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

[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.

[NATCARD]

I have been in managed payments for months. 1) Simply put eBay is taking a $.35 fee per transaction with it. They have been losing out on this by accepting PayPal. The way I figure it is they miss PayPal and are starting a "NEW" version of it. 2) You do not wait that long for your deposits to your bank account. Most are sent from Ebay with 1 day (sometimes hours) of items being sold and paid and then there is a few day delay for the deposit to show up in your bank account. You will receive deposits on a daily basis and sometimes (I have had 3) in a single day. You can opt into a once a week deposit if you like. 3) The fact that PayPal is not used anymore is a downside. I use PayPal to pay for a lot of business related things such as Stamps.com shipping and now when my PayPal gets low I find myself depositing money into PayPal from my bank account. 4) My fees are NOT deducted from my payments and my credit card is still charged my full eBay seller fees and related fees every month. I hope this helps, Jeff W

[buymycards]

Originally Posted by NATCARD

I have been in managed payments for months. 1) Simply put eBay is taking a $.35 fee per transaction with it. They have been losing out on this by accepting PayPal. The way I figure it is they miss PayPal and are starting a "NEW" version of it. 2) You do not wait that long for your deposits to your bank account. Most are sent from Ebay with 1 day (sometimes hours) of items being sold and paid and then there is a few day delay for the deposit to show up in your bank account. You will receive deposits on a daily basis and sometimes (I have had 3) in a single day. You can opt into a once a week deposit if you like. 3) The fact that PayPal is not used anymore is a downside. I use PayPal to pay for a lot of business related things such as Stamps.com shipping and now when my PayPal gets low I find myself depositing money into PayPal from my bank account. 4) My fees are NOT deducted from my payments and my credit card is still charged my full eBay seller fees and related fees every month. I hope this helps, Jeff W

This is from the email that was received today:

Simplified fees:
○ Once activated for managed payments starting late July, you will pay a final value fee, consisting of a category-based percentage of the total amount of the sale, plus a $0.30 fixed fee per order.1
○ Your final value fee will be automatically deducted from your sales proceeds. You can cover the costs of refunds from your bank account or credit card when your pending payout is not sufficient to cover the refund amount.

I never gave any thought to refunds. PayPal won't be involved, in most cases. So, hopefully, your bank account will have enough of a balance to cover any refunds. If not, it will come from your credit card. I give a lot of refunds from PayPal because of buyers buying multiple items and not waiting for me to send them a combined shipping invoice.

[D. Bergin]

Originally Posted by buymycards

This is from the email that was received today:

Simplified fees:
○ Once activated for managed payments starting late July, you will pay a final value fee, consisting of a category-based percentage of the total amount of the sale, plus a $0.30 fixed fee per order.1
○ Your final value fee will be automatically deducted from your sales proceeds.

Ok, so I was right. LOL!

The new and improved Ebay.

"To simplify the act of skimming more money from you"

LOL!

[jbsports33]

Still need to set this up, sounds like a good July 4th Holiday task to read more about it! Paying for items should not change - and Paypal should still be an option

Jimmy

[Aquarian Sports Cards]

Originally Posted by 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.

You might be surprised at how some of the little auction houses do in comparison to ebay.

[Hot Springs Bathers]

I have read all the posts and am still confused. It appears that small time sellers like me who accumulate funds in my Paypal account to spend on future purchases are out of luck. Am I correct? You will not be allowed to accumulate funds in your managed account?

[thecatspajamas]

Originally Posted by Hot Springs Bathers

I have read all the posts and am still confused. It appears that small time sellers like me who accumulate funds in my Paypal account to spend on future purchases are out of luck. Am I correct? You will not be allowed to accumulate funds in your managed account?

You can accumulate them for up to a week depending on how frequent you set your payout, but cannot spend them directly out of your managed payments account except to purchase eBay shipping labels. For all other purchases, you would have to deposit the funds to your checking account, and then either pay directly from there or transfer the funds to Paypal or some other payment source.

[Jewish-collector]

So, there won't be paypal as a bucket of funds ? So, a buyer will just sends funds from their own bank account directly to the seller's bank account. So eBay will take funds out for the fees directly from the seller's bank account ? Is this correct ?

[AddieJoss]

Originally Posted by 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.

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

[AddieJoss]

Originally Posted by Jewish-collector

So, there won't be paypal as a bucket of funds ? So, a buyer will just sends funds from their own bank account directly to the seller's bank account. So eBay will take funds out for the fees directly from the seller's bank account ? Is this correct ?

Buyers can still use PayPal, or a credit card or many other methods in the future. It opens it up more.

[thecatspajamas]

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.

