Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Mon July 16 2018 20:39:51

eBay Unveils Payments Beta on Anniversary of PayPal Split

By: Ina Steiner

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We noted in our editorial this morning (available to email subscribers) that this is the 3-year anniversary of eBay's split with PayPal, meaning eBay would be able to start testing its own payments system on a small scale. 

Hours later, eBay sent an email to sellers inviting them to participate in a beta trial that begins in September. And while it didn't provide information about the cost of using eBay Payments, it said there would be special pricing for those who opted in early. (Eventually it will become mandatory for all users.)

eBay had previously announced it would become a "payments intermediary," meaning that while buyers will continue to use various payment methods - including PayPal - they will pay eBay rather than paying sellers. eBay will then disburse payments to sellers. Read more in this January blog post.

Today, eBay positioned it as a "simpler" way to get paid: "Consolidated pricing: all your fees in one place on one bill, plus special pricing for early opt-in."

Sellers have expressed many concerns about eBay's forthcoming approach to payments. A key concern is how long it will take to receive their funds. eBay said there would be daily payouts, but it said "All cleared funds will generally be paid in a daily batch and directly to your bank account, regardless of how your buyer chooses to pay."

The words "cleared" and "generally" may give rise to concern.

One seller said they worried about what would happen to micro payments, which PayPal offers and makes it affordable to sell items at extremely low prices. 

In its email today, eBay provided sellers with FAQs and invited them to take a survey to provide feedback. Here's what eBay sent to sellers:



Tell us what you want to learn about managing payments on eBay. 
This will be a multi-year journey, and you've been invited to participate in the initial launch this fall. We want to keep you informed of our plans to manage payments. Before you sign up for managed payments, you may have questions. Here are answers to questions that may be on your mind

1) What are the key benefits?

- One place to sell and get paid: manage all your selling and payments needs from within your eBay account.

- Simpler bills: all your fees in one place on your eBay bill.

- Consolidated pricing: all your fees in one place on one bill, plus special pricing for early opt-in*.

- Daily payouts: direct to your bank account. No need to transfer funds between accounts.

- New ways for buyers to pay: such as mobile payments with Apple Pay.

- Better protection: claim and chargeback seller protections provided by eBay, with one place to manage disputes.

- More control: accept your exclusive invitation now to get a head start on adapting your business to selling and getting paid on eBay.

2) What will eBay's fees be?
In September 2018, you will receive an invitation to participate in our limited initial launch. To access the offer, you'll be prompted to sign in to your account for more information and specifics like fees and additional frequently asked questions.

3) How will I access my funds?
All cleared funds will generally be paid in a daily batch and directly to your bank account, regardless of how your buyer chooses to pay. From your bank account, you can access your funds directly, with no need to transfer funds between accounts. In addition, we're working with our financial partners to enable even more options for speedy access to your earnings. 

4) What will I have to do to sign-up?
Your invitation in September will take you to a sign up page for a quick and easy enrollment process. After you enter a few personal details like preferred bank account for payouts and your social security number to verify your identity, we'll manage the rest. We will automatically update your existing account and listings and transfer your existing listings to the new payments model. For new listings, we'll ask you to use Seller Hub's listing page and any existing listings APIs you use.

We're still continuing to work on additional details. If you have other questions, please let us know what you'd like to know about managing payments.

What's most important to you as eBay begins managing payments? Select all that apply.

- How quickly I can access my funds.

- New forms of payment for my buyers.

- How returns and refunds will be managed.

- What protections eBay will extend to me.

- What the discounted pricing will be.

- Other

Please let us know if you have any other feedback. (Text box)

Please don't include any personal information, such as your name, address, phone or user ID in the fields above.

By using this feature and submitting feedback, suggestions or enhancements, you assign to eBay all right, title and interest to all associated proprietary rights worldwide, including without limitation, all patent, copyright, trade secret, trademark, moral right, rights of publicity, or other intellectual property rights.

Comments (105) | Leave Comment | Permalink
Readers Comments

Perminate Link for eBay Unveils Payments Beta on Anniversary of PayPal Split   eBay Unveils Payments Beta on Anniversary of PayPal Split

by: sasikat9 This user has validated their user name.

