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Tue Sept 20 2011 16:20:05

eBay Begins Processing Payments on Sellers' Behalf in Europe

By: Ina Steiner

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eBay is testing a new model in Germany in which it processes payments from shoppers, and then forwards the payments to the seller - a similar, though not identical, model to one Amazon.com uses for third-party sellers on its marketplace.

eBay Germany spokesperson Maike Fuest confirmed that the company was running a pilot test in which buyers will pay eBay for transactions with new users on eBay.de and eBay.at (Austria). eBay will then forward the full payment to sellers. Unlike Amazon's system, eBay will collect fees from sellers separately.

Maike said the pilot test is limited to newly registered sellers. She said studies have shown that buyers are very hesitant to pay large amounts to sellers they don't know. "We want to enhance trust and confidence in buying from new sellers," she said, adding that the pilot program also provides a consistent payment options for shoppers.

Buyers can choose to pay eBay with Moneybookers, bank transfer (which is popular in Germany), PayPal, or credit or debit card via PayPal and Moneybookers.

At the moment, all new sellers are part of the process, and they can choose to receive payments via PayPal or bank transfer. All new German and Austrian sellers will continue to have payments flow through the new model as long as the pilot program is in place.

How often eBay sends payments to sellers is dependent on a number of factors:

- whether the seller is a private seller or a business seller;

- seller standards;

- whether the seller has an established selling history.

Business sellers with an established history would receive payments rather immediately - once they've marked their items as shipped on eBay. If the business seller is not established or is below standard, they will receive payment within 7 days after items are marked shipped. Private sellers receive payment within 14 days after marking an item as shipped. Payments are sent on Tuesdays.

Maike said it's important to note that eBay is not a payment provider; with the pilot, eBay is just conducting payment processing using other payment providers.

Does eBay plan to expand the test to all sellers or other countries? Right now it's only a test for new sellers on Germany and Austria, Maika said.

Let us know what you think of eBay moving to a this model and how it would affect you if it was expanded.




Comments (44) | Permalink

Readers Comments

eBay Begins Processing Payments on Sellers' Behalf in Europe   eBay Begins Processing Payments on Sellers' Behalf in Europe

by: Scotty

Tue Sep 20 16:56:49 2011

no way on earth are they going to hold my business payments....I will shut down the moment they try anything like this....period.

eBay Begins Processing Payments on Sellers' Behalf in Europe   eBay Begins Processing Payments on Sellers' Behalf in Europe

by: Greystone

Tue Sep 20 17:15:34 2011

This move was inevitable. Ebay has lusted after Amazon's model since D-ho took over. Plus they can earn interest on the hold.

eBay Begins Processing Payments on Sellers' Behalf in Europe   eBay Begins Processing Payments on Sellers' Behalf in Europe

This user has validated their user name. by: Ric

Tue Sep 20 17:20:54 2011

No doubt on my part that eBay finds it irresistible to hold payments in their account in order to squeeze additional profits out of every transaction they possibly can.

If adopted site wide, this would be a game changer for many small sellers, and might just accomplish the small seller purge eBay has been covertly implementing.

Some sellers already experience payment holds and find themselves forced to pay shipping costs out of pocket well in advance of receiving payments for shipped orders.

Some sellers might find that with payments being held, they may not be able to afford the out of pocket costs associated with a sudden spike in sales as could happen during the holidays.

Additionally, transactions which occur at the end of a sellers billing cycle that are subject to payment holds will result in the seller being billed for fees associated with transactions well before they receive their payment from eBay. If payment ends up being held for 14 days, they will be receiving payments for fees on transactions where eBay still retains the sellers payment!

No doubt many sellers will find this insidious policy offensive enough to end their selling careers on eBay once and for all.

When one considers the constantly increasing listing fees, final value fees, final value fees on shipping, and PayPal fees, the addition of site wide payment holds would likely result in many transactions where eBay will receive more profit than the seller does on their successful sale.

In this latest money grab, eBay demonstrates that they have zero trust or respect for their sellers, while utilizing buyer trust as a smoke screen for helping themselves to money they could not legitimately earn.


eBay Begins Processing Payments on Sellers' Behalf in Europe   eBay Begins Processing Payments on Sellers' Behalf in Europe

by: Ripley

Tue Sep 20 18:02:28 2011

With every new change ebay implements, the sellers takes another margin reduction.

As Ric pointed out, this could easily create situations where ebay gets paid while they are still holding some of your funds. There is also potential for having to pay your suppliers bill for purchases before you have collected your sales revenue which robs the seller of any ''payment float'' between his/her supplier and the due date. Just one more attempt to piggyback off the sellers arduous work and investment capitol, simply deplorable.