[D. Bergin]

Originally Posted by thecatspajamas

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.

I'm not an accountant but:

Basic store level final value fees right now are 9.15% + the 2.9% Paypal, and I'm seeing the swing in the other direction at maybe just above 6% sales tax.

I know the most populous states and most frequent shipments are to higher tax states.

This also doesn't take into account what has been mentioned already, Ebay is taking their piece before depositing it into our account, so we can't get points back from our cards when we pay the bill. I know this is fairly inconsequential, but it makes the statement "There's no math you can use in which you aren't saving money under this new program", fairly inaccurate.

......and anybody who doesn't think Ebay already crunched the numbers in their favor before unrolling this system, is being incredibly naive.

I know I may be pinching pennies, and in the end, it may only be a few bucks more a month, but I'm constantly being disappointed by Ebay and their decisions. I can't help thinking this is just a first step down a much bigger rabbit hole.

They are constantly inching up their bottom line, while their scumbag, terroristic former CEO just took a $57 million golden parachute.

All that being said, I reserve the right to complain about Ebay, but I'm certainly not going to stop selling there. Doesn't mean I have to buy the whole "It's their playground, just shut up and sell, or leave if you don't like it" mentality.

They've shown their true colors as a company, as evidenced by the other thread on this site. So I'm going to continue using them, as long as they continue to "use" me. It's just business, I guess.

[ibuysportsephemera]

Originally Posted by D. Bergin

I'm not an accountant but:

All that being said, I reserve the right to complain about Ebay, but I'm certainly not going to stop selling there. Doesn't mean I have to buy the whole "It's their playground, just shut up and sell, or leave if you don't like it" mentality.

They've shown their true colors as a company, as evidenced by the other thread on this site. So I'm going to continue using them, as long as they continue to "use" me. It's just business, I guess.

Dave...I agree with everything that you are saying but I stand by my comment...it is their playground and until there is a legitimate alternative we have to play by their rules...no matter how much you complain about them.

Jeff

[thecatspajamas]

Originally Posted by Jewish-collector

So, there won't be paypal as a bucket of funds ? So, a buyer will just sends funds from their own bank account directly to the seller's bank account. So eBay will take funds out for the fees directly from the seller's bank account ? Is this correct ?

Ebay removes their fees from the funds as it moves through them. So the funds come out of the buyer's bank account (or credit card, or Paypal account, or whatever funding source they use), and those funds minus the eBay fees are what gets deposited to the seller's bank account. The seller does not have opportunity to turn around and make a purchase from that pool of money before it goes back into their bank account though.

[Hot Springs Bathers]

Lance if I am reading this correctly, eBay will (eventually) send the funds to your bank account and then when purchasing an item you will have the option to use a credit card to pay fr that item?

[thecatspajamas]

Originally Posted by Hot Springs Bathers

Lance if I am reading this correctly, eBay will (eventually) send the funds to your bank account and then when purchasing an item you will have the option to use a credit card to pay fr that item?

You can pay for purchases by every method currently available to buyers, including paying via Paypal, plus a couple that aren't currently available with Paypal. You just can't pay for purchases from your Managed Payments account itself.

[Hot Springs Bathers]

Thanks!

[68Hawk]

Originally Posted by thecatspajamas

You can pay for purchases by every method currently available to buyers, including paying via Paypal, plus a couple that aren't currently available with Paypal. You just can't pay for purchases from your Managed Payments account itself.

If you link your paypal account to your managed payments account, you effectively can. No?

[bcbgcbrcb]

Don’t think you quite understand float, Eric.

[egbeachley]

Originally Posted by bcbgcbrcb

Don’t think you quite understand float, Eric.

You would be surprised at what I know about float income.

Just do the math on a hypothetical $1,000 sale. eBay gets somewhere around $120 in fees. How much additional do they get for the float for a few days? There is no way possible that anyone could calculate float income of even 12 cents on this example which is less than 1/1000th of the final value fees.

Float Income is way overrated.

[buymycards]

Originally Posted by Aquarian Sports Cards

You might be surprised at how some of the little auction houses do in comparison to ebay.

Scott, I have to agree with you. I was bidding on 12 auctions in your June 15th auction and watching another dozen or so. I only won 4 items, and I was very surprised at the high prices that many of your items received. I know that if I were selling these items myself on eBay I wouldn't have come close to the prices that you received.

Rick

[bobbyw8469]

I'm sure Scott would love to help out as well. But I believe he only deals in non sports

[ibuysportsephemera]

Originally Posted by bobbyw8469

I'm sure Scott would love to help out as well. But I believe he only deals in non sports

Not true...Scott's main auction business is Sports related.

Jeff