eBay start to force sellers to migrate to eBay Managed Payments

Up until now, eBay have told us that opting in to eBay Managed Payments was optional and not only did they have a healthy contingent of 6,000 US sellers in the program but also had a backlog of sellers who had expressed interest. Now, eBay have started to cherry pick sellers and inform them that they will be forced to migrate to eBay Managed Payments in October.

The deadline for the first round of sellers to be forced to migrate to eBay Managed Payments is the 22nd of October. It looks very much from the email that these sellers will simply not be able to sell on eBay if they’ve not signed up by this date.

“As a seller selected for managed payments, please sign up at ebay.com/paymentsregistration before October 22, 2019 so that you can continue to create new listings and avoid any interruption to your business.”
– eBay

eBay are also promoting a deal to “Sign up now and save on the per listing payments fees through September 30, 2019”. Sellers aren’t liking the ‘per listing payments fees’ as it’s set at $0.25 per listing sold. i.e. if you have a single order where products from five listings are purchased then you’ll pay five times $0.25 or $1.25 on top of the 2.7% rake that eBay take of each transaction.

What to expect when you migrate to eBay Managed Payments

Currently no Global Shipping Program

When you ship internationally, you ship it on your own, rather than using eBay’s Global Shipping Program. You will still pay for USPS labels using PayPal. Charges for FedEx label purchases will appear on your monthly invoices.

International sales

Non-US buyers can shop and pay on the US ebay.com site as they do today. If they are buying from a seller opted in to managed payments, the non-US buyer can pay using a credit or debit card, Apple Pay, Google Pay, or PayPal.

Streamline your returns and refunds processes

Easily process refunds and partial refunds directly on eBay. Starting in summer 2019, refund a percentage of the original order price – up to 100%.

Easier order management

Track and manage sales from beginning to end with the introduction of a single order number, starting in summer 2019.

Third party tools

You use eBay listing tools and Seller Hub. If you use third party tools, you can continue to use them for pre-transaction activities (i.e. listing, inventory management).

No charity and donations support

Charity and donations are not yet supported on managed payments. eBay will automatically revise listings with charity or donations to remove this option.

Payouts directly to your bank account

Payouts will be paid directly to your bank account regularly. Depending on your bank, you can typically expect payouts to be sent to your bank account within 2-4 business days of an order confirmation.

More payment options for buyers

eBay are making PayPal and PayPal Credit available in managed payments. Now buyers can pay with a credit or debit card, Apple Pay, Google Pay, or PayPal.

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Comments

Adyen offered eBay over $150 million USD in cash and warrants for the 'privilege' of being eBay's primary payment processor. The warrants alone are worth up to a 5 percent stake in Adyen if eBay exercises the warrants (more directly - eBay could end up owning 5% of Adyen.) Of critical importance - the warrants deal is contingent on eBay's conversion velocity of sellers to managed payments; “Warrants will be given to eBay in four tranches, on the condition that the auction site routes a substantial portion of its payments via Adyen.” (Reuters) This is, of course, strong incentive for eBay to be as aggressive as practicable in converting sellers to managed payments as quickly as eBay are permitted under their PayPal agreement (which just had the 2nd 5% aperture open-up prior to this ultra-aggressive approach). It’s reasonable to surmise some of eBay’s C-level execs (as well as other department and down-stream management) performance incentives have bonus metrics directly tied to managed payments conversion rates. Thus, eBay’s adoption of much more aggressive, and now apparent forced coercion, to eBay managed payments. Meanwhile eBay, through friendly media, perpetuates its narrative about eBay's “customer-centric approach”.

unsuckEBAY • 27th August 2019 •

"... you can typically expect payouts to be sent to your bank account within 2-4 business days of an order confirmation". As opposed to, at present, instantly to business paypal account? wtf. And yet they'll take their fees from the paypal account ... which we'll have to manually fill up from a bank account? seriously, wtf?

timo • 27th August 2019 •

eBay makes interest on the float money. The longer they hold it, the more money for eBay. They couldn't care less about allowing sellers instant access to their money. They also don't care about good business practices or even legality. They only care about devising 1000 schemes they can steal more money from everyone. As with everything else, Managed Payments is another money grab. When everyone is forced into this abomination it's 100% guaranteed fees will be going up more and they'll invent more fees to go along with it. Everyone will be paying more than PayPal's rates, and some will already be paying more with the 0.25 per listing fees come October. eBay continues to look like they're in desperation mode.

