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eBay Managed Payment fees calculator

By Chris Dawson October 25, 2018 - 9:00 am

Following on from our earlier article where we argued that eBay Managed Payment fees may be higher for large merchants than current PayPal fees, we’d like to draw your attention to the eBay Managed Payment fees calculator that eBay have published.

The calculator aims to give a payment processing fee comparison and whilst it doesn’t specifically mention PayPal, we all know that the vast majority of payments on eBay are via PayPal. eBay are keen to demonstrate that for most merchants fees will be lower with eBay Managed Payments than with PayPal.

eBay Managed Payment fees calculator for low volume merchants

As an example, if you take eBay’s published rate of 2.7% as the eBay Managed Payment Fee (we don’t know if this is the promised introductory rate and if it may increase in the future) and enter zero as a per transaction fee and 3.4% plus 20p as your current PayPal rate, then for an average selling price of £30 eBay say that you’ll save 41p per transaction.

Normally your PayPal fee would be 3.4% of £30 plus 20p or £1.22. With eBay Managed Payment fees of 2.7% your fee will be 81p

eBay Managed Payment fees calculator for high volume merchants

Now change the PayPal rate to 1.9% for a larger seller and eBay don’t display any saving (because there isn’t one, it’ll cost you more) and instead display a message stating “If you have been invited to managed payments and have questions on rates please contact us.” We suspect that eBay are only intending to invite sellers to take part in eBay Managed Payments if they would currently save money on fees.

This is because eBay doesn’t yet want to tell you that normally your PayPal fee would be 1.9% of £30 plus 20p or 77p but with eBay Managed Payment fees of 2.7% you’ll end up paying 81p. Those on 1.9% PayPal business rates will end up paying around 5% higher fees when they move to 2.7% eBay Managed Payment fees. For higher value transactions, due to the fixed 20p charge, the percentage cost of eBay Managed Payment fees will be even greater.

Use the eBay Managed Payment fees calculator

You’ll find the eBay Managed Payment fees calculator on the eBay site and will be able to run the calculations for your own average selling prices. Every time eBay fail to display the saving that means your payment processing fees will go up under eBay Managed Payments.

Will this be the final fee schedule for eBay Managed Payments?

In fairness to eBay we have to point out that we don’t know the final fee structure that they will offer. All we know is that they have stated that ‘most’ merchants will see lower fees. Here on Tamebay we’re interested in the merchants who will see higher fees as they are the ones with the most to lose.

We also don’t know if the 2.7% fee will remain for all merchants or if that is the promised introductory rate and actual fees for merchants will be higher.

  • I sell high volumes of low price items, average sales price below £10.00 , I’ve always thought their 20p per item fee is fair to high, (I know they do micropayments), especially now that Amazon don’t have a minimum order fee, also it doesn’t anywhere near 20p to process a transaction, especially when looking at Paypal volumes!!!!,.

  • 3 weeks ago

    If eventually it settles so the fees are 2.7% and there is no per transaction fee, then it won’t all be doom and gloom.

    Even if you are on a paypal rate of 2.4%, 1.9%, or 1.4%, you might actually be better off on the ebay managed payment rates, depending on the average value of your sales. I think it works out like this:

    2.4% + 20p on PayPal and sales of up to £64 = better on ebay managed payments
    1.9% + 20p on PayPal and sales of up to £24 = better on ebay managed payments
    1.4% + 20p on PayPal and sales of up to £14 = better on ebay managed payments

    I think that will cover more sellers than we thought.

  • Dave
    3 weeks ago

    Not good for us. It would have added over £1000 fees for the last year on our bill :/

  • Toby
    3 weeks ago

    So why can’t ebay just have a tiered system as well? Surely it isn’t rocket science? We are on the 1.9% rate… a high proportion of our sales are sub £25…. howver we have a ever increasing amount of sales that are £100 to 400… So the increased costs to these will quickly mount up and wipe out any saving from the lower cost ones. Esp as we are moving in the higher value area as less competition and better margins.
    A one size fits all approach is rarely the best one and this may come back and bite ebay in the rear! Of course what will happen is people will put up prices, ebay will then take a higher fee amount and so once again ebay will be trying to disguise the drop in revenue on the back of customers who will soon start looking elsewhere…
    The short sightedness of it all is quite literally mind blowing!

