Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Fri Jan 22 2021 22:10:34

Seller Points to Added Cost of Doing Business on eBay

By: Ina Steiner

Sponsored Link

An eBay seller was surprised to learn that she would no longer be able to pay Store fees using her credit card. She was told today by a customer service rep that moving forward, all her eBay Store fees and charges would be deducted from her Managed Payments payout - "It seems there will no longer be an option to pay by PayPal, credit card or a "different" bank account," she told us.

The seller had a couple of issues with how eBay will now deduct her fees. "For anyone who uses, as I do, a cash-back business credit card to pay business fees, this becomes another "added" cost of doing business while eBay, yet again, "adds" to their bottom line at sellers' expense."

She also pushes back against the eBay's contention that Managed Payments streamlines seller operations. "As for the accounting impact and one of the reasons I don't use eBay's shipping service, it adds yet one more layer of complexity. Business fees for tax purposes are readily segregated through my credit card monthly reports. Now it's going to require pulling them from what masquerades as "sales reports.""

Interestingly eBay has changed Managed Payments fee structure since first introduced, and it's now difficult for sellers to know if they will end up paying more in total fees under Managed Payments than they had under PayPal.

According to an eBay FAQ, "Most sellers can expect to see overall savings," with an asterisk pointing to the following statement: "Savings are based on annual total sales volumes, and comparisons of (a) prior eBay final value fees plus typical 3rd party payment provider fees, with (b) new eBay final value fees (without any 3rd party processing fees)."

Sellers who have transitioned to Managed Payments, tell us if you find the cost of selling on eBay has changed as a result.




Comments (49) | Leave Comment | Permalink

Readers Comments

Perminate Link for Seller Points to Added Cost of Doing Business on eBay   Seller Points to Added Cost of Doing Business on eBay

by: COVID-19 This user has validated their user name.

Sat Jan 23 00:49:38 2021

More and more, I really want to dump eBay.  

Perminate Link for Seller Points to Added Cost of Doing Business on eBay   Seller Points to Added Cost of Doing Business on eBay

This user has validated their user name. by: The End

Sat Jan 23 01:49:04 2021

Just watched the video.
ARE THEY HIGH ? ! ?
Nobody in their right mind allows this garbage into their business.
Stay the Hell AWAY from Ebay.

Perminate Link for Seller Points to Added Cost of Doing Business on eBay   Seller Points to Added Cost of Doing Business on eBay

This user has validated their user name. by: Lightning

Sat Jan 23 03:18:47 2021

The fees are so close to exactly the same as before, you may as well say they ARE exactly the same.

Didn't like paying them then, don't like it now.  So that's another thing that didn't change.

Perminate Link for Seller Points to Added Cost of Doing Business on eBay   Seller Points to Added Cost of Doing Business on eBay

by: COVID-19 This user has validated their user name.

Sat Jan 23 05:32:05 2021

eBay doesn't allow comments on their YouSuck videos, because you know, in case you criticize and hurt their precious feelings.

Perminate Link for Seller Points to Added Cost of Doing Business on eBay   Seller Points to Added Cost of Doing Business on eBay

by: Vigilant Eye On eBay This user has validated their user name.

Sat Jan 23 06:39:06 2021

On explaining eBay's managed payments initiative...

More red herrings and blather from the San Jose cutthroats.

Perminate Link for Seller Points to Added Cost of Doing Business on eBay   Seller Points to Added Cost of Doing Business on eBay

This user has validated their user name. by: Rexford

Sat Jan 23 06:43:58 2021

For 20 years I have watched sellers lose control of their eBay bisinesses and now they have lost control of how they pay their store fees.

eBay loves dipping their claws into sellers' bank accounts.  

Perminate Link for Seller Points to Added Cost of Doing Business on eBay   Seller Points to Added Cost of Doing Business on eBay

This user has validated their user name. by: Rexford

Sat Jan 23 06:47:11 2021

And to amswer ypur question Ina, the only one seeing savings is eBay.

Perminate Link for Seller Points to Added Cost of Doing Business on eBay   Seller Points to Added Cost of Doing Business on eBay

by: notfunanymore This user has validated their user name.

