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

[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

[bobbyw8469]

Originally Posted by 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

LOL...You have a choice alright...don't sign up. That is the choice I am grappling with now.

[ibuysportsephemera]

Originally Posted by bobbyw8469

LOL...You have a choice alright...don't sign up. That is the choice I am grappling with now.

No real choice Bobby if you want to sell on eBay. All sellers eventually will have to be on managed payments.

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.

[D. Bergin]

Anybody in managed payments know what Ebay's transactional fee is for receiving International Payments. I know Paypal's is 4.4%.

Ebay seems to not want to tell you, until you are actually in the program, so I can't find anything online.

I have quite a few overseas customers, even with the Postal Rates skyrocketing the last few years.

[thecatspajamas]

Originally Posted by D. Bergin

Anybody in managed payments know what Ebay's transactional fee is for receiving International Payments. I know Paypal's is 4.4%.

Ebay seems to not want to tell you, until you are actually in the program, so I can't find anything online.

I have quite a few overseas customers, even with the Postal Rates skyrocketing the last few years.

Dave, the links I posted above with the fee structures taking effect in July indicate there is an international fee of 1.65% assessed (on top of the 11.5% or 12.35% fee) if the buyer's registered address is outside of the U.S. It does not appear to matter if the delivery address is domestic (i.e. if they are using a re-shipper or having delivered to a friend), as it is based on their registered address, not the delivery address. That would make this portion of the fee slightly higher than Paypal's 1.5% international fee tacked onto the base rate, though if you're seeing a slight benefit under Managed Payments otherwise, the slight 0.15% increase may be offset.

Related to this, there is a "currency conversion charge" which, upon re-reading that portion, would appear to apply only "when you list on an eBay site with a listing currency different to your payout currency." I had previously thought this applied when the buyer funded their purchase with a different currency than you used, but in re-reading it, this would appear to only apply where, for instance, me being based in the United States, if I were to list on the eBay UK site and make a sale, eBay Managed Payments would charge me a fee to convert those British Pounds to U.S. Dollars for my payout. The currency conversion charge would not appear to apply if a buyer in the UK logged onto the U.S. eBay.com site and made a purchase. I would keep an eye on this once the new fees go into effect though, as it would not surprise me if eBay showed U.S. sellers' listings to users logged into international eBay sites (without them actively seeking to list on those sites), and wound up charging the currency conversion percentage to the U.S. seller on the back-end. If they do charge it, the "currency conversion charge" is stated as being "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."

[D. Bergin]

Originally Posted by thecatspajamas

Dave, the links I posted above with the fee structures taking effect in July indicate there is an international fee of 1.65% assessed (on top of the 11.5% or 12.35% fee) if the buyer's registered address is outside of the U.S. It does not appear to matter if the delivery address is domestic (i.e. if they are using a re-shipper or having delivered to a friend), as it is based on their registered address, not the delivery address. That would make this portion of the fee slightly higher than Paypal's 1.5% international fee tacked onto the base rate, though if you're seeing a slight benefit under Managed Payments otherwise, the slight 0.15% increase may be offset.

Related to this, there is a "currency conversion charge" which, upon re-reading that portion, would appear to apply only "when you list on an eBay site with a listing currency different to your payout currency." I had previously thought this applied when the buyer funded their purchase with a different currency than you used, but in re-reading it, this would appear to only apply where, for instance, me being based in the United States, if I were to list on the eBay UK site and make a sale, eBay Managed Payments would charge me a fee to convert those British Pounds to U.S. Dollars for my payout. The currency conversion charge would not appear to apply if a buyer in the UK logged onto the U.S. eBay.com site and made a purchase. I would keep an eye on this once the new fees go into effect though, as it would not surprise me if eBay showed U.S. sellers' listings to users logged into international eBay sites (without them actively seeking to list on those sites), and wound up charging the currency conversion percentage to the U.S. seller on the back-end. If they do charge it, the "currency conversion charge" is stated as being "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."

Thanks Lance.

[Exhibitman]

Shit, you're right, guys. The extra 0.85% adds $2.81 to a $330 sale. eBay's great magnificence ends up costing me more than current costs.

Fuckin' eBay...they have us over a barrel and they know it.