Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Sat May 16 2020 23:22:17

Early Adopters of eBay Payments May Be Out of Luck

By: Ina Steiner

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Despite playing guinea pig to eBay's Managed Payments when it launched in 2018, it appears early adopters of the program will be forced into a new fee structure eBay is rolling out in July that includes a per-transaction fee of 30 cents. 

eBay had promised early adopters they would be grandfathered into rates that were in effect when the program launched on September 24, 2018 through 2021. eBay executive Vikas Mehta led the initial rollout of payments in North America in 2018 and stated the following during eBay's weekly chat session on August 22, 2018:

"Our goal is to have selling fees lower than they are today. The payment processing fees for the initial launch are a flat 2.7% with no fixed fee, and no refund fees. This is your rate through 2021 for signing up for the initial launch of managed payments."

While eBay hasn't publicly announced the new fee structure going into effect in July or how it will impact those sellers who joined the program in 2018, a seller said they were notified that the new July rates would apply to them.

In a section of the email titled, "We're changing our fees starting late July," eBay wrote:

"We've simplified our fees. You will pay only one final value fee, consisting of a category-based percentage of the total amount of the sale plus a fixed fee per order. You'll no longer pay separate payments processing fees. This change supersedes any special pricing you may have had in the past."

While eBay also stated, "Most sellers can still expect to see overall savings," early adopters currently don't have to pay any fees in the event of a refund or cancellation; that won't be the case under the new rate structure (eBay will keep the 30-cent per-transaction fee).

Sellers continue to have questions about the new fee structure in which eBay is merging payment processing fees into final value (commission) fees, you can read more about the new rates in EcommerceBytes Update.

Update 5/17/2020: See more information in today's Newsflash article.

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Perminate Link for Early Adopters of eBay Payments May Be Out of Luck   Early Adopters of eBay Payments May Be Out of Luck

by: Silver Ice King This user has validated their user name.

Sun May 17 01:54:16 2020

Nothing more  than Ebay once again showing that anything and everything they say is subject to change tomorrow.  Ebay has never had any problems ignoring any and all promises they make as well as telling one big lie after another.

The new CEO  is off to a great start showing that he has no problem breaking promises nor completely changing what was stated to sellers when they took that huge leap of faith with Ebay Mangled Payments based  on promises that of course Ebay no longer intends to keep.  I guess once a person sits in the CEO's chair nothing that was promised by the company to their Sellers can ever be counted on.  I can';t wait to see what changes they implement in the 4th quarter this year after promising that they would never do anything in the 4th quarter again so that Sellers could concentrate on their sales for what is supposed to be the busy time for the Sellers.  

It sure did not take long  for the new CEO to show his colors and how life under him is not going to be any different or better for Sellers than it has been since 2008.  Ebay is just figuring out more and more ways to reach deeper into their sellers pockets while continuing to show lower and lower Sales Revenues.

Perminate Link for Early Adopters of eBay Payments May Be Out of Luck   Early Adopters of eBay Payments May Be Out of Luck

This user has validated their user name. by: RKTOYS

Sun May 17 09:06:29 2020

eBay lied again.  Film at 11.

Perminate Link for Early Adopters of eBay Payments May Be Out of Luck   Early Adopters of eBay Payments May Be Out of Luck

by: pace306 This user has validated their user name.

Sun May 17 13:16:29 2020

"The changes will be put in the TOS, come at me BRO" ....

Thats the way eBay treats its sellers .... speaks volumes

Perminate Link for Early Adopters of eBay Payments May Be Out of Luck   Early Adopters of eBay Payments May Be Out of Luck

This user has validated their user name. by: Lightning

Sun May 17 13:45:51 2020

EBay doesn't consider the new simplified rate to be any type of an increase, so that is why they are intending to make it universal to those on MP now, in the future, or early adopters.  In fact, it can change your fees in either direction per sale, but overall it is probably a neutral effect.  

It all depends on whether there is sales tax charged, and how much.  Some fees will go down (item not taxed), some might be the same (5% tax or lower), and some will increase (over 5% tax).  So not really about the 30 cent fee at all.  That's just part of the math, offset by the lower rate, but the result is what matters.  Might be zero change, or minor variances in either direction.

There is hardly any difference in fees, either way, in the proposed system.  Once again, people all up in arms about something that has a negligible effect, possibly even in their favor.  A lot depends on what items you sell, especially how they are treated for taxation in the various states.

