topic Re: Managed Payments First Sale Fees Cost More - DEFINITIVE in Selling

Managed Payments First Sale Fees Cost More - DEFINITIVE

waddingtonfirstaid — Tue, 04 Aug 2020 02:45:39 GMT

As expected, our first ever sale under the new Managed Payments cost us more in fees.

The whole hype about it being better for us, especially the claims about being cheaper, are utterly and definitively FALSE as noted by our very first sale.

You would have thought, with such a grand change to the way eBay went about this change, they would have ensured everyone shared in a financial benefit. But no, we've been difinitively conned. This is the true face of the entity we deal with which put manager bums on cushy chairs, the very people who rely on their own exisitance is us, the sellers, who have been totally and shrewdly conned. We had it pretty well worked out in a thread several months ago and obviously eBay management couldn't have cared less, but now it's definitive.

$24.95 sale on 7th June 2020 just before Managed Payments switched on:

eBay FVF (Final Valuation Fee): $2.61

Paypal Fee: $.95c

Total of Fees: $3.56

Amount instantly appearing in my Paypal account on 7th June 2020: $24.00

Amount I actually received after eBay fee statement paid: $21.39

$24.95 sale just after Managed Payments switched on:

eBay Managed Payments Fee including FVF: $3.60

Amount I'm due (eBay "Payout is on it's Way" email notification came in 4 days after the sale and advises it will be another 3 - 4 days until I have the money in my bank account) in a week or more time: $21.35

.04c mightn't seem like a lot but we are talking about a very modest sale. Where the .04c speaks volumes is how a large entity like eBay, couldn't have the decency to ensure it would be at least a .04c saving rather than an impost that goes against all the Managed Payments hype they landed upon us. If they were really intent on making things beneficial for us, they would have made sure it really was.

Not only am I paying more in fees, I have to wait over a week for the money I'm left with (yes, we have it set to "daily" transfer as per eBay assistance during a lengthy phone call from eBay to us. Moreover, the Managed Payments come through in lump sums, an absolute nightmare for reconciling against individual invoices. For sellers who may use Xero Accounting, there is no mention of an eBay-Xero developed reconciliation portal for this to be reasonably automated. This alone will force a lot of sellers out of eBay.

Re: Managed Payments First Sale Fees Cost More - DEFINITIVE

tazzieterror — Tue, 04 Aug 2020 04:15:58 GMT

So one sale in one category by one seller is enough to reach a definitive conclusion?

"The eBay final value fee for managed payments sellers is made up of a variable percentage of the total amount of the sale that varies by category and eBay Store tier, plus a fixed $0.30 per order."

Re: Managed Payments First Sale Fees Cost More - DEFINITIVE

cabslab — Tue, 04 Aug 2020 20:25:26 GMT

I haven't worked out my fees yet, but I am MORE than **bleep** at the amount of time it is going to take me to actually get my funds.

I had four sales on 3rd August, all day yesterday (4th) the amount was noted as being due for deposit on 4th, today on 5th I get an email saying it is going to be deposited today! + the 3-6 Business days. I am on daily, it should have been deposited yesterday!! I am only a hobby seller and use my funds to buy more stock, pay for postage etc. I want my money when the customer pays for it, not when eBay feels like giving it to me. At least with PayPal it was available immediately. Think of the millions eBay is earning in interest on OUR MONEY while it sits in limbo on the net.

Re: Managed Payments First Sale Fees Cost More - DEFINITIVE

yc_pty_ltd — Tue, 04 Aug 2020 20:31:01 GMT

hmmmm a big company tells you that you are going to be better off by a "new deal" they propose - and it actually is true - said noone, ever

Re: Managed Payments First Sale Fees Cost More - DEFINITIVE

chameleon54 — Tue, 04 Aug 2020 23:22:20 GMT

@cabslab wrote:
I haven't worked out my fees yet, but I am MORE than **bleep** at the amount of time it is going to take me to actually get my funds.
I had four sales on 3rd August, all day yesterday (4th) the amount was noted as being due for deposit on 4th, today on 5th I get an email saying it is going to be deposited today! + the 3-6 Business days. I am on daily, it should have been deposited yesterday!! I am only a hobby seller and use my funds to buy more stock, pay for postage etc. I want my money when the customer pays for it, not when eBay feels like giving it to me. At least with PayPal it was available immediately. Think of the millions eBay is earning in interest on OUR MONEY while it sits in limbo on the net.

