Will sellers continue to sell on Ebay under the new EBAY MANAGED PAYMENTS??

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Will sellers continue to sell on Ebay under the new EBAY MANAGED PAYMENTS??

View Poll Results: Will you continue to sell on Ebay after the new Ebay Managed Payments is implemented?
Yes, I will migrate to the new payment system and continue to sell on Ebay as usual.	79	76.70%
No, this will be the final nail in the coffin. I am done with Ebay!!	24	23.30%
Voters: 103. You may not vote on this poll

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#11

06-18-2020, 08:32 PM

thecatspajamas thecatspajamas is offline

L@nce Fit.tro

Member

Join Date: Jan 2010

Location: Franklin, TN

Posts: 2,433

Quote:

Originally Posted by AddieJoss

Lance, a seller currently pays the PayPal 2.9% fee on the sales tax as well to PayPal now.

Correct. So on a sale that is $100 for the sale price plus shipping, to a state with 5.82% sales tax, the equation with Ebay FVF plus Paypal on the left and eBay Managed Payments on the right would be:

$100(0.10) + [($100 + $100(0.0582)]0.029+0.30 = [$100 + $100(0.0582)].1235+0.30

=$13.37

This assumes that the seller does not have an eBay store, or just has the lowest level of eBay store subscription ("starter" I think it is called). For those with "basic" level eBay store and higher, the FVF is dropped to 11.5% for most categories, making that "break even" sales tax rate 16.27% which is higher than any state's tax rate that I am aware of. So in other words, if you have an eBay store subscription, your fees will actually be lower under Managed Payments regardless of which state you are selling into.

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Last edited by thecatspajamas; 06-19-2020 at 06:10 AM.

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