Perminate Link for Early Adopters of eBay Payments May Be Out of Luck   Early Adopters of eBay Payments May Be Out of Luck

This user has validated their user name. by: CanBrit

Sun May 17 17:18:35 2020

I believe, if Mr Ionone is listening to the old school eBay boys, he's certainly not going to be prepared what's going to hit him (and them) in July.

One can still hope, I suppose.

Perminate Link for Early Adopters of eBay Payments May Be Out of Luck   Early Adopters of eBay Payments May Be Out of Luck

by: notfunanymore This user has validated their user name.

Sun May 17 18:35:44 2020

Does it really surprise anyone? Seriously, you had to know this was coming? They string you along, then they cleaver you and give you a band aid to fix it. sellers will love eBay for helping them.  Wake up!  

Perminate Link for Early Adopters of eBay Payments May Be Out of Luck   Early Adopters of eBay Payments May Be Out of Luck

This user has validated their user name. by: CanBrit

Sun May 17 19:12:41 2020

@notfunanymore

No, it doesn't surprise me but the nice thing about humanity is having hope.

Here's what I hope. That they hit the proverbial brick wall. They they suffer every inhumanity they have stuck on their sellers. I hope they all go bankrupt, lose their vacation homes, fancy cars that we paid for.  Their wives/husbands leave them for someone OLDER....  

I hope there is justice somewhere in the world.  

Perminate Link for Early Adopters of eBay Payments May Be Out of Luck   Early Adopters of eBay Payments May Be Out of Luck

by: ebayout This user has validated their user name.

Sun May 17 20:23:38 2020

Per the enlightening e-mail I received yesterday, I will "save" (my words) 60 cents on $100 in sales...and ebay gets 30 cents on EVERY sale I make.
It's hard to explain my excitement...  

Perminate Link for Early Adopters of eBay Payments May Be Out of Luck   Early Adopters of eBay Payments May Be Out of Luck

by: pace306 This user has validated their user name.

Sun May 17 20:49:33 2020

It’s simply another “short con” by California’s biggest large scale con operator

Perminate Link for Early Adopters of eBay Payments May Be Out of Luck   Early Adopters of eBay Payments May Be Out of Luck

This user has validated their user name. by: toolguy

Mon May 18 01:13:52 2020

@pace306

"It’s simply another “short con” by California’s biggest large scale con operator "

eBay doesn't even come close to being California's biggest con operator, that title belongs to: The State of California!

Our government makes eBay look like a jr. high thug taking lunch money!

San Jose are rookies compared to Sacramento . . . . .

Perminate Link for Early Adopters of eBay Payments May Be Out of Luck   Early Adopters of eBay Payments May Be Out of Luck

by: ZZ This user has validated their user name.

Mon May 18 02:02:32 2020

Now that Paypal is not giving back their $.30 fee for any reason, I've thought about not accepting cancelations from buyers and shipping their item anyways, I don't do free shipping or free returns, so it works for me. But so far, I've canceled and lost money when the buyer changed their mind.
When eBay starts doing it, I think I'll just ignore the cancel request. It's a principle thingy. There's no reason to charge me if eBay want's to let them change their mind.

Perminate Link for Early Adopters of eBay Payments May Be Out of Luck   Early Adopters of eBay Payments May Be Out of Luck

This user has validated their user name. by: Marie

Mon May 18 02:13:46 2020

This Simplified Fee thing is a BIG increase for sellers that are currently in MP.  If for no other reason than the 30 cent fee.  For every 100 transactions that is $30.

Currently in MP they also do not pay money processing fees on sales tax either.  So moving into Simplified fees there is that too.  

These changes will result in much higher fees for all of them.  There is no two ways about it.  Not a single one of them could possibly see a reduction in fees.

For those sellers moving into MP for the first time in July, while there are still concerns, we aren't getting hit as hard as those that are already in the program.

Perminate Link for Early Adopters of eBay Payments May Be Out of Luck   Early Adopters of eBay Payments May Be Out of Luck

by: AlBeSure This user has validated their user name.

Mon May 18 02:41:33 2020

I used to pay a 0.20 listing fee, an 11% FVF fee as I have a store, plus 0.10 store fee (to have a store) and an 11% fee on the shipping.

Sounds like now it will be a 0.25 listing fee, an 11% FVF fee as I have a store, 0.10 for a store fee, an 11% fee on the shipping and 0.30 transaction fee

So on a $4.00 item that is a 0.25 listing fee, 0.44 FVF fee, 0.10 store fee, 0.44 shipping fee on a $4 shipping charge, a tax fee to be determined and a 0.30 transaction fee for a some what total of $1.53

My question is where is the saving???

Seems like I will be paying more to ebay in fees again not counting on the new Summer fees changes coming.

