IMPORTANT- managed payments

charlies_mum

I’ve just read into it further.     Under the new MP fees, I will pay 12.9% plus 30p plus vat which on a £1.99 sale is 66p.     Under the offer it will be 5p plus 15% which on the same £1.99 sale Is 35p, so a big saving
Am I doing something wrong ?

Also this only lasts till Feb so after that date I’ll be selling something that costs me 33p for £1.99, paying eBay fees of 66p and giving free postage.     That’s me going out of business then.  

Brywalker

Your calculations are near enough correct.

As regards the fact that it is only till February,  a lot can happen in six months. 

Firstly it  gives you six months to look for things that may be more profitable.

Secondly,  in those six months most or all of your competitors might also be  signed up to MP,  putting you all on a level playing field so if and when you need to raise your prices   so will they. 

Thirdly,  you never know,  Ebay just might keep the promotion going indefinitely.

Good luck. 🙂

goodfella66

I presume the 15% fee is non-inclusive of VAT, which would make it to us non-VAT registered sellers 18% + 5p. My most common price point is £6.79 so the promotion is actually more expensive. 

martindow

charlies_mum said:

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. 

You could well be right that they haven't factored in all of the costs.

But I don't think that you can entirely dismiss the possibility of someone having negotiated on the buying price.  I deal with one supplier who are still honouring a discount on a particular product that I obtained years sgo in return for buying in quantity.  They don't advertise quantity discounts on their site but I think it is always worth a call to see what they would offer if you suggested buying a larger quantity than normal

LM2020

goodfella66 said:

I presume the 15% fee is non-inclusive of VAT, which would make it to us non-VAT registered sellers 18% + 5p. My most common price point is £6.79 so the promotion is actually more expensive. 

Yes 18% + 6p. It depends what category you sell in. Eg one category I sell in is 10.9% + 30p (actually 13.08% + 36p inc. VAT) £6.10 is the point where the fees work out the same so under this micropayments is worth it. Whereas another category is 12.9% + 30p (actually 15.48% + 36p inc. VAT) and with this one under £11.90 it's beneficial and will be big saving on low value sales. In any case it's still going to be more expensive than PayPal was (unless you're VAT registered).

charlies_mum

As from today I am using Managed Payments.     I accepted the offer of charges of 15% plus 5p, but on a £3.29 sale I have been charged 59p.

soolin

charlies_mum said:

As from today I am using Managed Payments.     I accepted the offer of charges of 15% plus 5p, but on a £3.29 sale I have been charged 59p.

Ouch it’s a worry when they can’t even get their offers right.

I’ve not been switched yet Still showing the same message ‘you’re on the list’, which is actually quite menacing 😀

Enigmatic_Me

charlies_mum said:

As from today I am using Managed Payments.     I accepted the offer of charges of 15% plus 5p, but on a £3.29 sale I have been charged 59p.

At the new 15% plus 5p you would be £3.29 x 15% = 49p plus VAT at 20% = 10p plus your 5p (which is 6p after VAT is added)  so I calculated you should have been charged a total of 65p (unless this is far too early in the morning for me to be carrying out mathematical calculations) What percentage were your FVFs before?
I went live yesterday and was quite impressed that all my listings moved over to the 15% plus 5p and I was on micropayments. Sales are a bit quiet just now but the sales I had yesterday saved me a few pence compared to previous.

charlies_mum

Thanks, I forgot the VAT.    My prices will definitely have to go up as I give free postage

Brywalker

charlies_mum said:

Thanks, I forgot the VAT.    My prices will definitely have to go up as I give free postage

If you had previously been on Paypal micropaymenst then on a £3.29 sale, your total fees would have been approximately 39p (Inc Vat) to Ebay depending on which category you're in,  plus 22p to Paypal, making a total of approximately 61p so there's little difference.