Sellers Fees with Managed Payments

[tunicaslot]

Good video explaining - how little sellers benefit with managed payments as far as fees. Promises - promises!

https://www.youtube.com/watch?v=oY8Q26HigHk

[mcdougle4248]

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@beardedbovine wrote:

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@mcdougle4248 wrote:

The $.25 fee per listing is bad for me.  I will not have any savings with Managed Payments.

I did some rough calculations and an average order for me will go from a $.75 fee (5% of total sale) to a $1.41 fee (9% of total sale).  IMHO, this is going to hit sellers of low priced items pretty hard 

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I completely agree. PayPal offers a micropayments option for sellers of low priced items. MP is going to hit those sellers the hardest. They will have to adapt or lose their business.

mcdougle, you might want to think about setting up variation listings to offer different quantities in the same listing... variations for a single item, set of 2, set of 4, etc.

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Thank you for the suggestion on using variation listings for my items to offer different quantities in the same listing. 

I have just started pulling my listings into variations and learning as I go.  A huge thank you to @shipscript for the wonderful tutorial and tools to accomplish this.  

[tunicaslot]

Tagging - I appreciate everyone's opinion and input. It seems that it's more understandable when talking to other sellers than listening to the blues or CS as you all put it in simplified terms or make examples. Small sellers are already stretched with having to work so many extra fees into their prices and the slow down in sales may push many of us with just a couple of False SNADs near that extra 4% charge.

It's Ebay sandbox and we abide by the rules - but just once I'd like some honesty and not **bleep**. 

[gracieallen01]

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@my-cottage-books-and-antiques wrote:
Variable Processing Fee is the basic fee ebay charges. Right now, I think it's something like 2.7%, although I'm not sure, since I'm not in the program.

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Ummm, I don't see anything in the Payment Terms of Use to indicate that the rate is 'variable'.  Do you really think that is what it means?  What it says is:

"If (a) you have successfully completed the managed payments onboarding process (in accordance with Section 4) prior to 00:00:00 (12:00 AM) Pacific Time on June 4, 2019 and (b) your eBay account has remained continuously enabled for managed payments: Your payments processing fees are calculated as 2.7% of the total order amount, including shipping, handling, sales tax and other amounts owed (the “payments processing rate”)."

So, does that mean that everybody not currently in the program is subject to a different rate - that they have yet to mention?

This is why I posted the question and would prefer an answer from 'ebay'.  (No, I don't really expect one)

[vivabe]

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@beardedbovine wrote:

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@mcdougle4248 wrote:

The $.25 fee per listing is bad for me.  I will not have any savings with Managed Payments.

I did some rough calculations and an average order for me will go from a $.75 fee (5% of total sale) to a $1.41 fee (9% of total sale).  IMHO, this is going to hit sellers of low priced items pretty hard 

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I completely agree. PayPal offers a micropayments option for sellers of low priced items. MP is going to hit those sellers the hardest. They will have to adapt or lose their business.

mcdougle, you might want to think about setting up variation listings to offer different quantities in the same listing... variations for a single item, set of 2, set of 4, etc.

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Yes, and I am one of them (using PayPayl micropayment). I will have to increase prices, rethink combine shipping -revise rule or discontinue, etc. In addition to GTC babysitting...

Sounds to me like ebay seriously wants to get small sellers like me out of the site.

[flipper2flipper]

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@tunicaslot wrote:

Tagging - I appreciate everyone's opinion and input. It seems that it's more understandable when talking to other sellers than listening to the blues or CS as you all put it in simplified terms or make examples. Small sellers are already stretched with having to work so many extra fees into their prices and the slow down in sales may push many of us with just a couple of False SNADs near that extra 4% charge.

It's Ebay sandbox and we abide by the rules - but just once I'd like some honesty and not **bleep**. 

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Honesty ?

We don't need no stinkin' honesty !

Mere "Ebay Speak" will always be the best that it is going to get.

[tunicaslot]

Did anyone get a survey this weekend pertaining to the new Ebay FBA? Another seller notified me that they indeed received a survey and that it appears as of right now - those sellers enrolled are probably going to be the ones pushed front and center as Ebay will be making even more money off of them.

[ittybitnot]

Sounds to me like ebay seriously wants to get small sellers like me out of the site.

No, I think they just want a larger portion of your money. 

