|Tue Sept 20 2011 16:20:05|
eBay Begins Processing Payments on Sellers' Behalf in Europe
By: Ina Steiner
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.