eBay have started to roll out the eBay Managed Payments with the first transaction having successfully taken place on the 24th September 2018. Thousands of sellers opted in to early sign up to accept payments through eBay rather than PayPal and buyers will now increasingly see eBay Managed Payments across the site as more seller join.
This afternoon, @ebay crossed an important milestone by transacting its first fully managed customer payment. Over the coming weeks, thousands of sellers who opted in will be rolled into the Managed Payments program.
— Devin Wenig (@devinwenig) September 24, 2018
eBay Managed Payments are powered by Adyen, who eBay have partnered with to bring payments inhouse. Adyen are no stranger to marketplaces and already power payments for the likes of Etsy and NotOnTheHighStreet, although eBay are by far and away the biggest name they’ve signed.
eBay Managed Payments Features
- 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
- 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 Managed Payments.
11 Responses
Amazon makes most of their profit from Amazon Web Services. Whether deliberately or not, they appear to have taken their eye off the ball when it comes to Marketplace.
I guess the only question is whether they have decided that everything else they are getting their fingers into (AWS, Amazon Logistics, Space, etc) is more interesting and they have just lost focus. Alternatively, they may have made a positive decision to move Marketplace to being just for their own stock and a few major sellers (manufacturers, key brands and Chinese bulk sellers).
Now that they’ve got a decade or two of data about what sells from Marketplace sellers, they may have decided that the best way to get rid of the smaller sellers isn’t to make waves with an announcement, but just to make it such a nightmare that the sellers give up and go away of their own free will. Ceasing (temporarily) to care about their catalogue would be the perfect tool for this, especially when combined with the recent clampdown on media categories (their insistence on copies of supplier invoices from sellers of CD’s & DVD’s, which will naturally move buyers onto downloaded products, powered by AWS).
Welcome to 90s eBay..
Who cares anymore eBay will be in the past by the time they roll it out
@ Chris Dawson As others have said, I also think your reason for implementing a stupid system is totally wrong based on one bad experience, I agree that the seller was completely wrong in the way they handled it and the system should be improved.
As for your “I’ll have to trek to a shop to post the item”, how do you expect returns to work? Had you purchased it on the high street you may have to drive & park or take the bus to town to return a faulty item at your own expense.
Marketplaces should try making buyers responsible, it works both ways.
I have a recent issue on Amazon:
Buyer was out and then refused to collect or have the item redelivered.
Buyer makes A-Z claim
I present my case and tracking details
Buyer gets refund.
Buyer re-orders item.
I have still not got my first item returned so I cancelled the order giving the reason as undeliverables address. I really did not fancy going through the same thing again, even if they are happy to.
Just to clarify as I’m not sure if I read this right… but ARE they really removing the requirements for sellers to respond to emails within 24hrs AND also the metrics concerning whether you REFUND an order prior to dispatch!?
That’s two metrics I would have never considered Amazon to remove.
So let me just check again to be sure…
Amazon are saying that if we don’t respond to customers within 24hrs, or we cancel an order prior to dispatch, we won’t be rated on it? I can’t for the life of me fathom how this improves the marketplace (for buyers) even if it is a positive for Sellers and seems quite the opposite and what I’d expect from Amazon.
By the way… Is this an Amazon.com thing or is it UK & Europe too?
We registered a brand at German DPMA, payed for the brand registration, waited 3 month for confirmation and took lots of efforts to brand product, packing, create photos etc..
Now some Chinese Sellers offer similar products under our listing and send out material, which is not even similar to our branded, labeled product. customers receive bad products and give bad reviews – on our listing.
It is really a shame that investments in quality products, brand registration, good marketing material and work is not protected by Amazon.
Our brand and company is only small, therefore it is nearly impossible to get the right person on the phone at Amazon.de, who has a clue and who can respond on out specific topic. generic answer are thrown out on a regular basis.
Now, Amazon even removed us, as brand owner from the listing/ASIN we have created. The CHinese seller is still selling. And sending out sh… to Amazon customers. Why?
These Chinese seller do not even have proper contact details, despite haveing a national tax number, as is mandatory to all other sellers.
Would Amazon act like this when the issue would be a problem for consumers? No. The would probably put much more effort to solve this problem in a sustainable way. But why do this sellers. Amazon always receives the turnover, spondored product ads and fulfilment fees. Great system. For Amazon.
The lack of Paypal integration may be up there with Gerald Ratners “Crap” joke.
I believe the removal of these metrics are coinciding with Amazon’s Voice of the Customer metric. It’s been rolled out in beta to a few customers already.
The response requirements will remain the same (as far as I understand) but how we see things will change
The only way to protect yourself against the 4% fee is not sell on ebay any longer and take business elsewhere.
ebay buyers want and expect things for nothing, recently started selling on Amazon and have no where near the listings I do on ebay yet never had one message asking for money off. Yet get them daily on ebay. It is the culture they have created everything should be given to them. If you don’t give them money off, then they just open a not as described case and supported by ebay
Good riddance Paypal !!! Yessss