Why eBay managed payments are a long way from similar to previous structure

Hello eBay users

 

I feel we need to let eBay know that their claims to save us money and require us to start eBay managed payments was an unfair business decision that hurts many sellers.

To start with the glaring issue that needs to be addressed immediately is for eBay to get off its ass and get a shipping arrangement with Netshipping the exact same as Paypal did. 

  • This is huge as eBay requires tracked shipping to prove a seller claim for shipment YET they totally frigged sellers removing the Netshipping option (which included tracked shipping through UPS and Purolator at 75% off. YES 75% off
  • Saving fractions of a penny on additional paypal fees while forcing us to use Canada Post discounted rates (the same 5% that anyone in Canada can get that registers an eBay business) This was also offered at Paypal so its not an advantage either.  
  • That takes a lot of pennies to pay for as an example the other day tracked shipping Canada Post ($18.79 + tax) and the same package cost me $8.84 to $10.67 WITH TAXES included at Paypal through the Net Shipping.
  • I can't even use Paypal to ship the item through Net shipping now as the only way it works is to ship items that have been paid through Paypal.

EBay totally dropped the ball on this and set sellers up for failure, lost revenue, shipping issues taking chances not using tracked shipping for lower priced items, while trying to maximize profits for shareholders but as members, and as a share holder who are considering selling shares as this is not how to treat your clients. eBay is nothing without members who are willing and able to sell competitively but forcing Canadian sellers to use Canada Post as the solution and compete with other countries is destined to hurt a lot of Canadian sellers. 

eBay needs to get this set-up with Net shipping if they want to discuss money saving benefits as the Shippo program they link you too actually costs you money to use and YOU have to have an account set up with couriours etc. UPS is not offering regular customers 75% off, but the major player eBay can get sellers this same offer I am sure. They just need to be let known sellers are not happy at all about this.

 

AS a side issue, I personally liked leaving my money in my account at Paypal as then when I wanted to buy something as a treat or whatever it was like it was free. The forced payouts every week I know will cause me to carefully consider whether I need that item or not as coming from my bank (even though it was previously deposited) is different than just clicking the pay now button through paypal acount. Anyone else do this also and will be considering purchases more carefully because of this small change? Actually this is a puzzler anyway as I think eBay would love the money sitting in their accounts and gathering interest instead of paying out millions and millions weekly. 

 

I would love comments and thoughts from other sellers. 

Thank you

BMM MoneyMart

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Why eBay managed payments are a long way from similar to previous structure

I am certainly not a fan of MP. Signed up last week,made 2 sales on Thursday and here we are a week later and still haven't received any money into my bank account... Wasn't expecting issues like this as I changed all of my listings to .CA in Canadian funds,used a Canadian bank account,my sign up for MP was quick & easy and I am on a daily payout schedule. I used to receive money orders in the mail faster. I have put the rest of my listings on "time away" until it gets all sorted out. I guess that is what happens when you try and fix something that wasn't broke to begin with.

Message 2 of 28
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Why eBay managed payments are a long way from similar to previous structure

Managed payments in Canada has been rolled out really poorly. I sell 99% of my items in the US and when I tried to sign up I never got an option to pick either CAD or USD as my payout currency and now I am locked in with CAD payouts with no option to change because when you sign up you are locked to the currency you choose, but I didn't even get to choose!!! So if I want to continue selling on this account I have to pay 4% conversion for every sale which is a joke.

 

Managed payments has really just hindered our ability to sell as we can only accept one currency now without extra fees, seems like a step backwards because with PayPal we could get paid out in any currency, really don't understand why they are forcing this upon us. It really makes selling on eBay unappealing.

Message 3 of 28
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Why eBay managed payments are a long way from similar to previous structure

eBay requires tracked shipping to prove a seller claim for shipment

True.

But with less than a one percent on average Dispute rate, most sellers don't bother to track shipments, unless the tracked option is the best or only option (eg when the shipment is over 2cm thick or 500gr and must ship as a parcel).

Sellers who "go commando" on shipping usually use Cookie Jar Insurance, adding a few pennies from each sale to a virtual Cookie Jar to cover the cost of occasional Disputes, no matter who is at fault, buyer, shipping service, or seller.

 

forcing us to use Canada Post discounted rates

Sellers can ship any way they want.

In addition to Canada Post, sellers commonly use UPS and FedEx. I've seen discussions of shipping by intercity bus (Greyhound).

Personally I use Canada Post but instead of buying labels through eBay or even SnapShip, I use discounted mint postage stamps to reduce my shipping costs.

And of course Local Pick Up is still an option.

 

I personally liked leaving my money in my account at Paypal as then when I wanted to buy something as a treat or whatever it was like it was free.

Agreed.
This is one of the dumbest parts of Managed Payments.

Not only does it confuse the purchase of shipping, since when needed the money may already have been automatically moved and need to be retrieved, but it reduces easy purchases of goods on eBay.