Thu Jul 19 05:08:29 2018

If I had to play backstreet lawyer I would guess that ebay did the selection totally on the amount of feedbacks the seller has. It stands to reason the more feedbacks the more experience the seller has. Little feedback sellers are hobbyists with wishes.

Perminate Link for eBay Unveils Payments Beta on Anniversary of PayPal Split   eBay Unveils Payments Beta on Anniversary of PayPal Split

by: pace306 This user has validated their user name.

Thu Jul 19 10:15:13 2018

eBay is not stupid!

They've made WAY more profit then Amazon has over the past 2 decades. . .

Fee's are based on PERFORMANCE not race, creed or religion.


No they arent stupid - just slimy, fraud ridden, and criminal based

eBay has made more profit - numbers please. But even so - Amazon MAKES products, licenses TV and movies, creates items (kindles, fire sticks) and owns inventory - eBay owns .... nothing. Can YOU spot the difference between the 2?

Fees HAVE TO (state and federal laws) be offered to EVERYONE who performs the same way. Picking and choosing (assuming everyone is equal) is illegal.

HOWEVER - if you take the time to read back what others wrote (Id pick Maries post as its the most cogent and direct on the matter I believe) that since eBay CREATES issues (with returns, mismarks shipping days, allows incorrect negatives) and therefore damages a sellers performance record ON ITS OWN - a "sellers record" is arbitrary at best.

eBay allows sellers to have LOTS of negatives, as long as they have lots of sales. So would THEY qualify ?

Without specifically seeing what eBay uses to qualify any seller for any program - its all just guessing and eBay favoritism.

Perminate Link for eBay Unveils Payments Beta on Anniversary of PayPal Split   eBay Unveils Payments Beta on Anniversary of PayPal Split

by: Whatever This user has validated their user name.

Thu Jul 19 10:29:59 2018

"Daily payouts: direct to your bank account. No need to transfer funds between accounts"

I don't believe for one little second this is going to happen. As Judge Judy says "the item doesn't leave one hand until the money is in the other"

I participated in the ebay payments survey - did any of the rest of you do it?

I flogged the hell out of ebay - when I'm doing these surveys I always tell them exactly what I think. I don't sugar coat anything.

Here's what I do know -how many currently existing glitches does ebay have that are directly effecting sales right now? I'd say many. Do I think that ebay and their cheapo teks from India can pull this off? No

Are they going to evenutally force this system onto the sellers and buyers alike? Yes

So knowing all this here's what I think if you HAVE to remain on eBay

If you don't already have a clawback account you better get one

What is a clawback account? It's that "extra" checking account you have at your bank. If your not already at a credit union type bank you should rethink that plan. Credit unions will give you 2 even 3 for FREE.

This is for the folks that don't have one.

So your "payments" from ebay will get dumped into your clawback account daily. Right? Every morning you transfer your funds into your REAL account leaving a -0- balance in there. If ebay has to come back and "reclaim" those funds there's actually nothing left to grab. Can they withhold future payments? Sure but at least they are not going to bounce your house payment or ruin your day with some other money grab from your real life. I'm actually in the process of setting up a 3rd acct - one for ebay - one for my website payments which will still come from Paypal.

Give ebay my SSN? I don't think so - come on now - your trust them? I don't

Perminate Link for eBay Unveils Payments Beta on Anniversary of PayPal Split   eBay Unveils Payments Beta on Anniversary of PayPal Split

by: Whatever This user has validated their user name.

Thu Jul 19 10:36:24 2018

Oh I forgot - I love ebay's plans - their already unknowingly driving traffic to my website because the buyers are scared along with the sellers. They spent 20 years teaching people to love and accept paypal - now they want them to use their payment plan? we'll have to see how this one plays out - sign up early? not grabbing that carrot - sorry ebay - much like TRP discount -  -0-% of nothing + nothing and until sales pick up that ship won't float for me - made more yesterday on my website than ebay and it's only been going for 3 months - ebay store 19 years

Perminate Link for eBay Unveils Payments Beta on Anniversary of PayPal Split   eBay Unveils Payments Beta on Anniversary of PayPal Split

This user has validated their user name. by: iheartjacksparrow

Thu Jul 19 11:46:42 2018

"[eBay] reported sluggish growth in its marketplace business and lowered its revenue forecast for the the rest of the year."

The Fall Seller Up-Date is sure to include higher fees.

