Managed payments-a joke?

[nurseedward2020]

Soooo ebay stated that MOST people will be better off with managed payments. Who so far has not been ripped off?  1 transaction on managed payments and $2.32 worse off than the old final value and paypal fee structure. Add that to the gouge of paying final value fees on postage. This is a money hungry platform.... im tired of it....   

[mtshed2014]

yes, I 100% agree with you.

They've been repeatedly greedy over the years but the latest moves , for me, are just too far. 

I can't get over the fact they are permitted to act as a financial institution, yet have so poor support for customers, whether phone, chat or easily found information on website. 
None of my Aus. bank accounts require me to pay an additional monthly subscription for decent financial reporting needed for tax time.
eBay staff truly believe because their website states funds are "available" , then that's what they are. They are NOT.  They are held with eBay until finally received be sellers.
When funds land in Paypal most often receiver can use those funds immediately.

There's a few "differences" here that eBay have skirted around and I'm really thinking some may get reversed along the way, just like when they demanded all users have to accept PayPal payments years ago.

After many years with eBay I've started using alternate online sales sites. With the new platform slow to navigate it's all leading toward good reasoning to jump ship.

one of my recent sales with new pricing : item sold item for $89.95 including postage. eBay fees were $12.35 , which is 13.75% for ebay.

With the new platform is slow to navigate it's all leading toward good reasoning to jump ship.

[mtshed2014]

inclined to say -

I know eBay and PayPal fees put together the fees are 'similar' to new structure however PayPal has, over the years, been very helpful with resolving buy and sell problems that arise. When matters escalate I have often spoken on phone with PayPal staff located all over the world -  here in Aus., Asia and not too long ago in USA.

The ONLY time I can ever recall an eBay employee calling me from Australia was a couple of months ago - they called to urge me to complete the registration for managed payments.

That speaks volumes to me as nobody in Aus. eBay staffrooms has wanted to know me for well over a decade, at least not until their new charging system comes into play.

[jellybirddesigns]

Most sellers adjust their pricing to take into account the fees, including postage. If you price correctly, you should not incur any loss. If you do, then put forward your figures at tax time so that it can be taken into account and your tax liability adjusted accordingly.

Other online platforms such as Amazon and Etsy take a flat percentage of the sale as well, so it's not as if Ebay are doing anything unusual. And Amazon is EXPENSIVE - their fees are much higher than Ebay - something north of 17% if I remember correctly. I think Ebay is extremely reasonable for the kind of reach and exposure you get.

My final percentage of fees was around 13% before managed payments and has stayed the same since I changed over. The overall percentage will vary, depending on what category you're selling in, but some tech and small appliance categories dropped in mid April from 10.4% to 7.3%, so thousands of sellers benefitted.

[manicstate]

This ONLY suits the big sellers...like pretty much everything else these days, it's ALL geared to corporations!

[k1ooo-slr-sales]

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@mtshed2014 wrote:

yes, I 100% agree with you.

one of my recent sales with new pricing : item sold item for $89.95 including postage. eBay fees were $12.35 , which is 13.75% for ebay.

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it’s not a lot, but the fees on that $89.95 item are 9c less on Managed Payments than on the previous fee structure with payment by PayPal.  There are differences between MP and the previous payment system, but the fees are slightly less.

Your figure of 13.75% is misleading.  Before calculating the % you need to subtract 30c from the fees as there is a 30c ‘fixed fee’.  Take 30c from your fee on that $89.95 item and the % is 13.4% . . . slightly less than the 10.89% eBay fee + 0.26% PayPal fee (total = 13.49%).

This 30c fixed fee on has a greater affect on the over fee % on low priced items and makes very little difference on higher priced items.

[mtshed2014]

I note the figures you quote, the adage " you get what you pay for ", and then refer to your recent comment thread title :
"Sales down on eBay, but not on other platforms"

I manage multiple eBay sales accounts and the new format has lost me given where I used to refer to Paypal and bank accounts to monitor sales/purchases and payments, I now have to attend each selling account and navigate overview pages to decipher sales and payment statuses.

[k1ooo-slr-sales]

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@k1ooo-slr-sales wrote:

This 30c fixed fee on has a greater affect on the overall fee % on low priced items and makes very little difference on higher priced items.

