New "simplified fees" structure seems to be higher than their making it sound

[bigcharliesknfe*tool]

I just finished reading the latest message on the new "simplified fee" structure. After looking at the coming fees it looks like I am going to be paying quite a bit more in fees than the advertised "Most sellers can still expect to see overall savings2." that is listed in the message.

Anybody else taken the time to do some quick math and see how the new structure is going to affect you? 

It seems Ebay is at the least being very misleading on this one. They act like it is going to save us sellers money but simple math and checking a few items vs what we are paying now quickly says this is not the case.

[mr_lincoln]

@bigcharliesknfe*tool 

Subterfuge

Sales blather

Nefarious

Bull Dinky

Con Artistry

[myboardid]

penguins - you are correct in the math you quoted.  However, you didn't account for the fact that the new 11.5% fee will be applied to the sales tax, whereas with Paypal the seller was charged only the 2.9% processing fee on said tax.  That means that the total amount paid to eBay will be higher for each sale, with the exception of sales to buyers in states that don't have sales tax or Marketplace Facilitator laws. 

[penguins_dont_fly]

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@myboardid wrote:

penguins - you are correct in the math you quoted.  However, you didn't account for the fact that the new 11.5% fee will be applied to the sales tax, whereas with Paypal the seller was charged only the 2.9% processing fee on said tax.  That means that the total amount paid to eBay will be higher for each sale, with the exception of sales to buyers in states that don't have sales tax or Marketplace Facilitator laws. 

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Yes … its an increase when you add the sales tax

A silver Lining (for me) is TRS+ Discount will be applied to the total amount of the Fee ... so it's a little better with TRSP 

My last sale to Brooklyn, NY (8.875% Item+shipping) - Store Fee percentage 9.15% - Domestic PayPal

[ittybitnot]

Don't forget to add your new "currency conversion" fee should you sell internationally, use the GSP, or ship to a freight forwarder address.

Let me "simplyfy" it for you. 

Add another 4.65% to the total the buyer pays.. 

[penguins_dont_fly]

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@ittybitnot wrote:

Don't forget to add your new "currency conversion" fee should you sell internationally, use the GSP, or ship to a freight forwarder address.

Let me "simplyfy" it for you. 

Add another 4.65% to the total the buyer pays.. 

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My last sale to Australia -- ship to Australia -- paid in AUD

PayPal 4.4% +.30

FVF on shipping is based on the lowest domestic option.  This will still be the same in MP, so the question becomes ... does the 4.65% get applied to the real amount that the buyer paid or the adjusted amount?

This is if it is on the adjusted amount

11.5%+0.3 on $27.33 Plus 4.65% on $27.33

This is if the 4.65% is on the actual payment amount

11.5%+0.3 on $27.33 Plus 4.65% on $47.58

[ittybitnot]

does the 4.65% get applied to the real amount that the buyer paid or the adjusted amount?

Read here:  

International fee

If your registered address is in the US, we charge an International fee if either the buyer's registered address or the delivery address for the item is located outside of the US. This fee is calculated as 1.65% of the total amount of the sale and is automatically deducted from your sales.

If your registered address is not in the US, please refer to the fee page for your country of residence for your International fee information.

Seller currency conversion charge

If your registered address is in the US, when a buyer purchases your item in a currency other than your payout currency, eBay will convert the funds to your payout currency using a "transaction exchange rate" we set for the currency exchange. The transaction exchange rate is adjusted regularly and includes a currency conversion charge of 3% applied on a base exchange rate. The base exchange rate is based on rates within the wholesale currency markets on the conversion day or the prior business day; or, if required by law or regulation, set at the relevant government reference rate(s). The currency conversion charge will be automatically deducted from your sales. 

If your registered address is not in the US, please refer to the fee page for your country of residence for your Seller currency conversion charge information.  

The "underlines" are mine.  
It appears to me the first "charge" is similar to the PayPal cross boarder fee.  
The second charge is something normally paid by the buyer if your PayPal account was set up to ONLY accept USD.  

It is unclear whether this charge will be on the "total amount the buyer paid" which is likely to include "sales tax" if a freight forwarder address is in a 'sales tax state'.  A seller typically never sees this "tax" but gets to pay a fee on its collection. 

The next question is with regards to the GSP where buyers indeed "pay more money than the seller ever sees".   Will fee assessments be made on the "total the buyer pays"?  Nobody's is talking.  The blue on the payments board that was answering questions left the room when these questions started showing up. 

[go-bad-chicken]

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@penguins_dont_fly wrote:

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@ittybitnot wrote:

Don't forget to add your new "currency conversion" fee should you sell internationally, use the GSP, or ship to a freight forwarder address.

Let me "simplyfy" it for you. 

Add another 4.65% to the total the buyer pays.. 

