New Ebay Fees Breakdown.

[grendelin]

New Ebay Fees Breakdown..

Here is the breakdown for people wondering about the Managed Payments program.

Ebay will tell you that “most” people will save, which only applies if most people have ebay stores and pay yearly or monthly fees for mainting the store.

Curreny Paypal System

· Item sells, Ebay take 10% EXCLUSIVE of taxes, Paypal take 2.9% + $0.30 transaction fee

Managed Payment system

· Item sells, Ebay takes 12.35% + 0.30 Cents INCLUSIVE OF TAXES

For an item sold in Ontario (13% HST)

Sell Price  //    Price + Tax   //    Ebay Fees                                              //       Paypal Fee

    $100                $113                      $10  (10% of $100)                                             $4.20(2.9% of $113 + 0.30cents) 

Total Fees = $14.20

Managed Payments

Sell Price  //    Price + Tax   //    Ebay Fees (New managed payments)

    $100                $113                      $14.26  (12.35% +.30Cents)

New Managed Payments $14.26 Total Fees = $14.26

Now it should be noted, that different states and provinces have different tax rates, so a lower tax rate will result in a lower fee.

Hope that helps.

P.S. Ebay will be raising their fee to 12.55% soon, if you sell international it will cost slightly more. For example Canadians selling in the US will pay 12.95% + 0.30 cents

Also for those using excel, here is a simple formula I use, by no means am I an Excel expert, but this gets the job done.

=sum(A1*.1255)+.3 where is column A1 is where I would put the cost + taxes of the item I sold.

Any questions or comments please feel free to reach out.

In all honestly, I dont think this move is in any way beneficial for the sellers at all, I like the idea of being paid instantly, and not having to wait. Ebay benefits entirely from this and more because over they will make more than paypal was with their fee.

Fees are cheaper if you open a store, the basic store fees drop to 9.15%, however you still have to pay $240ish on a yearly fee, or $24.95monthly, so take that into account too.

Hope this helps.

[marnotom!]

I’ll leave it to someone else to go into the gory details, but PayPal’s fee isn’t as straightforward as you’re depicting it. There isn’t nearly the transparency with PayPal’s fee schedule as there is with Managed Payments; there are a lot of buried fees, particularly if you’re selling out of Canada.

[reallynicestamps]

Final Value Fees vary depending on category, TRS status, Store subscriptions, and Defects.

https://www.ebay.com/help/selling/fees-credits-invoices/store-selling-fees?id=4122

These are dotCOM. DotCA fees are different.

Both MP and PP charge fees on  Internet (state) Sales Taxes.

EBay does not charge fees on Canadian Sales Taxes unless the seller is registered to collect them.

Store fees vary depending on whether a monthly or an annual subscription is chosen.

[ricarmic]

Also of note is the Currency conversion fee..... now that we're forced to use eBay to convert, we're paying the ebay rate, which is in the 3%ish.... in the PAYPAL days, I was using XEtrade to do my US$ conversions and they cost in the .75% range, which means I'm losing 2.25%ish on each conversion now.....this is the worst financial impact to me for certain of the MP conversion.

[recped]

P.S. Ebay will be raising their fee to 12.55% soon,

How do you know this? Has there been an announcement? 12.55% is the current rate for US Sellers but there are a number of examples where fees for Canadian Sellers are lower than for US Sellers.

To name a couple:

Store Subscriptions (lower in Canada)

Media Category (lower in Canada)

The lower Store rates have been in effect for many years, the Media Category went up in the US almost 3 years ago but hasn't changed in Canada.

[byto253]

One thing not in your fee calculation is that HST is charged on the ebay fees.   So in Ontario the $14.20 in fees becomes $16.05 total.   Ebay does not control the HST, but for a seller looking at net amounts from a sale, the HST pushes the typical total cost of fees on a sale to the 16% range.  I think this is where some folks feel that they are paying higher fees.

[ypdc_dennis]

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@grendelin wrote:

... Ebay will be raising their fee to 12.55% soon, if you sell international it will cost slightly more.

Also for those using excel, here is a simple formula I use...

=sum(A1*.1255)+.3 where is column A1 is where I would put the cost + taxes of the item I sold.

In all honestly, I dont think this move is in any way beneficial for the sellers at all ...

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MP non-store fees for most ebay.CA categories remain at 12.35% -- sellers on ebay.COM had an increase of 0.2% in the Spring update to 12.55% (there was no change for Canada). 

So for most categories it is 0.2% more expensive to list on ebay.COM -- the main exception is for the media categories (books/dvds/cds) where the difference is 2.2%

Your formula will only work for Canadian sales -- sales for other countries are more complex since the shipping benefit (lowest of domestic or international shipping for fees) still is is in effect.

Item price + any sales tax + modified shipping cost is the base amount subject to fees for non-Canadian sales.  

As you say, this is for ebay's benefit, any MP benefits for sellers are accidental (like fees not being charged until the buyer pays).  The ebay claims of lower or similar fee costs is true only if "internet" sales tax is not involved (something that did not exist when MP was being created in 2017).

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