 

I think eBay would love the money sitting in their accounts and gathering interest

Paypal claimed that they did not earn interest on the money they held for clients, neither when they belonged to eBay nor now that they have been spun off.

Message 4 of 28
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Why eBay managed payments are a long way from similar to previous structure

@bmmmoney 

 

You can still use Netship by signing into paypal.com/shipnow

Message 5 of 28
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Why eBay managed payments are a long way from similar to previous structure

"I think eBay would love the money sitting in their accounts and gathering interest

Paypal claimed that they did not earn interest on the money they held for clients, neither when they belonged to eBay nor now that they have been spun off."

 

That is interesting.  I do wonder if the reason is that in order to do that Paypal would need to register, and be regulated, as a deposit taking financial institution.  I always wondered about Paypal's legal status as I am sure that at any one time they hold more money in trust than many small banks or credit unions.  

Message 6 of 28
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Why eBay managed payments are a long way from similar to previous structure

eBay has also specified that they don't collect interest through MP. 

Message 7 of 28
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Why eBay managed payments are a long way from similar to previous structure

Yup, definately something legal going on here!  To much money left on the table 😎

Message 8 of 28
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Why eBay managed payments are a long way from similar to previous structure

@bmmmoney 

 

You can use any shipping service you want, in  the 22 years I've been selling on eBay I've used eBay or PayPal shipping perhaps 10 times (in the very early days).

 

There are plenty of options out there to purchase shipping labels and I don't understand what the connection is with Managed Payments. I have selling accounts still with PayPal and other accounts in Managed Payments, it makes no difference in terms of who I use for shipping.

 

 



"What else could I do? I had no trade so I became a peddler" - Lazarus Greenberg 1915
- answering Trolls is voluntary, my policy is not to participate.
Message 9 of 28
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Why eBay managed payments are a long way from similar to previous structure

In case of a Dispute, you can use the tracking for any company that is posted online to prove delivery.

It's delivery that eBay wants, not tracking.

 

And tracking is not needed to qualify for Global Top Rates Seller Status, for the tiny discounts that gives us.

Message 10 of 28
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Why eBay managed payments are a long way from similar to previous structure

33nhl
Community Member

I had a sale today and fees cost me $9.00 more then it would have with out Payment Management

If a rep from ebay can sit down and clearly show by doing math work on paper and show that a total sale of $100.00 going from Canada to Europe that my fees are lower then what it was before i will kiss his ass

 

Even before with having paypal and paying 2.9% plus 0.39 to pay pal was much less in fees then what paying under management payments system

Here is why the system still does not give discount to top rated sellers on shipping as it did on the old system with only 1 item purchased

$80.00 items plus $20.00 ship to europe  old way on that $20.00 as top rated seller would be charged to what ever i had as domestic thus if i had $10  i be charged on $10  but now the entire amount is charged fees.

so just right there paying over $1.00++ more in fees

then extra 1% fee sicne item is going to Europe plus tax on this fee so an other $1.00+ in fees

Then buyer pays sale tax on that purchase and then seller pays more fees on that sale tax portion so extra 12.3% plus 1% cause again its going to Europe plus tax in these portion of fee so once again more fees

 

So where in the hell are we better off and saving with this new Management System

The only ones benefting is Ebay  CEOS they will be making more cause they will increase there revenue with this scam plus ask why they did this and one is to make more $$ the other is since Ebay was forced to collect tax on sales and fees they are expending it so they get back more TAX CREDIT as a business as the more tax they collect the more they get as TAX CREDITS.

I cant wait to see Canadian buyers paying tax on used items purchased and then see what happens to Ebay as if it already Ebay is in a down fall and many are leaving ebay for other selling platforms with less or no ridiculous fees as they are now forced down upon us

Message 11 of 28
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Why eBay managed payments are a long way from similar to previous structure

The PP fees are 30c (not 39c) plus 3.9% for international sales.

I believe the same fees are used by Managed Payments.

 

I think eBay started charging their shipping FVF on the entire amount of international shipping a couple of years ago. tyler@ebay  is that right?

 

And there is a $3.00 international payment fee in there somewhere.

Plus possibly currency exchange.

 

And both PP and MP charge the same fee on VAT payments as on the rest of the payment. (Not the VAT itself, FVF on the tax which the seller never touches, but which is processed by eBay.)

 

Having at one point been registered to collect and remit Canadian sales taxes, we got tax credits on the taxes we paid when we bought items which were later sold and  shipped outside of Canada. But the accountant dealt with that. I don't think either you or I understand how tax credits work.

Message 12 of 28
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Why eBay managed payments are a long way from similar to previous structure


@femmefan1946 wrote:

I think eBay started charging their shipping FVF on the entire amount of international shipping a couple of years ago. tyler@ebay  is that right?

 


No, for a single item, it was still charged on the lowest domestic cost before MP.

Message 13 of 28
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Why eBay managed payments are a long way from similar to previous structure

 


@femmefan1946 wrote:

The PP fees are 30c (not 39c) plus 3.9% for international sales.

