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People are nuts if they use ebay managed payments.

Does everyone realize they are going to charge 25 cents per item in any given transaction. For example if a buyer buys 10 different packs of seeds from me and checkouts with one payment in one transaction paypal charges me 2.9% plus 30 cents period!. If you use ebay managed payment for that same transaction ebay charges you 2.7% and 25 cents for each item so in other words 25 cents times 10 items whereas paypal only charges 30 cents one time no matter how many items are in a single transaction. That is outrageous. On a $1 item they are taking 1/4 of my items price just on the fee so with paypal that would cost me 59 cents for the fees just for the payment, Ebay would charge me $2.79 just for the fees on the payment of 10.00 in sales that had 10 items in it. That does not even include the 9.15% fee they will charge for the regular fees which would be 91 cents more. Are they nuts? That is facts people. You better read very carefully before you switch to it and when ebay makes it mandatory i will be leaving ebay for good. Ebay you have become nothing more than greedy thieves. Again those are the facts people. If you sell cheap small items it will destroy your business or you will have to raise your prices even higher and why would people want to pay even higher on ebay when they can get the same item from the same seller who are on better marketplaces with cheaper prices. Ebay this is the last nail in your coffin. Whoever is leading you with these new policies they are going to put you right out of business as other marketplaces are already putting a hurting on you. Ebay you better wise up. No way you will ever get 25 cents per item on a single transaction from me with multiple items in it that should be only one fee as it is one transaction. You want us to give good combined shipping prices to buyers and then  your going to try and pull this nonsense. Not with my business you will not.

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Re: People are nuts if they use ebay managed payments.


@threshold.sales.group wrote:

When total sales (gmv) on the site are down as they have been the last several quarters, why would eBay want to remove any listing?

 

Unless the current management team is looking to spend more time with their families in the near future they need every dollar of sales they can get, because long run total site gmv is all that will matter.  


Because they have a long term plan that they have been implementing for several years now.

 

As I said in my post, I am only speculating but at some point eBay has decided that this extra payment processing fee not originally mentioned will have a negative effect on lower cost items greater than higher priced items, and yet they have made no exception to these lower priced items not paying this extra fee.

 

By eliminating lower priced items that largely would be shipped in white envelopes without tracking could save eBay in CS costs.  If all transaction must have tracking the return process can become 100% automated.

  • If it shows delivered buyer should not be able to open item not received.  eBay would be able to add a verification step now that all transactions are required to have tracking.
  • If it is a not as described return request then the automated process in place will handle all of that
  • If it is a buyers remorse the automated process in place can handle that as well.

Taking away the exceptions to the rule in return flow will allow the entire process to become automated, saving eBay revenue.

 

Do these very low cost listing provide enough revenue to overcome the costs eBay absorbs in order to handle them?  We do not know that answer but if this is a path eBay is going to take starting Oct 1st, you can be sure eBay is weighing the positive and negative effects this will create.

 

Good Luck Selling!

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Re: People are nuts if they use ebay managed payments.

I just do not trust the current managements judgement at this point. It would be interesting to know how many buyers those low priced items bring to ebay that then purchase other items, or for that matter are first time buyers that end up returning to ebay again.

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Re: People are nuts if they use ebay managed payments.

You do realize that the low cost, no tracking listings make up almost all of the millions of off-shore items on the site?  Do you really think eBay's plans include eliminating all of those?  

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Re: People are nuts if they use ebay managed payments.

Gee, maybe there will be an exception for some sellers?

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Re: People are nuts if they use ebay managed payments.


@threshold.sales.group wrote:

You do realize that the low cost, no tracking listings make up almost all of the millions of off-shore items on the site?  Do you really think eBay's plans include eliminating all of those?  


I do not think eBay plans to eliminate low cost items but sellers will need to find ways to sell them and still make a profit.  With a 0.25 fee per item ID added to the payment processing will virtual make these items not profitable to sell without changes.  Sellers will need to consider a few different paths in order to make these low cost items work.

  • Add a handling fee to cover this extra cost
  • sell these items in bundles to raise up the transaction total
  • add the 0.25 per item to a shipping cost

How would you suggest sellers of these low priced listings handle this new 0.25 per item id?  Keep in mind if a buyer buys 10 items all from different listings the seller will have an additional $2.50 in fee's.

 

Good Luck Selling!

 

 

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Re: People are nuts if they use ebay managed payments.

The whole point is that this is supposed to be a payment processing fee. Not only is ebay NOT the payment "processor", but no other payment processor charges a fee per item in a payment transaction.
Reality is the leading cause of stress.
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Re: People are nuts if they use ebay managed payments.


@myjunqueyourtreasure wrote:
The whole point is that this is supposed to be a payment processing fee. Not only is ebay NOT the payment "processor", but no other payment processor charges a fee per item in a payment transaction.

