Fees pre and post managed payments

[ryanj100]

So if I understand the update process correctly, when things transition to managed payments the eBay fee goes up but there is no more PayPal involvement so no more PayPal fees? Looking at an online fee calculator, that looks like it might save money?

And also if it’s an eBay managed payment, then refunds to buyers will refund the whole FV fee other than the .30. Whereas PayPal stopped refunding any fees since the fall. Which also seems like a plus.

I’ve never seen an eBay change save money so I’m skeptical. Can anyone verify these things from their experience?

[ypdc_dennis]

It depends.

If selling to Canada and not charging GST/HST then there will be some fee savings.

If shipping outside Canada to a country that does not require sales tax to be collected by ebay, then there will be some savings. 

Sales tax collected on a sale (by the seller or by ebay) will make fee savings disappear.

I believe the current list of ebay tax collecting is for: most USA states, Australia, Norway, UK, and Singapore. With the majority of the EU countries jumping onboard the summer of 2021.

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[pjcdn2005]

There's an online fee calculator for MP?

I'm not in MP yet but from what I understand some transactions might be slightly more and some less.  When there is tax on a transaction PP charges their 2.9% on the tax but eBay didn't charge fvf on the tax.   With MP you will pay fvf on the tax as well so if the buyer paid a high amount of tax you might end up paying more overall.   

Canadians that are using MP will be paying a lower rate when the buyer is in the US.  PayPal charges .8% extra for US buyers and MP adds on .4%. 

My guess is that the costs will end up being similar overall.   Like you I'm skeptical that they will end up to be less expensive.

[femmefan1946]

PP charges their 2.9% on the tax ... With MP you will pay fvf on the tax as well

Since (I believe) the PP non-refundable fee is 30c + non-refundable percentage, and MP is a non-refundable 30c + a refundable percentage, the actual fees are the same.

The big one being on US state taxes which can be as high as Canada's.

Ignoring the question of refunding, which only happens on the occasional failed transaction, this seems to be no real difference.

Are the MP and PP percentages the same?

so if the buyer paid a high amount of tax you might end up paying more overall.

But only if the percentages differ.

[femmefan1946]

Do both PP and MP charge the same percentage on US payments? And on overseas payments? Both charge 2.9% on Canadian payments.

[pjcdn2005]

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@femmefan1946 wrote:

PP charges their 2.9% on the tax ... With MP you will pay fvf on the tax as well

Since (I believe) the PP non-refundable fee is 30c + non-refundable percentage, and MP is a non-refundable 30c + a refundable percentage, the actual fees are the same.

The big one being on US state taxes which can be as high as Canada's.

Ignoring the question of refunding, which only happens on the occasional failed transaction, this seems to be no real difference.

Yes both have .30 transaction fees but that has nothing to do with the tax and is the only number that is the same. The difference is that with MP a non store seller will pay 12.35% on the tax. In PP  sellers  pay 2.9% on the tax.  If the transaction is just $10 and tax is 10% it isn't a huge difference but it will make more of a difference on a $300 transaction with 10% tax.  I'm not saying that MP transactions will automatically cost more because of the fvf on tax because that isn't the case, I'm just trying to explain how it works. 

 

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[lotzofuniquegoodies]

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@pjcdn2005 wrote:

There's an online fee calculator for MP?

I'm not in MP yet but from what I understand some transactions might be slightly more and some less.  When there is tax on a transaction PP charges their 2.9% on the tax but eBay didn't charge fvf on the tax.   With MP you will pay fvf on the tax as well so if the buyer paid a high amount of tax you might end up paying more overall.   

Canadians that are using MP will be paying a lower rate when the buyer is in the US.  PayPal charges .8% extra for US buyers and MP adds on .4%. 

My guess is that the costs will end up being similar overall.   Like you I'm skeptical that they will end up to be less expensive.

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Re: Online fee calculator MP

That would have been an awesome addition for MP from the get go. Unfortunately no such animal. The fee illustrator, fee calculator links on the old invoice page in sellers hub still show but haven't worked in years. The How Fees Work link brings you to a page on collecting taxes on eBay. How your eBay Invoice is simpler brings you to a link on Viewing your invoice but explains nothing on how the invoice is simpler. As for eBay showing the math for fee calculation, extremely not likely.

-Lotz

[lotzofuniquegoodies]

According to the dot com Spring announcement fees have already increased in some categories for folks with stores.. Currently on dot com the fee for Coins and Paper Money is  8.5% on total amount of the sale up to $4,000 calculated per item . I believe it was previously the same 6.15 % pre MP page. Currently on dot ca it's still 6.15%. Increases across the board on dot ca? Probably. When? Probably sooner than later!!!

From the original MP announcement (2-3 years ago) it was noted that "some" sellers would see savings. With the IST issue this will be limited going forward. I had a recent recurring low value sale. One I could check pre MP and after. The MP sale was .10 cents more in fees. Not alot more but over the course of a year it could add up substantially. As per the most recent announcement there will be savings for all the sellers selling in the Business and Industrial section. If you qualify, please put up your hands and we can take a count.  🙂

-Lotz