---

My last sale to Australia -- ship to Australia -- paid in AUD

PayPal 4.4% +.30

FVF on shipping is based on the lowest domestic option.  This will still be the same in MP, so the question becomes ... does the 4.65% get applied to the real amount that the buyer paid or the adjusted amount?

This is if it is on the adjusted amount

11.5%+0.3 on $27.33 Plus 4.65% on $27.33

This is if the 4.65% is on the actual payment amount

11.5%+0.3 on $27.33 Plus 4.65% on $47.58

---

Actually it is yet unclear if your calculations will prove to be correct. I am not saying that they are not, but the unknown factor at this point with international transactions and no one at eBay has yet to address this is the "transaction exchange rate" that eBay sets for the currency exchange. So until we can see an example of what eBay's in house currency exchange rates would be today for each currency that they are going to be accepting we will not actually know what the actual costs are going to be for international transactions. These in house transaction exchange rates need to be posted somewhere on eBay and maintained on a daily basis for all to see, so that both buyers as well as sellers can both see as well as figure out what any given transaction is going to cost them.

eBay along with Adyen are more than likely going to create daily in house exchange rates that favor them both by say a factor of 10% to 20%. The "transaction exchange rate" will more than likely end up being a huge profit center for both of them.

From eBay

Store selling fees for managed payments sellers

starting July 20, 2020

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

International fee

If your registered address is in the US, we charge an International fee if either the buyer's registered address or the delivery address for the item is located outside of the US. This fee is calculated as 1.65% of the total amount of the sale and is automatically deducted from your sales.

Seller currency conversion charge

If your registered address is in the US, when a buyer purchases your item in a currency other than your payout currency, eBay will convert the funds to your payout currency using a "transaction exchange rate" we set for the currency exchange. The transaction exchange rate is adjusted regularly and includes a currency conversion charge of 3% applied on a base exchange rate. The base exchange rate is based on rates within the wholesale currency markets on the conversion day or the prior business day; or, if required by law or regulation, set at the relevant government reference rate(s). The currency conversion charge will be automatically deducted from your sales. 

[ittybitnot]

If your registered address is in the US, we charge an International fee if either the buyer's registered address or the delivery address for the item is located outside of the US. 

Does that mean you get the fee even if you are actually paid in USD, just because your buyer lives in Japan? 

LOLOLOLOL....I have been here too freaking long.  eBay speak is becoming my "second language". 

[go-bad-chicken]

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@ittybitnot wrote:

If your registered address is in the US, we charge an International fee if either the buyer's registered address or the delivery address for the item is located outside of the US. 

Does that mean you get the fee even if you are actually paid in USD, just because your buyer lives in Japan? 

LOLOLOLOL....I have been here too freaking long.  eBay speak is becoming my "second language". 

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Yes. This would apply if say I had a U.K. buyer make a purchase from me in U.S. Dollars I would still be charged the 1.65% international fee. Much the same way that PayPal charges an additional 1.5% right now for what it designates as its cross border trading fee.

[slippinjimmy]

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@ittybitnot wrote:

If your registered address is in the US, we charge an International fee if either the buyer's registered address or the delivery address for the item is located outside of the US. 

Does that mean you get the fee even if you are actually paid in USD, just because your buyer lives in Japan? 

LOLOLOLOL....I have been here too freaking long.  eBay speak is becoming my "second language". 

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Yes, it's the same as it's always been with PayPal.

PayPal called it a cross-border fee based on the registered address of the buyer even if shipped within the USA.

[baue_875]

"Final value fees, and select fees associated with the order will be automatically deducted at the time of the sale, and the rest of your proceeds will be paid out directly to your bank account."

THAT alone will mean I do not get the cash back % when I pay my monthly invoice for fees with my CC.

Also, how are they going to deduct fees at the time of sale for local pickup that is paid with cash in person and why should I pay processing fees on a cash sale?

[texastotheworld]

YEP!

ebay is deceptive. 
D.E.C.E.P.T.I.V.E.

This is absolutely scary. 
eBay is the most deceptive company I have dealt with and now they want 100% access to all the money I make on their site? Crazy. $9k in fees last month alone. 9 freaking thousand. Plus the $11k-$12k in fees I made them in my purchases. Made them $20K+ last month and I’m a throw away customer. They don’t care how big you’re, you’re a seller, you mean NOTHING. 
They want those PayPal monopoly days back where they control everything. Stupid policies implement by incompetent people who will never be amazon. Stop trying. 

[dolcetreasures]

People keep forgetting that the fees will be taken from the purchase funds so we can no longer pay our eBay fees on any points or any rewards-based cards which further undermines the “value”. Every dollar in fees was earning me 3/4 cents in travel. Now I don’t even get that. 

[bigcharliesknfe*tool]

Yeah that is another bad part of this. I pay all of my fees on my capital one with unlimited 1% cash back which I'll no longer be getting. 

[gracieallen01]

I wonder if the 'simplified fee structure' was a suggestion of, either or both, the Elliott or Starboard Value members of the 'team(s)'?