eBay

Anonymous · ‎03-18-2021

In this month, I switched my payment to end to end payment from the original paypal payment. And on Tursday, Mar.16th, I received the payment, a CA$7 stamp order. But today I received the payment about CAD$5.64. The ebay charged about 20% of the payment and much more than on Paypal (Paypal only charge about 7-8%). I almost hope to switch back to Paypal. Does someone have the same experience in ebay? Does the ebay will charge the monthly seller fee in April? Thanks everyone's reply!

ypdc_dennis · ‎03-18-2021

eBay's Managed Payments fee covers the old eBay Final Value Fee and the PayPal Fee.

For an Ontario seller, a $7 Canadian order (price+shipping) would have fees of $1.35 (0.79 + 0.56) under the old system.

Under Managed Payments the fee should be $1.32 -- a minor difference.

-..-

imbuzzy · ‎03-19-2021

3 cent increase in fees -- a minor difference amounting to around a 2.25% fee increase.

No biggie - just nickel and diming as always...

Unless you are a savvy seller using Paypal micropayments to sell your $7 widget.

Than your total fees were once $1.19 and that 16 cent increase now amounts to nearly a 13.5% fee increase!

Once I join managed payments, inflation will hit my store.

marnotom! · ‎03-19-2021

At the risk of nit-picking, Imma gonna point out that that’s actually a three cent DECREASE in fees that’s being mentioned.

imbuzzy · ‎03-19-2021

Yes, you are correct, it is a decrease. I'll eat crow and stop doing basic mathematics just before bedtime...

It is still a sizeable fee increase for my business model resulting in less flexibility for me and higher prices for my customers.

marnotom! · ‎03-19-2021

No question that this is going to have an impact on a lot of sellers of low-priced goods. I do have to wonder how these sellers managed prior to 2010, the year that PayPal rolled out Micropayments. I guess I have to assume that they either sold elsewhere or used a different business model.

It does appear that eBay has been experimenting with something along a Micropayments model in the UK. I don't know if anything similar is going to be tried out here or on the .com site, but you may want to give this a read and a mull-over:

https://tamebay.com/2020/08/ebay-payments-micropayments-low-cost-items-promotion.html

femmefan1946 · ‎03-20-2021

The ebay charged about 20% of the payment and much more than on Paypal (Paypal only charge about 7-8%).

Paypal charges 30c per transaction + 2.9% for domestic transactions.

I have trouble remembering numbers but I believe it is 30c+ 3.7% for US* transactions and 30c+ 3.9% for overseas transactions.

As noted PP is only charging for the payment processing.

Managed Payments charges your Final Value Fee** and the shipping FVF, usually 10%, as well as payment processing fees.

So if you have a $100 sale to New York State and charge $5 for shipping, your buyer would pay:

$100

$5

$15 (NY sales tax)

$120

and eBay/MP would charge you

$10 (FVF)

$0.50(FVF on shipping)

$1.50(FVF on sales tax)

$0.30 (non-refundable processing fee)

$10.65 (3.7% of the total payment)

$22.95 for the $100.00 sale

You get$77.05 from which you pay shipping charges***.

The 30c fee is more important on low value sales and unimportant on high value sales.

And the selling FVF as noted can be higher or lower than 10%.

this is one reason some sellers who are paying lower FVF use Free Shipping, which just means putting the cost of shipping into the selling price.

*US payments (and some European and Australian payments) may include sales taxes which the seller does not handle but which are paid at the same time. Both PP and MP charge their fees (the 3.4%) on that tax. This corresponds with the Standard Practice of credit card companies which charge their fees on buyer payments that include sales taxes.

** Usually given as 10% but might vary from 3.5% to 15% depending on... all sorts of things.

*** If you use Calculated Shipping, your customer sees, and you are charged on the basis of the Canada Post rate sheet. However, if you are buying labels through eBay/Shippo you get a small discount on some of these. If you are buying discount mint postage on eBay you may have a much lower cost for shipping.