We also list most of our inventory on our Ebay store. However, it is more expensive to purchase from us on Ebay because the cost of doing business on Ebay is higher. Based on the categories of items we sell, it costs an average of 12% per transaction (Ebay’s fee + PayPal’s fee) versus $0.30 + 2.9% for domestic orders or 4.4% plus a fixed fee which varies by currency. This fixed fee approximates the $0.30 per transaction for domestic orders. So, it’s about 9% less expensive if you purchase the item here and pay with Paypal – unfortunately, we don’t get the traffic like Ebay gets, but a few folks stumble on us from time to time.
Now, Ebay is requiring sellers to switch to their managed payments program where they are cutting out Paypal and processing payments in house – well, with a company called Adyen– it looks like Ebay is going to make even more money and the money is not necessarily being intercepted from Paypal – it’s going to cost sellers even more which is unfortunate for everyone as sellers will have to pay more and then pass on the extra bill to buyers by increasing prices. Oh well.
So, we’re now being told by Ebay that we have to switch to managed payments in order to continue selling on Ebay without interruptions – we will report back later with how the fees compare for Ebay managed payments versus Ebay + Paypal.
We’ve been buying and selling on Ebay since August of 2000 – a long time ago. – actually since 1998, but we had a different account back then that went with a former business partner – we used to receive checks and money orders in the US mail for items sold on Ebay – sometimes folks would send cash. We would cash the postal money order at the post office and then ship out the item.