Perminate Link for eBay Unveils Payments Beta on Anniversary of PayPal Split   eBay Unveils Payments Beta on Anniversary of PayPal Split

This user has validated their user name. by: Marie

Thu Jul 19 12:26:18 2018

@sasikat9
Thank you for the clarification.  I stand corrected.

Perminate Link for eBay Unveils Payments Beta on Anniversary of PayPal Split   eBay Unveils Payments Beta on Anniversary of PayPal Split

by: plcombs This user has validated their user name.
Web Site

Thu Jul 19 13:11:33 2018

At this point, eBay is (to use an old metaphor), "rearranging the chairs on the deck of the Titanic". While PayPal has it's critics, a new payment system is very unlikely to alter the incidence of complaints, thinking otherwise is just silly.

Further, it will do nothing to impact eBay's rapidly sinking increasingly behind it's competitors. Net SAles Revenue growth over the last 4 years is 7%, compared to AMAZON's 200% and Ali-Babas 300% for the same time period.  (Source : Statista)

Perhaps the large stockholders will clean house before eBay becomes the next K-Mart, Sears (if it hasn't already) or worse yet Circuit City.  

Perminate Link for eBay Unveils Payments Beta on Anniversary of PayPal Split   eBay Unveils Payments Beta on Anniversary of PayPal Split

This user has validated their user name. by: Marie

Thu Jul 19 13:56:18 2018

@plcombs
"...a new payment system is very unlikely to alter the incidence of complaints, thinking otherwise is just silly."  Humm, I had not heard that before.  I've read a lot about this subject, but I missed that.  I would have to agree with you, there is no reason to believe this would be affected at all.

I agree completely that Ebay is NOT growing fast enough for my liking and that of many others.  But "sinking", I can't agree with.  Ebay has and is a profitable company, often times more profitable than others in a similar line of business.  

I certainly don't like many things that Ebay does, but venturing into a payment processing feature is a good business decision for them and hopefully it will help to move them forward in a more positive manner.  It will be a slow process as it will take 3 years to implement this site wide.  Only a very small portion of sellers will be testing the feature this year.

Perminate Link for eBay Unveils Payments Beta on Anniversary of PayPal Split   eBay Unveils Payments Beta on Anniversary of PayPal Split

by: ebayout This user has validated their user name.

Thu Jul 19 15:20:43 2018

Two things I find fantasmagorical:
1) Wenig is betting his WHOLE future on an unproven payment system linked to an already glitch-ridden system.
2) There are new ebay shareholders to the tune of 40M+ shares today even as the stock drops over 9%.

Don't know which takes the prize, but at least #2 gives hope to ebay.
Fools rush in, even those with more money than good sense.

Perminate Link for eBay Unveils Payments Beta on Anniversary of PayPal Split   eBay Unveils Payments Beta on Anniversary of PayPal Split

This user has validated their user name. by: toolguy

Thu Jul 19 21:37:55 2018

@eBayout

Adyen "unproven"

They're a $20 Billion dollar business on the Euronext exchange.

Perminate Link for eBay Unveils Payments Beta on Anniversary of PayPal Split   eBay Unveils Payments Beta on Anniversary of PayPal Split

This user has validated their user name. by: FidoMaster
Web Site

Fri Jul 20 16:38:08 2018

Fisher, their tech top executive who made a lot of money mangling Ebay technologically, got a PROMOTION to head new payments

New job, more money, he had zero experience when hired by Wenig. Just a lawyer with no cred and no success at anything.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Fisher didn't get a promotion.

Again, Fisher was defrocked of his CTO title and put "out to pasture" to graze in the special corporate purgatory land of "special projects".

This special place is reserved for senior execs who aren't quite performing to snuff and are nearing the end of their career anyways, but can still offer some value to the organization, thus are allowed a courtesy swan-song.

My speculation is Pittman took took the bullet for the poor execution of marketplace product development poor prioritization, delays, screwups, and glitches, while Fisher took collateral damage for not raising the alarm in time and/or not ensuring the engineering talent was in-place to deliver.

Keep in mind eBay already brought in from the outside an experienced payments exec. in Alyssa Cutright as VP of Global Payments. I have no idea if Cutright is still there, or if she's recently been invited to pursue other opportunities (along with hundreds of others from the eBay campus).

Her LinkedIn profile, like RJ Pittman's, still shows with eBay.