Amazon has a per item sold fee unless you pay for a subscription.  My merchant account has these kinds of fees since I started using them in 2001. 

 

Keep in mind this subject is for sellers who are opted into managed payments not all the sellers who use paypal as the processor.

 

The payments terms says eventually all sellers worldwide will be opted into managed payments or you can surrender your selling privileges on eBay.

 

Good Luck Selling!

Message 52 of 94
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Re: People are nuts if they use ebay managed payments.

A 'work around' would be to notice potential buyers, in your listing, who wish to purchase multiples, from across your offerings, to contact you for a custom listing, that you can list all their selections in one item number, and it will save them .25 per add'l item.

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Re: People are nuts if they use ebay managed payments.


@goodluckselling wrote:

@myjunqueyourtreasure wrote:
The whole point is that this is supposed to be a payment processing fee. Not only is ebay NOT the payment "processor", but no other payment processor charges a fee per item in a payment transaction.

Amazon has a per item sold fee unless you pay for a subscription.  My merchant account has these kinds of fees since I started using them in 2001. 

 

You're trying to tell me that if you have a customer who buys 10 different items your merchant account charges you 10 transaction fees rather than one transaction fee for one payment? Seriously?

Reality is the leading cause of stress.
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Re: People are nuts if they use ebay managed payments.


@thegardeningworld wrote:

Does everyone realize they are going to charge 25 cents per item in any given transaction. For example if a buyer buys 10 different packs of seeds from me and checkouts with one payment in one transaction paypal charges me 2.9% plus 30 cents period!. If you use ebay managed payment for that same transaction ebay charges you 2.7% and 25 cents for each item so in other words 25 cents times 10 items whereas paypal only charges 30 cents one time no matter how many items are in a single transaction. That is outrageous. On a $1 item they are taking 1/4 of my items price just on the fee so with paypal that would cost me 59 cents for the fees just for the payment, Ebay would charge me $2.79 just for the fees on the payment of 10.00 in sales that had 10 items in it. That does not even include the 9.15% fee they will charge for the regular fees which would be 91 cents more. Are they nuts? That is facts people. You better read very carefully before you switch to it and when ebay makes it mandatory i will be leaving ebay for good. Ebay you have become nothing more than greedy thieves. Again those are the facts people. If you sell cheap small items it will destroy your business or you will have to raise your prices even higher and why would people want to pay even higher on ebay when they can get the same item from the same seller who are on better marketplaces with cheaper prices. Ebay this is the last nail in your coffin. Whoever is leading you with these new policies they are going to put you right out of business as other marketplaces are already putting a hurting on you. Ebay you better wise up. No way you will ever get 25 cents per item on a single transaction from me with multiple items in it that should be only one fee as it is one transaction. You want us to give good combined shipping prices to buyers and then  your going to try and pull this nonsense. Not with my business you will not.


I agree.

 

If a buyer makes a single payment for several items that he bought from the same seller, and all of those items were on a single invoice that the seller had sent to the buyer ...... then it is totally outrageous for Managed Payments to charge a transaction fee for each individual item that was paid for with a single payment.

 

Huge money grab by Ebay, and one MORE cost for the seller to have to pass on to the buyer in order to break even on the additional fees.

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Re: People are nuts if they use ebay managed payments.


@goodluckselling wrote:

@thegardeningworld wrote:

Great analysis. I agree totally. Yes it is really bad on low prices items like mine. I also have a sports business on ebay with high price items which will not be that bad at all but ebay will need to change this for low priced items that are under say $2.00 because that is just unacceptable to be charged 25 cents on 1.00 items. I get sales of 40 packs of seeds sometimes and that would be $10 plus 2.7% in fees on a $40 order of 40 $1 items. Outrageous. Ebay will lose bigtime on this as there are countless sellers like me with less than 2.00 items.


With the new payment fee this will certainly take out most of the lower cost items that might normally ship in an envelope without tracking.  Sellers will have to do more bundles, like 5 packs of seeds for 5.00.

 

This fee could be eBay's way of removing these lower priced items because in the not too distant future eBay might require all shipment to have tracking?  Just speculation.  I have no knowledge that this is what they are planning.

 

eBay has to weigh these changes and fees for the good and bad they create.  It will not be good for some sellers but most should be able to find ways to make it work for them.

 

Good Luck Selling!


You keep assuming this only will affect low $$ items.  I suppose it really depends on how you define low $$ items and how Ebay defines it.  And when a buyer purchases multiple of these low $$ items, is the sale still a low $$ value sale or has it become more???

 

Any way you want to look at it, it shakes out the same way.  NO other site charges any kind of fee like this.  NONE.  IMHO there is a reason for that.  It penalizes both buyers and sellers unnecessarily.

