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I just noticed another negative of ebay managed payments.
amwldcoin
Posts: 11,269 ✭✭✭✭✭
While going over the terms and conditions something jumped out at me. With ebay and Paypal you only pay Paypal fees on tax ebay collects. With managed payments you pay the entire ebay fee on the tax collected since the payment processing and FVF are grouped together. The additional costs could add up rather quickly, especially to areas that have a 10% tax.
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So you're saying that instead of the 2.9% fee I'm paying on taxes collected by PP, I will pay the item category fee (up to 12.35%, ebay's new highest FVF) on taxes collected by Ebay? If this is correct, I wonder if a top rated seller who gets a FVF discount will see that discount also applied to the tax collected by Ebay.
"Money does not care about speeches on morality. Capital asks whether the rules will remain the same tomorrow. With inflation, people assume price is the problem, and propose regulation—but price is simply the message." - Martin Armstrong
Good catch. From ebay website:
Final value fees
"We charge one final value fee when your item sells, and you don't have to worry about third-party payment processing fees. This fee is calculated as a percentage of the total amount of the sale, plus $0.30 per order.
The total amount of the sale is the entire amount the buyer pays, including any handling charges, the shipping service the buyer selects, sales tax, and any other applicable fees."
"Money does not care about speeches on morality. Capital asks whether the rules will remain the same tomorrow. With inflation, people assume price is the problem, and propose regulation—but price is simply the message." - Martin Armstrong
Message to my ebay account manager:
"If I sell an item that has a 12% FVF that involves a 10% state tax, I am going to pay a fee of 12% on the state tax amount collected from the seller by ebay where I am currently only paying 2.9% on the taxes collected by paypal.
I sell high dollar items in the $2000 range. If my buyer of a $2000 item lives in a state that charges a 10% sales tax, I am going to pay a 12% FVF on the $200 tax which adds $24 to my FVF. Paypal is only charging me $5.80 fee on the $200 tax collected.
So in reality ebay's managed payment fees ARE NOT comparable to those of Paypal as promoted by ebay. Charging me a $24 fee for taxes ebay collects on behalf of a state in grossly unfair. I will be ending my presence on ebay unless ebay can rectify this unfair practice."
"Money does not care about speeches on morality. Capital asks whether the rules will remain the same tomorrow. With inflation, people assume price is the problem, and propose regulation—but price is simply the message." - Martin Armstrong
What’s the big deal ? It says you don’t have to worry.
Correct, I no longer have to worry about "third party processing fees." Now I only have to worry about ebay's higher processing fees.
"Money does not care about speeches on morality. Capital asks whether the rules will remain the same tomorrow. With inflation, people assume price is the problem, and propose regulation—but price is simply the message." - Martin Armstrong
Way too much math for me. I swore to quit thinking when I retired.
6.15% FVF applies currently only to basic (or higher level) stores. Everyone else pays the current 10%.
Under managed payments, coin category fee is 12.35% for a non-store and 11.5% for a basic or higher level store. If you remove the current 2.9% paypal fee (included in managed payments) you have base FVFs of 9.45% and 8.6%. Ebay is effectively raising their FVF by more than the 2.9% processing fee they are taking over.
So, Managed Payment is better only if there are no state sales taxes. Do you know how many states have a 0% sales tax? lol
"Money does not care about speeches on morality. Capital asks whether the rules will remain the same tomorrow. With inflation, people assume price is the problem, and propose regulation—but price is simply the message." - Martin Armstrong
You forgot these:
"Money does not care about speeches on morality. Capital asks whether the rules will remain the same tomorrow. With inflation, people assume price is the problem, and propose regulation—but price is simply the message." - Martin Armstrong
The store fee is a fixed cost not a variable cost like the other eBay fees. My business has other fixed costs as well to be recovered in the markup equation - bank fees, subscriptions, supplies, publications, travel, lodging, meals. In addition for online there is shipping cost.
Consequently the markup equation needs to include all the above cost elements both variable and fixed plus the minimal commission. Say all this equates to 33pct margin on sales. This wb a markup factor of 1.50. Of course items one can sell at keystone markup 100 pct will help float the business for items sold less than plan markup.
At shows you have a table fee and show expenses like travel, meals, and lodging. A fixed cost hole to get out of. Buying below bid is critical if sales are weak as this can deflect some of this cost impact and lessen negative show performance.
The fixed cost pct allocated to the markup equation could be based on average inventory or a transaction fee added to each sale based on plan sales volume. There are many avenues.
Many are ignorant of what it takes to make it in the coin business, don’t grasp the math, or have their own goals to rip it from you. Don’t let them bug you. When their BS starts it’s time send them away.
Am I correct to say that there is a FVF or MP fee that covers sales tax, too?