I secretly hope for a positive announcement which is actually good news for the sellers but each claim has a hidden barbed hook which strips the seller of another piece of his/her hard earned profit. It's quite apparent ebay thinks they deserve more profit from a sale than the actual seller.

It appears more rocky times are ahead for independent merchants.

eBay Begins Processing Payments on Sellers' Behalf in Europe   eBay Begins Processing Payments on Sellers' Behalf in Europe

by: Rich

Tue Sep 20 18:39:47 2011

I trust Amazon.  Not sure I'd trust Ebay to have my money.  Would prefer to just have it go to my Paypal account as it does.

eBay Begins Processing Payments on Sellers' Behalf in Europe   eBay Begins Processing Payments on Sellers' Behalf in Europe

This user has validated their user name. by: Philip Cohen
Web Site

Tue Sep 20 20:11:19 2011

Hang on, eBay could just as easily apply this proposed delayed payment algorithm via PreyPal. Indeed, are they not already doing just that via PreyPal?

I think we have to look behind whatever disingenuous nonsense eBay comes out with for as the reason for now testing this algorithm via eBay—in addition to PreyPal. Could it be that the Ho is considering an IPO for PreyPal—before some governmental banking regulator finally gets off its ass and acquires the power to over-sight this most amoral and unprofessional financial operation?

If a PreyPal IPO was being considered surely the Ho would be wanting to afterwards retain as much of that eBay-sourced payments business for eBay itself rather than let those blind moles that dabble in IPOs get too much of it via a newly independent PreyPal offering.

Regardless, there has to be more to this proposal than initially meets the eye.

Bear in mind that PreyPal—outside of whatever will ultimately be left of the Donahoe-devastated eBay Marketplace—will undoubtedly be consigned to the history books by the retail banks/Visa/Mastercard once those players get their “online” act together. There is nothing surer than the sun will rise in the morning. And, as for “beam me up” Scotty Thompson’s delusions of PreyPal ever being a serious threat to the banks/Visa/MasterCard at traditional POS, all I can say is Ho, Ho, Ho, …

All anyone needs to know about the clunky PayPal, at:

http://forums.auctsionbytes.com/vbulletin/showthread.php?p=165
263


Enron / eBay / PayPal / Donahoe: Dead Men Walking.

eBay Begins Processing Payments on Sellers' Behalf in Europe   eBay Begins Processing Payments on Sellers' Behalf in Europe

by: TomH

Tue Sep 20 20:14:37 2011

Don't really see the gnashing about some express. eBay in effect processes probably over 90 percent of all transactions anyway.  

Enabling this eBay wide FOR ALL SELLERS would at least be more above board and transparent than the mishmash of BS we now have with eBay.

I don't see where this has any affect on profit margins, but on immediate cash flow? Probably.

eBay Begins Processing Payments on Sellers' Behalf in Europe   eBay Begins Processing Payments on Sellers' Behalf in Europe

by: Ripley

Tue Sep 20 21:03:08 2011

@ TomH ''I don't see where this has any affect on profit margins''

This can affect margins in a big way as any delay in having full access to ALL your operating capitol for purchases or to pay bills can/will affect your profit margin.

Not everyone has an abundance of capitol to allow them to quickly lock in hot deals on the fly, many count on continuous cash flow from their daily sales and depending on the values of each sale, it can cut into your margin.
Lets say you sell products which sell for several thousand dollars yet you make up to 6 sales every two weeks, that can tie up a lot of money.

With today's poor economy, many sellers are doing business without lines of credit and big bank accounts, they need their sales income to keep things fluid.
Rip

eBay Begins Processing Payments on Sellers' Behalf in Europe   eBay Begins Processing Payments on Sellers' Behalf in Europe

by: Kevin

Tue Sep 20 21:37:51 2011

I'll echo what was said above....

Yes, Amazon does thie.

The difference is AMAZON HAS EARNED MY TRUST

I would not trust ebay with anything

eBay Begins Processing Payments on Sellers' Behalf in Europe   eBay Begins Processing Payments on Sellers' Behalf in Europe

by: Mimi

Tue Sep 20 21:41:43 2011

NO WAY!!!

eBay Begins Processing Payments on Sellers' Behalf in Europe   eBay Begins Processing Payments on Sellers' Behalf in Europe

by: TomH

Tue Sep 20 21:51:05 2011

@ Ripley

You're talking cash flow, which I agree with and stated in my post, not profit margin. Lack of sufficient cash flow can affect gross overall profit but not necessarily profit margin on items.

