Ebay: Managed Payments...no more Paypal

weird. i have an item up for auction right now. if you had an account registered with paypal did ebay get it from them at some point?

 

Maybe they haven't changed over all of the accounts from Paypal then. If you are an active seller, they did it in phases last year.

 

first time listing anything in a year at least

 

That could be why. My brother is a fairly big seller and they changed him over earlier last year way before me. Maybe they won't even bother for occasional sellers.

 

I can no longer list on ebay because I refuse to sign up for their managed payments. My cutoff to change over from paypal to their system was back in January.

 

I wonder what percentage of sellers they will lose because of this.

Giving them access to my bank account isn't a big deal to me since it's a small amount in there most of the time.

With all of the competing auction / sales sites that specialize in certain items, I would be curious to see what happens.

 

Not just your bank account, eBay asks for your social security number too.

 

Time to get a free on line account from Capital One or someone of that sort for eBay purposes only.

 

They haven't switched me yet, but for when they do I set up an account on Chime. No opening or maintenance fees, and they sent me a debit card I can use with no ATM withdrawal fees dozens of places near where I live.

 

If you're selling as a registered business, a tax ID number should be sufficient.

 

So they can give you a 1099.

 

My first calculation of fees charged by eBay after being forced to use eBay managed payments was just over 18%, the period was February 16 to March 15. The percentage always fluctuates, sales to states with sales tax collected are charged at a higher percentage of my sale and lower priced items are higher due to the fixed 25 to 40 cent fee for collection regardless of sales price. This likely means my total fees will average about 1% higher than when I used PayPal.

Can anybody calculate the total fees have gone down for them since changing to eBay managed payments? The indication I was given was most would see lower fees after making the change, I was skeptical and when I saw I would be charged over 14% of the sales tax amount, I knew I was not going to be among the most seeing lower fees. It was probably a lie and just the opposite will be true and eBay knew that.

 

I am going to list items with shipping to Canada available. The eBay fees can be less than selling to USA buyers, at least for states where eBay has to collect sales tax and I have a bigger potential market.

As far as selling single CDs for the typical price, say $6, the fee was $1.12 or 19%. With PayPal the fee was $1.09, this was a state with sales tax rate of 9.25%. About 95% of my CDs are worth $6 or less now, mostly less. Of course shipping has gone up also, Media Mail recently went up to $2.89, add packaging and label cost and I am done with selling the typical CD as a single item on eBay.

I should add, I am not a business seller and I don't think it would be to my advantage to become one since my volume is low.

US eBay Fee Calculator | Calculate eBay & PayPal Profits (ebayfeescalculator.com)

 

Sell an $80 SACD, fees with eBay managed payments 9.25% sales tax, $12.84, using PayPal $12.43.

 

Does anyone know why they ask for your social security number? Do they use it to do a credit check? Do they keep it on file or delete it once they've confirmed you? I can't find the answers to these questions googling them so I thought I'd turn to y'alls.

 

My guess would be that it could be a banking regulation. They are not extending you credit, so I doubt if they can use it for a credit check, but who knows really?

 

Tax purposes, maybe? If you go over a certain amount in sales you have to file it on your taxes.

 

There you go. They will send you a 1099 just like Paypal.

 

All of this is changing. $600 in sales and you'll be getting a 1099. Prepare for it.

That is also why they have your SSN.

 

so I sold something this past weekend and never had to give any of this info to ebay and already got the payment

 

Have they had you sign up for their managed payments and stop using paypal yet?

 

nope it was paid directly into my paypal account

 

If you haven't been forced to sign up for their managed payments yet, then it's still the status quo.

Also, if you have old listings before they stop you from listing new stuff unless you sign up those will remain listed and can still use paypal, but you can't list anything in the future.

 

weird. I literally listed something for the first time in like 8 months. maybe that's why. i'm hesitant to list anything again so soon though

 

They will give you notification stating that you have until a certain date to sign up for the managed payments or you will lose access to list. I think they are doing it in waves, you just haven't been drafted for it yet.

I haven't listed anything on Ebay since January because I just don't want to play their game.