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.