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

[bobbyw8469]

Just curious what my fellow card members thought about the new change that Ebay is ramming down our throats in a month.

[Seven]

Originally Posted by bobbyw8469

Just curious what my fellow card members thought about the new change that Ebay is ramming down our throats in a month.

For the uninitiated, because I don't sell on Ebay, what exactly is the upcoming change?

[Leon]

What is this in a nutshell?

[MikeKam]

From what I understand, eBay is effectively moving off of PayPal as it's main payment processor and beginning to process payments themselves. This requires users to now provide direct deposit information to receive payments.

[Snapolit1]

Originally Posted by MikeKam

From what I understand, eBay is effectively moving off of PayPal as it's main payment processor and beginning to process payments themselves. This requires users to now provide direct deposit information to receive payments.

That doesn't sound like a bad thing . . . when I occasionally sell something usually go to PayPal and transfer proceeds to a bank account anyway. Must be more than that. (Maybe tax reporting ramifications?)

[Leon]

Originally Posted by Snapolit1

That doesn't sound like a bad thing . . . when I occasionally sell something usually go to PayPal and transfer proceeds to a bank account anyway. Must be more than that. (Maybe tax reporting ramifications?)

The answer is always money. As was said, Ebay is going to take the payment fees instead of letting paypal collect them. It makes business sense as long as they don't lose too many customers. I don't sell on ebay much at all (if ever anymore) so it doesn't affect me unless a lot of sellers leave.

For the record, I voted yes in the poll as I doubt I would/will quit with this new change.

[buymycards]

Originally Posted by Snapolit1

That doesn't sound like a bad thing . . . when I occasionally sell something usually go to PayPal and transfer proceeds to a bank account anyway. Must be more than that. (Maybe tax reporting ramifications?)

The 1099 requirements will be the same as the current PayPal requirements. 200 transactions/ $20,000 in sales.

[bnorth]

I rarely sell but yes the sellers are going to stay on eBay. There are no other option(s) that i know of with the eyes eBay gets. This is the same whining everyone done when we had to use PayPal.

[Jim65]

Originally Posted by MikeKam

From what I understand, eBay is effectively moving off of PayPal as it's main payment processor and beginning to process payments themselves. This requires users to now provide direct deposit information to receive payments.

I receive some things direct deposited to my Paypal account, I wonder if I can use that direct deposit info. I really hate giving my bank account info to anybody.

[bobbyw8469]

Another major change is, with the new change, there will now be a "hold" on your money. No more getting it instantaneously. The hold is around 3-6 days I am hearing.

[bnorth]

Originally Posted by bobbyw8469

Another major change is, with the new change, there will now be a "hold" on your money. No more getting it instantaneously. The hold is around 3-6 days I am hearing.

It won't matter. People will say they will get out of the hobby or quit selling but then list their items on eBay and be damn glad they can.

[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.

[MRSPORTSCARDCOLLECTOR]

Originally Posted by MikeKam

From what I understand, eBay is effectively moving off of PayPal as it's main payment processor and beginning to process payments themselves. This requires users to now provide direct deposit information to receive payments.

I kind of like it. I do this thru Amazon for years. To me much simpler than Paypal.

[Exhibitman]

I decided to see what the new eBay fees would really cost me using an actual sale I had and the details eBay released on the new fee structure. Here is information I pulled directly from eBay’s communique on the new structure:

“We charge one final value fee when your item sells, and you don't have to worry about third-party payment processing fees. This fee is calculated as a percentage of the total amount of the sale, plus $0.30 per order. The total amount of the sale is the entire amount the buyer pays, including any handling charges, the shipping service the buyer selects, sales tax, and any other applicable fees.”

Final Value Fees

11.5% on total amount of the sale up to $2,500

2.35% on the portion of the sale over $2,500



Buy It Now Fee

$0.99-$9.99 $0.05

$10-$24.99 $0.10

$25-$49.99 $0.20

$50 or more $0.25



Background: I have the least expensive store ($4.95 a month). Provides me with 100 free listings a month. That will continue, so my base listing fee is a wash. I am a top rated seller so I do not absorb the penalty % that sellers not rated “above standard” or better get hit with, but I refuse to allow 1 day turnaround and 30 day returns so I do not get the top seller discount (10% of the FVF, aka 1% of the total) so that is a wash also.



Example: I listed a card for auction with a $300 BIN that sold for the BIN. Buyer paid $5 shipping and sales tax on the whole amount ($25.16) for a buyer out of pocket total cost ("OOP") of $330.16.

The costs to me with the old fee structure and PayPal:

Listing fee $0.00

BIN fee $0.00

Final Value Fee on card $30.00

Final Value Fee on shipping $0.50

Final Value Fee on sales tax: $0.00

PayPal Fee $9.87

Total Fees $40.37

My Net: $259.63


I took the above figures directly from my eBay invoice and my PayPal invoice, so there are no calculation errors. They are actual hard costs I paid.


Now the same sale under the new fee structure with integrated payments:



Listing fee $0.00

BIN fee $0.25

Combined Final Value Fee $38.27 (11.5% of the OOP $330.16 plus $0.30)

Total fees $38.52

My Net: $261.49



The hard numbers prove that by making this switch to integrated payments eBay lowered my costs. As far as I am concerned, that ends the debate over whether the switch is good or bad, though I have to believe that once eBay finishes off PayPal it will jack up the fees and f*** it all up somehow.

[thecatspajamas]

Adam, double-check the info on eBay's page regarding the new fees for Stores sellers. The reduced 11.5% fee rate only applies to Basic stores and above (i.e. Basic, Premium, Anchor, and Enterprise). Starter stores (the lowest tier which costs $4.95/month with a subscription) are charged the same 12.35% fee rate as those without a store subscription.

With a store, Basic level and up:
https://www.ebay.com/help/selling/se...e-fees?id=4809

With a Starter store or without a store:
https://www.ebay.com/help/selling/se...e-fees?id=4822

[bobbyw8469]

Originally Posted by Leon

What is this in a nutshell?

Ebay has been divorced from PayPal since 2015. I'm guessing it is their attempt to finally push them out of the picture and become a "one stop shop" and start collecting some of the payment processing fee money. If sellers don't sign up for the program, they will cease to be allowed to sell on Ebay.

[bobbyw8469]

Poll ends soon.