Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Mon July 30 2018 16:32:22

eBay Bans PayPal in Early Payments Beta

By: Ina Steiner

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Details are coming out about the new beta test eBay is rolling out in September as it moves to take over payments management from PayPal. 

There's some good news and bad news for sellers, but so far eBay is not releasing details publicly. The biggest drawback is that buyers will not be able to use PayPal to pay sellers participating in the test - a provision that a reader told us he believed would negatively impact sales.

It's hard to see how he's not correct about the impact of the temporary ban on PayPal payments for beta participants. Buyers (many of whom are also sellers) find it convenient and have been drum beaten into using PayPal - in fact, it's the only way to be protected under the eBay Money Back Guarantee buyer protection program.

Note that when eBay makes the final transition, it will allow PayPal on the platform, but apparently not during the initial testing.

Another major caveat: once you sign up, you can't opt out of the test.

Here's some information provided by an EcommerceBytes reader who is being recruited by eBay:

- eBay will accept all credit cards and Apple Pay during the beta test period. 

- They also will only have a 30-day maximum refund period unlike the 6 months for PayPal. (We find that hard to believe, since buyers can always turn to their credit card companies directly to file a chargeback.)

- The payments will be deposited directly into sellers' accounts and eBay will not take out the processing fees from the deposits but will add them to sellers' monthly eBay invoice, "which means you will have use of all your money for a longer period of time."

- "eBay fees for the processing will be 2.7% with no fee for the transaction which is slightly better  that Paypal (right now)."

- eBay will not allow sellers to accept PayPal during the beta testing.

"I am SURE my business would suffer if PayPal was not an option on the beta test and would not participate unless PayPal was an option on the test right from the start," the reader told us. 

Another reader sent us a link to a video from a seller who shared what she learned about the new beta at an eBay Open session. Rebecca, aka Bexa Boss Lady, was still in Las Vegas when she recorded the video after having attended the session on payments.

She was the source for the important tidbit about not being able to opt out of the beta program once you're in. She also said participants would not be able to accept PayPal

If you're at all interested in what eBay is doing with regard to payments, especially if you're considering participating in the beta program, this is a must-watch video.

We sent an inquiry to eBay today asking when it might make available the video of the eBay Open session on payments. 

You can read the email eBay sent inviting sellers to apply for the beta program in this blog post from earlier this month; note the invitation doesn't provide details about the program.

Comments (104) | Leave Comment | Permalink
Readers Comments

Perminate Link for eBay Bans PayPal in Early Payments Beta   eBay Bans PayPal in Early Payments Beta

This user has validated their user name. by: RKTOYS

Tue Jul 31 16:05:29 2018

I have really been trying to square all of my accounts before pulling out of eBay.  The less than 1% turnover really isn't helping.  When they force the banking switch, that's it, I will just let it lapse.

The bad part is that there just isn't another collectibles market like eBay.  I either have to put up my own self hosted site or plan to attend local shows forever.

Perminate Link for eBay Bans PayPal in Early Payments Beta   eBay Bans PayPal in Early Payments Beta

by: eBay Shill Buster This user has validated their user name.

Tue Jul 31 16:07:48 2018

How can it get worse, the marketplace inventory turns are 2% a month for millions of sellers if they are lucky, eBay fees and store subscriptions eat up any profit made by small sellers now.

Many sellers are quitting and are now looking for jobs to survive, if you watch the video on YouTube from eBay open where Devin spoke you will know that he is the wrong guy for the job.

I think Wall Street is figuring it out 2 years too late though.

Perminate Link for eBay Bans PayPal in Early Payments Beta   eBay Bans PayPal in Early Payments Beta

by: Silver Ice King This user has validated their user name.

Tue Jul 31 17:34:44 2018

Actually I read that Paypals stock was dropping because they still had to much cash laying around and Wall Street was getting worried that they would start buying their stock back instead of acquiring more companies.  Late last year Paypal sold their Paypal Credit servicing to another company for a few years and a few billion  which freed up staff and money and was looked at favorably, so they do not appear to be hurting for cash.  Is Adyen a good fit for them?  Couldn't tell you truthfully, but it sure would be nice to see Ebay have to kiss up to Paypal for however long that contract is because they would still be stuck with it for the duration that they signed for...LOL

As for more information on Ebays restrictions here is another article discussing the ramifications of helping EBay Beta TEst their payment intermediary system that they so nicely neglected to disclose to Sellers before hand.  Typical Ebay, begging for Sellers help only to screw them over again,

https://esellercafe.com/new-ebay-payments-beta-comes-wit
h-significant-restrictions/

@Tool

I
hope this explains things better and maybe you can find something that will giv you an out before they put you out of business.  I would definitely be calling non stop to get out of this since it has actually not started yet and just keep telling them that these terms will put me out of business in less than a month. Good luck.

Perminate Link for eBay Bans PayPal in Early Payments Beta   eBay Bans PayPal in Early Payments Beta

by: eBay Shill Buster This user has validated their user name.

Tue Jul 31 17:43:28 2018

What will bankrupt small sellers will be the NSF fees that hit their bank accounts when eBay issues automatic returns against a sellers account.

Those chargers can snowball fast and will break millions of sellers.

Perminate Link for eBay Bans PayPal in Early Payments Beta   eBay Bans PayPal in Early Payments Beta

by: ebayout This user has validated their user name.

Tue Jul 31 18:39:18 2018

Not being a stat major, I ask this with tempered input...but...

Is it not a safe assumption that 90% of ebay payments go thru paypal?
Is this some convoluted test of a non-paypal environment?
Are the results of this test not foregone, i.e., millions in lost fees?
Is the person who formulated this insanity still employed?
Oh...it's Wenig. Nevermind.