Sat Jan 23 07:23:56 2021

There are so many more ways to make money than the constant barrage of "creative" ways they chip away at you and steal more of your money EVERY YEAR. Come on people, you can figure it out. The amount of work involved figuring out sales tax, fees, returns, non payouts, and the list goes on.... its really not worth your time. They have you in a vortex. Its sad to see

Perminate Link for Seller Points to Added Cost of Doing Business on eBay   Seller Points to Added Cost of Doing Business on eBay

by: lessthanthreerecords This user has validated their user name.

Sat Jan 23 09:53:34 2021

My overall fees have gone up with MP.  However, prior to being forced into the program, I raised all prices by 6.795% which I calculated would cover transactions with the highest possible increase.  So, when you figure that increase in, I'm actually making more on the vast majority of sales, but I'm sure the higher price does chase a few buyers away.  The costs involved in calculating that increase include fees on a 13.5% sales tax rate, eBay's higher fee for international transactions, eBay's currency conversion fee (which, so far, I have not had to pay, but I cannot get a straight answer from eBay as to whether I ever will), loss of cash back on my credit card, and of course, all of those fees compounded on the amount of my price increase.  I figured out that 6.795% on top of previous prices covers it.

Perminate Link for Seller Points to Added Cost of Doing Business on eBay   Seller Points to Added Cost of Doing Business on eBay

This user has validated their user name. by: Lightning

Sat Jan 23 15:36:13 2021

Raising my prices 0% covers me.  The only loss is the credit card bonus, not a big deal, otherwise no change.  The other factors are all 100% irrelevant.

Perminate Link for Seller Points to Added Cost of Doing Business on eBay   Seller Points to Added Cost of Doing Business on eBay

This user has validated their user name. by: Ina

Sat Jan 23 21:46:18 2021

1/23/2021: Received an update from the seller today. She was able to switch to PayPal for paying Store fees, but it still wouldn't accept a credit card.

Perminate Link for Seller Points to Added Cost of Doing Business on eBay   Seller Points to Added Cost of Doing Business on eBay

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

Sat Jan 23 22:46:45 2021

Overall everybody loses when changed over to Mangled Payments as Ebay takes the full 12.3% on the Sales Tax also to make the calculations easier for ALL Sellers.  Nice easy way to once again line their pockets while continuing to dig deeper and deeper into Sellers pockets.  Sure am glad i stopped selling on Greedbay.

Perminate Link for Seller Points to Added Cost of Doing Business on eBay   Seller Points to Added Cost of Doing Business on eBay

This user has validated their user name. by: Lightning

Sat Jan 23 23:44:33 2021

@Ina
She could just pay with Paypal, using the same credit card that had the bonus attached.  Problem solved.

Perminate Link for Seller Points to Added Cost of Doing Business on eBay   Seller Points to Added Cost of Doing Business on eBay

This user has validated their user name. by: Lightning

Sat Jan 23 23:51:53 2021

With Simplified Fees, the % on the sales tax is a wash.  EBay lowered the total FVF % to compensate.  

People keep thinking they are getting ripped off somehow, not math oriented, I guess.  People are wrong.  It's a NON-FACTOR.  EBay does a TON of stupid things, crooked things, crazy things.  This just happens to NOT be one of them.

Please put some effort into researching it, and you will find that it has a ZERO effect.

Perminate Link for Seller Points to Added Cost of Doing Business on eBay   Seller Points to Added Cost of Doing Business on eBay

by: pace306 This user has validated their user name.

Sun Jan 24 08:58:07 2021

... its about CONTROL, not dollar amount saved.

NOBODY (except the few eBay cheerleaders left) asked eBay to do ANYTHING.

NOTHING eBay does is altruistic, nothing they do is because they want to help YOUR business grow. Sure you can believe the lies - but its (still) a free America - Biden has only been in power less then a week. LOL

Its the same issue as forcing sellers into MP to begin with - NO ONE asked eBay for it - theres no point - it doesnt do anything for you. Theres no massive savings - what ever savings do exist - are lie Bigfoot or the Loch Ness Monster - people claim they've seen it - but when push comes to shove - it cant really be proven.

ALL of eBay is a scam of some sort - MP is just the largest (followed by "seller protection".)