If she's still there, there's some certainly some duplication at the top of the payments org, but my surmise is that Wenig is hedging his bets to cover his own arse when things start going sideways with payments -- his alibi being that he stacked the deck with not only this outside experienced payments exec, but also his former CTO -- if they couldn't get it got done right what more could he have possibly done?

eBay needs a 3G-Capital style enima.  

Perminate Link for eBay Unveils Payments Beta on Anniversary of PayPal Split   eBay Unveils Payments Beta on Anniversary of PayPal Split

This user has validated their user name. by: toolguy

Fri Jul 20 17:10:13 2018

@Fidomaster

Fisher had "NO" experience before being hired by Wenig?

You are MISINFORMED!

Salesforce.com, Apple & AT&T, I would say he has PLENTY of experience!

Here's his BIO on his eBay page:

Steve leads the strategy and execution of our payments initiative, overseeing the transformation required to manage payments on our Marketplace platform to significantly improve the end-to-end customer experience. His responsibilities include overseeing the strategy, business, product, risk and engineering efforts for payments.

Steve joined eBay in September 2014 as Chief Technology Officer and led eBay’s core product and technology team, including the global product managers, engineers and technology professionals who deliver our trusted global marketplace, compelling multi-screen experiences, core marketplace capabilities, and big data insights. He was CTO for nearly four years.

Prior to eBay, Steve was at Salesforce.com, where he served as executive vice president of technology. There, he led a team of software developers, quality engineers, and infrastructure engineers developing award-winning software which is used by 100,000 companies worldwide, including eBay.

Prior to Salesforce, Steve held engineering positions at Apple and AT&T Labs.

He founded a start-up, NotifyMe Networks, which is an interactive voice-alerting platform application service provider, and went on to lead it as chief executive.

Steve has a B.S. in Mathematical and Computational Science and an M.S. in Computer Science from Stanford University.

A tireless innovator, Steve holds 21 patents.

Here's my source:


https://www.ebayinc.com/our-company/our-leaders/ste
ve-fisher/#steve-fisher

Perminate Link for eBay Unveils Payments Beta on Anniversary of PayPal Split   eBay Unveils Payments Beta on Anniversary of PayPal Split

by: onlineseller This user has validated their user name.

Fri Jul 20 17:10:15 2018

After 17 years with ebay am exhausted jumping through hoops and stupid changes.  

Perminate Link for eBay Unveils Payments Beta on Anniversary of PayPal Split   eBay Unveils Payments Beta on Anniversary of PayPal Split

This user has validated their user name. by: toolguy

Fri Jul 20 17:12:42 2018

@onlinseller

Welcome to the 21st century!

Jumping thru hoops and stupid changes are a way of life no matter where you are or what you're doing.

Unless you decide to go off the grid and live in a cave. . .

Perminate Link for eBay Unveils Payments Beta on Anniversary of PayPal Split   eBay Unveils Payments Beta on Anniversary of PayPal Split

This user has validated their user name. by: The End

Fri Jul 20 18:02:03 2018

As a potential return seller (10 years absent), I want the STRIPE gateway option.
No STRIPE, no return.

Perminate Link for eBay Unveils Payments Beta on Anniversary of PayPal Split   eBay Unveils Payments Beta on Anniversary of PayPal Split

by: quirkyantiques This user has validated their user name.

Fri Jul 20 18:52:11 2018

LOL@ buffalochick. You win the comments section :O)

Perminate Link for eBay Unveils Payments Beta on Anniversary of PayPal Split   eBay Unveils Payments Beta on Anniversary of PayPal Split

by: quirkyantiques This user has validated their user name.

Fri Jul 20 18:58:40 2018

@sasikat. I won't be joining you-the minute Ebay tries to micromanage MY money, I'm out. My account will be closed and to be honest-my customers are MUCH better on Ruby Lane than on Ebay. Ebay is only good for getting rid of cheap stuff in a race to the bottom. I will not miss it from a sellers point of view.

Perminate Link for eBay Unveils Payments Beta on Anniversary of PayPal Split   eBay Unveils Payments Beta on Anniversary of PayPal Split

This user has validated their user name. by: FidoMaster
Web Site

Fri Jul 20 20:36:48 2018

For those concerned about Mr. Fisher's well-being...

