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Tue Feb 16 2021 21:22:15

eBay Justifies Major Billing Change Calling It Simpler

By: Ina Steiner

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eBay is justifying a new method of collecting fees by calling it "simpler" and "more modern." But sellers have grown wary any time eBay justifies a change by calling it simpler for sellers - and this change is no exception. 

Currently, eBay sends monthly invoices so sellers can pay certain fees and expenses by whatever payment method they choose, once a month. Soon, it will phase out the monthly invoice and will instead hold back fees when it disburses sellers' sales proceeds (aka payouts).

A seller warned us a month ago this change was on the way and said the move would actually make things more complex for her. "Business fees for tax purposes are readily segregated through my credit card monthly reports," she told us. "Now it's going to require pulling them from what masquerades as "sales reports.""

She also said the move would prove more costly. "For anyone who uses, as I do, a cash-back business credit card to pay business fees, this becomes another "added" cost of doing business while eBay, yet again, "adds" to their bottom line at sellers' expense."

Upon receiving the announcement, one seller said eBay needed to provide more information, wondering how eBay would deduct their monthly Store subscriptions - would it mean sellers would not receive any funds until their Store fee was covered?

Here's the letter eBay sent to sellers today:

Simplified fees

eBay has created a simpler and more modern billing process to pay your eBay fees and expenses. Beginning in late March, eBay will phase out the billing of selling fees and expenses via a monthly invoice. Instead, eBay will collect fees and other expenses, such as those resulting from refunds, claims or disputes directly from your earnings. If your earnings are not sufficient to cover these amounts, we will charge your payment method on file (debit or credit card, and/or linked bank account).

- Examples of eBay selling fees include but are not limited to: insertion fees, promoted listings, listing upgrades, and store subscription fees.

- You may find information on fees and expenses via the reports functionality in the Payments tab in Seller Hub.

- Depending on your monthly billing invoice date, you may continue to receive invoices for both March and April. You must still pay any outstanding amounts that are reflected on billing invoices that you receive during this time. Charges will not be duplicated.

Expanded support for international selling

- If you offer to ship internationally, your listings may surface in buyer searches on supported international eBay sites. You may also limit the countries you ship to by selecting specific regions in your listing settings.

- You may create listings on select eBay sites outside of the United States, such as the United Kingdom (www.ebay.co.uk), Germany (www.ebay.de), and Canada (www.ebay.ca). Your earnings for these sales will be disbursed to you in US dollars. We will continue to expand international selling to more countries in the coming months.

- For more details on international selling on eBay, click here. Additional fees may apply if either the buyer's registered address or the delivery address for the item is located outside of the United States, but you will no longer pay third-party processing fees for international transactions.

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Perminate Link for eBay Justifies Major Billing Change Calling It Simpler   eBay Justifies Major Billing Change Calling It Simpler

by: lessthanthreerecords This user has validated their user name.

Tue Feb 16 22:51:56 2021

The best case scenario is that all this will do is cost me my credit card cash back (a total of somewhere between $14 to $30 yearly depending on promotions offered - and that's not counting the much more significant loss of FVFs taken directly off the top as of several months ago).  However, what really has me worried is how eBay will handle this new "feature."  I wasn't forced into managed payments until last September, but I was in discussions with eBay since April of 2020, and it has been nothing but a disaster as many/most sellers know.  So, my question is, will eBay grab JUST what sellers' owe?  Or will they take a little extra in hopes that sellers are too stupid to notice?  Then, when they do notice, deny they took extra and make their "reports" so difficult to figure out that it would be difficult to actually prove your case to anyone.  Even worse than taking extra (which would likely be a fairly small amount - not that it is ever justified), would be taking it TWICE, as I've had happen (at least temporarily) with claims.  Yes, a claim is opened, and of course, the funds are immediately put on hold.  Then, some time later (after a return, etc.) I issue a refund.  The money is deducted from my account, YET THE HOLD REMAINS!  To think that eBay would not be bold enough to try a stunt like that with monthly invoice payments is naive to put it lightly.  I hope I'm wrong and that I just lose out on credit card cash back (still a loss).  But in my experience, NOTHING in managed payments works out in a "best case scenario" manner.

Perminate Link for eBay Justifies Major Billing Change Calling It Simpler   eBay Justifies Major Billing Change Calling It Simpler

by: pace306 This user has validated their user name.

Tue Feb 16 23:42:31 2021

Unless I missed something - and please feel free to correct me - besides this being an obvious money grab - what are the time frames for these new "billings".

