eBay published an interview with eBay seller Danny Hone of HoneVille about his experience using its new managed payments (MP). eBay has received some pushback from sellers about the lack of critical features in its initial rollout of MP, including the lack of PayPal as an option for buyers.
“I was leery about the effect that not accepting PayPal would have on my business, but sales are coming in as normal,” Hone told eBay. “When I think about this time last year, my PayPal (30-cent transaction) fees were $1,200. And now, that will be coming directly to me. ”
And that cost savings is something eBay has been banking on to attract sellers. It charges sellers a flat rate of 2.7%, while PayPal charges an additional fee of 30 cents per transaction. (Unlike PayPal, eBay does not appear to be offering reduced rates for high-volume sellers at this time.)
Hone said the 30-cent savings was the major factor in his decision to become an early adopter of managed payments in September. “When I decided to sign up for managed payments, it was really about the 30 cents savings. I do more than 5,000 sales in a year, so that savings adds up to over $1,500 back in my pocket. If you’re a higher volume seller, that 30 cents adds up fast. It’s a huge advantage for me.”
Hone sells custom-designed t-shirts through his eBay store, HoneVille1. In its post today, eBay said Hone had already processed over 150 transactions through the managed payments experience in the 3 weeks since he joined the program.
“I was expecting a slowdown,” Hone told eBay, “but within an hour of being opted-in I had my first cha-ching. Two days later, I sold more than I had during the entire month of September. I keep meticulous records and I can tell you that October 8, 2018, was the best day I’ve had since 2006. My sales are up 33% over the last 30 days. When you have a day like October 8th, you know that your business is going in the right direction.”
Note that we’re not clear if participating in managed payments gives sellers an added boost in search visibility.
In addition to the significant cost savings, Hone addressed what he saw as one of the biggest benefits of managed payments: “I love the new payments portal. Right after I signed up, I went into the Seller Hub and there was a new tab for Payments. It’s extremely well laid out. I especially love the sales records number because it allows me to easily track purchases. You can run a business from anywhere in the world now.”
Significantly, Hone said, “I would sign up again (for managed payments) if I had to do it over, knowing what I know today.”
However, sellers considering whether to participate in the program should do their homework and understand the impact of managed payments’ disbursement lag on their cash flow, and other implications of using MP. (“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.)
Read the full interview on this eBay corporate blog post.