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the last bit of my previous post will make more sense with examples to show the effect of the 30c on the overall fee.

On a $1 transaction the fees are: fixed fee (30c) + 13.4% (13c) = 43% overall fee

On a $5 transaction the fees are: fixed fee (30c) + 13.4% (67c) = 19.4% overall fee

On a $100 transaction the fees are: fixed fee (30c) + 13.4% ($13.40) = 13.7% overall fee

On a $500 transaction the fees are: fixed fee (30c) + 13.4% ($67) = 13.46%

On a $1000 transaction the fees are: fixed fee (30c) + 13.4% ($134) = 13.43%

As shown above, the higher the transaction value the closer the overall fee comes to 13.4%

[mtshed2014]

Hello , I acknowledge the fees are similar but it's the service you get for the fees you pay that's of consideration.
Obviously eBay have done their best to take PayPal out of the loop where they can. It's amazingly miraculous that eBay's well-studied accountants crunched costs etc and low and behold came up with a costing very close to that of PayPal anyway....mere coincidence or was it a percentage number they had it their sights and worked toward ?

PayPal is a financial entity that charges for the service of fast, often international , money transfers. With charges also in line with assurances for both parties involved in the transfer. PayPal services are obviously widespread and not restricted to eBay.

eBay was not a banking entity before and today most people you would ask would say it's an online platform for buying and selling goods. They are now basing a fee structure on that of PayPal however do not offer the service and assurance of that banking entity , ( although on eBay only what managed payments offers may look similar ).

In relation to fees -eBay Australia does not miss out. For some years I manufactured and sold musical instrument item types that, in Australia, attracted the obligatory 10+% fees, whereas the very same item listed on eBay USA cost sellers 3.5%

USA :
Musical Instruments & Gear > Guitars & Basses Free 3.5% (maximum fee $350 per item)

Given individual item sales values often varied between $750-$3000 it can be said there's a considerable difference in fees charges on sellers from Australia to USA in this particularly category.
My eBay and PayPal fees were in the thousands per month and they were accepted, paid and accounted for at tax time willingly...but again...don't think eBay Aus. are shy to take what they can when they can, and be sure to know that if you are in the USA and have an issue and contact eBay USA for support, then they are there for you with gloves on.

Many of those product lines were exported to USA and some years back they were in fact listed for sale directly on eBay USA ,from computers located in Australia and other countries. eBay Aus. stopped that though, and it's not hard to work out why considering fee differences.

The core of my gripe is what you get for what you pay. I've used eBay long enough to understand how they operate , and how operations have changed. Be it my opinion, I have no doubt sellers get less for their $'s than 10 years ago....whether services or support.

[k1ooo-slr-sales]

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@nurseedward2020 wrote:

Soooo ebay stated that MOST people will be better off with managed payments. Who so far has not been ripped off?  1 transaction on managed payments and $2.32 worse off than the old final value and paypal fee structure. Add that to the gouge of paying final value fees on postage. This is a money hungry platform.... im tired of it....   

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can you give some more details about the transaction that cost you $2.32 more in fees on MP?

The reason I am asking is that, on the face of it, you may have miscalculated, misinterpreted or misread your fees.

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Also, and this is not directed at your post, those who say that eBay are greedy and money grabbing with this Managed Payments system are not taking into account that eBay are forwarding GST collected in fees to the ATO.  PayPal transactions did not have GST applied (happy to be corrected if I am wrong).

Under the old fee structure eBay fees were 9.9% and GST was 10% x 9.9 = 0.99% of transaction amount.

Under MP the eBay fee is 12.18% with GST of 1.22% of transaction amount + 2.7c GST on the fixed fee.

More, as a % of fees, is being paid to the ATO/government rather than eBay being money grabbing.

I know all these low % figures might not seem much . . . but on every one million dollars transaction amount, eBay used to hand over $9,900 to the ATO as GST on $99,000 in collected fees.

Under MP, on every one million dollars transaction amount, eBay hand over $12,180 to the ATO as GST on $121,800 in collected fees.

This is a windfall of $2,280 for every million dollars in transaction amount that the government is receiving in increased GST collected (as PayPal fees were un-taxed).

**For the purpose of doing ‘easy maths’, I have not tried to estimate how many 30c fixed fee charges would be involved in one million dollars transaction values**