eBay Managed Payments Sucks the Purpose Out of Selling by Taking 70%

[*playitagain*]

On April 6, 2021, I received an eBay notice that if I don't sign on to eBay Managed Payments by April
29th, "your ability to create new listings, as well as revising and relisting your items will be disabled."

In this same message eBay states that by signing on to Managing Payments "Most sellers will pay the same or less than before". I just put that to the test on a $10.00 sale:

According to eBay, Final Value Fees will change to a single bundled fee of 12.35%
(Note: this is the variable percentage for non-Store sellers in most categories. There’s an added  .30 cents processing fee per order.)

EXAMPLE 1:

Existing eBay/PayPal model before "Managed Payments":
An item sold on eBay for $10.00 with a very realistic $15.00 shipping across Ontario (can be higher for other provinces). The Buyer pays a total $25.00.

eBay Final Value Fees on Item:  $1.00 + $0.13 = $1.13
eBay Final Value Fees on Shipping: $1.50 + $0.20 = $1.70
Total eBay fees = $2.83

PayPal fees on $25.00 if the buyer is Canadian = $1.03
($.30 processing + $0.73 on $25.00 @ 2.9%)

Total combined eBay / PayPal fees ($2.83 + $1.03) come to $3.86

After fees and shipping on a $10.00 sale, the Seller takes home $6.14

EXAMPLE 2:

eBay's NEW Managed Payments model:
$25.00 combined total ($10.00 item + $15.00 shipping)

Fees* on $25.00 are as follows:
3.25 HST (13% if in Ontario) = $28.25
3.49 eBay Final Value Fee ($28.25 + 12.35%)
0.30 eBay Processing Fee per order.
= $7.04 fees paid to eBay through Managed Payments

* eBay will charge an added 0.04% to sellers who are NOT power sellers.

So, after fees and shipping on a $10.00 sale are deducted, the Seller takes home $2.96
The Seller will have paid eBay Canada approx. 70% in sales.

• eBay's Managed Payments is a 2-step process that may take up to 5 business days (1 week) before the funds are physically deposited to the Seller's bank account. Compared with PayPal, if I transfer funds from PayPal to my bank, the funds are deposited the next business day.
Phase 1 of eBay's the payout can take up 2 days. Phase 2 may take another 1-3 days.
Technical issues can screw up a transfer of funds (buyer end, eBay end, or Seller end). How will eBay protect the Seller if someone claims they didn't make the purchase or purchased in error, and the item is already shipped? To maintain "Top Seller" status items must ship within 24 hours. Many will be losing that status. Who wants to take the loss of an item shipped before the funds are deposited? I don't earn enough income to pay out of pocket for casual losses. Remember, on a $10.00 sale, Sellers will earn less than $3.00 using this new model, even though the Buyer has paid $25.00 and is what they will be refunded. Anyone who needs funds in hand to pay the shipping must delay shipping for up to 5 Business Days (1 week) for this cumbersome method to complete its process.

• Slower deposits. Plop. Plop. Plop. 30 items can have 30 separate deposits, or 100, 167 and so on. Plop. Plop. Plop. Or we can bundle. How long will our buyers be willing to wait until we ship because we're waiting on processing? It would be longer if we're using the "bulk" method. Single deposits? Some banks and credit unions may want to add surcharges due to increased activity.

• No more buying from our accumulated funds. If we wanted to use funds from our accumulated sales to buy something, there's no longer a way to do it. If I were saving up to buy something at $75.00 it would now have to come directly from personal banking. Plop. Plop. Plop. An added discouragement. Once the
funds from my sales are deposited in my bank account it gets earmarked for a bill payment in real life. Period. No more setting a little aside to treat myself down the road. NO more joy of shopping on eBay.

This is a sham. On a $10.00 sale, eBay is hiking their rates by 50% or more.

To receive $2.96 on a $10 sale, I won't be giving eBay Canada access to my personal bank account AND my SIN. I'm not willing to jeopardize my bank account or gov't ID for this.