  • Terry
    3 weeks ago

    Same for us Toby. 1.9% rate, average sale value is over £25.

    As seems to regularly be the case, the benefits are going to the private sellers, the business sellers masquerading as private sellers, and low value business sellers. The larger sellers will already be on a special deal one imagines, which leaves those in the middle facing yet more cost.

    I am waiting for E-Bay’s 3rd quarter results with interest, if their share price performance this last week is an indicator of what is to come, all is not rosy in the garden. What that is going to mean for sellers though, is anyone’s guess.

  • 3 weeks ago

    We currently get the 1.4%+20p rate so the increase is quite significant. It will be interesting to see what rate we are offered when the time comes and how it will be sold to us as a “good move”. So far when I have made inquiries with UK customer support about the potential future increase in costs for us, they don’t seem to be that knowledgeable about it and can’t give me a straight answer.

  • Joe B
    3 weeks ago

    I’m currently on micropayments, I can’t see how any scheme will be cheaper or the same for me.

    I don’t believe there won’t be a transaction fee either.

    • 3 weeks ago

      I don’t think there will be a transaction fee.

      Ebay want to copy Amazon. It stands to reason that managed payment fees and selling fees will eventually be rolled into one fee, just like on Amazon.

      If Amazon fees are 15% for a sale in a category, then ebay can charge up 14% for their sales in the equivalent category and claim to be offering better value for sellers. Having a transaction fee as well would muddy the waters, make it less clear they’re offering better value, so it makes sense not to have one.

  • Leon
    3 weeks ago

    and don’t forget, that the fees will absolutely, without a shadow of a doubt, creep up and up and up as time goes on. All rises cloaked in ‘this change is going to make things better’ rubbish.

  • Alan Paterson
    3 weeks ago

    @ Leon, yes but i think thats called inflation.

    • Jay
      3 weeks ago

      eBay’s % based fees cannot continuously rise because of inflation. If it did, we’d all eventually end up at 100% fees.

      The business model must rely on continuous revenue growth through both attracting new customers and retaining existing ones. None of which eBay are doing a particularly good job of at the moment, it would seem.

  • Heath
    3 weeks ago

    Man, they are so dodgy.

    • Alan Paterson
      3 weeks ago

      @ Heath ….. who is dodgyer? (is that a word).

      A supposedly dodgy company or the seller selling on the platform who fully believes the platform is dodgy (which off course they are not)

  • 3 weeks ago

    I don’t understand why anyone is expecting the new payment fees to be lower.

    Ebay has never said they would be cheaper for sellers.

    All they’ve talked about is vague “benefits” for sellers.

    That could mean anything.

    You could take a couple of minor things and dress those up as “benefits”

    Ebay is doing this to make money for Ebay.

    Not for sellers.

    A few sellers might see a small drop in fees, but this would only be temporary.

    Once the system is bedded in and Paypal is fully excluded, then stand back and watch the fees ramp up.

    • jim
      3 weeks ago

      ebay may not be the beast it once was .
      though it still has quite a bite,
      they still feature in most comments and threads on this site,
      no serious online business ignores them ,

  • jim
    3 weeks ago

    we dont understand what all the hoo ha is about
    every business should do all they can to maximise profit

    • 3 weeks ago

      @jim Yes you are right but it is usually best to try and not upset too many of your customers when doing it.

      When you look at the Adyen payment fees they are very low compared to Paypal, we assume that eBay will get a better rate due to the amount of transactions, but we do not expect to be paying considerably more than what Adyen would charge us direct.

      I am just looking at putting Adyen on my own web site so it will be interesting to see what the costs work out to be.

