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

[van_werkhoven]

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@davidc4430 wrote:

it really makes me so happy your doing so well. yes some sellers are just ordinary people not large sellers and once all the fees and charges are taken and you pay for all the packaging stuff and do the drive to the post office to post the items, you discover your giving your items away. so excuse me if i say its just not worth it.

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You should be factoring in fees, packaging, postage and fuel in your starting prices. If you are giving away your items once those things are removed then that is your fault for not listing them for a higher price. Ebay does not dictate your starting price, you do (ebay market does, to a point, dictate the prices for big, brand new stock sellers, but you've made a point to say we are not talking about them, we are talking about the little sellers who are, generally, selling one-off items and can determine their asking price)

It's only not worth it if you choose to sell your item for less than it is worth to list and send, much less make profit from. 

[van_werkhoven]

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@the_pooze wrote:

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@van_werkhoven wrote:

Oh come on guys. The whining is getting a little much now. When was the last time paypal increased it's fees?

If your profit margins are so tight that 0.2% will break you, perhaps you need to reconsider your stock and sale price.

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I agree but, I think the main reason it's sticking in the craw of many is not the fact of this modest increase but, that it's come on the back end of all the recent stupidity of 21 day holds, 180 day money back guarantee, etc, etc.  Without all that has preceeded this modest increase I reckon it would have passed through with barely a murmer from anyone.

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I get that, I do. I'm being hit with all this as well, as a clothing seller I'm quite worried about 180 day garuntee and such. And I know morale is low. But to winge about 0.2%? It's just getting petty now.

[clarry100]

When they say sales volume of $2500 what does this refer to?

We have multiple selling IDs associated with the same paypal account.

And if we get it going we will also have our own website connected in as well.

Will it be the aggregate of sales across all these selling IDs they take into account?

If so, then it looks like we might get the fee reduction on one of our paypal accounts (as it should be over the magic $2500) but the increase on the other. So could end up ever so slightly better off on balance.

[digital*ghost]

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@clarry100 wrote:

When they say sales volume of $2500 what does this refer to?

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As it relates exclusively to PayPal, I would expect it to mean the gross amount of payments received to a single account per month, regardless of where the sale originated. 

[harley_babes_hoard]

if you have all separate paypal accounts for your ebay ID's now might be the time to combine them to the one account to save your .2%

[babylonfuture]

Does not matter how many ebay accounts if you are using the 1 paypal account.. as it's the total per month transacted for that paypal account.

My business paypal account is on 2.0% so no changes for me except for the personal account.
Just means the buyer pays more.

[blue_arroz]

....

[kizacks]

Yep, nothing like making a good impression as a seperate entity by increasing fees from day one on the basis of "we're not Ebay anymore" while oftering the exact same service. Unless you are not required to have a paypal account to be able to trade on Ebay anymore, it's irrelevant to me whether they are seperate or not. They are not truly autonomous, from the perspective of a seller, we still need 1 and the other. so that being said ALL fee hikes from Ebay and Paypal are relevant to the point being made.

My point is, this is making the EBay platform in general uncompetitive across the board. Buyer's WILL go elsewhere if sellers have to continually absorb (or increase their price), because they will find it cheaper elsewhere .

[kizacks]

Yep, nothing like making a good impression as a seperate entity by increasing fees from day one on the basis of "we're not Ebay anymore" while oftering the exact same service. Unless you are not required to have a paypal account to be able to trade on Ebay anymore, it's irrelevant to me whether they are seperate or not. They are not truly autonomous, from the perspective of a seller, we still need 1 and the other. so that being said ALL fee hikes from Ebay and Paypal are relevant to the point being made.

My point is, this is making the EBay platform in general uncompetitive across the board. Buyer's WILL go elsewhere if sellers have to continually absorb (or increase their price), because they will find it cheaper elsewhere .

[digital*ghost]

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@kizacks wrote:

Yep, nothing like making a good impression as a seperate entity by increasing fees from day one on the basis of "we're not Ebay anymore" while oftering the exact same service. 

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But it is not the same service it was when the original fees were introduced. One glaring difference is the 180 day window to dispute a purchase - and, if we can (for just a moment) remove the emotional reaction to some of PP's policies and look at it from a business perspective, would not any other business reassess their costs of providing a service after several years and many service changes? 

[digital*ghost]

Yep, nothing like making a good impression as a seperate entity by increasing fees from day one on the basis of "we're not Ebay anymore" while oftering the exact same service. 

[kizacks]

They've dressed their service up, sure...from the buyer perspective, they have more meat on those bones -  but from my perspective it's essentially the same service as far as receiving funds and withdrawing to my bank account. They did ofter to provide %interest to business account holders once upon a time though, so i guess it's different.

 If you're asking me, from a business perspective if I would increase fees after freshly taking control over a company that still strongly dependant upon another entity to produce revenues, the answer is no, no I wouldn't, not until I've realised some of my business strategies & increase revenues by diversifying (which is what are they are doing i guess).

Basically, Public perception will be, this is just another fee hike from Ebay....and I'm with 'em.