[motomike_canada]

don't forget you have to pay income tax on ($2.96 - cost of item) and then sales tax when you use whatever is left. 

yeah.. every time I list something under 30 I question why I'm bothering.. 

[paisley_daze]

Wow, this is just terrible.  I haven't signed up yet because I don't want to lose Paypal shipping ability.  How you have just described the fees, there is no way I have any reason to continue my pitiful little sales on this platform.  I'm just casual and sell mostly my own stuff.  It's a way to just move things out that I no longer use/need and make room for something new.  Like others, I would let my balance build in Paypal from my sold used goods and then use the funds to buy something I needed on ebay.  I love ebay - the way it used to be.  I'll be moving on at the end of the month.  It was a good run.  

[pjcdn2005]

EXAMPLE 2:

eBay's NEW Managed Payments model:
$25.00 combined total ($10.00 item + $15.00 shipping)

Fees* on $25.00 are as follows:
3.25 HST (13% if in Ontario) = $28.25
3.49 eBay Final Value Fee ($28.25 + 12.35%)
0.30 eBay Processing Fee per order.
= $7.04 fees paid to eBay through Managed Payments

@*playitagain* 

Your MP figures aren't accurate.  Why are you adding hst to the $25? The seller pays hst on the fees, not on the total value of the sale.

$25 x 12.35% = 3.09

3.09 + .40 (13% hst) = 3.49

3.49 + .30 transaction fee $3.79

Total MP fees on a $25 transaction - $3.79

Total ebay and PP fees in your example - $3.86

You wrote..

* eBay will charge an added 0.04% to sellers who are NOT power sellers.

That isn't true at all. I'm not sure where you are getting that from.

Something I didn't take into account....top rated sellers get 10% discount on the fees on their item only when using PP . On a $10 item you would get a .10 discount on fees.

In MP the discount is based on the item plus shipping so on a $3.09 fee your discount would be .30.

[pjcdn2005]

Honestly I would prefer to stay with PP so I'm not trying to promote MP but the information given in the original post is not accurate so don't base your decision on that.

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

[cumos55]

And......

Those fees are different if a Managed Payments seller has a store......

https://www.ebay.ca/help/selling/selling-fees/store-fees?id=4809

[cumos55]

I have been using Managed Payments with an eBay  store since August 10. 2020.

The fees  paid for my sales are exactly those indicated by eBay.

My payout occurs weekly, and I do not worry if I mail a sold item before the payment is proccessed by eBay...  or befiore the payout is in my bank account.

Payouts leave eBay early Tuesday morning, every week.  Those payouts are in my bank account that same Tuesday evening.

Everything has worked well for me.....  

[my427sc]

I cancelled all of my listings today as well.   I can be considered another in the lost-sellers category for ebay, FWIW.

[parts_and_diecasts]

Note that you can still use Paypal/NetParcel even after migrating to Managed Payments.

I agree that it is less convenient than before for the following 2 reasons, but it is still possible:

1) you have to have funds in your Paypal account (not a big issue imo given that they charge you in CAD anyways)

2)  you can no longer simply copy/paste the Paypal transaction ID to autopopulate the buyer's address details, you now have to copy paste line by line from eBay order details to NetParcel (that is what annoys me the most)

Given that 90% of my sales are to the US, that there is no ChitChats/Stallion Express close to me, that NetParcels UPS rates are better than Level 4 Canada Post rates and that UPS is faster, more reliable and more familiar to US buyers than Canada Post, I continue to use Paypal/NetParcel even while being on eBay's managed payments.

What currently annoys me the most from Managed Payments is the inability to transfer USD eBay.com sales to a USD Canadian based account. eBay has promised that this will be available in the near future, I am looking forward to it.

Cheers,

[happyholidays2019]

To ask for a SIN here in Canada is unethical .

