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

[ibuysportsephemera]

Stay with eBay (of course). Where else can I get the type of exposure I get for primarily sports memorabilia (not cards)? I am not a huge eBay fan but until someone rises to the challenge they are the only game in town.

Jeff

[prestigecollectibles]

I signed up for Managed Payments in September of 2018 and realized I made a horrible mistake and was able to opt out the same day. At that time I was not able to accept PayPal which caused a buyer to cancel. Then one payment was made with AMEX and it took a week for me to get that payment. eBay said they needed to receive the payment from AMEX before they would pay me.

I think many people sell on eBay and keep those funds in their PayPal account to use for future purchases. With sales going directly into bank accounts I wonder if buyers will be less likely to spend money than if it was just sitting in their PayPal account.

I guess we'll just have to wait and see how this all works out.

[D. Bergin]

I got the notice to migrate by July 15th. I don't like it, but I don't have much of a choice.

Ebay is selling it as a cost savings, but it's quite the opposite.

Raw numbers on the surface bring the %'s, just slightly below the combined Ebay and Paypal fees.

Those numbers ignore that Ebay is now going to start charging a final value fee, on top of the processing fee for state sales tax collected.

A sale to a bidder in Alabama, might cost you a bit more then a sale to a bidder in New Hampshire. Won't cost Ebay any more money though. Higher the sales tax rate, the more money they make off your back.

It also ignores how many sellers pay for their bills. By taking the fees directly out of each sale, it skips the step of sellers paying their bill with a debit or credit card and getting a couple points back on your bill on the backend.

Also, like mentioned above, I'm not sure how it will affect bidding, when some buyers/casual sellers aren't looking at their Paypal stash as much, to spend their disposable income now.

Don't like it, but it doesn't really matter to Ebay I guess. Plenty of evidence everywhere they don't care about regular people, including the disgusting story circulating about the ECommercebytes folks.

Oh well..........

[ibuysportsephemera]

It's their playground and if you want to play it has to be by their rules. I don't like it but that is the way it goes. I signed up both my accounts for managed payments and thought it would start immediately. Instead I received an email that I am on the list, whatever that means. At least now managed payments will take all forms of payment. When it first started it was only eBay payments which is why I didn't opt in.

Jeff

[buymycards]

Originally Posted by ibuysportsephemera

It's their playground and if you want to play it has to be by their rules. I don't like it but that is the way it goes. I signed up both my accounts for managed payments and thought it would start immediately. Instead I received an email that I am on the list, whatever that means. At least now managed payments will take all forms of payment. When it first started it was only eBay payments which is why I didn't opt in.

Jeff

I received an email in the spring of 2019, so I tried to sign up. I received a message that told me that an agent will be calling me, but that never happened. I also received a message a couple of months ago asking me to sign up, but when I tried, I received a message that I was not yet on the list. I can't believe that all of this will happen next month.

Also, when managed payments first surfaced, PayPal was not going to be accepted, but not managed payments will include PayPal.

[sox1903wschamp]

Originally Posted by D. Bergin

It also ignores how many sellers pay for their bills. By taking the fees directly out of each sale, it skips the step of sellers paying their bill with a debit or credit card and getting a couple points back on your bill on the backend.

Not trying to defend Ebay but this statement is not how it works under Managed payments. They (Ebay) still accumulate all fees and you pay monthly and you can use a credit card if so desired.

[D. Bergin]

Originally Posted by sox1903wschamp

Not trying to defend Ebay but this statement is not how it works under Managed payments. They (Ebay) still accumulate all fees and you pay monthly and you can use a credit card if so desired.

Ok, I stand corrected then. Do they just take out the processing fees then, when they sweep into your account, like Paypal, and then bill you for the final value fees later?

[sox1903wschamp]

Originally Posted by D. Bergin

Ok, I stand corrected then. Do they just take out the processing fees then, when they sweep into your account, like Paypal, and then bill you for the final value fees later?

No, the processing fees are accumulated and paid monthly just like the FVF for managed payments.

That processing fee for some Managed Payment members is currently 2.7% with no "hard transaction fee" compared to PP at 2.9% and a .30 transaction fee which helps on lower end sales. However, that is changing in July as Ebay is adding the transaction fee to all.

[G1911]

I've never sold a card (trade or give away dupes), but I expect much grousing and little boycotting. There's no other medium to replace it. High end items can go to an Auction House, but the low-middle end stuff that is the bulk of pre-war and vintage cards sold aren't desired there, and the little auction places get nowhere near the eyes that eBay does on an item. The change is not so egregious as to make it easier/more profitable to list items anywhere else.