Perminate Link for Early Adopters of eBay Payments May Be Out of Luck   Early Adopters of eBay Payments May Be Out of Luck

by: hawk This user has validated their user name.

Mon May 18 04:40:24 2020

ebay does nothing but lie to sellers , and does not care what they do to honest working people to get a dollar. when will anyone get that ?

Perminate Link for Early Adopters of eBay Payments May Be Out of Luck   Early Adopters of eBay Payments May Be Out of Luck

by: salesrep1 This user has validated their user name.

Mon May 18 07:17:28 2020

We can all complain about the changes but when u normally have a bank credit card processor u have fees for the entire amount of sale item, tax,shipping  whatever is collected the real issue is none of us like the internet tax collection on online sales since it is the new norm. The process of as a buyer (I am a seller) now is to get 2 people the seller paid and ebay for the tax. Looking at a paypal transaction(mind boggling) 2 transactions for 1 purchase. The possible error ratio grows on the # of transactions  per single transaction. Multiply that by millions of transactions you now have the possibility of more errors. The .08 of .10 (Tax rate to be determined) is really small on an extra varience to not make it 2 lines is .08 on a $10 sale. At least u aren't paying the ridiculous bank fees for making u compliant for handling transactions those of u still using bank processors know what I am talking about. Do I like it NO does it really affect your sales NO the simplification will let me move on to the next order of biz.Less stuff to check! Just the way I see it

Perminate Link for Early Adopters of eBay Payments May Be Out of Luck   Early Adopters of eBay Payments May Be Out of Luck

by: wrslss1222 This user has validated their user name.

Mon May 18 07:39:03 2020

eBay has stated that the backbone of their sales are from Small and Medium eBay Store owners.  Yet eBay has never shown these store owners any sort of appreciation other than words.  It has been obvious over the years that eBay can some one thing today and change it tomorrow.  

Perminate Link for Early Adopters of eBay Payments May Be Out of Luck   Early Adopters of eBay Payments May Be Out of Luck

by: wrslss1222 This user has validated their user name.

Mon May 18 08:03:40 2020

I should have stated in my earlier comments that Paypal was not an accepted payment instrument when Managed Payments started,  It was added months later.  Managed Payments allows a buyer to pay using Paypal, Visa, MasterCard, American Express, Discover, or any other accepted forms of payment.

Perminate Link for Early Adopters of eBay Payments May Be Out of Luck   Early Adopters of eBay Payments May Be Out of Luck

by: Fistfulofdollars This user has validated their user name.

Mon May 18 08:33:55 2020

This is not to come to eBay's defense (regarding the $0.30 fee), but it's been that way with PayPal ever since they allowed credit card transactions. That's the way it is with all other payment processors (flat rate fee portion may fluctuate with different processors).

The announcement of the flat 11.5% + $0.30 on total sale amount: I am not yet in MP but I added columns to my spreadsheet and factored what the fees would have been under MP vs. the current setup (PayPal) and out of 123 sales to date (highest sale incl. tax: $355.83, lowest: $20.23) the fees were higher on 64 sales, lower on 59, but overall, I would be $2.90 to the good (saved) if on MP. The fluctuation is based on if sales tax is charged on a sale and the amount of sales tax charged per sale. The higher the amount of tax charged, the greater the loss to the seller. There is ALWAYS a savings if no tax is charged.

Perminate Link for Early Adopters of eBay Payments May Be Out of Luck   Early Adopters of eBay Payments May Be Out of Luck

by: Fistfulofdollars This user has validated their user name.

Mon May 18 08:36:27 2020

The announcement of the flat 11.5% + $0.30 on total sale amount: I am not yet in MP but I added columns to my spreadsheet and factored what the fees would have been under MP vs. the current setup (PayPal) and out of 123 sales to date (highest sale incl. tax: $355.83, lowest: $20.23) the fees were higher on 64 sales, lower on 59, but overall, I would be $2.90 to the good (saved) if on MP. The fluctuation is based on if sales tax is charged on a sale and the amount of sales tax charged per sale. The higher the amount of tax charged, the greater the loss to the seller. There is ALWAYS a savings if no tax is charged.

Perminate Link for Early Adopters of eBay Payments May Be Out of Luck   Early Adopters of eBay Payments May Be Out of Luck

This user has validated their user name. by: toolguy

Mon May 18 10:18:55 2020

Note to buyer:

Here are you costs

Item cost+
fee for buying item+
shipping cost+
fee for shipping cost+
tax+
fee on taxes

Your final eBay order total after all costs and fees are. . . . .

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