eBay to Institute New Managed Payment Fee in US on Oct 1 - 25c PER LISTING in combined orders!

[*silversari*]

Mon July 15 2019 23:40:48

eBay to Institute New Managed Payment Fee on October 1

By: Ina Steiner (Ecommerce Bytes)

"If two items are purchased from you for a single listing, one payment listing fee is charged of $0.25. If two items are purchased from you from different listings, two payment listing fees are charged of $0.25."

https://www.ecommercebytes.com/C/blog/blog.pl?/pl/2019/7/1563248448.html

Discussion boards in US are alight.....

[digital*ghost]

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@davewil1964 wrote:

Which means the main rival, especially if you tie your stock up in a Fulfilment Centre (more cost), charges more.

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Any of your items that are 20+ years old could go on the other E site (no idea how books do over there, though, so I'm not necessarily suggesting they are a viable rival in all categories).

No shop subscription, but 29c insertion fee per item for 4 months, 5% FVF on total paid (including postage), then 25c payment processing fee (per order) + 3.5% of the payment total, GST payable on all fees for non-GST registered sellers. This kind of fee structure is particularly conducive to items over $5 that may be one-off and take a while to sell. 

Lets not forget that PayPal's fees are GST-free because of their relatively unique status as a financial institution - I doubt eBay's will be. 

[digital*ghost]

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@brerrabbit585 wrote:


25c on each item is ridiculous. I stopped selling on etsy because their insertion on every item sold (including multiples of the same item) killed my profit and it just wasn't worth it. I'd imagine a lot of sellers will develop their sales on other sites if this happens.

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That per-item fee is a killer for low-value / profit and high turnover items like mine.

It definitely costs me more to sell on there than it does here, despite the FVF actually being nearly half what eBay's is. 

[brerrabbit585]

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@digital*ghost wrote:

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@brerrabbit585 wrote:


25c on each item is ridiculous. I stopped selling on etsy because their insertion on every item sold (including multiples of the same item) killed my profit and it just wasn't worth it. I'd imagine a lot of sellers will develop their sales on other sites if this happens.

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That per-item fee is a killer for low-value / profit and high turnover items like mine.

It definitely costs me more to sell on there than it does here, despite the FVF actually being nearly half what eBay's is. 

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My biggest problem was that not many Aussies looked at the site and I didn't want to sell overseas.  Some Americans got really upset about that - after all, it's their site so how dare I use it and not agree to post to them?!!    I initially didn't post to the US because all my stock came from there and I felt it was a bit like selling ice to the Eskimos.

[khulu74]

So if this comes here to Aus, i am guessing, we are talking about between 50¢-$1 (AU$) new fee,

which is ok as eBay is a global company, needs money, servers, workers, profit etc. etc. 

Also nobody force us to sell here in this platform, wait whaat¿ what did i say 🤣🤣

[countessalmirena]

It's certainly something that sellers in Australia will have to think about. At present, nothing is known for certain about whether this will be implemented here, but if this is indeed instituted for eBay sellers in the US, it is a bad harbinger.

Once there is definite information with financial details, sellers will be in a position to start crunching numbers and working out whether it's still worth selling on eBay. Some would have to rethink how they list; I suspect some listings might say something like "If you want to purchase more than one item, let me know, as I am always happy to make a combined listing."

But... I have an uneasy feeling that were sellers to include such wording in their listings, IF the "managed payment fee" is implemented as suggested, it would end up being against (amended or added) policy.

I hope that it does not eventuate.

[clarry100]

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@countessalmirena wrote:

It's certainly something that sellers in Australia will have to think about. At present, nothing is known for certain about whether this will be implemented here, but if this is indeed instituted for eBay sellers in the US, it is a bad harbinger.

Once there is definite information with financial details, sellers will be in a position to start crunching numbers and working out whether it's still worth selling on eBay. Some would have to rethink how they list; I suspect some listings might say something like "If you want to purchase more than one item, let me know, as I am always happy to make a combined listing."

