eBay payments for Charity – Direct Charity Sellers to be charged fees for first time

When eBay began rolling out eBay payments, there were some holes which meant managed payments weren’t suitable for some sellers. Now eBay have plugged one hole and eBay payments for Charity is now available in both the UK and the US.

There are two parts to the solution and the first is that eBay payments for Charities will see good causes registered with eBay for Charity will now be invited to migrate to managed payments. Over the next few weeks, Charities who use tools and features compatible with eBay payments will start to be invited (told!) to migrate.

eBay payments for charity fees for direct sellers

Charities will need to check the fees they will be charged. For instance, in the US, a charity direct seller would not have been charged Insertion or Final Value Fees although they would pay feature upgrade fees. However, once moved to eBay payments a US based charity direct seller will pay a final value fee at a special charity rate calculated as 2% of the total amount of the sale, plus $0.30 per order.

Charities will need to ensure they’ve accounted for paying 2% plus $0.30 per order as this will impact their revenues. Whilst the fees will be deducted at source so never have to actually be paid, 2% of a charities revenue will disappear along with a ton of 30 cent charges which will all add up.

NB Charities will no longer be paying any PayPal fees and the fees they pay to eBay are likely to be lower than the fees they previously paid PayPal.

We’ve not yet seen the fee schedule for direct charity sellers in the UK.

Community Selling

The second part of the eBay payments for Charity is that sellers will be able to once again opt to donate a portion of their sales to a good cause. If you are already enrolled in eBay payments then you can now donate to charity once again.

Proceeds from community selling will still be collected by PayPal and remitted to the Charity