eBay

supersavingsstore · ‎05-22-2020

Hi everyone,

I want to clarify how Managed Payments fees will work. (I have already read the various help articles).

Putting insertion fees aside, is the fee for typical categories (ex. Cell Accessories) 12.35% of the final sale + $0.30CAD?

I am just wondering of whether this will actually result in savings for me like eBay says. I don't think it will, so if anyone could let me know if my below example makes sense, please do.

I sell mostly inexpensive items (less than $8.00), so I have a PayPal Micropayments account, which charges a 5% final value fee plus $0.05 per transaction.

Let's say I sell an item for $5.95 (my typical price). In the current system, I would pay $5.95 * 0.10 for eBay fees + ($5.95 * 0.05) + $0.05 for PayPal fees. The total fees I pay for this transaction is $0.94.

With MP, I would pay ($5.95 * 0.1235) + $0.30. That's $1.03 of fees.

I know that's not a very significant difference, but it's not giving me any savings like I thought it would. That will add up, eventually. Are my calculations correct and will this system not benefit those who sell lower priced items?

Thanks,

Adam

cumos55 · ‎05-22-2020

For books..... My inventory.

With Managed payments....

The FVF with a store will be 11.50 %

The FVF without a store will be 12.35 %

My current FVF, eBay plus Paypal, as of May 2020 is 12.05 % for all Canadian sales... with a store

I have already registered for Managed Payments..... It appears that FVF paid will be lower

A lot of information appeared after this registration was completed successfully

-----------------

Do a comparison for MP with and without a store.... Your FVF may also be lower with a store

ypdc_dennis · ‎05-22-2020

@supersavingsstore wrote:
Let's say I sell an item for $5.95 (my typical price). In the current system, I would pay $5.95 * 0.10 for eBay fees + ($5.95 * 0.05) + $0.05 for PayPal fees. The total fees I pay for this transaction is $0.94.

With MP, I would pay ($5.95 * 0.1235) + $0.30. That's $1.03 of fees.

I know that's not a very significant difference, but it's not giving me any savings like I thought it would. Are my calculations correct and will this system not benefit those who sell lower priced items?

Rather it is those who use paypal micropayments who will not see any benefit. That 25 cent difference per item is hard to beat.

If I sold a $5.95 item to Canada my current fee would be $1.07 using regular paypal (30 cents + 2.9%). MP would be lower by 4 cents for the Canadian sale. For a USA sale MP would be higher than what I currently pay.

...

I will point out that I have only seen the July fee schedule for eBay.COM and not what the schedule will be for eBay.CA (it might not be identical).

-..-

cumos55 · ‎05-22-2020

From .....

Store Selling Fees for Managed Payments

The FVF for.....Cell Phone Accessories..... is 11.50%

Without a store the FVF is 12.35 %

ypdc_dennis · ‎05-22-2020

Store Selling Fees for Managed Payments
The FVF for.....Cell Phone Accessories..... is 11.50%
Without a store the FVF is 12.35 %

Are those the rates for Canada or just the USA?

The current FVF percentage does differ for some categories (dvds for example) between .CA and .COM

recped · ‎05-22-2020

Bottom line.....anyone who has been using a PayPal micropayments account will be paying more.

For the majority of sellers it's more complex.

I've done some number crunching.....all based on Canadian Seller listing on .ca and for categories with "standard" rates (10% non-Store / 9.15% Store).

Sales to Canadian buyers

If you do not charge GST/HST total charges will go down

If you DO charge GST/HST, 5% provinces the rates will be almost exactly the same as PayPal, for 13% provinces it's going to be higher

For sales to the US

It will depend on the Sales Tax rate (tax collected by eBay), States at 8% or lower the overall fees will go down slightly. Over 8% fees go up slightly

For International

Fees will go down, about .5% (except for Australia)

Future considerations.......

At some point eBay may be forced to collect VAT on sales to the EU, if this happens then fees for EU sales will rise.\

I came up with these numbers using rough calculations, there may be slight inaccuracies.

Other things.......

