Will sellers continue to sell on Ebay under the new EBAY MANAGED PAYMENTS??

[buymycards]

I haven't been switched yet, but I have talked to at least a dozen sellers who have switched to managed payments, and all of them seem to like it. The downside is that most of the payments come through credit cards, and the payments are then paid to your bank account, so you don't have money building up in PayPal like you normally would. Also, if I understand correctly, your selling fees are taken out from each payment, so you don't have a big payment to eBay at the end of the month.

People can still pay you with PayPal, but the default will be a credit card, and you have to click an additional link if you want to pay by PayPal. It is different, but it seems to work fine.

As to the poll, why would I quit selling? I get a nationwide audience, the fees are much cheaper than the fees for setting up at a show, and, even though eBay has a million small glitches that can be trying, it is a good system. My sales have never been so good, and 99% of the customers are easy to deal with. Plus, I get huge postage discounts by printing the eBay/PayPal shipping labels.

[bobbyw8469]

Originally Posted by buymycards

I haven't been switched yet, but I have talked to at least a dozen sellers who have switched to managed payments, and all of them seem to like it. The downside is that most of the payments come through credit cards, and the payments are then paid to your bank account, so you don't have money building up in PayPal like you normally would. Also, if I understand correctly, your selling fees are taken out from each payment, so you don't have a big payment to eBay at the end of the month.

People can still pay you with PayPal, but the default will be a credit card, and you have to click an additional link if you want to pay by PayPal. It is different, but it seems to work fine.

As to the poll, why would I quit selling? I get a nationwide audience, the fees are much cheaper than the fees for setting up at a show, and, even though eBay has a million small glitches that can be trying, it is a good system. My sales have never been so good, and 99% of the customers are easy to deal with. Plus, I get huge postage discounts by printing the eBay/PayPal shipping labels.

Rick, are you setting up a separate account specifically to deal with this, or will you give Ebay access to your main checking account?

[buymycards]

Originally Posted by bobbyw8469

Rick, are you setting up a separate account specifically to deal with this, or will you give Ebay access to your main checking account?

I am going to set up a separate checking account.

[ibuysportsephemera]

Stay with eBay (of course). Where else can I get the type of exposure I get for primarily sports memorabilia (not cards)? I am not a huge eBay fan but until someone rises to the challenge they are the only game in town.

Jeff

[prestigecollectibles]

I signed up for Managed Payments in September of 2018 and realized I made a horrible mistake and was able to opt out the same day. At that time I was not able to accept PayPal which caused a buyer to cancel. Then one payment was made with AMEX and it took a week for me to get that payment. eBay said they needed to receive the payment from AMEX before they would pay me.

I think many people sell on eBay and keep those funds in their PayPal account to use for future purchases. With sales going directly into bank accounts I wonder if buyers will be less likely to spend money than if it was just sitting in their PayPal account.

I guess we'll just have to wait and see how this all works out.

[D. Bergin]

I got the notice to migrate by July 15th. I don't like it, but I don't have much of a choice.

Ebay is selling it as a cost savings, but it's quite the opposite.

Raw numbers on the surface bring the %'s, just slightly below the combined Ebay and Paypal fees.

Those numbers ignore that Ebay is now going to start charging a final value fee, on top of the processing fee for state sales tax collected.

A sale to a bidder in Alabama, might cost you a bit more then a sale to a bidder in New Hampshire. Won't cost Ebay any more money though. Higher the sales tax rate, the more money they make off your back.

It also ignores how many sellers pay for their bills. By taking the fees directly out of each sale, it skips the step of sellers paying their bill with a debit or credit card and getting a couple points back on your bill on the backend.

Also, like mentioned above, I'm not sure how it will affect bidding, when some buyers/casual sellers aren't looking at their Paypal stash as much, to spend their disposable income now.

Don't like it, but it doesn't really matter to Ebay I guess. Plenty of evidence everywhere they don't care about regular people, including the disgusting story circulating about the ECommercebytes folks.

Oh well..........

[ibuysportsephemera]

It's their playground and if you want to play it has to be by their rules. I don't like it but that is the way it goes. I signed up both my accounts for managed payments and thought it would start immediately. Instead I received an email that I am on the list, whatever that means. At least now managed payments will take all forms of payment. When it first started it was only eBay payments which is why I didn't opt in.

Jeff

[sox1903wschamp]

Originally Posted by D. Bergin

It also ignores how many sellers pay for their bills. By taking the fees directly out of each sale, it skips the step of sellers paying their bill with a debit or credit card and getting a couple points back on your bill on the backend.

Not trying to defend Ebay but this statement is not how it works under Managed payments. They (Ebay) still accumulate all fees and you pay monthly and you can use a credit card if so desired.

[AddieJoss]

It’s less in fees for all sellers. There is no scenario where the fees will go up unless you have a special deal with PayPal. And buyers have more options to buy.
Currently PayPal charges fees on sales tax too.
This is not a bad change. The fees aren’t higher. Besides it’s different/new I can’t see the downside.
Cory Weiser

[thecatspajamas]

Originally Posted by prestigecollectibles

I think many people sell on eBay and keep those funds in their PayPal account to use for future purchases. With sales going directly into bank accounts I wonder if buyers will be less likely to spend money than if it was just sitting in their PayPal account.

This is the part I can't believe eBay still hasn't figured out. Not only do they benefit from buyers' money burning a hole in their pocket to spend back on ebay, generating additional sales in the process, but if funds used for the second purchase were in the buyer's account already, no additional processing fees are being charged by a credit card issuer for the second purchase. But in Paypal's case, unless f&f is used, they're still going to charge that second seller the same processing fee. There is an awful lot of money that just bounces from one Paypal account to another, racking up fees for Paypal along the way, that never actually gets run through a credit card. By not having a way for users to spend directly from their MP account (except on postage, starting in July), eBay is missing out on additional sales, processing fees for the account-balance-shuffle, and interest on all the funds allowed to build up in users' accounts as they save for larger purchases.

[Snapolit1]

So as I understand this thread, they are cutting out paypal as the middleman and taking their fees directly right away, but delaying your money a few days to steal the float.

Ok, the world is not ending, but I guess if I sold for a living I might view his differently.

Only thing that bums me out a little is that I am a paypal shareholder. . . .

[AddieJoss]

Originally Posted by ibuysportsephemera

Cory,

I have read that eBay will be taking a fee per item sold as opposed to paypal that just takes one fee for the entire transaction. For me that would result in a much higher charge since I always promote and try to sell similar items at one time (and offer combined shipping). This type of marketing has been very successful for me so I hope that this is not true.

Jeff

Jeff,
PayPal takes 2.9% plus $0.30 per transaction currently. And Ebay charges 10% (for cards). So the total fee without a store is currently 12.9% plus $0.30 per item. This is the current cost. (Currently PayPal also charges us the 2.9% on the sales tax)

The new fee structure will be 12.35% plus $0.30 per transaction. This is a reduction of .55% for the seller. There is NO scenario where the seller pays more unless they have a special deal with PayPal currently.

If one has an EBay store the the costs are all .85% lower than this plus the Ebay store cost.

Also, the maximum final value fee for EBay store owners is also dropping as well. This will drop to 11.5% upto $2500, which is really 9.15% (plus the 2.35%) upto $2500 ($229 vs. currently $350). Then there is still 2.25% over $2500 instead of the 2.9% PayPal currently charges.

So every scenario shows lower seller fees. If anyone has a factual example of where the new eBay fees are higher than the current ones, I’d love to see it.
Thx,
Cory Weiser