Will sellers continue to sell on Ebay under the new EBAY MANAGED PAYMENTS??

[D. Bergin]

Originally Posted by thecatspajamas

Correct. So on a sale that is $100 for the sale price plus shipping, to a state with 5.82% sales tax, the equation with Ebay FVF plus Paypal on the left and eBay Managed Payments on the right would be:

$100(0.10) + [($100 + $100(0.0582)]0.029+0.30 = [$100 + $100(0.0582)].1235+0.30

=$13.37

This assumes that the seller does not have an eBay store, or just has the lowest level of eBay store subscription ("starter" I think it is called). For those with "basic" level eBay store and higher, the FVF is dropped to 11.5% for most categories, making that "break even" sales tax rate 16.27% which is higher than any state's tax rate that I am aware of. So in other words, if you have an eBay store subscription, your fees will actually be lower under Managed Payments regardless of which state you are selling into.

I'm not an accountant but:

Basic store level final value fees right now are 9.15% + the 2.9% Paypal, and I'm seeing the swing in the other direction at maybe just above 6% sales tax.

I know the most populous states and most frequent shipments are to higher tax states.

This also doesn't take into account what has been mentioned already, Ebay is taking their piece before depositing it into our account, so we can't get points back from our cards when we pay the bill. I know this is fairly inconsequential, but it makes the statement "There's no math you can use in which you aren't saving money under this new program", fairly inaccurate.

......and anybody who doesn't think Ebay already crunched the numbers in their favor before unrolling this system, is being incredibly naive.

I know I may be pinching pennies, and in the end, it may only be a few bucks more a month, but I'm constantly being disappointed by Ebay and their decisions. I can't help thinking this is just a first step down a much bigger rabbit hole.

They are constantly inching up their bottom line, while their scumbag, terroristic former CEO just took a $57 million golden parachute.

All that being said, I reserve the right to complain about Ebay, but I'm certainly not going to stop selling there. Doesn't mean I have to buy the whole "It's their playground, just shut up and sell, or leave if you don't like it" mentality.

They've shown their true colors as a company, as evidenced by the other thread on this site. So I'm going to continue using them, as long as they continue to "use" me. It's just business, I guess.