For Canadian sellers who list on .com in US Dollars, there may be fx considerations that could increase fees, that will apply to sellers who currently withdraw US funds from PayPal to a US bank and use a third-party for conversions. It's not clear to me if this method will still be available, if not then fx conversion fees will rise.

There may be other factors I haven't included because I haven't fully developed my fee calculator.

"What else could I do? I had no trade so I became a peddler" - Lazarus Greenberg 1915
- answering Trolls is voluntary, my policy is not to participate.

ricarmic · ‎05-22-2020

Quote: "For Canadian sellers who list on .com in US Dollars, there may be fx considerations that could increase fees, that will apply to sellers who currently withdraw US funds from PayPal to a US bank and use a third-party for conversions. It's not clear to me if this method will still be available, if not then fx conversion fees will rise."

Yes Rec I am very worried about this.

My "XE way" costs me somewhere around only .75 of a % saving me more than 2% from even my preferrred bank account conversion rate, almost 2.5% against PAYPALs, it is going to be very unfortunate if I can't dump my US$ into my US account because I'll lose that and be back to paying the worst conversion rate again

kawartha-ephemera · ‎05-22-2020

@recped wrote:
Bottom line.....anyone who has been using a PayPal micropayments account will be paying more.

For the majority of sellers it's more complex. Exactly right. The claim ebay makes that they're "simplflying" FVF with this all-in-one calculation is nonsense. A seller has no idea to what degree the fee will be impacted, could be zero or very considerably ... depends who your customer is.

I've done some number crunching.....all based on Canadian Seller listing on .ca and for categories with "standard" rates (10% non-Store / 9.15% Store).

Sales to Canadian buyers

If you do not charge GST/HST total charges will go down
If you DO charge GST/HST, 5% provinces the rates will be almost exactly the same as PayPal, for 13% provinces it's going to be higher That's right, registered sellers currently rolling the tax into the selling price will have to consider this fvf aspect too. Just because there is not an added tax line on the invoice won't avoid this fvf.

For sales to the US

It will depend on the Sales Tax rate (tax collected by eBay), States at 8% or lower the overall fees will go down slightly. Over 8% fees go up slightly

For International

Fees will go down, about .5% (except for Australia) I'm left doubting this after reading the .com FAQ page that ebay released last week. Seemed to clearly state that if the buyer was International (ie; located anywhere outsside the USA) then an extra 1.65 is applied in addition to the basic 2.35. How they will apply this to us in Canada is anybodies guess. In any event it doesn't sound like to me that we should be expecting 2.35 + 0.30 on every sale, that's not the way I read it ... hope I'm mis-interpreting their FAQ page.

Future considerations.......

At some point eBay may be forced to collect VAT on sales to the EU, if this happens then fees for EU sales will rise.\

I came up with these numbers using rough calculations, there may be slight inaccuracies.

Other things.......

For Canadian sellers who list on .com in US Dollars, there may be fx considerations that could increase fees, that will apply to sellers who currently withdraw US funds from PayPal to a US bank and use a third-party for conversions. It's not clear to me if this method will still be available, if not then fx conversion fees will rise. Yes, from what I've read all non CAD sales will be immediately exchanged to CAD. So if I sold an item in USD or Euros ebay would immediately convert that to CAD minus their hefty 3% fx fee. I did read one comment that there was consideration been given to the idea of allowing Canadians the ability to link a U.S. USD bank account to .com and a Canadian account to .ca ... certainly am not expecting MP to launch with that flexibility if ever. We'll be lucky if they allow us to choose one or the other let alone both.

There may be other factors I haven't included because I haven't fully developed my fee calculator.

lotzofuniquegoodies · ‎05-22-2020

Re: Fee Calculator

Does it resemble something like this?

This may be a good starting off place? You can always tweak after.

-Lotz

cumos55 · ‎05-22-2020

I have successfully registered for Managed Payments on eBay Canada.

I have access to a lot of information for Managed Payments.

Canadian sellers should be careful with the understanding that Managed Payment may be different on eBay Canada than eBay US.