[AddieJoss]

It’s less in fees for all sellers. There is no scenario where the fees will go up unless you have a special deal with PayPal. And buyers have more options to buy.
Currently PayPal charges fees on sales tax too.
This is not a bad change. The fees aren’t higher. Besides it’s different/new I can’t see the downside.
Cory Weiser

[ibuysportsephemera]

Originally Posted by AddieJoss

It’s less in fees for all sellers. There is no scenario where the fees will go up unless you have a special deal with PayPal. And buyers have more options to buy.
Currently PayPal charges fees on sales tax too.
This is not a bad change. The fees aren’t higher. Besides it’s different/new I can’t see the downside.
Cory Weiser

Cory,

I have read that eBay will be taking a fee per item sold as opposed to paypal that just takes one fee for the entire transaction. For me that would result in a much higher charge since I always promote and try to sell similar items at one time (and offer combined shipping). This type of marketing has been very successful for me so I hope that this is not true.

Jeff

[bcbgcbrcb]

As a retired 30+ year finance guy, I can tell you that the real profits going to e-bay with this new set-up will be the float time on the money that they collect instantly from the buyer and hold for 3-5 days until they deem the funds ready to deposit into the seller's bank account. Take those numbers times the tens/hundreds of millions of buyers and sellers and that's where e-bay is making the real money. The .001 or whatever fees you are saving as a seller is vastly negligible when compared to those profits that they will be enjoying.

Like many others, I'm not in favor of the new set-up at all but have to live with it. Etsy isn't really a reasonable alternative, is it? lol

[x2drich2000]

Sigh, all I have to add is I miss grandslambids (edit: FYI, ummm, don't try to go to the site anymore, especially at work )

[ibuysportsephemera]

So of course I just received an email from eBay concerning managed payments. It starts "Welcome to Managed Payments".....like I had a choice .

Jeff

[egbeachley]

Originally Posted by bcbgcbrcb

As a retired 30+ year finance guy, I can tell you that the real profits going to e-bay with this new set-up will be the float time on the money that they collect instantly from the buyer and hold for 3-5 days until they deem the funds ready to deposit into the seller's bank account. Take those numbers times the tens/hundreds of millions of buyers and sellers and that's where e-bay is making the real money. The .001 or whatever fees you are saving as a seller is vastly negligible when compared to those profits that they will be enjoying.

This won’t accumulate enough to be a rounding error. Based on the sales price it adds only about 0.01% more to earnings after already making 10.00% in Final Value Fees. That’s 1/100th of a percent more. Calculated as 1% overnight interest rate times 3-4 days divided by 365 days in a year. Doesn’t even consider the loss of a day until they receive payment and loss of another day when they process the ACH the day before the seller receives payment.

Float Income basically doesn’t exist anymore.

[D. Bergin]

Originally Posted by AddieJoss

It’s less in fees for all sellers. There is no scenario where the fees will go up unless you have a special deal with PayPal. And buyers have more options to buy.
Currently PayPal charges fees on sales tax too.
This is not a bad change. The fees aren’t higher. Besides it’s different/new I can’t see the downside.
Cory Weiser

Paypal took 2.9% of the Sales Tax collected. Ebay will now be taking 11.5% of the Sales Tax collected if you have a store.

12.35% if you don't have a store.

[hcv123]

Originally Posted by D. Bergin

Paypal took 2.9% of the Sales Tax collected. Ebay will now be taking 11.5% of the Sales Tax collected if you have a store.

12.35% if you don't have a store.

Sales tax is "collected" for the benefit of the taxing authority, not "charged" like a fee. Where did you see that they were going to do this?

[D. Bergin]

Originally Posted by hcv123

Sales tax is "collected" for the benefit of the taxing authority, not "charged" like a fee. Where did you see that they were going to do this?

Ebay will be "collecting" the sales tax for you, and then charging an 11.5% vig for the privilege of doing that for you.

Paypal charges 2.9% for the processing fee of collecting the Sales Tax right now.

Ebay has figured out a way to wrap the sales tax into the "Total Sale" (Price of item, Price of shipping, Price of Sales Tax), called it "simplifying the process", and charging a flat fee for everything, all inclusive.

It was bad enough when Ebay started charging us a final value fee on the shipping, when Paypal was the one doing the actual payment processing.

This is just an insult, and I doubt there's any other E-Commerce platform that figured out how to make such a windfall on Sales Tax, since the Supreme Court ruled on expanding on-line Sales Tax collection.

[thecatspajamas]

Originally Posted by prestigecollectibles

I think many people sell on eBay and keep those funds in their PayPal account to use for future purchases. With sales going directly into bank accounts I wonder if buyers will be less likely to spend money than if it was just sitting in their PayPal account.