Dav • 27th August 2019 •

Currently when i have money in my paypal account i can instantly access it. the same in my bank.... hell i can transfer money around the world in less than an hour. So why does it take ebay 2 to 4 days to transfer my money from their ebay account to mine? they have access to all the info they need... I wonder how private sellers will like this? Ebay managed payments will just be another cash cow for ebay. So same as always really.

Toby • 28th August 2019 •

the fee per item purchased is absolutely criminal. Why now would anyone offer there multi purchase discounts. Give a discount on 10 items and then get 10 fees charged. No wonder Onbuy is increasing sales at an alarming rate. soon it will be Goodbye eBay. No blood sucking insects actually kill you they know that if they do the food source has gone for ever. yet eBay keep on sucking till the well will run dry.

Mark • 28th August 2019 •

Correct Mark, and top of that. If the Customer doesn't like the ten products you sent him and returns them, It's ten DEFECTS. That's right. Even though their was 1 order for 10 of the same item. Apparently, the Customer is unhappy 10 times ! Ebay. The genius's that run it. you have to laugh

Trumpton • 28th August 2019 •

Many years ago i used pubs and played the fruit machines there was a company called JPM. I kept putting money in and it kept taking it while every now and then throwing me a couple of pounds or tokens to keep me going. Now i did not realise it would come back to haunt me after all these years. Just Pay More (eBays ethos JPM) Pay us a shop subscription we will allow you to advertise your products on our site. Pay us some more and we will actually allow it to be seen by more people. Pay more still to be higher. (But can you compete with Tesco and the big boys). Offer free shipping and we will expose you more. Offer multi purchase discounts and we will promote you more. Offer faster shipping and we will promote you more. Swallow all those things and we will take 11% of all that. including the postage. Let us handle you payments and we will make interest and hold your payments for a while plus add a fee per item. Oh and just to cover the tokens. We have increased the price of your shop but here have a token for £10 to purchase some very expensive packaging with our name all over it from a supplier we get a kick back from. Are you still there trading. Never mind there is time yet. To dream up new ways of taking your money.

Mark • 29th August 2019 •

pay us more for your shop subscription and we will give you adequate customer support,

jim • 29th August 2019 •

Anyone have any clarity on the new fees? Is this 2.7% + $0.25 in addition to the 10% we are already being charged?

Tony • 29th August 2019 •

Short answer "Yes". But you'll no longer be paying PayPal fees which are also in addition to the 10% (or whatever the applicable final value fees are) which you are already being charged.

Chris Dawson • 29th August 2019 •

We threw together a few 'what-if' examples illustrating the new MP per-listing fees in action (vs PayPal) a few months ago: ?? https://www.reddit.com/r/Ebay/comments/bu8r5z/update_ebay_managed_payments_fee_increase/ Out of any of eBay's creative revenue-generating schemes, concocting and stealth-dropping a new salami-slicing transaction fee in order to nickel-and-dime sellers isn't a flattering chapter in Wenig's (or Temkin's) eBay legacy.

unsuckEBAY • 29th August 2019 •

I asked eBay about the PayPal fees, and the rep told me to ask PayPal. I would still pay PayPal fees.

Kimberly Applebury • 1st September 2019 •

I think many buyers will still require to pay by PayPal - and why wouldn’t they? No reason for them to do anything different at all. Sellers then face the eBay managed payments fee, Adyen fees and PayPal fees too. Never mind the increased banking fees of a never ending trickle of eBay funds transfers. And furthermore to add insult to injury, funds won’t be available for 2 to 4 days to draw upon. Costs of selling on eBay are spiralling out of control. The evermore crazy world of eBay,,,,,, death by a thousand cuts

Jonah • 1st September 2019 •

If a buyer pays via PayPal to a seller enrolled in eBay Managed Payments the seller will simply pay the eBay Payments fees. They won't know if the seller has paid via PayPal, Apple Pay, Google Pay or some other method. eBay will be the one to pay any PayPal fees incurred.

Chris Dawson • 1st September 2019 •

Thanks for that Chris. So if i understand that correctly. ebay pay the lower 1.97% paypal fees that we pay plus 30p but have charged us about 3% plus 25p per item therefore making money off of even that part of the deal. Which i would actually think is bordering on criminal as its all forced on us. If a buyer pays via paypal it should remain exactly the same way as before hopefully showing eBay more buyers want to use paypal.

Mark • 1st September 2019 •

I am never giving ebay my bank info and I am not waiting "typically 2-4 days" as they say for my money to be sent to a damn bank account. Time to switch over to Bonanza which uses paypal and continue to market my products on instagram and youtube to draw traffic. Bye Bye ebay oct 22 for me. I need my money instantly sorry ebay but you lot one damn good seller.

John Dough • 12th September 2019 •