We all have our emotional views and conflicts but I try to leave that part of my views out of the equation when commenting.

Depending on the scale (volume) of your operations, your (I say ''your'' because that's what counts the most for small sole proprietors or very small Corps and LLCs) credit history, nature of products, track record (if any) and on and on will all play a part in any discount rates, holds or reserves that may be applied/required by credit and payment processors.

That is the nature of real business and it applies to all of us to some extent and degree.

eBay Begins Processing Payments on Sellers' Behalf in Europe   eBay Begins Processing Payments on Sellers' Behalf in Europe

by: buck efay

Tue Sep 20 22:01:51 2011

Of course, Amazon will also pay you anytime you request it if you need the money, just that most of their seller's trust them & have the capital to float the 2 weeks in between payments. Ebay as usual has ill defined the process & will undoubtedly try to holsd onto your money as long as they can. And if they are already holding your money, can't they disburse it directly without screwing you for Paypal fees too? That would make the most sense, a direct ACH that keeps all ebay transactions separate & saves you fees. But of course, it's NOT for your good, it's for theirs, so undoubtedly, even though they hold your money, on payout, instead of one initial fee & a FVF, they will still charge you every single initial fee separately. Ebay are worse then the mafia.

eBay Begins Processing Payments on Sellers' Behalf in Europe   eBay Begins Processing Payments on Sellers' Behalf in Europe

by: Ripley

Tue Sep 20 22:17:36 2011

Back @ you TomH.

Agreed!
Subsitute the word “Margins” for “net monthly profit” and maybe we can agree that two week holds on sold items are not conducive to increasing monthly profits for those working from a limited budget.

Rip

eBay Begins Processing Payments on Sellers' Behalf in Europe   eBay Begins Processing Payments on Sellers' Behalf in Europe

by: John

Tue Sep 20 23:19:20 2011

What do I think ???

I think it will provide ecommerce bytes  with job security.

I can think of a dozen  threads on this, and the problems it will create down the line. Before they even happen

eBay Begins Processing Payments on Sellers' Behalf in Europe   eBay Begins Processing Payments on Sellers' Behalf in Europe

by: TomH

Tue Sep 20 23:39:24 2011

@ Rip

Ok, we are probably closer than not in agreement overall. i stand by my belief and statements, but the problem is that it is eBay and that means they will screw it up (in their favor), of course.

eBay Begins Processing Payments on Sellers' Behalf in Europe   eBay Begins Processing Payments on Sellers' Behalf in Europe

by: ladyincleveland

Wed Sep 21 00:09:45 2011

I trust Amazon with my money. They have never ever done anything to make me doubt my trust in them. Trusting Ebay with my money and to implement this system would be a variable nightmare.

eBay Begins Processing Payments on Sellers' Behalf in Europe   eBay Begins Processing Payments on Sellers' Behalf in Europe

This user has validated their user name. by: Ming the Merciless

Wed Sep 21 00:36:25 2011

More 1984 propaganda spin from the Jose Mallabo/ Joseph Goebbels school of  ebafia public relations.

This is so insidious and anti seller on so many levels that it's positively breathtaking, but it also reveals what The Ho has in mind for PreyPal.

No and hell no, Ho!

eBay Begins Processing Payments on Sellers' Behalf in Europe   eBay Begins Processing Payments on Sellers' Behalf in Europe

by: BuyFromMePayEbay

Wed Sep 21 05:50:32 2011

You pay ebay for my items then me trust I will ever see the money? You got to be kidding. Why is it the only problems come from ebay and they seem to use those problems as an excuse to hold your money? Why is it ebay is constantly coming up with new ways to take in users money and hold it?

ebay vs Amazon, eBid, eCrater, Webstore and everybody else combined?

If I go back over a 3 year period and compare ebay with every other site I had transactions with ebay accounts for a small percentage of those transactions but 100% of the problems.

