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Fri Feb 19 2021 15:41:37

eBay Answers Questions about New Fee Collection

By: Ina Steiner

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eBay informed sellers on February 16 that it would no longer be issuing monthly invoices for any fees, such as monthly Store subscription fees, but would instead collect the fees directly from sellers' earnings now that it acts as an intermediary between the buyer and the seller through Managed Payments.

Tuesday's email to sellers left many with questions about the new process, and during Wednesday's Weekly Chat session on the eBay boards, a moderator provided some additional information. 

The eBay employee explained, "When a cost or fee is collected from the seller, we will first look to their Available funds. If there are not enough funds to cover all fees or cost eBay will charge the Top Up Payment Method on file to recoup the amount owed."

Here is an excerpt of what eBay told sellers on Tuesday about the new billing system (see more on this previous AuctionBytes Blog post):

"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)."

And here is the response eBay provided to a seller during Wednesday's chat session:

We don't have more information we can share further than the e-mail that was sent out, but I can help clarify.

Currently, credits will be applied to Available funds. You can see these credits as a positive amount in the "expenses' section within Seller hub or within My eBay. Any credit given will show up during the seller's typical billing cycle.

The payment method for when your available balance doesn't have enough to cover fees should be something you can set in your account. While I don't have that information because I'm not payments trained, if you contact our payments team directly they can help with this to make sure you have the right payment method set up.

When a cost or fee is collected from the seller, we will first look to their Available funds. If there are not enough funds to cover all fees or cost eBay will charge the Top Up Payment Method on file to recoup the amount owed.

Sellers will be charged for their monthly fees at the same time they typically would have been for their regular billing cycle. The difference is that instead of us adding them to a billing invoice, we automatically deduct them from the seller's Available funds.

I am unsure of your last question, to clarify depending on your monthly billing invoice date, you may continue to receive invoices for both March and April. If you do not receive an invoice for March, you won't receive any invoices going forward from that point. You'll be able to tell if there's an invoice on the date we generate your invoices normally.

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This user has validated their user name. by: Lightning

Tue Feb 23 01:00:43 2021

@pace306
''If eBay is no longer waiting 30 days to get paid - shouldnt we get a discount ? We are now subsidizing aka funding THEIR daily operations with our cash''

You have a lot of legit gripes about eBay, and certainly get them out there well enough.  THIS is not a point to stand on.

EBay is taking their fees on the fly, just like every other e-commerce platform, or even every other ONLINE ENTITY that can bill you for something.  Did you EVER pay a monthly PayPal bill???  No.  It came out with each transaction immediately.  Did you EVER pay a monthly Amazon bill??? No.  Same thing

What you are feeling is the change between paying in arrears to paying as you go.  It doesn't mean they are doing it wrong, it's just that you don't like the change because it affects your wallet, but legitimately.  It's like if you got a 3-month FREE RENT deal to sign an apartment lease, when month 4 comes around you are bad-mouthing the ownership for now charging you high rent.

Here's the real story - For over 20 years, eBay collected funds for its services in arrears - as much as 38 days in arrears.  I incurred fees on the 1st that didn't get paid until my billing date on the 8th of the following month (38-39 days later).  Of course no one complained that they had all this time to pay, technically at eBay's expense.  Over 20 YEARS.  So NOW they get paid as they procure.  Those meanies.

I figure they could charge a MONTH IN ADVANCE for the NEXT 20 years and it would even out.  So not complaining about a normal business practice that is in place now.  Please aim at more deserving ACTUAL anti-seller policies.  There are plenty of them out there, without inventing imaginary ones.

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This user has validated their user name. by: Marie

Tue Feb 23 02:20:52 2021

@lightning

Well said!

Does anyone remember all the sellers that came to the Ebay threads last Spring pleading with Ebay for help as they couldn't pay their fees due to the pandemic and all the shut downs and such.  So Ebay came up with a deferral program for them.  Once that was up some were back on the threads saying they still could not pay.  

That is a problem Ebay will never have to address again once they move everyone into MP.  It is no different than how aggravating it is for us dealing with a non paying bidder.  Just on a much larger scale for Ebay.

Perminate Link for eBay Answers Questions about New Fee Collection   eBay Answers Questions about New Fee Collection

This user has validated their user name. by: Lightning

Thu Feb 25 02:13:27 2021

@Marie
I do remember that deferral program, and it did help me out at the time.  I was shocked that they offered it.  

There was some confusion if you didn't read it carefully, as there was a cutoff date to determine WHICH month was going to be deferred and it depended on WHICH billing cycle you were on.  I read right over the cutoff date and was planning on having ''this month'' deferred when in fact it turned out to be ''next month''.  That was a charge to my cc account that I thought WASN'T coming, and luckily got covered anyway, barely.  That could have been a mess.

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