This is the part I can't believe eBay still hasn't figured out. Not only do they benefit from buyers' money burning a hole in their pocket to spend back on ebay, generating additional sales in the process, but if funds used for the second purchase were in the buyer's account already, no additional processing fees are being charged by a credit card issuer for the second purchase. But in Paypal's case, unless f&f is used, they're still going to charge that second seller the same processing fee. There is an awful lot of money that just bounces from one Paypal account to another, racking up fees for Paypal along the way, that never actually gets run through a credit card. By not having a way for users to spend directly from their MP account (except on postage, starting in July), eBay is missing out on additional sales, processing fees for the account-balance-shuffle, and interest on all the funds allowed to build up in users' accounts as they save for larger purchases.

[Snapolit1]

So as I understand this thread, they are cutting out paypal as the middleman and taking their fees directly right away, but delaying your money a few days to steal the float.

Ok, the world is not ending, but I guess if I sold for a living I might view his differently.

Only thing that bums me out a little is that I am a paypal shareholder. . . .

[AddieJoss]

Originally Posted by ibuysportsephemera

Cory,

I have read that eBay will be taking a fee per item sold as opposed to paypal that just takes one fee for the entire transaction. For me that would result in a much higher charge since I always promote and try to sell similar items at one time (and offer combined shipping). This type of marketing has been very successful for me so I hope that this is not true.

Jeff

Jeff,
PayPal takes 2.9% plus $0.30 per transaction currently. And Ebay charges 10% (for cards). So the total fee without a store is currently 12.9% plus $0.30 per item. This is the current cost. (Currently PayPal also charges us the 2.9% on the sales tax)

The new fee structure will be 12.35% plus $0.30 per transaction. This is a reduction of .55% for the seller. There is NO scenario where the seller pays more unless they have a special deal with PayPal currently.

If one has an EBay store the the costs are all .85% lower than this plus the Ebay store cost.

Also, the maximum final value fee for EBay store owners is also dropping as well. This will drop to 11.5% upto $2500, which is really 9.15% (plus the 2.35%) upto $2500 ($229 vs. currently $350). Then there is still 2.25% over $2500 instead of the 2.9% PayPal currently charges.

So every scenario shows lower seller fees. If anyone has a factual example of where the new eBay fees are higher than the current ones, I’d love to see it.
Thx,
Cory Weiser

[Michael B]

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[thecatspajamas]

Cory, you are correct for sales to states which do not have a remote sales tax, or which have low sales tax. Because eBay will be charging that full 12.35% rate to process the "full sale price" (final bid + shipping + sales tax) vs. the current arrangement where the ebay final value fees are not charged on the sales tax portion, there will be a number of states whose higher sales tax rate drives up that total fee price to slightly larger than it is now. It's been a bit since I worked out the numbers, but I recall the break-even point being somewhere around 5% sales tax resulting in equivalent fees for either scenario.

So some higher, some lower, it's probably a wash in the long run for most online sellers. The sticking point for much of the conversation I've read over the new fee structure is that eBay is essentially charging their full commission on the sales tax versus the current arrangement where the only fees charged on the sales tax are by Paypal for processing the transaction. Because they are no longer breaking out the fees for each sale into separate final value fees and payment processing fees, some are viewing this as a tax on a tax kind of scenario, and take issue with that scenario.

Edited to add: I went back and re-worked the math, and the break-even point if you do not have an eBay store is when selling to a theoretical state that has 5.82% sales tax. If the sales tax rate is higher, you will pay slightly more in fees under Managed Payments than previously with Paypal processing the fees.

Also note that if you have an eBay store that is more than just the basic store, the eBay fee under MP drops to 11.5% instead of 12.35%. In that scenario, the seller would see a savings in all cases where the sales tax rate is less than 16.23% (which I believe would be in all cases). So you are correct in that scenario.

[ibuysportsephemera]

Originally Posted by AddieJoss

Jeff,
PayPal takes 2.9% plus $0.30 per transaction currently. And Ebay charges 10% (for cards). So the total fee without a store is currently 12.9% plus $0.30 per item. This is the current cost. (Currently PayPal also charges us the 2.9% on the sales tax)

The new fee structure will be 12.35% plus $0.30 per transaction. This is a reduction of .55% for the seller. There is NO scenario where the seller pays more unless they have a special deal with PayPal currently.

If one has an EBay store the the costs are all .85% lower than this plus the Ebay store cost.

Also, the maximum final value fee for EBay store owners is also dropping as well. This will drop to 11.5% upto $2500, which is really 9.15% (plus the 2.35%) upto $2500 ($229 vs. currently $350). Then there is still 2.25% over $2500 instead of the 2.9% PayPal currently charges.

So every scenario shows lower seller fees. If anyone has a factual example of where the new eBay fees are higher than the current ones, I’d love to see it.
Thx,
Cory Weiser

Thanks Cory...I am hopeful that you are correct.


Jeff