mam98031 • Volunteer Community Member • Buyer/Seller since 1999
@mam98031 wrote:You might try this. Since you have Excel experience you can see I typed out the formulas you would need to use.
There are lot of posts after this one that I didn't read yet so this may have been covered already.
From my understanding, the two changes that affect MP fees are:
- The MP fee is also charged on sales tax - PP was not.
- The transaction fee is per listing sold - PP was per order.
If that's correct
- high priced, taxed items will have an increased fee because the fee is charged on tax. While the fee rate is lower, the amount subject to the fee is higher. The amount of increase will be the fee on sales tax less the fee savings on the item including shipping.
- the transaction fee is going to increase fees for low cost items that generally sell multiple items per order. One .30 transaction fee for a 50 item order vs .30 transaction fee x 50.
How each seller is impacted is tied to their mix of items and the tax charged, if any.
I'm not in MP so specific details are hard to come by. Feel free to correct me on anything I'm mistaken on.
@vintage-car-magazines wrote:
@mam98031 wrote:You might try this. Since you have Excel experience you can see I typed out the formulas you would need to use.
There are lot of posts after this one that I didn't read yet so this may have been covered already.
From my understanding, the two changes that affect MP fees are:
- The MP fee is also charged on sales tax - PP was not.
- The transaction fee is per listing sold - PP was per order.
If that's correct
- high priced, taxed items will have an increased fee because the fee is charged on tax. While the fee rate is lower, the amount subject to the fee is higher. The amount of increase will be the fee on sales tax less the fee savings on the item including shipping.
- the transaction fee is going to increase fees for low cost items that generally sell multiple items per order. One .30 transaction fee for a 50 item order vs .30 transaction fee x 50.
How each seller is impacted is tied to their mix of items and the tax charged, if any.
I'm not in MP so specific details are hard to come by. Feel free to correct me on anything I'm mistaken on.
- The MP fee is also charged on sales tax - PP was not.
YES, but it is important to also consider the reduction in Simplified Fee. Each category has a reduction in fees by 0.55%. That reduction should significantly help to offset the fact that Ebay will be applying the Simplified fee to sales tax. Also considering that sales tax is typically not more than 10% of the money received from them. So it isn't anywhere near the money make up of the balance of the transaction.
- The transaction fee is per listing sold - PP was per order.
In July this is also changing in MP. They are throwing out that 25 cent per transaction fee and replacing it in MP with the 30 cent per payment submitted just exactly as PP does it.
- high priced, taxed items will have an increased fee because the fee is charged on tax. While the fee rate is lower, the amount subject to the fee is higher. The amount of increase will be the fee on sales tax less the fee savings on the item including shipping.
Yes but it is really important to remember TWO things. One is that sales tax is no more than 10% of the amount received. So it is only that 10% of the money that we are not use to getting charged a FVF on. But then there is 90% of that sale that is getting a REDUCED rate from what we are currently paying in Ebay.
A $2,000 sale with $200 in sales tax, with the seller being a store owner would break down as follows.
Currently in Ebay
183.00 9.15 % FVF
63.80 2.9% PP processing fee.
246.80 Total fees
In MP it would be
253.00 @ 11.50 Simplified fees
That is an increase as you can easily see of 3.80.
If there was NO sales tax on that $2200 sale, your fee in current Ebay would be:
63.80 @ 2.9% PP fee
201.30 @ 9.15%
265.10 Total fees.
So if no sales tax was on this sale, in MP you would have 265.10 - 246.80 = 18.30 SAVINGS on fees in MP.
It is important to remain open minded about this as it will only take a little bit of non taxable sales to offset that increase.
For example $100 worth of non taxable sales.
In Ebay currently
2.90 in PP fees
9.15 @ 9.15%
12.05 total fees
In MP
11.50 @ 11.50 total fees in MP.
That is a savings of 55 cents in fees per $100 of non taxable sales or $5.50 per $1,000, etc. This is why only looking at your taxable sales will not give you an accurate picture. And your non taxable sales does not have to be a 50/50 mix either. In fact, no where close to it.
- the transaction fee is going to increase fees for low cost items that generally sell multiple items per order. One .30 transaction fee for a 50 item order vs .30 transaction fee x 50.
Thank goodness they will be stopping this practice and it is nothing any of us have to be concerned with come mid July.
The specific details are hard for EVERYONE to come by, not just those not in MP or not registered to go into it in July. Ebay is working on rewriting all the various policy pages and stuff because of the significant July changes in the program. I've been working very hard to get Ebay to release this information and they are working hard to get it all ready for consumption.
However there is no good excuse for this delay in publication. We are 3+ weeks into me and many others asking questions with no answers yet. It does however appear we may have some answers in the next week. But no promises.
That's a very long post to basically agree, and adding that the fee per listing is changing.
Side note....Your example of the fee increase has a small error. The increase in the fee $6.20....not $3.80.
There's not attitude in my reply so please don't read it that way. Written messages can sometimes read that way.
You've confirmed the point of my post in that it's NOT a reduction in fees. It will be a reduction for some and it will be an increase for others depending on the price of the items sold and the tax on them.
Each seller must put pencil to paper and see how it affects them. Once you can quantify how it affects you, you're able to make good decisions.
@vintage-car-magazines wrote:That's a very long post to basically agree, and adding that the fee per listing is changing.
Side note....Your example of the fee increase has a small error. The increase in the fee $6.20....not $3.80.
There's not attitude in my reply so please don't read it that way. Written messages can sometimes read that way.
You've confirmed the point of my post in that it's NOT a reduction in fees. It will be a reduction for some and it will be an increase for others depending on the price of the items sold and the tax on them.
Each seller must put pencil to paper and see how it affects them. Once you can quantify how it affects you, you're able to make good decisions.
Nope you are absolutely right. That is absolutely my bad. Thank you for the catch.
Yes it is a mixed bag. There are however other things that can help in the quest for lower fees. If you are someone that get very many cancellations after the buyer pays, in MP they do not keep the fees. You will get the entire fee refunded except for the 30 cent transaction fee.
For TRS sellers that qualify for the discount, there is a little increase on that discount because it will be calculated on the total Simplified Fee which has shipping, sales tax and money processing represented in it.
