In Reply to: E-bay and PayPal fees posted by akolegov on June 18, 2015 at 01:01:49:
Baseline fees for Ebay and Paypal are abt 13% of gross proceeds including any shipping charges paid through Ebay.
Ebay store reduces eBay final value fee to 6%, and leaves Paypal fee unchanged. Total of abt 9%. You pay for the privilege of having a "store". Cost is as little as $9.95 per month, every month, even if you have -0- activity. It is a recurring charge. You have to have total proceeds of greater than $400 per month before a store becomes economically feasible.
Ebay and Paypal are separating because Paypal is growing faster, and would be valued higher by Wall Street if it were free standing. Insiders will make more money from the 2 companies than if they remained as one.
Ebay fees go up every year because they have yet to reach the point where fees are high enough to choke off growth. Unfortunately Ebay provides the widest audience and easiest sales process. They have a wide moat, meaning a virtual monopoly.
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Follow Ups
- RE: E-bay and PayPal fees - Ross 19:16:42 06/18/15 (0)