---------------------------------------------------

Two things of note.....

(1) Managed Payments FVF is lower for sellers with a store than seller without a store.... This is the situation for my inventory... books

(2) For Canadian sellers that sell in US dollars on eBay.com, eBay is working to provide these sellers a way to transfer payments ... US dollars... to a US Bank account...

reallynicestamps · ‎05-22-2020

Fees will go down, about .5% (except for Australia) I'm left doubting this after reading the .com FAQ page that ebay released last week. Seemed to clearly state that if the buyer was International (ie; located anywhere outsside the USA) then an extra 1.65 is applied in addition to the basic 2.35. How they will apply this to us in Canada is anybodies guess. In any event it doesn't sound like to me that we should be expecting 2.35 + 0.30 on every sale, that's not the way I read it ... hope I'm mis-interpreting their FAQ page.

That sounds counterproductive.

While the USA remains the world's largest single economy, it looks like it is being driven into a depression by poor political choices. Combined with a recession in other better -run developed countries.

Making it more expensive to sell on eBay might at first give a boost to their bottom line, but it would be temporary. And eBay is now a dividend-based stock, not a market price stock.

Future considerations.......

At some point eBay may be forced to collect VAT on sales to the EU, if this happens then fees for EU sales will rise.\

Does Managed Payments collect fees on the US Internet Sales Taxes now? I understood that one of the benefits of MP over PP was the disappearance of that fee.

Keeping in mind that taxes are paid by the buyer, and are a pass-through only for the entity collecting these taxes.

cumos55 · ‎05-22-2020

From .....

Store Selling Fees for Managed Payments

The FVF for.....Cell Phone Accessories..... is 11.50%

Without a store the FVF is 12.35 %

These values are for eBay Canada.

I have successfully registered for Managed Payment. Any information presented by me is for Managed Payments on eBay Canada.

kawartha-ephemera · ‎05-22-2020

Quote reallynicestamps
Does Managed Payments collect fees on the US Internet Sales Taxes now? I understood that one of the benefits of MP over PP was the disappearance of that fee.
Keeping in mind that taxes are paid by the buyer, and are a pass-through only for the entity collecting these taxes.
Unquote

Last week ebay announced new TOS for everyone listing on ebay.com, the changes will come into effect this July. All taxes are going to be whacked with a ~ 12% FVF.

Per the new TOS ... the TOTAL value of the customer INVOICE INCLUDING TAXES OF ANY SORT will be subject to normal FVF plus MP processing fees. As a result of this change fees will in fact be much, much higher on sales taxes negating ebay's claim of savings versus PayPal.

supersavingsstore · ‎05-22-2020

Thanks for that information. I do have a store, and I didn't know about the discount. That wasn't clear from what I read. Thanks!

supersavingsstore · ‎05-22-2020

Thanks for your reply. I thought that Micropayments users might not benefit from this. Unfortunately, I only sell low price items, so I guess this will not make my fees any lower.

supersavingsstore · ‎05-22-2020

This is great information. Would you be able to point me to where you found it. I couldn't find anything as informative. Thanks!

supersavingsstore · ‎05-22-2020

That's great information, especially regarding sales tax. I only sell domestically, so I don't have to worry about international fees too much. Thanks again!

supersavingsstore · ‎05-22-2020

Thanks for this. I will redo my calculations based on this info. Hard to find good information directly from eBay...

mrdutch1001 · ‎05-22-2020

according to the Managed Payments - Answers to some Frequently Asked Questions thread on.COM

"Once managed payments is activated for your account starting late July, you will pay only one final value fee, consisting of a category-based percentage of the total amount of the sale, plus a fixed fee per order, with no third-party payments processing fees.
Your final value fee will be automatically deducted from your sales proceeds, and the rest paid out to your bank account. "

It is my understanding that starting in July, for MP sellers, the new simplified fees include the processing fee....Then there is the 30c per order fee plus any applicable taxes including the USA internet sales taxes will also be subject to the category-based FVF percentage. For some sellers there will be a little savings, for other sellers a little more costly.