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Ebay: Managed Payments...no more Paypal

Discussion in 'Marketplace Discussions' started by visolo, Nov 13, 2020.

  1. kwadguy

    kwadguy Senior Member

    Location:
    Cambridge, MA
    History tells us that that will not be true in the long run. Fees have never gone anywhere but up EXCEPT when there was a viable competitor.

    For example, Reverb.com helps keep the final value fees on music equipment down on eBay.
     
    googlymoogly and SJP like this.
  2. Well crap, I was aware this was coming but I have just been ignoring it and never bothered to try to understand what it all means. Today I tried to list something, it wouldn't list and some time later the message I had to change to eBay managed payments popped up.

    If the CD selling fee changes from 12% to 14.35%, that sounds fine if that includes the payment processing fee, lower than 12% plus $.30 plus 2.9% when using eBay and PayPal. The 14.35% of sales tax collected is ridiculous, how can that be justified? If that is true, the fees have gone up on eBay with eBay managed payments for all sales I make requiring sales tax collection, that is just like charging the seller an additional approximately 1% (11.45% of 9% sales tax) of the final value fee. I thought PayPal charging sellers 2.9% of sales tax was a ripoff. I don't know how collecting and remitting sales tax to states works these days but when I was an accountant decades ago having to deal with that, we were compensated for the expense and it was a fair amount to cover the costs. We got to keep a small percentage, certainly not profitable, but if we got paid 14.35% of sales tax collected that would be a money maker. When laws were passed requiring eBay to collect sales tax, provisions preventing eBay from ripping of sellers should have been part of the law.

    Where do I get a free checking account with no balance requirement and no fee? I haven't decided whether to quit selling on eBay or not at this point, eBay is a haven for bad buyers since eBay makes it very difficult to identify them until you have been burned. Now it is going to cost more and I have to deal with the nuisance to make this change.
     
  3. SJP

    SJP Forum Resident

    Location:
    Anaheim
    This is certainly frustrating Chris but when all is said and done, it may very well work out.

    You might look into credit union membership. Those are typically non-profit (I think) and have minimal fees, if any. I have a credit union account which is not our main household account that I now use for eBay. So far, it's alright, I guess but still early. It may be coincidental but sales have really stalled since I made the move. Wondering if the conversion date is across the board and people are getting used to the financial side of things.

    Personally, when it comes to buying, I made a lot of impulsive searches followed by the occasional purchase when my PayPal was sitting with a balance. Because the above referenced account is not 100% exclusively for eBay, I'm still not used to the flow of money and what I have in there to fund the impulse buys. Probably doesn't help that I have the eBay money transferred weekly instead of daily.
     
  4. ILovethebassclarinet

    ILovethebassclarinet Forum Resident

    Location:
    East Lansing, MI
    I haven't bought anything through them since 'buying' some items from a 'large corporate seller' last year that took my credit card info and payment quickly enough, and then insisted for about 6 weeks that 'they sent it a long time ago,' even though it never arrived. I did get re-imbursed, but my enthusiasm is dim...
     
    Soundman likes this.
  5. Defdum&blind

    Defdum&blind Forum Resident

    feebay's practice of adding a charge to postage in the European Union was ended by the EU to protect the consumer. Maybe a Democratic administration may be persuaded to end feebay's practice in the US and Canada.
     
    Dave, Simon A and riverrat like this.
  6. cdash99

    cdash99 Forum Resident

    Location:
    Mass
    Without going through the five pages of this thread, is this for business sellers? I went on their site and they still referenced Paypal.
     
  7. R. Totale

    R. Totale The Voice of Reason

    No business distinctions, the payment method change applies to how ebay pays all sellers. You can still use Paypal as a purchase method.
     
  8. WarEagleRK

    WarEagleRK Forum Resident

    Location:
    Chattanooga, TN
    I guess I'm done selling on ebay as I'm not signing up for the managed payments.

    I also noticed they have overcharged me so far this month on fees by just over $12. As the amount on their fees listings don't add up to what they say I owe. I called them a couple of weeks ago about it and the 1st person told me it was a systems glitch caused by sellers who pay their fees as they go vs paying a lump sum at the end of the month. So a glitch that punishes me for paying early. The second person I talked to said it was a fee that hadn't shown up yet, a week later it still hasn't shown up yet. Today the reason was "it will all correct at the end of the month when you get your statement". Three calls, three different reasons for the over charge.
     
    steveharris likes this.
  9. quicksrt

    quicksrt Senior Member

    Location:
    City of Angels
    PayPal has also charged a fee on the tax collected from the buyer iirc. It's not just eBay's managed payments doing it this way.

    One really needs to get some ADDITIONAL action going on Amazon, Discogs, and your own site if you have the time. I have an Ecrater store which is like an ebay store but with no fees. They do not have the advertising budget, but your items are searchable via Google and other search engines.

    I am gearing up to list all of my current Disocgs LPs for sale over at Amazon (if there is a place card already set up). I will price them higher at Amazon due to their higher fees. And then later I will drop them into Ecrater as well. I believe in NOT having all your eggs in one basket. Ebay still has a place for certain items. I have a large stack of autographed LPs I want to sell. Many Classical conductors and composers and Opera singers. These types of things are perfect for ebay in order to get better prices for them.

