First impressions are great. Am I missing something?
Once the payment hits my account from eBay, minus the fees. Is there another fee that assessed later on? The reason I ask this. It appears my fees have been in the 10%-11% range which is lower than what I was paying before. So I’m surprised at this. Just want to make sure I wasn’t missing something.
My item was nearly 4k. So as I understand it, it’s 11% of 2500$ and then 3.5 for the remaining? That shakes out to a rather large savings.
Managed Payments have a different fee structure. I think the default is like 12.35%+30 cents, and 11.9%+30 cents if you have a store. Previously I think it was something like 12.9%+30 cents if you added up the ebay fee and the paypal fee together. The difference with managed payments though is that percentage comes out of the full cost of the item, including tax. Previously without managed payments the fee was taken pre tax. For most things I believe it works out to be less overall, personally I just like having my fee taken out immediately instead of having to pay attention to an invoice that I have to pay later.
The fees are a bit lower now because Paypal doesn’t take their 3%~ share. The only fees charged later on are fees associated with your subscriptions you have, and insertion/ad fees I believe. Pretty positive those ones get charged on a monthly basis and not when an item sells. But yes I have noticed the fees are a bit less now as well.
Yeah I had to check google when I started using them to see if it seemed other people were saving money too and it seemed correct lol. Quite a bit more savings once you hit higher numbers for sure
eBay increased the FVF accordingly due to PayPal not taking 3%. The FVF was 10% before managed payments and now it’s 12.35%. And the 12.35% is now charged on total sale $ (including sales tax), whereas the 10% was based on the pre-tax sale $.
All said and done, the fees aren’t significantly different than before.
Here is what I do NOT like about this and it is very frustrating.
EBay demands having a checking account linked, but I do not want to link my primary checking to eBay for security reasons. I have no idea how good their security is, but this is why I liked Paypal. To open another checking account my bank demands having certain minimums or deposits each month, which I do not want to guarantee.
I want to keep buying with my PP account for Paypal credit and making others deals off eBay but it means I have to transfer funds more often from another account.
The savings are not worth this hassle to me which come to a few bucks. Plus, I love how eBay implemented managed payments and increased their take just enough so they can say money is being saved. Yuck…
Ebay increased the fees because they are now processing your payment. Previously those fees went to PayPal because they processed your payment. All Ebay did was take PayPal’s processing fee, reduce it, and tack it on to their existing fees (and made it charge the post-tax amount). They aren’t “increasing their take” at all, they’re passing the credit card processing fee on to you just like Paypal did.
This is the exact reason I have not signed up for managed payments. They have not done anything to gain my trust to give them access to my account and for other info like SS number.
One thing I’m wondering with managed payments is if you have a store are your fees are capped at either $250/350 per transaction period? Does anyone know if that includes the cut that eBay now takes for processing the fees?
For example on a $50k sale you would pay a max of $250/350 in fees total (including payment processing). In the past, I believe eBay would cap at $250/350, but then paypal would take their 3%~ out of the full amount (another $1500ish in fees).
If you have a Basic or above store subscription, the fees for collectibles are as follows:
11.5% on total amount of the sale up to $2,500 calculated per item
2.35% on the portion of the sale over $2,500
This means that on any sale over $2500, your ebay fees are capped at a new number of $287.50. The part that PayPal would have charged their 2.9% on eBay now only charges 2.35%.
To give a few examples:
$2500 sale previously: eBay final value fee of 9.15% + PayPal fee of 2.9% = $301.25
$2500 sale currently: eBay fee of 11.5% = $287.50
$5000 sale previously: eBay final value fee capped at either $250 or $350 + PayPal fee of 2.9% = $395 or $495
$5000 sale currently: eBay fee capped at $287.50 + eBay managed payment processing fee of 2.35% = $405
It’s worth noting that for a majority of sellers, the final value fee used to be $350 even with a store subscription - only the most expensive store subscriptions got the $250 cap. The higher the sale amount, the more you save compared to the old fees. I personally am really enjoying the savings
So based on that, the eBay managed payment processing fee of 2.35% does not ever cap like the item final value fees does, and is NOT included in part of the $250/350 limit (depending on your stores tier) final value fee. I wasn’t sure if they had combined final value fee + payment processing fee into the same category or not, if so that would have been a huge win.
I like the new system, but ever since I switched over to this, I’ve been getting a notification under my seller hub to “Set up your automatic payment method”. I’ve filled this out 4 times now, 2 times with my normal process of PayPal, and 2 times filling in my debit card information. Every time the notification pops back up within a day. Ebay is still taking their cut, and I’ve bought things as well.
Anyone else have this issue? I’ve also tried having them call me, but it always says try again tomorrow. A lot of good that does.
I feel like I saved 85$ or so on my last sale. Which is great