But... I have an uneasy feeling that were sellers to include such wording in their listings, IF the "managed payment fee" is implemented as suggested, it would end up being against (amended or added) policy.

I hope that it does not eventuate.

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Would it work to have variation listings where the variations range from 1 to "n" qty for the same item, with price varied accordingly of course.

This way the buyer only needs to choose  a variation rather than enter a QTY into the box.

[brerrabbit585]

http://www2.ebay.com/aw/au/201802.shtml#2018-02-01104525

This is the original announcement.  

eBay will begin payments intermediation on a small scale in North America starting in the second half of 2018, expanding in 2019 under the terms of the Operating Agreement with PayPal. In 2021, we expect to have transitioned a majority of marketplace customers to the new payments experience.

I don't know whether 'customers' means sellers or buyers.  I'd say they'll meet a lot of resistance from buyers if they can't use paypal but paypal payments may also go through the Adyen system - so will we pay 30c to paypal AND 25c to ebay???

[brerrabbit585]

If two items are purchased from you for a single listing, one payment listing fee is charged of $0.25.

Wouldn't buying two different items from a variation listing be considered purchasing from a single listing and therefore only attract  a single 25c fee?

There's nothing much I can do (apart from develop sales elsewhere) so I'm not going to get stressed out about before it happens.

[digital*ghost]

At the moment, different variations from the same listing are treated by eBay as though they are different listings when it comes to postage calculations etc. 

For example, if you put $5 for one then 50c for each additional item in the postage section on a variation listing, and a buyer comes along to purchase 3 of a single variation, they'll pay $6 P&H - $5 for the first, and $1 for the latter two. If instead they buy one each of 3 different items, that discount won't apply and eBay will calculate postage at $15 (unless the seller has a postage rule in place to counteract it, as that applies across multiple items and listings). 

So, it's hard to say how this fee will be applied on those. 

[dazzledayz]

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@digital*ghost wrote:

At the moment, different variations from the same listing are treated by eBay as though they are different listings when it comes to postage calculations etc. 

For example, if you put $5 for one then 50c for each additional item in the postage section on a variation listing, and a buyer comes along to purchase 3 of a single variation, they'll pay $6 P&H - $5 for the first, and $1 for the latter two. If instead they buy one each of 3 different items, that discount won't apply and eBay will calculate postage at $15 (unless the seller has a postage rule in place to counteract it, as that applies across multiple items and listings). 

So, it's hard to say how this fee will be applied on those. 

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Simplesness! it will always be applied in eBay's favour and to the benefit of their bottom line.

Wenig has explicitly stated that future increased revenue will no longer come from increased sales volume, but rather from increased fee volumes for add-on services like payment processing, advertising, promoted listings and any other cash grab they can devise (like per item processing fees).

I'll admit to being boggled by the frank admission that eBay management have put the cue in the rack as regards building more volume and simply intend to ride the horse into the ground.

The board will probably sign themselves up for massive bonuses after they've organised a sell out structure once the well runs irreversibly dry.

StubHub is now up for sale and classifieds is in the crosshairs so all you Gumtree users, watch this space.

(eBay originally bought Gumtree to stifle a competitor so if I was a Gumtree seller I'd be very concerned)

Revenue generated by these two sales will keep the ship afloat for a bit and boost the share price. That should keep Icahn and his ilk happy for a while (but not forever).

I expect that, in future, eBay will become much more pay to play, with items not promoted or advertised being made much more difficult to find.

The whole 40 free listings offer was an obvious comealong from the getgo and was never going to last.

The whole idea was to breed a new cadre of sellers who, eBay assumed, would leap at a store once the boom was dropped.

I rather thought they'd introduce an entry level store subscription but hey, what's an extra $27.50 a month anyway?

You'll get your 600 free and a small reduction in FVF which should allow you to kick in a few extra % for promotion so you'll actually be seen (maybe).

It's probably time for a new venue in Aus but building the critical mass to gain audience is a very hard slog.