I take it you havnt checked out interest rates on deposits at your bank lately then ?

Re: Managed Payments First Sale Fees Cost More - DEFINITIVE

lyndal1838 — Tue, 04 Aug 2020 23:31:48 GMT

The length of time taken for funds to transfer to your bank account has more to do with the processing time by your bank than when ebay processes the transfer.

I used to be horrified at the time people were reporting to get transfers from paypal to their bank accounts....anything up to 5-7 days. As long as I initiated the transfer before 5.30pm I had the funds the next morning.

Instead of blaming ebay for slow transfers, find out your own bank's processing times.

Re: Managed Payments First Sale Fees Cost More - DEFINITIVE

twyngwyn — Thu, 06 Aug 2020 01:51:35 GMT

https://www.ecommercebytes.com/C/blog/blog.pl?/pl/2020/8/1596572755.html

Re: Managed Payments First Sale Fees Cost More - DEFINITIVE

waddingtonfirstaid — Fri, 07 Aug 2020 00:54:10 GMT

In reply to a few responses above...

- Levels of fees for different item categories and other reasons do feature but it still doesn't mean we are paying less over all. The way eBay never shows the following 5 amounts in one visible table, on the one eBay webpage, amounts to eBay seeking to muddy the waters and have sellers boxed from knowing critical financial details at a glance:

- Sale total received by eBay

- Sale total paid to the seller

- Total fee for the sale in $ amount

- Total fee for the sale in % amount

- Percentage of total fees to date

I asked eBay management via a phone call (they have a recording), to implement all of the above in the current Managed Orders tables/portals, for Awating Payment, Awaiting Postage and Paid and Posted.

- After 8 sales, my averaged total fee percentage is 13.83% of sales. This is not cheaper over-all compared to what we worked on prior. I always worked on an averaged total 'worse case scenario' fee percentage for Paypal paid sales of up to 12% when eBay's old fee structure was combined with Paypal's 2.6%-3.6%+.30c.

- Bank processing time is not the cause for the payment delay at all. As I mentioned to eBay management, they could utilized PayID and the payment would transfer INSTANTLY in a similar way to how Paypal does it. Combined with this, a payment delay is also caused by eBay's default 3 day transfer unless YOU specifically ask them to put you on a 1 day payment turn around. I asked them and it wasn't actioned until my post here spirred them into action. If they can pay in 1 day, and they pay with PayID, then it will go through to my bank account on the payment network INSTANTLY.

- My bank, People's Choice Credit Union, proesses PayID payments INSTANTLY from any other bank which is also using PayID (most do). Where direct bank transfers feature, they also do INSTANT transfers where branches are on the same network (e.g. OSKO - see here: https://osko.com.au/home).

- All sellers who issue tax invoices should define what is going on with fees by actually displaying the eBay Managed Payments fee on the invoice. This will mean the buyer accurately sees the true sale price of the item, with any postage (if added by seller's eBay listing setting e.g. extra postage added due to Express Post, buyer being in a regional or remote area etc..) and WITH THE EBAY MANAGED PAYMENT AMOUNT as clear as day. Only through buyers seeing how much of their hard earned money is going to eBay will change happen to bare downwards pressure on this big fee impost.

- Finally, eBay management have been put on notice, via me and communications to and from the ACCC, that they can/may have to, reduce their Managed Payments fee where buyers elect/demand to pay via direct bank deposit or PayID. From what I can see, there is still an option to manually show when an item has been paid for outside of eBay's socalled 'Managed Payments'. If someone pays me cash or via direct bank deposit or via PayID and I have to manually hit Payment Received, then I have managed the payment for that sale and eBay can not charge me more than the old FVF. eBay should already offer bank direct payment and PayID by default because these methods of payment do not carry with them any third party payment fee. In addition to this, when eBay pays the seller, eBay should be no different to the rest of Australian citizens, choosing to use a payment option which has a mandated fee-free status, thereby not profiteering from any fee-free payment process.