I believe the same fees are used by Managed Payments.

 

No, they are not the same. 

The international fee charged in MP for US buyers is .4% and for buyers in other countries it is 1%

The fees added on in PP for US buyers is .7% for US buyers and 1% for other countries.

 

I think eBay started charging their shipping FVF on the entire amount of international shipping a couple of years ago. tyler@ebay  is that right?

 

Not that I'm aware of. However there have been comments about them charging fvf on the actual international shipping cost only when there are multiple sales.

 

And there is a $3.00 international payment fee in there somewhere.

Plus possibly currency exchange.

 

I'm not aware of a $3 fee but the international fees are explained above.

There is no currency exchange for the seller if their listing currency is the same as their payment currency.

 

 
Message 14 of 28
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Why eBay managed payments are a long way from similar to previous structure

In regards to the International shipping which should be charged at the domestic rate for fee calculation......

 

When I first when into MP this was the second thing I tried to audit. The first was the general fee calculations which had me quite confused initially. Keep in mind this was in September 2020, the Payments Tab has improved a lot since then making it much easier to confirm the numbers.

 

At first I thought that calculation were not based on domestic shipping, I think this is because my US & Canadian shipping rates are mostly identical, Other overseas are more limited in number but after a bit I confirmed that Overseas sales were using domestic shipping rates as the fee base (but not the International service fee which is based on the total paid). It took me some time to confirm the fee calculation.

 

Here is an example....

 

Domestic shipping $10, International $20

 

Overseas Buyer purchases 1 item, my fvf is calculated on $10

 

For multiple item purchases I add $5 per item International, $2 domestic) (done free form, I do not have combined shipping rules in place)

 

For a purchase of two items

 

Domestic buyer is charged $12 and fees are calculated on this amount

 

International buyer is charged $25 and fees are calculated on $20 (2 x the domestic rate)

 

For a purchase of three items

 

Domestic buyer is charged $14 and fees are calculated on this amount

 

International buyer is charged $30 and fees are calculated on 3 times the domestic rate which is also $30 so the fees are identical.

 

For a purchase of 4 items

 

Domestic buyer is charged $16 and fees are calculated on this amount

 

International buyer is charged $35 and fees are charged on that amount because the domestic rate of 4 @ $10 is actually higher than what the International buyer actually paid.

 

It's possible that if I had actual combined shipping policies/rates in effect I might have slightly lower fees on orders of a large quantity of items but I've never been able to make the combined shipping rules actually work and prefer the old school way of having buyer Request a Total and then provide them with the correct shipping based on their specific location and other factors. The combined rules are just not flexible enough for me partially at least because of the wide variation in my costs depending on the combination of the specific items purchased AND the specific destination country.

 

 



"What else could I do? I had no trade so I became a peddler" - Lazarus Greenberg 1915
- answering Trolls is voluntary, my policy is not to participate.
Message 15 of 28
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Why eBay managed payments are a long way from similar to previous structure

Why eBay managed payments are a long way from similar to previous structure

Totally agree with everything you said. I have sold on eBay since 2006 and will be gone once all my items are sold.  There have been times in the past when I was irked with their incessant updates but this is the final straw.  There are a lot of sellers who are doing the same.  I get notifications from eBay daily for my saved searches and every day there are fewer notifications for newly listed items. This has been happening for quite a while now.   Fewer notifications means there are fewer new items listed every day. Not hard to figure out why.

Anyone who is naive enough to believe that managed payments will save sellers money on fees is in for a rude awakening.  Ebay didn't implement this program to save money for sellers. They did to make more money for themselves. For me this just means my planned retirement for the end of this year will just start a bit sooner than I originally planned.  To be honest I am looking forward to being finally done here as a seller!

Message 17 of 28
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Why eBay managed payments are a long way from similar to previous structure

You are totally right about that.  I check my fees carefully every month.

Message 18 of 28
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Why eBay managed payments are a long way from similar to previous structure

Question: I sell on eBay.com in USD but am based out of Calgary, AB. I found that I had better sales if people honestly though I was in the US since I listed in USD. Anyways, I take it MP is being forced on us, which is unfortunate. So if I change over to MP, I need to to this, right?

-Setup chequing account with my bank

-Give account details to eBay.com when switching to MP

-Likely better to select payouts in USD, yes (to avoid conversion fees)? Is there a different fee structure if payouts are done weekly instead of daily?

 

Also, eBay isn't forcing us to create shipping labels etc through eBay, right? I accept the cashola then pay for everything at my local post office.

 

Haven't had time to look into this, so I figured I'd ask here. Thanks guys!

Message 19 of 28
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Why eBay managed payments are a long way from similar to previous structure

It sounds as though you’ll be wanting to open a USD chequing account with a Canadian financial institution. Question about having your sales deposited in USD: Yes, you’ll avoid conversion fees at that point, but what will you do with all those US dollars sitting in your Canadian-based USD chequing account?
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