...I think he'll do just fine as he winds things down if payments aren't too badly glitched.

Also to be clear (and as previously mentioned), it's really Adyen doing the "heavy lifting" with payment processing. Not eBay.

Essentially all eBay has to do is make sure their accurate data flows correctly to and from Adyen.

How hard could that be?

~~~~~~~~~~~~~~~~~~~~~~~
OFFER LETTER

June 13, 2018                            
Steve Fisher

Dear Steve:

SENIOR VICE PRESIDENT, PAYMENTS

Effective on June 18, 2018, you will transition to the position of SVP, Payments of eBay Inc., reporting to the CEO, at a bi-weekly salary of $19,230.77, which is equivalent to an annualized salary of $500,000.02.

The SVP, Payments role, as constituted, is not considered a Section 16 officer position.

As SVP, Payments, you will continue to be eligible to participate in the eBay Incentive Plan (eIP) with an annual bonus based on individual achievement as well as company performance. The annual bonus period is from January 1 through December 31. Your target bonus for the eIP is 75% of your annual base salary, pro-rated based on the eligible earnings paid while you are employed in an eIP eligible position during the annual bonus period. There is no guarantee any eIP bonus will be paid and any actual bonus will be determined after the end of the annual bonus period based on your eligible earnings as defined in the eIP. To be eligible to receive any eIP bonus, you must be employed on or before the first business day of the fourth quarter and you must be employed on the date the bonus is paid. The payment of any bonus is at eBay’s sole and absolute discretion and subject to the terms and conditions of the eIP. eBay reserves the right, in its sole discretion, to amend, change or cancel the eIP at any time.

Subject to the terms of the Company’s equity plan, you will be eligible to participate in eBay’s focal equity grant program in 2019. The value of your 2019 equity grant, if any, will be determined by eBay and approved by the Compensation Committee of the Board of Directors. For clarity, the minimum award value of $2,500,000 referenced in your September 2, 2014 offer letter no longer applies.

All employees are subject to eBay’s Insider Trading Agreement, which outlines the procedures and guidelines governing securities trades by company personnel.

SENIOR FELLOW

On or after April 1, 2019, you may elect to transition to the position of Senior Fellow. As Senior Fellow, your salary will be adjusted to an annualized salary of $60,000.

As Senior Fellow, you will continue to be eligible to participate in the eBay Incentive Plan (eIP) with an annual bonus based on individual achievement as well as company performance. The annual bonus period is from January 1 through December 31. Your target bonus for the eIP is 45% of your annual base salary, pro-rated based on the eligible earnings paid while you are employed in an eIP eligible position during the annual bonus period. There is no guarantee any eIP bonus will be paid and any actual bonus will be determined after the end of the annual bonus period based on your eligible earnings as defined in the eIP. To be eligible to receive any eIP bonus, you must be employed on or before the first business day of the fourth quarter and you must be employed on the date the bonus is paid. The payment of any bonus is at eBay’s sole and absolute discretion and subject to the terms and conditions of the eIP. eBay reserves the right, in its sole discretion, to amend, change or cancel the eIP at any time.

Perminate Link for eBay Unveils Payments Beta on Anniversary of PayPal Split   eBay Unveils Payments Beta on Anniversary of PayPal Split

This user has validated their user name. by: FidoMaster
Web Site

Fri Jul 20 20:47:02 2018

@tool

The 1st part of the above post was a quote from another poster.

I should have considered things and made that a bit more clear for you and put it in quotes. I'll try to remember to better accommodate you in the future.

Fisher is also not an attorney (as best I can tell), but that wasn't really germane to the conversation so I didn't see a need to call that out.

So many of the execs are though (buncha lawyers), so it's easily to confuse these people.

So again, I didn't see benefit in this case to calling out anyone by name, and rather opted to clarify the posting for anyone casually scanning the comments.

Perminate Link for eBay Unveils Payments Beta on Anniversary of PayPal Split   eBay Unveils Payments Beta on Anniversary of PayPal Split

This user has validated their user name. by: toolguy

Fri Jul 20 21:55:20 2018

@The End

Your buyer might be able to use Stripe as payment but you as a seller will not be accepting that payment, eBay will..

Sellers will have only 1 choice, eBay payments, buyers on the other hand will probably get to use anything they want including but not limited to Paypal.

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