Re: Managed Payments First Sale Fees Cost More - DEFINITIVE

waddingtonfirstaid — Fri, 07 Aug 2020 01:03:38 GMT

edit time is atrocious. Please ignore spelling/grammar errors I tried to correct. Couldn't even delete and reinstate the post.

Re: Managed Payments First Sale Fees Cost More - DEFINITIVE

tazzieterror — Fri, 07 Aug 2020 01:48:36 GMT

@waddingtonfirstaid wrote:
In reply to a few responses above...

...

- Bank processing time is not the cause for the payment delay at all. As I mentioned to eBay management, they could utilized PayID and the payment would transfer INSTANTLY in a similar way to how Paypal does it. Combined with this, a payment delay is also caused by eBay's default 3 day transfer unless YOU specifically ask them to put you on a 1 day payment turn around. I asked them and it wasn't actioned until my post here spirred them into action. If they can pay in 1 day, and they pay with PayID, then it will go through to my bank account on the payment network INSTANTLY.

Inter-bank processing times are indeed a factor in how quickly payments show up in an account - it's no different to PayPal in that respect. Some clear quickly, others will take several days. Your post here hasn't spurred eBay into action - eBay don't read here.

...

- All sellers who issue tax invoices should define what is going on with fees by actually displaying the eBay Managed Payments fee on the invoice. This will mean the buyer accurately sees the true sale price of the item, with any postage (if added by seller's eBay listing setting e.g. extra postage added due to Express Post, buyer being in a regional or remote area etc..) and WITH THE EBAY MANAGED PAYMENT AMOUNT as clear as day. Only through buyers seeing how much of their hard earned money is going to eBay will change happen to bare downwards pressure on this big fee impost.

Why on earth would a seller display their fees to a buyer on an invoice? The buyer doesn't care how a seller's costs are apportioned. Should the seller also include the cost of the item, their net profit, electricity cost in powering their computer and lights, fuel for the vehicle they drive to the post office? Should the supermarkets disclose the cost of staff wages when I buy a bag of potatoes?

- Finally, eBay management have been put on notice, via me and communications to and from the ACCC, that they can/may have to, reduce their Managed Payments fee where buyers elect/demand to pay via direct bank deposit or PayID. From what I can see, there is still an option to manually show when an item has been paid for outside of eBay's socalled 'Managed Payments'. If someone pays me cash or via direct bank deposit or via PayID and I have to manually hit Payment Received, then I have managed the payment for that sale and eBay can not charge me more than the old FVF. eBay should already offer bank direct payment and PayID by default because these methods of payment do not carry with them any third party payment fee. In addition to this, when eBay pays the seller, eBay should be no different to the rest of Australian citizens, choosing to use a payment option which has a mandated fee-free status, thereby not profiteering from any fee-free payment process.

I don't think you've put anyone "on notice".

eBay is indeed different to the "rest of Australian citizens" in that eBay is not a citizen - it is a commercial entity. There are still costs incurred by a large businesses in processing large numbers of payments whether the particular method transfer method used is fee-free or not—it's not simply case of saying it should be the same as a consumer to consumer transfer.

As I've said a few times on here, if you're so convinced eBay are making excessive profits from fees, buy some shares in them so you can benefit from it—they're a publicly listed company.

Re: Managed Payments First Sale Fees Cost More - DEFINITIVE

shoppingbro — Fri, 07 Aug 2020 05:20:44 GMT

Sorry if this has been answered but I made a few sales yesterday and all my sold items as

“The buyer has already paid. Funds are being held temporarily while the payment is processed.”

It’s been over 24 hours now.
Does Ebay send you a message when they transfer your money to your bank account?
How long does it usually take for them to start the transfer?

Re: Managed Payments First Sale Fees Cost More - DEFINITIVE

philb9053 — Fri, 07 Aug 2020 07:03:05 GMT

Fees are LOT more for me.

Ive had enogth sales now to know.