Is it a daily rolling balance with payouts every 3 days? Is it 1x a week billing? Is there no billing at all and we just trust the Walmart clown to send us money when hes not out playing golf? Will we be sent boxes of Walkers West Famous Chicken Wings instead of cash?

Will thieves like Seeking Alpha keep defending these types of practices?

Who knows!

Perminate Link for eBay Justifies Major Billing Change Calling It Simpler   eBay Justifies Major Billing Change Calling It Simpler

This user has validated their user name. by: Bill

Wed Feb 17 00:20:09 2021

Another reason I will no longer be selling on eBay when they tell me I Have to join MP. After 22 years it has been a long ride but I will not put up with all of the BS from eBay anymore.

Perminate Link for eBay Justifies Major Billing Change Calling It Simpler   eBay Justifies Major Billing Change Calling It Simpler

by: Vigilant Eye On eBay This user has validated their user name.

Wed Feb 17 01:46:14 2021

@Bill

+1

Perminate Link for eBay Justifies Major Billing Change Calling It Simpler   eBay Justifies Major Billing Change Calling It Simpler

by: AllfixElectrical This user has validated their user name.

Wed Feb 17 07:22:20 2021

@Bill

+1

Perminate Link for eBay Justifies Major Billing Change Calling It Simpler   eBay Justifies Major Billing Change Calling It Simpler

by: Shanna This user has validated their user name.

Wed Feb 17 08:53:00 2021

The monthly bill is usually much more than the daily payouts, I prefer to pay this after an accumulation of funds. How and when will this one large lump sum payment be paid? They, as usual, have not made this clear.

Perminate Link for eBay Justifies Major Billing Change Calling It Simpler   eBay Justifies Major Billing Change Calling It Simpler

by: papergoy This user has validated their user name.

Wed Feb 17 09:27:47 2021

Does this mean that the eBay Standard International Delivery will be billed this way as well?  Currently it is added to the invoice when scanned.  Does it get taken out upon purchase or when it's scanned?  Nothing seems to answer that.

Perminate Link for eBay Justifies Major Billing Change Calling It Simpler   eBay Justifies Major Billing Change Calling It Simpler

This user has validated their user name. by: Rexford

Wed Feb 17 09:48:53 2021

Simpler for eBay.

eBay's motto should be "You spoke, we didn't listen".

Perminate Link for eBay Justifies Major Billing Change Calling It Simpler   eBay Justifies Major Billing Change Calling It Simpler

by: rudestar This user has validated their user name.

Wed Feb 17 10:56:51 2021

ebay hates 2% cash back credit cards. They refuse my cash back paypal card 90% of the time. So they lose 90% of my buying...good for Amazon.

Perminate Link for eBay Justifies Major Billing Change Calling It Simpler   eBay Justifies Major Billing Change Calling It Simpler

by: pace306 This user has validated their user name.

Wed Feb 17 12:24:08 2021

@rude :)

SIR, infinite free BBQ wings made with eBays "Super Seller Sauce" isnt free you know! SOMEONE has to pay for it ..... aka sellers!

Who's going to pay for all those rounds of beer if not sellers? Who will pay for eBay giving free everything (childcare, gym, transportation, golden parachutes) if you cant steal the money from sellers ?

Griff NEEDS his big office and secretary - who are you (or me) to take it away from him? He may need to respond to a "Seller Protection" question by the media and he MUST be prepared! As well - eBay cant let sellers win cases !

Perminate Link for eBay Justifies Major Billing Change Calling It Simpler   eBay Justifies Major Billing Change Calling It Simpler

by: Snapped This user has validated their user name.

Wed Feb 17 14:53:10 2021

So, eBay’s Venus flytrap Managed Payment trap finally springs. Leaving it’s ‘sellers’ with nothing left to do now but source, list, and - assuming the eCom Gods beget a transaction, ship at their expense, and at eBay’s behest.

And if eBay periodically decides some of your ‘account’ shows a positive ‘balance’, they’ll be sure to release it to you in timely fashion. Assuming ‘their’ buyer doesn’t whine and demand a refund of course, which they’ll automatically grant for you (too!), whether or not you get your stock back.

And don’t worry, they’ll keep it all straight for you. With practically almost up to the minute accuracy. After all, they have to be good enough at accounting to report to Wall Street - your measly one in a couple hundred thousand reports should be a piece of cake to maintain. Better jot it all down quick though, it comes in the digital equivalent of disappearing ink.

What could be simpler than relinquishing all business and cash flow control and decision making? Be sure to leave them a key to your safe though, in case they have to make change or something, k?

