Managed Payments for Canadians compared to using PayPal previously

[robertqc2017]

I just registered for Managed Payments recently & completed my first sale. Ebay claims you will save by registering for the Managed Payments Plan, although I compared two sales both to Ebayers in the US.  Previously the PayPal fees, Ebay Seller fees including the Insertion fee all amounted to 15%. Ebay Managed Payment came to 20% including Seller Fees, 3% Exchange Rate & 4% for selling to the US. At 20%, selling to the US is hard to take, 15% was borderline. Most likely the only way to save with Ebay's Managed Payments is to sell only in Canada, the 3% Exchange Rate & 4% for selling to a US Ebayer should not be included in the fees. I haven't sold anything as yet to Canadians with Ebay's Managed Payments to compare with PayPal previously. Has anyone else done the math to compare Managed Payments with PayPal?

[7366carl]

When you list on .ca and sell to someone in the US they have to pay an exchange fee. This means they will  pay  less for your item then if there was no exchange fee cost to them.

Example

USA person buy from USA person. Cost is $100 USD

USA person buys from CDN person. Cost is $100 USD+ 3% exchange fee they need to pay to exchange those USA $ to CDN $.

[femmefan1946]

Paypal charges 30cents for each transaction PLUS a percentage of the whole transaction (including shipping and US state sales taxes as applicable).

The fee for domestic sales is 2.9% of the transaction.

Domestic would be a sale on dotCA for a Canadian buyer paying in Canadian dollars.

The fee for US sales is 3.7% of the transaction.

A US sale would be a sale on dotCOM from a buyer paying with a US-based Paypal account.

The fee for overseas sales is 3.9% of the transaction.

An overseas sale would be a sale on either dotCA or dotCOM in either currency from a buyer paying with a Paypal account based over seas (such as Australia or Germany or Russia).

This is slightly better than a US seller selling on dotCOM who pays 4.4% of the entire transaction for a non-US based Paypal account.

For example, a Russian buyer buys a Thing from a US seller and has it shipped to a freight forwarder in Delaware.

The transaction is very safe but the seller will be charged 4.4% of the entire cost of the transaction (including Delaware sales tax if there is any) because the buyer is using a Russian based Paypal account or a guest account using  Russian credit card and processed by Paypal.

@pjcdn2005  Please correct me if I have the actual numbers wrong. The 3.7/3.9% confuses my dysnumeric brain.

[7366carl]

Just to be clear. I was not talking about PayPal at all. Just comparing the costs of managed payments on .com and .ca.

From what I can see unless I have made an error(which is possible this is confusing) the overall costs for Canadians is lower if they list on .com.

This is mostly because eBay charges the exchange rate fees on the net amount after paying all other fees on .com. For .ca they charge the exchange fees on the gross amount. Then charge the fees.

[pjcdn2005]

My math is different.  As I said before, a US buyer buying a listing on .ca pays any conversion or exchange fees so....

If the item was C$100 the seller receives $100

fvf fee -$12.50

international transaction fee  - .40 (I’m assuming your .4 is accurate)

transaction fee -.30. ( this is a fixed fee on every transaction)

Net is $86.80

The only time a seller pays conversion fees is if they list on another site so the fees should always be lower on .ca.   As I mentioned earlier I’m not in MP but this is how it is supposed to work.  If you sold something to a US buyer and your fees are different than what I understand them to be, please let us know.

[7366carl]

Merry Christmas!

I understand what you mean when you said it's the buyer that pays the exchange fee. But to me that is the same as saying items with free shipping are cheaper. When you buy something with "free" shipping you are paying for shipping. It's just incorporated into the price. Its the same with the buyer paying exchange fee's. In a rational world they will pay you less for your item to account for that extra cost. To take an crazy example. If the cost to exchange currencies was 50% rather than 3%. If it cost them $50 to exchange their $100 currency to CDN they would be unwilling to pay as much for your item. That is the example I had above. Copy and pasted.

Example

USA person buy from USA person. Cost is $100 USD

USA person buys from CDN person. Cost is $100 USD+ 3% exchange fee they need to pay to exchange those USA $ to CDN $.

You can't just dismiss this fee in your calculations. Its just front loaded before we are paid the gross. It needs to be accounted for.

[femmefan1946]

Since the fee for shipping is 10% and the fee for selling varies from category to category and from seller to seller, Free Shipping can be cheaper than Calculated or Fixed Shipping to the seller.

When I include shipping in my Selling Price, the fee is only 9.1% on most of my sales.

But if I separate it out, my fee is 10%.

A seller who has enough Defects to be charged 14% FVF would be better not to offer Free Shipping and stick with the 10% shipping FVF on shipping charged separately.

[lotzofuniquegoodies]

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@7366carl wrote:

Merry Christmas!

I understand what you mean when you said it's the buyer that pays the exchange fee. But to me that is the same as saying items with free shipping are cheaper. When you buy something with "free" shipping you are paying for shipping. It's just incorporated into the price. Its the same with the buyer paying exchange fee's. In a rational world they will pay you less for your item to account for that extra cost. To take an crazy example. If the cost to exchange currencies was 50% rather than 3%. If it cost them $50 to exchange their $100 currency to CDN they would be unwilling to pay as much for your item. That is the example I had above. Copy and pasted.

Example

USA person buy from USA person. Cost is $100 USD

USA person buys from CDN person. Cost is $100 USD+ 3% exchange fee they need to pay to exchange those USA $ to CDN $.

You can't just dismiss this fee in your calculations. Its just front loaded before we are paid the gross. It needs to be accounted for.

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On the account summary page the fee illustrator used to work but has stopped. It was a very handy tool for checking/estimating possible charge scenarios. Maybe when MP is eventually fully implemented something like that will be available. It would be most helpful.

Below the boost your savings: DOA

https://www.fees.ebay.ca/feeweb/feecalculator

https://pages.ebay.ca/sellerinformation/news/FeeIllustrator.html

-Lotz

[femmefan1946]

International fee

If your registered address is in Canada, we charge an international fee of 0.4% to the US and 1% to all other countries if either:

• The delivery address for the item (entered by the buyer during checkout) is outside Canada, or
• The buyer's registered address is outside Canada (regardless of the delivery address for the item)

This fee is automatically deducted and is calculated based on the total amount of the sale.

If your registered address is not in Canada, please refer to the fee page for your country of residence for your International fee information.

Seller currency conversion charge

If your registered address is in Canada, when you list on an eBay site with a listing currency different to your payout currency, eBay may convert the value to your settlement currency using a "transaction exchange rate" we set for the relevant currency exchange. The transaction exchange rate is adjusted regularly and includes a currency conversion charge of 3% applied on a base exchange rate. The base exchange rate is based on rates within the wholesale currency markets on the conversion day or the prior business day; or, if required by law or regulation, set at the relevant government reference rate(s). The currency conversion charge will be automatically deducted from your sales.

If your registered address is not in Canada, please refer to the fee page for your country of residence for your Seller currency conversion charge information.

https://www.ebay.ca/help/selling/fees-credits-invoices/selling-fees?id=4822

[thegreatcanadiannorthernstar]

Not if your selling in US dollars as most do. 

[reallynicestamps]

If most of your listings are on eBay dot COM, you will be selling in USD although registered in Canada.

You have two choices with Managed Payments.

Set up a Canadian bank account that is held in US dollars and pay exchange when you take the money out.

Or

Set up a Canadian bank account in Canadian dollars and pay exchange when USD payments are received by Managed Payments and transferred to your account.