Paypal Fee increase 2.6% for small sellers

[babylonfuture]

This morning I got this in my email...

I guess they are preparing for the seperation and need to increase their profit..

Next month we’ll be making some changes that we want to bring to your attention.

• We’re introducing a new tier of lower pricing for sellers with a monthly sales volume between $2,500 and $5,000. The rate for this tier will be 2.2% + fixed fee. • For sellers with a monthly sales volume of less than $2,500, the standard rate will be changed to 2.6% + fixed fee. We’ve also changed the standard rate for all other types of commercial transactions. • For sellers using Website Payments Pro and whose monthly sales volume is over $150,000, we have amended the rate for cross-border transactions to 2.5% + fixed fee. • We’ve clarified when our Seller Protection Policy does not apply. • We’ve made some changes to our Privacy Policy.

The changes will automatically take effect on 12 February 2015

[babylonfuture]

Upcoming changes: https://www.paypal.com/au/webapps/mpp/ua/upcoming-policies-full

[cq_tech]

Pretty typical. Yet another kick in the guts for small sellers, the ones who can least afford an increase in fees.

[dithommo]

I am starting to think going back to trash & treasure - sunday markets and garage sales are going to become popular again.

These fees are getting rediculous.

[davidc4430]

well i'm thinking now why does anyone sell on ebay, you cant make even a small profit from small scale sales. you think you have done ok but when the ebay/paypal theives are finished your actually worse off. cant see myself selling on ebay again.

[character_parties_aus]

I recommend if you have a bit of volume taking a negotation stance with paypal. I pay 1.6% I rang them up and combined my eBay and website volumes and also put them under pressure for non eBay payments via my site. As a result I am now on 30c plus 1.6% with no contract. It's worth asking the worst that can happen is a NO!

I've always found paypal great to deal with as opposed to eBay.

[designers*n*more]

Ah, the greed continues as does the attempt to get rid of small sellers! Might start looking at Pay(buddy). Money paid straight to your bank account, no 3-5 days waiting for funds!

[digital*ghost]

Hmm, while I certainly wouldn't volunteer to pay eBay or PayPal more money for the same service, I do have to say that this is the first ever increase in fees I've seen PayPal make, and while I know that it's technically a 16% increase on the current rate, I honestly don't see an additional 0.2% after all these years (20c per $100 processed) as overly unfair or greedy. 

eBay is a different matter, many of their fees have steadily increased by several hundred percent in the last couple of years alone, but I actually find this (PayPal's increase, that is) acceptable. 

[character_parties_aus]

The fee increase to me comes down to value for money like anything. Do I think I get value for money out of eBay? Certainly not. Do I think I get value for money from paypal? Yes I do.

However digital have paypals costs increased by 16% in real terms in recent years???

[digital*ghost]

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@character_parties_aus wrote:

However digital have paypals costs increased by 16% in real terms in recent years???

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I was just referring to the increase from 2.4% to 2.6%.

0.2% is 16% of 2.4%, so the actual increase in the rate is 16%. Just like if someone charges a 10% commission on something, and increases that to 15%. The person paying the commission is charged 5% more, but it's an actual 50% increase in fees.