* MY ENTIRE COLLECTION OF FAKE ITEMS CAME FROM ONE SITE - EBAY
* THE ONLY NEGATIVE FEEDBACK COMES FROM ONE SITE - EBAY
* I HAVE ONLY BEEN CHEATED BY A BUYER OR SELLER ON ONLY ONE SITE - EBAY
* I HAVE HAD DISPUTES OPENED AGAINST ME ON ONLY ONE SITE - EBAY
* ONLY ONE SITE HAS EVER PUT A HOLD ON MY MONEY - EBAY/PAYPAL
* 99% OF ALL EMAILS NOTIFYING ME OF POLICY CHANGES COME FROM - EBAY
* I HAVE EXPERIENCED BAIT AND SWITCH ON ONLY ONE SITE - EBAY
* I HAVE ACCEPTED RETURNS AND RECEIVED AN EMPTY BOX ON ONLY ONE SITE - EBAY
* I HAVE ORDERED BUT NEVER RECEIVED AN ITEM ON ONLY ONE SITE - EBAY
* MY HIGHEST SHIPPING CHARGE WAS FOR AN ORDER OFF - EBAY
* THE RUDEST, MOST HATEFUL BUYER OR SELLER I EVER ENCOUNTERED WAS ON - EBAY
* THE ONLY SITE I EVER CAUGHT LYING TO ME WAS  - EBAY/PAYPAL
* CHARGE BACKS ALL CAME FROM TRANSACTIONS ON ONE SITE - EBAY
* ONLY SITE WHERE A BUYER USED THREAT OF NEGATIVE FEEDBACK TO GET MONEY - EBAY
* ONLY NON PAYING BUYERS COME FROM ONE SITE - EBAY
* THE WORST PACKED SHIPMENTS COME FROM - EBAY
* EBAY, EBAY, EBAY, IT'S ALWAYS EBAY

You know, Craigslist is local so the number of potential buyers is only a fraction of what ebay claims to have but I am more likely to make a sale on Craigslist than ebay. Why is that? Why is it I get this stinking feeling that if ebay and paypal could not count the money they hold from users as revenue their bottom line would be pitiful? Why is it I get the feeling that this is all a pyramid scheme where they need to hold more and more money to keep the base of the pyramid from collapsing?

Here is what I am thinking and mind you this is only my opinion. But. Maybe ebay is like the con man driving around in an expensive Mercedes, wearing expensive clothes giving the impression he is wealthy when he doesn't have a pot to piss in or a window to throw it out of. Maybe donahoe is like the heir that has run through all his inheritance, bankrupted the family business and doesn't have the money coming in everybody thinks he does.

Hey Maike Fuest you say ''We want to enhance trust and confidence in buying from new sellers''

Fick dich und das Pferd, das Sie in weiterritten

eBay Begins Processing Payments on Sellers' Behalf in Europe   eBay Begins Processing Payments on Sellers' Behalf in Europe

by: Charlie W. This user has validated their user name.
Web Site

Wed Sep 21 09:31:59 2011

The theme that keeps popping up is ''TRUST''.

From a practical and functional standpoint, if eBay managed to successfully duplicate the Amazon model for payment processing and disbursement.., and if everything worked as advertised (all above-board, no games, no gimmicks, no gotchas) this could be a positive change.

The obvious pitfall in all of this is eBay's reputation for barreling-forward with methods, technologies and policies that are often poorly planned and conceived, untested, not de-bugged, and haphazardly executed. Confusing and contradicting policies that are often subjected and routinely changing provide an additional source of consternation and suspicion for sellers.

My questions would be:

-- Will they follow-through with their promises and commitments?
-- Will it actually simplify things?
-- Will it garner trust from buyers?
-- How will it impact a seller's cash flow?
-- Will sellers be at the whim of subjective rulings by ill-trained staff with poorly-defined guidelines?
-- Will artificial-''intelligence'' bots be making decisions (that should be made by a human?)
-- Is this something that benefits BOTH ebay and the seller in the long term? Or...
-- Is this just a transitional change that isn't as it initially appears, and that will ONLY benefit eBay in the long term?

When changes like this come about, Sellers are often suspicious and have instinctive resistance to them. Unfortunately, in most cases the suspicion is not unjustified.

Whether by neglect or design, eBay is continually doing things that plant, water, and fertilize the seeds-of-distrust. Sellers grow weary of bizarro-world things such as fee INCREASES being described as ''our lowest fees ever''.

It's no wonder that the hairs on our neck start to stand-up whenever we read about potential changes that will have an impact on sales or cash-flow.

Because of the ongoing lack of trust issues, eBay will have to do a LOT more than simply ''claim'' it's an improvement. We've grown accustomed to empty words, hollow promises, and being told that it's a sunny day when it's clearly raining. Given all that, it's exceedingly doubtful that sellers will welcome this potential change with any measurable degree of enthusiasm.

eBay Begins Processing Payments on Sellers' Behalf in Europe   eBay Begins Processing Payments on Sellers' Behalf in Europe

by: Facing the FACTS!

Wed Sep 21 10:44:10 2011

This is just more of BIG BROTHER trying to DICTATE every aspect of the sale, while providing ZERO accountability on the venues side.

Once this starts these venues will start making deal with every agency you can think of.  They will begin withholding money for everything under the sun.  Child support, taxes, debts you name it.

This is the SLIPPERY SLOPE.

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