Our Goverment IS TELLING US  : Never give your SIN away . To NOBODY!!!!

Absolutely a No Go !!

[happyholidays2019]

We don t need to provide a Goverment ID or SIN to anybody.

Simply fill in 00000 when it comes to the SIN Question.

 I smell a large rat!!!

[daisydaisy999]

I left the SIN box blank and it wasn't an issue - it even says that it  is optional under it.

[eagle_eyes00]

I agree! They have been dishonest for the last 10 years or more but now they are just plain crooks! I signed up for Managed Payments because i had no choice and 11 days after i made a sale... I still do not have my money for that sale! Ebay confirmed that everything was a go and that all my banking info ect was perfect so WHERE IS MY MONEY Ebay!

I cancelled all my items off Ebay and now will sell only on other websites such as facebook marketplace ect.... I will not give Ebay any more of the money i work hard to earn!

[recped]

---

@happyholidays2019 wrote:

To ask for a SIN here in Canada is unethical .

Our Goverment IS TELLING US  : Never give your SIN away . To NOBODY!!!!

Absolutely a No Go !!

---

It would be illegal for eBay to DEMAND your SIN, but they don't demand it, they simply offer it as an alternative method of identification verification which could be convienient for those that have neither a passport or drivers license.

The "Government" DOES NOT say the "never give your SIN away", in fact they provide a lenghty list of those that can and in many cases MUST demand your SIN.

[recped]

---

@happyholidays2019 wrote:

We don t need to provide a Goverment ID or SIN to anybody.

Simply fill in 00000 when it comes to the SIN Question.

 I smell a large rat!!!

---

If you put zero's in the SIN field your verification will 100% fail, if you leave it blank and provide other id for verification your sign up will go smoothly.

I signed up on this id earlier this week, there wasn't even a field for SIN. I used my drivers license and micro deposit method, 2 days later after I provided the micro deposit amounts I was notified that my sign up was complete.

[Anonymous]

I don’t really need all the numbers and calculations I see it in what I receive in my bank account and it’s as always a money grab by eBay and the governments plain and simple Time to stop selling on eBay for me after 20 years

[sjw241]

You don’t pay hst on the entire sale price plus shipping, you only pay the tax on your final value fees. Your calculations are flawed.

[linoleum-guy]

Managed payments is a disaster

Signed up for  Managed payments in may 2021 gave my Canadian banking details which I have used for PayPal and other utilities for years with no problems. All my payments from my Ebay store were blocked. On the phone at least 8 times to customer service, scanned and sent a void cheque and a letter from my bank to confirm my account details as requested, still could not get payments, they did however charge my credit card for store and selling fees.  Everytime I phoned I got a different rep and had to explain everything again, each time they told me to confirm my bank details again with no solution.   

I had to put my Ebay store on vacation mode as I could not keep sending out items with no payments coming in.

Eventually I opened a U.S. checking account at my Canadian bank and now it seems to work, this has been very frustrating and with my store being temporarily closed I have lost lots of sales.

I am very unhappy with managed payments, this seems to be a common problem

Previously I could see my payments in PayPal immediately now it takes up to a week to see it in my bank account.

[byto253]

I sincerely hope that everything goes smoothly for you now that it appears the bank and sign up process have finally been concluded.   For me it has been fine with deposits made as scheduled every week.  Fees are about 15% or so before HST is charged on them, which is similar to paypal days.  

[wolfcollectibles]

I'm also in Canada. After selling for almost 10 years, it's time for me to finally say "buh bye" to eBay. I never had one problem with PayPal. Money in and money out. Fast, easy and seamless. I also don't like how eBay has messed with shipping. eBay seems to be a corporate organization that likes to "blow up" things, even though they work, especially for small-size sellers like myself. Why, you can't even call and talk with a customer service person on the phone (at least not in Canada). We're urged to use online chat. No thanks. Perhaps, all of this justifies a big salary in the boardroom. Facebook Marketplace. Yup.