Under managed payment the discounted coin rate for a basic store is a FVF of 11.5% to include payment processing.
Under the current system the discounted coin rate for a basic store is 6.15% with another 2.9% going to paypal to process the transaction.
My total current cost (percentage) is 6.15% + 2.9%, or 9.05%. That is 2.45% cheaper than the basic store FVF of 11.5% under managed payments. I may not be a rocket scientist, but I do have a space age calculator that can add and subtract.
"Money does not care about speeches on morality. Capital asks whether the rules will remain the same tomorrow. With inflation, people assume price is the problem, and propose regulation—but price is simply the message." - Martin Armstrong
I have not used this additional cost in my comparisons. An ebay seller must weigh his individuals numbers to determine if the cost of a store will actually save him dollars.
"Money does not care about speeches on morality. Capital asks whether the rules will remain the same tomorrow. With inflation, people assume price is the problem, and propose regulation—but price is simply the message." - Martin Armstrong
If I sell an item for $2000 and ebay collects $200 in sales tax in a state that doesn't charge sales tax I pay fees on $200 that should have never been collected in the first place. If the buyer is aware and requests the money back that was illegally collected do you think ebay is going to do the right thing and refund me as a seller. If the buyer doesn't request the refund there is zero chance of me being refunded for the fees on taxes illegally collected.
I recently sold a coin for $500 to a customer in a state that doesn't charge sales tax, there was $30.50 collected buy ebay. Not only was the buyer charged $30.50 they shouldn't have but I was charged fees on it. The buyer is a very active buyer of coins so I sent them a message informing them of the tax collected. The buyer said they were unaware of the problem and ebay owes them thousands in taxes collected.
It's all a money grab by ebay and they don't care about the buyer or seller.
UNTIL THEY POST COIN CATEGORY OR ALIEN ARTIFACT RATES THE RATE IS:
Edited to add:
Hopefully the rate will be much lower. However, check this out.
"Money does not care about speeches on morality. Capital asks whether the rules will remain the same tomorrow. With inflation, people assume price is the problem, and propose regulation—but price is simply the message." - Martin Armstrong
I doubt they'll raise the rate on coins unless they want to cut their own throats.
"It's like God, Family, Country, except Sticker, Plastic, Coin."
State sales tax and shipping will be included in the amount that gets hit with the FVF.
"Money does not care about speeches on morality. Capital asks whether the rules will remain the same tomorrow. With inflation, people assume price is the problem, and propose regulation—but price is simply the message." - Martin Armstrong
And alien artifacts? Maybe you should tell them they are running way behind. Everyone has to be under the new MP system by end of Feb.
"Money does not care about speeches on morality. Capital asks whether the rules will remain the same tomorrow. With inflation, people assume price is the problem, and propose regulation—but price is simply the message." - Martin Armstrong
In one section of "My eBay", it says:
You need to update your account details on file – this is required to set you up for managed payments.
In another section, it says:
You’ve successfully registered for managed payments.
I'm sure everything is right on schedule.
my ebay email says Feb. 28.
"Money does not care about speeches on morality. Capital asks whether the rules will remain the same tomorrow. With inflation, people assume price is the problem, and propose regulation—but price is simply the message." - Martin Armstrong
It's not 100% clear, but as I read it, this fee is for a dispute which the seller loses when the dispute is filed with the payment company (chargeback, etc.), not just a case on eBay. If my reading is correct, then it's no different than PayPal. I don't remember how much they charge, but it's $15-25 for a lost chargeback case, I think. https://www.ebay.com/help/selling/getting-paid/handling-payment-disputes?id=4799
Then surprisingly it's gone down. I think I got hit with it once or twice. Knock on wood I haven't dealt with a chargeback in a long time.
🤔🤔🤔🤔 I am so confused! You guys are killing me! My head is spinning trying to follow you two.
I learned a long time ago that you have to calculate Ebay and PayPal fees to determine your costs of selling on Ebay. The easiest way to do that is sell a few things and track the costs.
Bottom line, I think Ebay is trying to copy Amazon's fee and payment structure and they don't care if a current seller is making less money with these changes.
The real question for us is where else are you going to list your items and generate the same amount of sales dollars and profits other than Ebay?
Wow. I was already not happy when eBay started collecting sales tax on my behalf and had to pay PayPal for money that doesn't spend a second in y account. Ugh.
Collector
Over 100 Positive BST transactions buying and selling with 57 members and counting!
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eBay has been a good platform for me sell smaller ticket high markup material. Shows use to buy and sell from wholesaler plus move my bigger ticket somewhat lower markup material say in the $500 -$3000 range where all I am fighting is $150-$200 table fee.
Sort of like a balanced offense.