eBay Payments Beta trial insights from eBay Open

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Following a payments session at eBay Open, some eBay Payments Beta trial insights have emerged giving us an ideal of what eBay Payment will look like. eBay are already inviting sellers to sign up to the eBay payments beta in the US and members of eBay staff have been using the new payments flow for a couple of months. Here’s what we know to date:

eBay Payments Beta trial insights

Features we already knew

  • eBay will consolidate payments and invoices into a single account
  • Payouts will be made daily to your bank account
  • eBay are exploring faster ways to get paid with partners
  • All fees will be on a single eBay invoice – this will include payment fees
  • Those who take part in the Beta will get special discounted pricing for early opt in
  • eBay will automatically update all existing listings to add eBay Payments as the default payment option

New features we now know

  • PayPal is not an option! Buyers can pay with bank or credit card or Apple Pay but not PayPal. This could cause friction from buyers in the short term as they have been accustomed to buying on eBay and paying with a single click. PayPal will be included when eBay Payments rolls out more widely after the end of the beta trials.
  • The eBay Global Shipping Program won’t be supported under eBay Payments during the beta. We don’t have a date when this will be supported. Part of the reason for this is undoubtedly because the payment is split between the seller for their sale price and domestic shipping and part of the payment goes to the Global Shipping provider for carriage and taxes to delivery the product internationally. This could lead to a reduction in sales from customers around the world during eBay Payments beta trials.
  • The fees are currently 2.7% according to sources. This is less than the PayPal headline rate of 3.4% but we understand this is discounted pricing for early opt in. We don’t know what the final fees for sellers will be.
  • If you opt into the eBay Payments beta you can’t then opt out
  • Your money won’t be available to spend immediately. You’ll have a daily sweep of payments which you can withdraw but (at least in the US) it might take 2-4 days for the funds to hit your bank acccount. If you rely on having money in PayPal the moment you’ve been paid to fund shipping then you will need to reorganise you cash flow for eBay Payments.
  • One point for resolutions – eBay will be the only and only port of call for both buyers and sellers in the event of a dispute. Buyers will no longer have the option to turn to a PayPal chargeback, although we haven’t seen the terms for if a buyer initiates a credit card chargeback.
  • Bookkeeping will need to be adjusted – if you’re used to having PayPal feed payment information into your accounting systems then you’ll need to be prepared to manually update your accounts records until eBay make a payments API available and your chosen accounting provider integrates with eBay Payments.

    Should you sign up to eBay Payments?

    Obviously during the beta trials, signing up to eBay Payments is entirely optional and you should consider the above points in relation to your business. When use of eBay Payments is enforced then you won’t have choice but we know that some features (like the ability to accept PayPal) will return as we hope would support for the eBay Global Shipping program.

    Currently we’d suggest that the trial is probably not suited for larger experienced eBay sellers as it’s likely to be too disruptive to their existing business automation (e.g. accounts), but if most of your processes are manual then you may like to get a jump on the competition and get to grips with eBay Payments early, if you’re invited to the trials.

  • 29 Responses

    1. No good news there. So much for cheaper fees and instant access to your funds…

      Let’s hope that there’s a volume discount coming because as it stands, it’s more expensive than our current 1.9% +20p PayPal rate.

      A lack of an API could be a serious issue too. That simply has to be in place before this goes live. However, eBay’s recent performance doesn’t fill one with confidence.

    2. Do not opt into this Beta program.
      No Paypal payment option means hundreds of buyers will just abandon their carts. Its a seller nightmare.

      Why cant Ebay get anything right?
      Its just one disaster after another.
      A seller in Ebays discussion board predicts Ebays demise by 2021 – i think they are so right

    3. Why are you advising it is not suitable for larger sellers? They are the ones who dont have to worry about the Paypal option and have large floats from mutli channels they sell in.

      That is bad advice you are giving – its the smaller sellers that are affected.
      This is why im advising do not opt in to the Beta test, you can never opt out – the Beta test lasts for a couple of years.

    4. I know it is only a beta test and you expect things to be not great or the finished article, but do they try on purpose to do it as badly as possible?

      No GSP = No global sales (unless you want to do a LOT more legwork)

      No Paypal payments = Less sales

      Fees that are higher than many business sellers will be being charged via paypal. = Getting charge MORE for accepting payment on a LOWER amount of sales

      Worst Beta Test Ever!

    5. Payments every day!! Our business bank account charges £0.35 on every incoming credit. At present we disburse from paypal twice a month (£0.70) . If ebay pursue this line of payment it will be £10.85 per month and an extra 28/29 transactions to be accounted for
      .
      Honestly think ebay have no idea about running a business

    6. This is eBay at it’s best, but fear not, all the above could change for the worse, nobody will sign up to the beta so eBay will just switch us all over and work out the problems as they go…

    7. @Tyler – thats true. Im so glad i moved over to Etsy – Ebay has turned into a bargain bin place, im making better revenue on Etsy with the exact same items i sold on Ebay.
      Plus, Etsy show ALL your listings ALL of the time, unlike on Ebay with their throttling and when they feel like showing them.

    8. @Gav
      I’m surprised you sound surprised lol
      It is eBay after all,,, no thought, no planning and next to no idea.
      Truly woeful

    9. I have not opted in for the beta test but are you guys above saying that when you do……. it removes the paypal option? Surely not.

      it was always ebay intention to always have paypal as an option.

    10. Hi Mr Patterson – just a quick change of subject to pick your brain.
      With regards the new returns metrics –
      (1) Would a return which has been started via the Ebay returns process – but the buyer does not bother to post the item to the seller . Will this still be a return which counts against you?
      (2) Again as question 1 – if buyer does not post the item – is seller still liable for the Ebay postal charge which as been generated – or is there a refund to seller.

      Many thanks Plasticman

    11. thanks for the explanation Tyler. I missed that bit in the terms. Oh dear. I hope nobody has opted in not realising this.

    12. Wonder if it’s a sign of Paypal flat out refusing to help ebay and that’s why it’s missing?

    13. @patterson

      How could you not miss paypal is not a option??, bank transfers also take 2-4 days!!

      You state in your post above “Daily disbursements was something business sellers were pushing for.” where is this information you state??. Sellers can dispurse funds at any time to any of their accounts with paypal already often arriving in a few minutes
      I dont want transfers done every day like most on here and certainly dont want them on my private account either. For the few items i sell on my private account i normally keep the funds in paypal for purchasing other things with paypal not just ebay.

    14. @ Alan Paterson

      I have been just one month on Etsy so its too early to say i’m afraid.

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