Whats Managed Payments All about

[westcoastart2]

I just got the ebay email saying they are converting to Managed Payments, and I have until July to sign up.

Is this eBay's attempt to get around Paypal?

After 20 years, and a rough start, Paypal is now a good service that works (unlike eBay's frequent software glitches).  

I like the idea of selling an item on ebay, then getting paid via Paypal.

If it isn't broken, then why fix it?

Does this mean ebay is about to screw this up?

Does this mean its finally time to get off ebay?

[brettjet38]

...and we are supposed to let them "handle" our payments, they cannot even get a link correct!? Before it goes live! Typical eBay...

..here, down your throat, ugh, ugh, ugh!!

[brettjet38]

...and why looking at other "venues" is going to be the thing to do. I have a dozen eggs, better to not have them in one broken basket.

[brettjet38]

Whats Managed Payments All about, for Sellers hell....

[electronicifycanada]

I don't know why it didn't work in the forum post, just go to the broken one and remove the first H and then go to that. It should work from there.

You won't get much further from there besides some more limited information and broken links I can't find workarounds for. 

[reallynicestamps]

If ebay.CA MP is the same as the USA, then increases of 0.3% and 0.1% -- fairly minor, compared to other MP changes.

Minor but many.

US sellers get very few international payments. We see that when they are stunned by GSP sales, freight forwarders, or sales to Puerto Rico.

While Canadian sellers make over 80% of their sales outside our borders.

And thank you for the correction.

[mrdutch1001]

oh I am already elsewhere...

 my other site has been picking up steam and sales are almost matching the few and far between sales that I get here on eBay...

and no I will not be signing on with MP.

I left Etsy back in 2017 when that site forced sellers to sign on with their Etsy payment system (Adyen) or not be allowed to sell there.

I am prepared for leaving eBay...

[brettjet38]

...with google search its easy to find stuff for sale no matter the location & a serious Byer will always find you...

[silverpinups]

Don't forget about the fat FVF eBay is charging on the US Sales Tax....

[mrdutch1001]

Yep! MP was supposedly going to be "cheaper",  but now with all the changes to fees in the mix and all thrown together, it will be cheaper for some sellers and more expensive for others...

a real mess!

[eh_canuck1]

what it means is e-bay found a way of making more money for themselves

[snoopwiz]

Hey Tyler.   Can you please pm me at your convenience?

Thanks

[femmefan1946]

Don't forget about the fat FVF eBay is charging on the US Sales Tax....

Technically, eBay is not charging anything on the US Internet Sales Taxes.

They use our invoices to make sure the buyer pays it, then remove the payment instantly.

What eBay did NOT do is arrange with Paypal (which has not been a part of eBay for some years) to make that tax free of Paypal fees.

So sellers pay 2.9% (for US sellers) and 3.7%( the fee on international sales) to Paypal.

EBay does not keep that fee. They just make us pay it instead of them.

While apparently this is not true of the upcoming Managed Payments, it still rankles.

[silverpinups]

Once you are enrolled in Managed Payments in July or beyond you will be charged a 10-12% FVF on the US sales Tax.. I've read this on the eBay.COM boards. 

Correct me if I'm wrong.... 🙂  

[mrdutch1001]

basically, yes that is correct...FVFs are category based as well as differing between store sellers and non-store sellers...

 FVFs will vary somewhat depending on the item category, but will be inclusive of item price, shipping costs & any applicable USA sales taxes. (I believe there are categories that will have FVFs in the 14% range)...

unfortunately any of the links to "learn More" and/or view the new fee structures that have been placed in the .COM discussions are only available to view by those sellers who have committed to join and/or have joined MP, although some eligible MP posters who do have access to that information, have attempted to copy some of that info to the discussions...

To have to commit to join MP and/or sign up to MP before being allowed to gain additional information is just all wrong in my books.

[cottagewoman]

So between this new wonderful simplified fee calculation and the 3 point hit on USD to CAD conversion for fees (95 percent of my sales on .com), we're talking another 4-5 points revenue loss. Wow that's so encouraging isn't it.

[mrdutch1001]

it is really hard to know how each seller is going to be impacted , when we can't get the adequate information that is needed to make the decision on how to proceed going forward. There are too many variables to make this a blanket coverage of knowledge when the structure varies and is based on many factors.

[mrdutch1001]

For store owners on .COM, this what has been posted on the thread = post #473

https://community.ebay.com/t5/Payments/Managed-Payments-Answers-to-some-Frequently-Asked-Questions/m...

[tobey_arih]

what? that's not legal.. 

[femmefan1946]

@tobey_arih 

The Internet Sales Tax?

The post is ... inaccurate.

These are state sales taxes that are charged to buyers in those states (about 35 last time I looked) by eBay as a Marketplace Facilitator.

Sellers do not pay these taxes, the buyer does.

For convenience, eBay puts the tax on our invoices, and then removes them immediately on payment. We do not touch the tax in any way.

EBay is required to collect and remit those taxes as appropriate.

But.

Paypal charges its fees on the Buyer's total payment.

So we pay 3.7%* on the part of the payment that is the Internet Sales Tax because it is part of the buyer's payment.

Last week $3.06 in Internet Sales Taxes passed through my PP account and I paid 11c to Paypal for the privilege.

It's a tiny amount, but it is bloody annoying.

Apparently one of the "benefits" of Managed Payments is that we will not be paying fees on sales taxes we do not collect or remit.

My tinfoil had is very stylish, don't you think?

*3.7% is the PP fee for any US dollar payment.  Your US buyer is probably paying in US dollars, even if you list in loonies. He sees it in US dollars. PP takes care of the currency exchange.

[kawartha-ephemera]

---

@silverpinups wrote:

Once you are enrolled in Managed Payments in July or beyond you will be charged a 10-12% FVF on the US sales Tax.. I've read this on the eBay.COM boards. 

Correct me if I'm wrong.... 🙂  

---

Sounds about right .... but these ebay bean counters are slippery! The formula changes with amazing regularity.

If .ca follows the .com pattern these international sales fees are going to be a little over the top ...

Non store sellers can look forward to 2.35 + 1.65 + 3 = 7% + 0.30 MP fee.

In a 10% FVF category that adds up to more than 17% being charged on every line item including sales taxes ... seems to me Paypal rates are not that high.

Someone please correct me here. Are we really going to have to pay this 17+ % on every international sale? Musn't forget GST/HST goes along for the ride too.

At least the domestic rates seem reasonable and they have tossed the 0.25 per listing madness, a very positive turn around.

What happpens to the TRS discount now that all these fees are rolled together, will they have some fancy script ready to go that'll pull out the eligible for discount portion?