[gramophone-georg]

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@tunicaslot wrote:

Tagging - I appreciate everyone's opinion and input. It seems that it's more understandable when talking to other sellers than listening to the blues or CS as you all put it in simplified terms or make examples. Small sellers are already stretched with having to work so many extra fees into their prices and the slow down in sales may push many of us with just a couple of False SNADs near that extra 4% charge.

It's Ebay sandbox and we abide by the rules - but just once I'd like some honesty and not **bleep**. 

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https://www.ebay.com/sch/i.html?_from=R40&_trksid=m570.l1313&_nkw=ebay+honesty+integrity&_sacat=0&LH...

Maybe on Amazon.

[around-the-block]

Anyone who thought they were going to have less fees with managed payments and anyone who thought ebay was really going to provide new seller protections is just being.... naive is the only word I can say. Literally everything ebay does is to make an extra buck and literally ALL of it is at the expense of the sellers. They aren't getting any new buyers, so the only way to make that next quarter growth is to charge the sellers more.

[around-the-block]

I don't know. I would be willing to bet the BOD and shareholders only care about next quarter growth at the expense of long term stability as well. That seems to be the way of American business now. Destroy everything in the name of immediate profits, burn it down when growth stalls, shift all the losses to the public sector, then ride the golden parachute to the next business and repeat. 

[goodluckselling]

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@around-the-block wrote:

Anyone who thought they were going to have less fees with managed payments and anyone who thought ebay was really going to provide new seller protections is just being.... naive is the only word I can say. Literally everything ebay does is to make an extra buck and literally ALL of it is at the expense of the sellers. They aren't getting any new buyers, so the only way to make that next quarter growth is to charge the sellers more.

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I do not think your statement is correct?  Data from third party collectors of data and eBayinc both say differently.

• The middle of 2017 eBay had 171 Million active buyers accounts  click here 

Copied from link  -  At the end of 2Q17, eBay had 171 million active buyers.

• Now the question is what defines an active buyer?

The company describes an active buyer as one who successfully closed a transaction on its platform within the trailing 12 months.  (from link above)

click here  -  This statistic shows the number of active registered users on the online auction platform eBay. In the first quarter of 2019, the site reached 180 million active users after surpassing 179 million active users in the previous quarter.

These are significant numbers because for about 2 to 3 years now eBay has not required new buyers to register.  They can simply purchase as a guest.

eBay also seems to operate on about 10% profit margins  click here.  Granted they do Billions in quarterly revenue

but I would ask this question.    Can you operate on 10% profit margins?

Good Luck Selling!

[gracieallen01]

Somehow, I don't think all active users that ebay account for are actually buyers, or even all that 'active'.  I know that my 6 active accounts haven't bought anything in years - and haven't sold anything here in an even longer period of time (I still a member of the '08 boycott).  Perhaps not all the 'numbers' provided by ebay and/or partners or even independent companies should necessarily be taken at face value.

[goodluckselling]

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@gracieallen01 wrote:

Somehow, I don't think all active users that ebay account for are actually buyers, or even all that 'active'.  I know that my 6 active accounts haven't bought anything in years - and haven't sold anything here in an even longer period of time (I still a member of the '08 boycott).  Perhaps not all the 'numbers' provided by ebay and/or partners or even independent companies should necessarily be taken at face value.

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Why not?  Do you have data that says differently?  Do you have any data at all?  It would seem if not then this is a good starting point.  At least it is presented from a third party source.

If your accounts have not bought in several years then based on this definition your accounts are not counted in the active buyer totals.

eBay says this  - 

Copied from link  -  At the end of 2Q17, eBay had 171 million active buyers.

• Now the question is what defines an active buyer?

The company describes an active buyer as one who successfully closed a transaction on its platform within the trailing 12 months.  (from link above)

Why would you not believe this statement?

Good Luck Selling!

[gracieallen01]

Would you really think that there is a 3rd party that would have any access to any numbers that ebay didn't want them to have or have access to more than ebay would allow them to have?  Well, without a court order, that is.

[goodluckselling]

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@gracieallen01 wrote:

Would you really think that there is a 3rd party that would have any access to any numbers that ebay didn't want them to have or have access to more than ebay would allow them to have?  Well, without a court order, that is.

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Sure.

• All external search engine have access to this data without any help or hinder from eBay
• IRS,
• eBay stock management companies,
• NASDAQ,
• every single individual stock holder
• EU  GDRP 

Why would eBay not want to have this info available to other companies?

Good Luck Selling!