    I feel like ebay treats me like I'm right off the turnip truck and not very bright. Amazon treats me like I am so lucky to be there and paying them their high fees. Discogs feels like they are on the verge of selling out to Universal Music Group or another corporate entity, and flat-out ignoring their seller's needs and concerns, and may any minute decide that they want a bigger chunk of the sale price. And Ecrater is fine, but only if you do your own promotional work and keep expectations low.

    Fun stuff, but it used to be easier and more profitable ten years ago.
     
  10. eddiel

    eddiel Forum Resident

    Location:
    Toronto, Canada
    Are you sure as I've seen complaints/comments on other forums of how eBay takes a % of the total price including shipping as their commission. When did the EU bring in those rules?
     
  11. giantleech

    giantleech Lord of all fevers and plagues

    [​IMG]
     
  12. Jump Cut

    Jump Cut Well-Known Member

    Location:
    Fresno, CA
    Uugh. Just ran into this today. I knew it was coming but forgot about it. I'm not going to give eBay access to any of my current bank accounts. I only sell a few things a year so I'm not opening up a new bank account just for eBay. I hope some of the previous posters can figure out a solution that works best for you.
     
  13. ILovethebassclarinet

    ILovethebassclarinet Forum Resident

    Location:
    East Lansing, MI
    Why someone would use a bank when a CU s an option is beyond me. I haven't had a "bank account" since the 1970s...
     
  14. Lord Hawthorne

    Lord Hawthorne Currently Untitled

    Location:
    Portland, Oregon
    If you deal records as a business owner, you'll find that Credit Unions don't accept business accounts.
     
    Matthew Tate likes this.
  15. ILovethebassclarinet

    ILovethebassclarinet Forum Resident

    Location:
    East Lansing, MI
    I'm not a record dealer, but I do believe that the school employee's credit union I'm a member of does accept business accounts, though, as I've not needed one, I can't say that with 100% assurance. I swear that I've seen comments in brochures from the CU that make reference to business accounts held by members. State laws can also vary by state I'd guess.
     
  16. Lord Hawthorne

    Lord Hawthorne Currently Untitled

    Location:
    Portland, Oregon
    Certainly here in Oregon, my business has been refused an account at several credit unions, although they were eager to accommodate me for a personal account.
     
    ILovethebassclarinet likes this.
  17. hvbias

    hvbias Midrange magic

    Location:
    Northeast
    Just tried managed payments for the first time with a smaller CD box set, a little over 16% in fees :shake: Have to raise all the prices accordingly.

    [​IMG]
     
  18. Dave S

    Dave S Forum Resident

    Here in the UK, loads of competitors are springing up: vinted, shpock. And they are advertising.
     
  19. Yes, a ripoff at 2.9% for PayPal. Now the fee is going to be around 14.35% of sales tax charged for me, eBay will charge the final value fee plus the payment collection fee on sales tax. The final value fee wasn't charged on sales tax previously, only sales price plus any shipping charges. When eBay forced me to switch to managed payments, the claim was most would see their fees go down. My fees went up for all sales that require collecting sales tax so I think most if not all months, managed payments means my fees will be higher. There aren't many states that don't require eBay collect sales tax.
     
  20. quicksrt

    quicksrt Senior Member

    Location:
    City of Angels
    But eBay has never made a change that did not result in their taking a bigger chunk of the action = higher fees. They just don't work that way. Maybe all publicly traded companies work that way. They keep on squeezing and squeezing more profits until it bursts, and the smart stockholders are supposed to jump off-board just before it crashes. I think that is how the game is played.

    For sellers, the name of the game is to not have all of your eggs in one basket. Have Amazon, Discogs, and another site going along with ebay. Sell some items in the forums here for lower prices with no fees. I learned early on that having ebay as one good source of sales was smart, but you needed another venue as well.

    I feel for the sellers of old various collectables and odd art objects where there is still no other venue to sell, and they are stuck with ebay and the higher costs of selling. For the record and CD seller, there are now several places and ways to list. I actually have a store at a site called Ecrater. Very slick and clean look, google searchable. But the only issue is no real promotion. But then no fees charged either. So great place to park your items that have not moved on ebay.

    Everything seems to come and then go.
     
  21. Matthew Tate

    Matthew Tate Forum Resident

    Location:
    Richmond, Virginia
    so now if you sell something on ebay how do they pay you? directly into some account or if paypal has your account will they be able to deposit it into a checking account that way?
     
  22. quicksrt

    quicksrt Senior Member

    Location:
    City of Angels
    I heard that they keep making deposits as you sell, but that there is some delay while they make interest on your money before you get it.
     
    Matthew Tate likes this.
  23. Bobsblkwax

    Bobsblkwax Forum Resident

    Location:
    NorCal
    Yes, they deposit directly into your bank account - in 3-5 days. Less their comission of course.

    Their cash flow must have improved tremendously.
     
    Matthew Tate likes this.
  24. Matthew Tate

    Matthew Tate Forum Resident

    Location:
    Richmond, Virginia
    so if i sell something and don't have a bank account on file with ebay can i just use the funds to purchase something else on ebay
     
  25. Bobsblkwax

    Bobsblkwax Forum Resident

    Location:
    NorCal
    You can't sell anything with them until you register your bank account - as far as I know.
     
    Matthew Tate likes this.

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