IMPORTANT- managed payments

charlies_mum

I have a spreadsheet which calculates the profit on each item after the new eBay charges and I know for a fact that there are some business sellers selling at a loss.

I’ll put my prices up to cover the managed payments and the postage increase from March, but that could mean a loss in sales.      I also haven’t had any late delivery strikes removed for a while so I’m on 1.8% and rising.    I usually have one or two strikes but I currently have 15 plus 8 removed since 8th May 

Brywalker

charlies_mum said:

Their advice was to put my prices up as everyone else will be doing the same.

Unfortunately the time when everyone will have to do the same may be months away giving plenty of time for your, more expensively priced items, to fall away from the first page. And then there's the private sellers who are clearly businesses...

soolin

Brywalker said:

charlies_mum said:

Their advice was to put my prices up as everyone else will be doing the same.

Unfortunately the time when everyone will have to do the same may be months away giving plenty of time for your, more expensively priced items, to fall away from the first page. And then there's the private sellers who are clearly businesses...

I compete against a number of unregistered businesses in several of my categories 😕

martindow

charlies_mum said:

I have a spreadsheet which calculates the profit on each item after the new eBay charges and I know for a fact that there are some business sellers selling at a loss.

There is certainly a race to the bottom in terms of prices for some items, but can you be sure that they are selling at a loss?  You don't know what prices they are buying at.

LM2020

My account's supposed to be switched over tomorrow. They said they'd send another notice 48hrs before the switch but I've not had any message. Tried to buy something off a seller that seems to be stuck in the process of switching and payment wouldn't go through - their customers haven't been able to send payments for days. Having to cancel payment and try again - hoping it goes through 2nd time and they don't get charged refund fees on the 1st payment.

Brywalker

It looks like Ebay have addressed the micropayments issue to some degree with their latest promotion.

"Promotion

The Low Cost Items Promotion (“Promotion”) will allow eligible sellers to pay a Final Value Fee  of 15% + 5p (“Promotion FVF”) on all qualifying transactions for both new and existing listings from the point of activation into managed payments. The transaction must take place via managed payments between 24th August 2020 and 23rd February 2021 inclusive (“Promotion Period”).

Rantband

Can anyone confirm these figures are correct ?
                                Sale    £10           £5
Now 30p + 10.9%               £1.39        85p
Offer 5p + 15%                   £1.50        80p
Not a great offer unless someone knows better ?

charlies_mum

martindow said:

charlies_mum said:

I have a spreadsheet which calculates the profit on each item after the new eBay charges and I know for a fact that there are some business sellers selling at a loss.

There is certainly a race to the bottom in terms of prices for some items, but can you be sure that they are selling at a loss?  You don't know what prices they are buying at.

I know exactly what they are paying as they buy from the same wholesalers as me and the prices stand whatever volume you purchase.

I assume they haven’t done the calculation, as by the time you factor in all the Costs, they are definitely selling at a loss. 

    Rantband said:

Can anyone confirm these figures are correct ?
                                Sale    £10           £5
Now 30p + 10.9%               £1.39        85p
Offer 5p + 15%                   £1.50        80p
Not a great offer unless someone knows better ?

By my calculations,  I Will only benefit on items that sell for less than £2

Brywalker

A lot will depend upon which category you sell in.  By the above example you would be benefitting on any sale less than around £4.80. 

The categories I sell in carry the MP fee of 11.9% plus 30p (Plus VAT of course.  I am not VAT registered so if I sell an item at £2.99 (and I sell a LOT of those)  then my standard managed payment fee would be a total of 79p inc VAT. Under the promotion the total fee would be 60p inc VAT.  A very nice saving indeed..

I calculate that the price at which it is not beneficial to me is around £7.00 and over.  I do sell a few things above that price but overall to me it is a very good deal.

Brywalker

Sellers will obviously have to do their own sums to determine whether they would benefit.