the taxes the buyer pays. Ebay claims overall that you may safe a little bit over using Paypal.

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

[mam98031]