Managed Payments - Rough Fee Comparison

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PayPal Payments + eBay Fees

Nov 23 - $1,169.00 - PayPal Fee $43.55 + eBay Fee $126.45  - Net 14.5%

Dec 7 - $1,209.99 - PayPal Fee $47.49 + eBay Fee $124.30 - Net 14.2%

Managed Payments

Dec 15 - $1,624.00 - eBay Fee $231.75 - Net 14.3%

Jan 21 - $430.05 -eBay Fee $67.13 - Net 15.6%

Everything under the Musical Instruments & Gear>Pro Audio Equipment>Microphones & Wireless Systems category.

Some rough thrown together numbers if people are curious. Doesn't seem much different from the fees perspective. Don't have a lot of data to compare as they were running the fee promotion in January.

[recped]

At a basic level MP fees are lower

However there is a wild card and that is the fees paid on Sales Tax collected by eBay, if the tax collected is 0 - 6.75% (approx) MP will have lower fees, if the tax rate is Higher than 6.75% the fees will be higher.

The average rate of Sales Tax in the USA (range 0 - 10%) is about 7% so using the averages fees will be almost identical via either system.

One glaring thing that will mean higher fees is the collection of UK & Norway VAT which is 20%. The rest of the EU will have similar Marketplace tax rules in place by the end of the year and those WILL be more costly via MP vs PayPal.

Of course MP will be mandatory and apply to the majority of Canadian sellers by the end of the year so comparisons really are moot. You either pay the MP fees or stop selling on eBay.

[kawartha-ephemera]

A lot of Canadians sell either exclusively on ebay.com in USD or sell on both ebay.ca and ebay.com. I'm wondering about USD refunds, since MP accounts payout in CAD are sellers facing higher costs due to currency conversion?
ie: receive USD funds that are then converted to CAD at variable daily rates, then potentially refund USD weeks later at a different rate funded with CAD. Hopefully MP has considered this beforehand and somehow have worked out a means to prevent sellers from paying 3% in both directions. Have they?

[lotzofuniquegoodies]

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@kawartha-ephemera wrote:
A lot of Canadians sell either exclusively on ebay.com in USD or sell on both ebay.ca and ebay.com. I'm wondering about USD refunds, since MP accounts payout in CAD are sellers facing higher costs due to currency conversion?
ie: receive USD funds that are then converted to CAD at variable daily rates, then potentially refund USD weeks later at a different rate funded with CAD. Hopefully MP has considered this beforehand and somehow have worked out a means to prevent sellers from paying 3% in both directions. Have they?

---

I had 2 transactions cancelled by sellers for purchases I made from the USA in 2020. 1 seller was MP the other was Paypal. In both cases with the refunds there was a discrepancy in what was returned. Not sure if that is how it is supposed to work or just how it happened to work. Fortunately they were not high value transactions but still it should be penny to penny.

-Lotz

[marnotom!]

I don’t know of any circumstances where a “penny to penny” refund would be given for a purchase involving currency conversion. It certainly doesn’t work that way for credit card payments and refunds. You make your payment and get your refund at the currency converter’s prevailing buy and sell rates.

[lotzofuniquegoodies]

@marnotom! 

I believe, but not positive if the refund is issued through ebay it is based on the original payment date.  As a buyer I shouldn't have to take a loss because the seller couldn't ship.

-Lotz

eBay

If the seller agrees to cancel the order, they have 10 days to refund you through the same method you used to pay. It usually takes 3 to 5 business days for a PayPal refund to go through. If you paid with a credit card, it may take up to 30 days to process, depending on your card provider.

PayPal

Within 1 day of the date of the original payment, PayPal’s transaction exchange rate (including our currency conversion fee) used at the time of the original payment will apply.

Because there was a delay in the seller advising that the order was cancelled that's what caused the issue

[snoopwiz]

Schmarty pants.  🙂 

[lotzofuniquegoodies]

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@recped wrote:

At a basic level MP fees are lower

However there is a wild card and that is the fees paid on Sales Tax collected by eBay, if the tax collected is 0 - 6.75% (approx) MP will have lower fees, if the tax rate is Higher than 6.75% the fees will be higher.

The average rate of Sales Tax in the USA (range 0 - 10%) is about 7% so using the averages fees will be almost identical via either system.

One glaring thing that will mean higher fees is the collection of UK & Norway VAT which is 20%. The rest of the EU will have similar Marketplace tax rules in place by the end of the year and those WILL be more costly via MP vs PayPal.

Of course MP will be mandatory and apply to the majority of Canadian sellers by the end of the year so comparisons really are moot. You either pay the MP fees or stop selling on eBay.

---

Or something wild, crazyand comparative to this which displays on everyone's Invoice page but has been DOA for months. It worked like a charm for giving sellers an idea how much a sale was going to cost them. -Lotz

[marnotom!]

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@lotzofuniquegoodies wrote:

I believe, but not positive if the refund is issued through ebay it is based on the original payment date.  As a buyer I shouldn't have to take a loss because the seller couldn't ship.

---

Now that you mention it, I believe that as a courtesy gesture PayPal will, within 24 hours of payment, give refunds that reflect what the buyer had to pay in their currency if the transaction involves a currency exchange.  I don't think this was always the case and was likely the result of a lot of buyer complaints about being "shorted".

PayPal is likely losing out on this as currency "buy" and "sell" rates are different.  Perhaps their currency exchange related fees would be a little lower if buyers weren't so insistent on getting "full" refunds.

[lotzofuniquegoodies]

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@marnotom! wrote:

---

@lotzofuniquegoodies wrote:

I believe, but not positive if the refund is issued through ebay it is based on the original payment date.  As a buyer I shouldn't have to take a loss because the seller couldn't ship.

---

Now that you mention it, I believe that as a courtesy gesture PayPal will, within 24 hours of payment, give refunds that reflect what the buyer had to pay in their currency if the transaction involves a currency exchange.  I don't think this was always the case and was likely the result of a lot of buyer complaints about being "shorted".

PayPal is likely losing out on this as currency "buy" and "sell" rates are different.  Perhaps their currency exchange related fees would be a little lower if buyers weren't so insistent on getting "full" refunds.

---

I was just a bit baffled because the seller tried to send something out my purchase and found out it was going to be more expensive than they thought it would be. Hey, not my fault. So they refunded. By the time they had their ducks in a row it was almost a week later. Again, not my fault. Difference between purchase price and refund was 8.50 bucks Canadian. And no recourse. If you go to Wally World and happen to pay in US funds and it's refunded 1 to 1 back to the customer in either USD or the amount paid in Canadian which is clearly displayed on the original invoice. Very little if anything in eBay/Paypal shows exchange rates, applicable tax rates clearly. What if the purchase was substantially higher in value. Should a buyer have to take a loss? They pay the applicable exchange rate on date of sale. Reverse it. Bad enough that FVF's are not refunded for partial refunds.

-Lotz

[femmefan1946]

Hopefully MP has considered this beforehand

Perhaps their currency exchange related fees would be a little lower if buyers weren't so insistent on getting "full" refunds.

Mwah hah hah hah hah.... Oh stop it, my sides are aching!

EBay is your landlord, not your friend.