On April 6, 2021, I received an eBay notice that if I don't sign on to eBay Managed Payments by April
29th, "your ability to create new listings, as well as revising and relisting your items will be disabled."
In this same message eBay states that by signing on to Managing Payments "Most sellers will pay the same or less than before". I just put that to the test on a $10.00 sale:
According to eBay, Final Value Fees will change to a single bundled fee of 12.35%
(Note: this is the variable percentage for non-Store sellers in most categories. There’s an added .30 cents processing fee per order.)
EXAMPLE 1:
Existing eBay/PayPal model before "Managed Payments":
An item sold on eBay for $10.00 with a very realistic $15.00 shipping across Ontario (can be higher for other provinces). The Buyer pays a total $25.00.
eBay Final Value Fees on Item: $1.00 + $0.13 = $1.13
eBay Final Value Fees on Shipping: $1.50 + $0.20 = $1.70
Total eBay fees = $2.83
PayPal fees on $25.00 if the buyer is Canadian = $1.03
($.30 processing + $0.73 on $25.00 @ 2.9%)
Total combined eBay / PayPal fees ($2.83 + $1.03) come to $3.86
After fees and shipping on a $10.00 sale, the Seller takes home $6.14
EXAMPLE 2:
eBay's NEW Managed Payments model:
$25.00 combined total ($10.00 item + $15.00 shipping)
Fees* on $25.00 are as follows:
3.25 HST (13% if in Ontario) = $28.25
3.49 eBay Final Value Fee ($28.25 + 12.35%)
0.30 eBay Processing Fee per order.
= $7.04 fees paid to eBay through Managed Payments
* eBay will charge an added 0.04% to sellers who are NOT power sellers.
So, after fees and shipping on a $10.00 sale are deducted, the Seller takes home $2.96
The Seller will have paid eBay Canada approx. 70% in sales.
• eBay's Managed Payments is a 2-step process that may take up to 5 business days (1 week) before the funds are physically deposited to the Seller's bank account. Compared with PayPal, if I transfer funds from PayPal to my bank, the funds are deposited the next business day.
Phase 1 of eBay's the payout can take up 2 days. Phase 2 may take another 1-3 days.
Technical issues can screw up a transfer of funds (buyer end, eBay end, or Seller end). How will eBay protect the Seller if someone claims they didn't make the purchase or purchased in error, and the item is already shipped? To maintain "Top Seller" status items must ship within 24 hours. Many will be losing that status. Who wants to take the loss of an item shipped before the funds are deposited? I don't earn enough income to pay out of pocket for casual losses. Remember, on a $10.00 sale, Sellers will earn less than $3.00 using this new model, even though the Buyer has paid $25.00 and is what they will be refunded. Anyone who needs funds in hand to pay the shipping must delay shipping for up to 5 Business Days (1 week) for this cumbersome method to complete its process.
• Slower deposits. Plop. Plop. Plop. 30 items can have 30 separate deposits, or 100, 167 and so on. Plop. Plop. Plop. Or we can bundle. How long will our buyers be willing to wait until we ship because we're waiting on processing? It would be longer if we're using the "bulk" method. Single deposits? Some banks and credit unions may want to add surcharges due to increased activity.
• No more buying from our accumulated funds. If we wanted to use funds from our accumulated sales to buy something, there's no longer a way to do it. If I were saving up to buy something at $75.00 it would now have to come directly from personal banking. Plop. Plop. Plop. An added discouragement. Once the
funds from my sales are deposited in my bank account it gets earmarked for a bill payment in real life. Period. No more setting a little aside to treat myself down the road. NO more joy of shopping on eBay.
This is a sham. On a $10.00 sale, eBay is hiking their rates by 50% or more.
To receive $2.96 on a $10 sale, I won't be giving eBay Canada access to my personal bank account AND my SIN. I'm not willing to jeopardize my bank account or gov't ID for this.