    • jim
      3 weeks ago

      as far as ebay are concerned buyers are the customers they dont wish to upset
      sellers are 2 a penny

    • 3 weeks ago

      @jim – I think you summed up what many people have been saying for a long time, eBay do not care about the sellers, who actually are their customers as it is the sellers that pay them.

      No Sellers = No Sales = No income

      Ok so that may be a while off yet and eBay may go back to being the small niche Auction / Garage sale it started out as.

      But you cant keep squeezing more and more money from your customers, especially if your business is in decline, which is a general thought.

  • Rosemary Anderson
    3 weeks ago

    I’ve just payed ebay £300 for advertising a motor bike it was on eBay for a month and didn’t sell I thourght this was decusting I will never use eBay again so be carfull if you use eBay I was really gutted. I phoned them up I was told I had to pay this amount

    • 3 weeks ago

      According to the ebay selling fees page, the most expensive option for listing fees in ebay motors (auction style listing + a reserve + a BIN price + subtitle + scheduler) are £21.53, so how did you manage to rack up £300?

      Even if you listed it in another (aka the wrong) category, with a reserve over £4000, reserve prices are 4% but capped at £150. And somehow you doubled that amount?

      Whatever the truth is, you could have listed a motorbike for about £20 on ebay. If you really managed to rack up a £300 bill, perhaps that says more about you?

  • Alan
    3 weeks ago

    Putting aside any changes in fees ( which by the looks of things will total quite a bit higher), a managed payments system you would think should be far more secure than having a separate paypal payments system.

    • Dave
      3 weeks ago

      Why? I can’t recall any insecurity issues with PayPal, and we’re deep into a 7 figure £ transactions with them.

    • Alan
      3 weeks ago

      I am aware of instances of sales funds being diverted to alternative paypal email accounts than to that of the seller.

    • 3 weeks ago

      @Alan How is that possible?

    • Alan
      3 weeks ago

      https://community.ebay.co.uk/t5/Seller-Central/Account-Hacked-Payment-Detailed-Changed/td-p/5821745

      This all could have been avoided if eBay were to alert sellers when the payment method has been changed on one of their listings. Is this already a feature that I don’t know about or have eBay not implemented this?

    • james
      3 weeks ago

      this issue has nothing to do with the security of paypal, it was ebay/the individual seller who was hacked.

      nothing preventing ebay sending a notification of such change of details now.
      nothing guarantees they’ll send notification of such changes under the new system.

    • 3 weeks ago

      @Alan As James said, nothing to do with Paypal, they just received payments.

      I do have one concern with that story, it is claimed that the hackers were able to create a new payment method for only a few listings. Which is why it was not detected.

      Is that possible? I thought you only had one payment method relating to the account, not the listings.

      Regards security, if a person is able to access your account using your username & password then that is likely down to you. You should also make sure you have security on your own system etc.

      That is not that eBay should not try and protect people from themselves but they can only do so much, I know people that leave a door key under the doormat???

    • Alan
      3 weeks ago

      @tyler, @James, I wasn’t blaming paypal, I think ebay could have done more to prevent this, in a similar way on Amazon it is quite difficult to amend the bank details without passing security checks.

      Is that possible? I thought you only had one payment method relating to the account, not the listings.

      On ebay, each listing can be set to a different paypal address.

    • 3 weeks ago

      @Alan It looks like the only way of setting a new payment method is by adding a new Payment Business Policy and assigning that to a listing as a business seller, but on my personal account I can add new Paypal addresses to a listing.

      Surely as the person said “My father makes a living selling through eBay and has done so for over 10 years” I take it he should have a business account”

      But you are right, no blame on Paypal at all and really, no blame on eBay, as others said on the forum, people have to take responsibility for their own accounts. It would be better and more responsible if eBay had some extra security but as he is selling 1000’s of items each month how many emails would he want to read? It seemed he was not checking his payments correctly anyway so again another problem caused by himself.

      As *vyolla* said “Surely people should stop trying to find somebody else to blame and foot the bill when they have made a mistake?”

      I am at a loss to see what your point is?

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