One example on a low cost $12.00 purchase.

Before profit was 78%

Now 32%

Its the same on larger order to.

Losing heaps now!

Re: Managed Payments First Sale Fees Cost More - DEFINITIVE

davewil1964 — Fri, 07 Aug 2020 07:14:30 GMT

So you're saying that eBay charged you $8.16? Did you pay the same price for this item as the previous item?

You would have to provide some real figures for your claim to be taken seriously.

Re: Managed Payments First Sale Fees Cost More - DEFINITIVE

philb9053 — Fri, 07 Aug 2020 07:28:34 GMT

Sorry, im factoring in shipping and everything.

Fee before was: 70c

Now $1.25

On a small $12.00 order

Re: Managed Payments First Sale Fees Cost More - DEFINITIVE

davewil1964 — Fri, 07 Aug 2020 08:24:56 GMT

70c? That's less than 6%. You must have an anchor store.

Apart from that you have failed to factor in that the Paypal fee is now subsumed into the MP fee. On $12 that would be 61c, so you're actually in front by 6c.

Re: Managed Payments First Sale Fees Cost More - DEFINITIVE

jfmgray — Fri, 07 Aug 2020 09:19:32 GMT

In the media category, the difference in fees for managed payments is very marginal - its a few cents either way for me depending on the sale price. Anything less that a $12 sale the fees under managed payments is 1 or 2 cent more that previous. Over $12 the fees are less. A $25 sale was 2 cents less fees. A $30 sale was 3 cents less.

Re: Managed Payments First Sale Fees Cost More - DEFINITIVE

philb9053 — Fri, 07 Aug 2020 09:54:44 GMT

Hi.

It was 70c, its now $1.25

Re: Managed Payments First Sale Fees Cost More - DEFINITIVE

davewil1964 — Fri, 07 Aug 2020 10:25:07 GMT

And no Paypal fee.

It's not hard to work out.

You take the cost of purchase, deduct the cost of postage, deduct the TOTAL fees paid, and get your profit.

Given the figures YOU have provided, you are certainly not on the hole for 55c.

I really hope you have an accountant working for you.

Re: Managed Payments First Sale Fees Cost More - DEFINITIVE

thatjewellerystore — Fri, 07 Aug 2020 21:35:21 GMT

I've only had 7 sales since being activated for Managed Payments.

Here is the comparison of old fees vs new fees:

Sale PP Fee eBay Fee Total Difference MP fee
$16.95 -$0.74 -$1.59 -$2.33 $0 -$2.33
$17.95 -$0.77 -$1.69 -$2.46 $0.02 -$2.44
$11.45 -$0.6 -$1.08 -$1.68 $0 -$1.68
$20.95 -$0.84 -$1.97 -$2.81 $0.01 -$2.8
$11.95 -$0.61 -$1.12 -$1.73 -$0.01 -$1.74
$16.95 -$0.74 -$1.59 -$2.33 $0 -$2.33
$18.5 -$0.78 -$1.74 -$2.52 $0.01 -$2.51

Totals
$114.7 -$5.08 -$10.78 -$15.86 $0.03 -$15.83

So far I am seeing a saving of $0.03

Re: Managed Payments First Sale Fees Cost More - DEFINITIVE

hobby_cds — Fri, 07 Aug 2020 23:43:06 GMT

Had to laugh at the post saying instead of blaming ebay blame your bank....Was online talking to an ebay agent on Wednesday that means they send you the money FRIDAY. That is Ebay sending the money to your account not the bank processing the transaction. So in turn it is a 48 hour dealy from the time the buyer purchases and pays until Ebay are processing the payment.

My wife works for the bank we use and if someone was to pay via paypal and we transfer the funds before 12 noon we receive the funds the next morning without fail. This granted is a smaller bank but they process tons of payments daily.

So are ebay to blame for the slow processing? Of course they are! They are holding onto funds and anyone smart enough to know short term investments are a common place to be making tons of money off the money we should be entitled to have.

The best fact is their "You have access to these funds" statement from a sale? Really? three days later and waiting on $600 in one of our accounts.....Disgraceful!