 

Maybe it isn't that Ebay wants to get rid of whatever you are defining low $$ items, but maybe it is Ebay wanting to lessen the number of listings on the site.  Asian sellers being among the most effective sellers of the low $$ items and zillions of listings.

 

I have no idea what Ebay's reasons are behind this move and they aren't talking as I've asked this questions a few times and no answer has ever been offered.


mam98031  •  Volunteer Community Member  •  Buyer/Seller since 1999
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Re: People are nuts if they use ebay managed payments.


@tsme35 wrote:

I won't opt in, half my stuff I sell goes by combine shipping, it'll raise my fees $75-$125 per month. When I do I'll have to add .30 to my combined shipping rate and with increase postage plus states taxes I won't be selling online much longer.  Us small sellers are a dieing breed


Sales tax is a fact of life on the entire internet.  Something buyers will get use to.  It should affect how any seller prices their items as sellers are paying the sales tax, buyers are.  

 

You need to add more than 30 cents to your combined shipping rate.  That won't help much unless your sale was for two separate listings.  If you are combining 10 purchases from separate listings, your fees will be a 2.50 transaction fee plus the 2.7% processing fee [on total amount being paid to you].  

 

You need to add 29 cents to each item you sell to cover the 25 cent fee plus the FVFs you will pay on the price increase and the additional payment processing fee [2.7%] on your price increase.  


mam98031  •  Volunteer Community Member  •  Buyer/Seller since 1999
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Re: People are nuts if they use ebay managed payments.


@myjunqueyourtreasure wrote:
The whole point is that this is supposed to be a payment processing fee. Not only is ebay NOT the payment "processor", but no other payment processor charges a fee per item in a payment transaction.

YES.  I said something similar earlier in the thread, but this is such and excellent point!!

 

I might just add that it is highly unlikely that this unusual fee is NOT something that Ebay is being charged by Adyen.  If this were to be some kind of fee that Adyen was charging Ebay, then one would logically think it would be something they charge to other similar sites.  Yet Etsy uses Adyen and there is no such 25 cent fee on the Etsy site.

 

So that leads me to the conclusion that it is ALL ABOUT EBAY and just a way to impose a fee hike.  One would think that Ebay would realize this is something that will further erode their working relationship with sellers.  Ebay has told us many times that MP will be less expensive for sellers than the current PP driven system.  Apparently they failed to share that they only intended that to apply to some sellers and not all.  For many smaller sellers the fees will actually increase significantly.

 

I wonder, will there be special provisions for all the Asian sellers.  


mam98031  •  Volunteer Community Member  •  Buyer/Seller since 1999
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Re: People are nuts if they use ebay managed payments.


@tunicaslot wrote:

@goodluckselling wrote:

@mam98031 wrote:

@goodluckselling wrote:

@mvls1 wrote:

I just received the offer to join managed payments today and carefully read the offer details. As the original poster has stated, you will be charged .25 per ITEM not per transaction! It is very specific in the offer details that the .25 applies for each item in the order.


If the buyer buys several from the same listing and or a variation listing you will only get a 0.25 fee for the single item number not each purchase.

 

It really should be looked at as per transaction per item number fee.  Same item number purchases inside the same transaction will have the single 0.25 fee.

 

Good Luck Selling!


Yes you are absolutely correct.  But for some sellers this is going to be a huge fee to contend with.  At a minimum sellers will need to raise their pricing my at least 28 cents to cover the listing transaction fee and the selling fees since you need to raise your sales price.  By itself, it doesn't at all look like much.  But for sellers of low $$ items it is a huge issue.

 


Yes I understand.   I am grandfathered into MP so I will not have this fee when it starts but I also am not for this policy.  I asked eBay staff (weekly chat) about it when it was added to the payment terms of use with a generic answer and I doubt they will answer any more about it in the weekly chat. 

 

My best guess is that these lower priced single item listings are not generating enough business?  Sellers will need to find a solution for these kinds of listings.  Sellers should consider smaller discounts for combined shipping to help cover these extra costs.

 

Maybe start adding a handling fee  to cover this cost?

 

Good Luck Selling!

 

 


You are grandfathered until you are no longer grandfathered which could be in as little as a month after everyone is opted in. You know better than to believe things they say! 


I believe a lot of people are misinterpreting the "grandfathered in" clause. I took a screenshot of our invite. Here you go:

managedpayments.png

 

"Grandfathered in" only applies until October. Then it's the same fees as everyone else.

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Re: People are nuts if they use ebay managed payments.


@zamo-zuan wrote:

@tunicaslot wrote:

 

 


You are grandfathered until you are no longer grandfathered which could be in as little as a month after everyone is opted in. You know better than to believe things they say! 


I believe a lot of people are misinterpreting the "grandfathered in" clause. I took a screenshot of our invite. Here you go:

 

"Grandfathered in" only applies until October. Then it's the same fees as everyone else.


See post #18

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