And what, possibly, at this point in eBay’s decade long (not just month’s long) dance to wrestle all control from those who bloat their salaries while assuming no risk, could be coming as a ‘surprise’? eBay are the Borg of eCommerce. And this ‘simplification’, just their latest adaptation against seller resistance to assimilation.

Perminate Link for eBay Justifies Major Billing Change Calling It Simpler   eBay Justifies Major Billing Change Calling It Simpler

by: Geetar This user has validated their user name.

Wed Feb 17 21:24:54 2021

Hmm. Wonder how much business they will loose with their shipping labels.

I buy labels on shipstation. They take CC, I get Cash Back to pay for the service fee + . I end up with sales reports thru there. Helps with ebay's botched sales reports. Ebay's hide and seek numbers I call it.

Perminate Link for eBay Justifies Major Billing Change Calling It Simpler   eBay Justifies Major Billing Change Calling It Simpler

This user has validated their user name. by: Carl

Wed Feb 17 21:50:30 2021

@Geetar
You probably won't need to think about that much longer.
I am sure eBay have 'forcing to buy shipping through eBay' in the pipeline for sellers...too much of a cut to be lost on shipping otherwise. :)

Perminate Link for eBay Justifies Major Billing Change Calling It Simpler   eBay Justifies Major Billing Change Calling It Simpler

This user has validated their user name. by: cfrphoto

Thu Feb 18 00:56:56 2021

It is possible to track cash flow, revenue, and eBay fees by recording the Amount, Fees, and Net plus any deductions or additions in the Payouts Summary panel of the Payouts detail window. Unfortunately, eBay does not provide totals if multiple transactions are rolled up in the payout. The "Amount" in the Payouts summary window that links to the Payouts detail window is the same as "Net" in the Payouts detail window. Is no one in charge of coordinating the content of different windows and standardizing terminology?

I have no experience with the impacts of eBay labels on the Payouts window. How much confusion would eBay labels add to the mix? I believe that detailed shipping fees would badly complicate posting payouts to any accounting system. Discount postage is less expensive and more acceptable to stamp collectors.

Perminate Link for eBay Justifies Major Billing Change Calling It Simpler   eBay Justifies Major Billing Change Calling It Simpler

This user has validated their user name. by: Marie

Thu Feb 18 01:59:40 2021

How is this different than what Etsy or Amazon has been doing for years?  Maybe other sites too that I've never sold on.

Perminate Link for eBay Justifies Major Billing Change Calling It Simpler   eBay Justifies Major Billing Change Calling It Simpler

by: Actual Seller This user has validated their user name.

Thu Feb 18 02:39:03 2021

I warned this would come and next they will take our label buying.
I earn thousands of year in cashback and eBay is stealing it from me.

Managed Payments is very expensive to real businesses that know how to pay bills.

To noobers that use eBay funds, it seems pretty OK.

Perminate Link for eBay Justifies Major Billing Change Calling It Simpler   eBay Justifies Major Billing Change Calling It Simpler

by: Chicago48 This user has validated their user name.

Thu Feb 18 04:53:50 2021

Another reason NOT to have a store on Ebay.

Perminate Link for eBay Justifies Major Billing Change Calling It Simpler   eBay Justifies Major Billing Change Calling It Simpler

by: plcombs This user has validated their user name.

Thu Feb 18 06:04:15 2021

It seems to me, it took a Pandemic to give eBay a boost in traffic/users/sales/ etc..and they are now coupled with Hedge Fund Partners squeezing the Lemon (users) as hard as they can with their expanding captive audience.  

Managed Payments was in the works long before the Virus hit, but it is making it much easier for eBay to implement unpopular changes to eke out a few more points from the cash flow of sellers in eBay's system. This of course is all part of the outside investor push that started a couple years ago.  

The expanded quest for higher Q to Q earnings with gimmicks like "Managed Payments" that benefit nobody but eBay will keep coming..

eBay knows, this is how you "boil a frog".  

Perminate Link for eBay Justifies Major Billing Change Calling It Simpler   eBay Justifies Major Billing Change Calling It Simpler

by: glasspackaging This user has validated their user name.

Thu Feb 18 07:56:26 2021

To @Bill

They told me on feb 1 ... after over 20 years ebay is now in my rear view mirror.....

Perminate Link for eBay Justifies Major Billing Change Calling It Simpler   eBay Justifies Major Billing Change Calling It Simpler

by: eastwestphoto This user has validated their user name.

Thu Feb 18 08:22:46 2021

Good idea,  

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