Since the news broke about eBay Managed Payments there have been a lot of questions which we are gathering together in this post as an Managed Payments Q&A.
We don’t know the answers to everything and, even where we’ve sourced an answer from eBay Payments information published in the US or Germany, there’s no certainty that eBay Payments will roll out in the UK in exactly the same form. However so many people are asking questions directly on Tamebay or via email and Facebook we’ve collated all the information we can:
Managed Payments Q&A
Do I have to change to eBay UK Managed Payments?
Not yet, currently the program is not live but hopefully it is an attractive enough proposition that you’ll be up for expressing interest. It’s not due to go live before the Summer and then sooner or later it is likely to be mandatory with the majority of eBay UK business sellers migrated by the end of the year.
Our advice would be to express interest in early adoption and if it’s suitable for your business move over well before Q4 which is the time of year you least want any disruption to your business.
How do I express interest in signing up?
If you are an eBay business seller and interested in being one of the first to move to the new eBay payments experience you can express your interest here.
Does expressing interest sign me up?
No. Expressing interest is just that. It means you may be invited to sign up early or if features are not quite ready that you need to run your business you won’t be forced to move to eBay payments straight away.
Getting your money
How often can I withdraw my money/can I let it mount up to spend later?
eBay UK have said “you’ll get payouts directly deposited into your bank account as well as payout scheduling options”. This means you can no longer save money in your PayPal account to spend on eBay – it’ll automatically be transferred to your bank account and you’ll have to wait for it to arrive before you spend it.
eBay have told both US and German users “your withdrawals will be transferred directly to your bank account, and you can choose between daily and weekly withdrawals of the available amounts”.
How long will it take to get my money?
eBay have told US users “We consistently initiate payouts to the bank account on file within 2 business days of an order confirmation, regardless of how the buyer paid.”
Can I buy shipping with sales proceeds?
There has been no mechanism in the US or Germany for instantly accessing your sales proceeds to buy shipping labels but it’s coming. If you use eBay shipping you will soon be able to deduct shipping label costs from pending payouts. If you buy shipping labels from a courier or shipping consolidator you’ll need funds in your bank account to do this and probably don’t want to wait for sale proceeds to clear into your account from eBay.
I have one eBay account with two PayPal accounts, can I continue to split payments?
This is a more common situation that you might thing – a seller might have one regular PayPal account and a second micropayments account for example. Under eBay Payments there will be one settlement per eBay account.
I have multiple eBay accounts and one PayPal account, can I combine payments?
No, in the future you’ll have one settlement from each eBay account you own.
Will PayPal payments go into my own PayPal account?
No, eBay will use their own PayPal account and you won’t have visibility of the payment method (PayPal, credit/debit card, Apple Pay, Google Pay or other e.g. direct debit in Germany) that the buyer uses. Your money will be transferred to your bank account after the sale.
Will eBay Payments work with my accounting software?
We’re don’t know the answer to this yet but it’s a very basic finance function. Let us know in comments below which accounting package you currently use with PayPal and we’ll ask the question.
What are the fees/are their tiered rates/what about micropayments?
There is no news on fees for eBay UK Managed payments yet. As soon as we hear anything we’ll let you know. eBay have said however that the majority of sellers will save money and out of the $2 Billion processed to date sellers enrolled have saved around $10 million in fees as of the end of Q4 2019.
Is there a per item transaction fee (rather than per order)
Jordan Sweetnam promised to look into this and we’ll update as soon as fees are revealed.
Will I pay PayPal fees and eBay Payment fees?
No, eBay will pay any PayPal or other fees that they incur. You’ll pay the agreed eBay Payments fees (yet to be revealed).
How will fees be charged?
We don’t yet know as eBay haven’t as yet released any information regarding fees. However one Tamebay reader pointed out that Adyen power both Etsy Payments as well as the new eBay Payments, saying: “I love the fact that Etsy deduct the fees from the pot at the same time so I do hope they will follow suit with this, so much easier and much more straightforward instead of paying a massive fee bill”. Equally it could be monthly billing so we’ll update you as soon as news is out.
Shipping & Returns
Will Global Shipping be supported?
eBay have told US users that the Global Shipping Program will be supported from early Spring. However in the short term there’s the question of what happens with cross border selling, for instance if you sell in the UK, and France how will a French buyer pay? If you list in the UK with separate listings on eBay France the chances are you’ll have to add eBay Payments to your UK listing and PayPal to your French listing.
Will returns windows reduce from the 180 days PayPal offers to the 30 days eBay requires
One of the many benefits of eBay UK Managed Payments we are expecting is an end to conflicting policies.
How will return refunds be funded if eBay have transferred the money to my bank account?
Good question, perhaps from future sales, perhaps direct debit or card held on record? We’ll update you as soon as eBay share more news.
If we have to process a refund, will we get our fees back?
Yet to be revealed.
Finance and Loans
Will PayPal Working Capital be supported?
eBay say “If you have existing business loans, including PayPal Working Capital loans, you can still enable managed payments with eBay. We advise you to reach out to PayPal to discuss your options.”
We’ve emailed PayPal to ask for their opinion and will update when they reply.
In the meantime, eBay also say “Many additional options for working capital loans and business financing solutions are available to manage your existing business debt in a way that is compatible with eBay managed payments.”