Doing business on eBay is like doing business with the MOB. When it works - it works well - they send business your way, patronize your company - but when they want something (ask Arnie Buco) they lean on you heavy - and theres nothing you can do about it.

They are right .... "its the cost of doing business" ...with THEM - the most corrupt company in the industry.

Perminate Link for Seller Points to Added Cost of Doing Business on eBay   Seller Points to Added Cost of Doing Business on eBay

by: ebayout This user has validated their user name.

Sun Jan 24 11:18:46 2021

You can set up a credit card as your primary source of funds in Paypal.
So, if you keep a zero balance in your Paypal account, all expenses go through Paypal and directly to your CC...especially the one with points.

Perminate Link for Seller Points to Added Cost of Doing Business on eBay   Seller Points to Added Cost of Doing Business on eBay

by: lessthanthreerecords This user has validated their user name.

Sun Jan 24 15:36:10 2021

Lightning:
Not math oriented?  I did the math (spent many hours calculating the differences in numerous different scenarios: no sales tax, low sales tax, high sales tax, international buyer with U.S. address, etc.).  Here's just one example of what I would have paid before MP and now with MP:

$100 sale with free shipping and a 13.5% sales tax to an international buyer with a U.S. address before MP:
eBay fees (9.15% with my store only calculated on the $100 item price) - $9.15
PayPal fees (4.4% including international surcharge on full $113.50 plus flat fee of $0.30) - $5.29
TOTAL FEES BEFORE MP - $14.44

Now, let's take that same sale under MP:
eBay fees (11.5% with my store calculated on the full $113.50 plus flat fee of $0.30 plus 1.65% international fee on the full $113.50 plus 3% currency conversion fee on the full $113.50) - $18.63

FEE DIFFERENCE - $4.19 or an extra 29%

Yes, that's an example with a greater difference than the average transaction, but it is an incredibly significant difference, particularly when your profit margins are slim.  When there is a savings (which I will be the first to admit, there can be on occasion), it is never more than 4.5%.

Now, explain to me how any of that is not "math oriented."

Perminate Link for Seller Points to Added Cost of Doing Business on eBay   Seller Points to Added Cost of Doing Business on eBay

by: lessthanthreerecords This user has validated their user name.

Sun Jan 24 15:37:06 2021

Oh, and I forgot to mention that those differences do not even account for credit card cash back which is now eliminated under MP.

Perminate Link for Seller Points to Added Cost of Doing Business on eBay   Seller Points to Added Cost of Doing Business on eBay

by: ebayout This user has validated their user name.

Sun Jan 24 16:12:53 2021

Everybody takes it in the shorts with MP on international.
BEFORE: Using Priority Mail as an example, they took 10% of what would have been the highest Zone 8 rate. E.G., 2 lbs was about $14...so, they got $1.40.
NOW: They get 12.35% of the whole enchillada. 2 lbs to Europe costs about $45 via Priority. $45 X 12.35%=$5.56
$1.40 vs. $5.56....anybody need glasses?

Perminate Link for Seller Points to Added Cost of Doing Business on eBay   Seller Points to Added Cost of Doing Business on eBay

This user has validated their user name. by: Lightning

Sun Jan 24 20:28:54 2021

@lessthanthreerecords
You are using the most ridiculous Sales Tax rate you could find, one that is NEVER encountered.  The average rate is 6-8%, sometimes more, sometimes ZERO.  The only way the sales tax ISN'T a wash is if you had sales in only the highest sales tax states, and that's not going to happen.  It's a mix.

Besides that overstated tax %, the biggest thing accounting for the difference is the 3% currency conversion fee that you yourself admitted that you didn't have to pay.  Your own numbers out you as an alarmist.  It's all doom and gloom because you look at only worst case scenarios, not the norm.

Click to view more comments
1 2 3  [Next Page]


Login is required to post comments.
To sign in to leave a comment, fill in the form below. If you have not yet signed up for AB Verify, or if you'd like more information, go to the Registration Page
.

Login for AB Verify
Be sure and use your email address and password to log in.

 
Email:
Password:
 
 Forgot Your Password?
 Even though you are signed in with the AuctionBytes Blog, you will have to sign in to the EcommerceBytes blog. But you can sign in with your existing AB Verify info.