Perminate Link for eBay Bans PayPal in Early Payments Beta   eBay Bans PayPal in Early Payments Beta

by: ebayout This user has validated their user name.

Tue Jul 31 21:07:29 2018

Great response to a Seeking Alpha article. It hits every head...

I was just at the ASD retailers show and let EBay have it. I told them their return policies were nuts and that they need to hire some real ecommerce pros to run the company and get rid of the attorney's. I asked them if they knew what Amazon paid for shipping from the USPS, FEDEX and UPS. They didn't have a clue and expect EBay sellers to take free returns.
When I told them that Amazon can afford to take the returns because they are only paying the USPS $2.00 and FEDEX/UPS $5.00, they seemed shocked. I told them to quit trying to be Amazon and stop pandering to the millennials. I asked them what happens when a customer destroys a blisterpak and makes the product unsaleable. They told me that if you offer free returns, then you can deduct the damage up to 50% for the item. So I did the math and told them the returned shipping was at least 10% and since we are only getting back 50% of the product value, then we are eating 60% of the total. They must think we have these kind of margins in our products.
I also recommended that they need to have 2 separate selling platforms. One that had all the original aspects including restocking fees, etc and the one that they have now for stupid vendors.
All they found important was that you get top seller discounts if you kiss every customers butt! They don't have a clue the cost to the vendor with free returns.

Perminate Link for eBay Bans PayPal in Early Payments Beta   eBay Bans PayPal in Early Payments Beta

by: pace306 This user has validated their user name.

Tue Jul 31 23:09:51 2018

ebayout ..... yes because eBay is full of people with no ecommerce, etail, retail, big box, or wholesale experience.

Again I point to ...... if you want the best Dr you can for your heart, you search everywhere and you go anywhere - since your health is job #1. Similarly - if you want the best ecommerce company, you go and hire the best - or close to the best if the best isnt available. You DONT hire people off some random employment line nor just pick "anyone who went to college".

eBays presence was not disclosed on ASD's website ... odd.

Perminate Link for eBay Bans PayPal in Early Payments Beta   eBay Bans PayPal in Early Payments Beta

by: Silver Ice King This user has validated their user name.

Wed Aug 1 00:11:20 2018

@pace

eBays presence was not disclosed on ASD's website ... odd

Can you blame them for not wanting to advertise that Ebay was there or in any way affiliated with them??  I think this is going to start happening more and more as we go forward with the #1 Technology Company in the World.

Ebays reputation is becoming so bad that other company's are not wanting their stench rubbing off on them so they are disassociating themselves from Ebay more and more.  Would you want it known that you are affiliated with a company that is as morally lacking as Ebay is?  I think they are going to find that their advertising rates will begin to drop very soon as more and more companies begin to realize that the so called click throughs are just that, ''so called''  and that they may not want their name associated with Ebay going  forward.

Perminate Link for eBay Bans PayPal in Early Payments Beta   eBay Bans PayPal in Early Payments Beta

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

Wed Aug 1 07:00:27 2018

IDEA !
A website that acts as a Mall. A collection of Online Only stores.
Different categories on the index page.
Antique and related items, New retro items, CVS type items, Footwear, Outerwear, Sportswear, Plastic Models, etc.
Click on the photo link. Go to a page with several links to the registered stores in that category. The stores are hosted on the store owners own web host. Your website in the mix of Mall occupants.
Store Owners are responsible for ALL ASPECTS of their own business.
NO BUTTINSKIS in the concept.
Use the gateway of YOUR choice.
Each store pays an annual fee ..... a few hundred dollars......
I will sign up immediately !

Perminate Link for eBay Bans PayPal in Early Payments Beta   eBay Bans PayPal in Early Payments Beta

by: maxmad This user has validated their user name.

Wed Aug 1 08:52:29 2018



So true, "ebay has a bad reputation" this was one of our reasons for us to first remove our company name from our store user id , then finally making the decision to pull all our products from ebay,

I think it's different when a seller is a private individual, but for us it's our brand,

Since making the break to different venues, sales have been more then great, we couldn't be more happy, the only regret is we should have done it about 5 years ago., when it all started to go bad, oh well live and learn, we won't be fooled again,

ebay has transformed from a great company to a garbage glitch filled site operated by complete stupid greedy idiots, it won't last, there's only so much abuse any company can take, no mater how big they are, ebay is failing and they will continue to go down

Perminate Link for eBay Bans PayPal in Early Payments Beta   eBay Bans PayPal in Early Payments Beta

This user has validated their user name. by: iheartjacksparrow

Wed Aug 1 10:13:13 2018

@The End - Your idea is similar to what a gal in a Yahoo group I belonged to (many years ago) did. She opened an online mall specifically for doll-related items. When you went to the home page, you would see a graphic of a big doll house, and each "room" was a different store owned by a different individual (with a different shop name and logo). Clicking on a room would take you to that shop.

Perminate Link for eBay Bans PayPal in Early Payments Beta   eBay Bans PayPal in Early Payments Beta

by: pace306 This user has validated their user name.

Wed Aug 1 10:14:31 2018

"eBays presence was not disclosed on ASD's website ... odd

Can you blame them for not wanting to advertise that Ebay was there or in any way affiliated with them??  I think this is going to start happening more and more as we go forward with the #1 Technology Company in the World."

You should see the smirks and giggles I get when I go to CES and I talk to manufacturers!  eBay is considered to be a nothing of a nothing - prohibiting resale of their goods is usually limited to Amazon and Walmart ... never is eBay mentioned!

They did it to themselves - as mentioned here by 50 people here who are smarter then I am.

Theres nothing wrong with eBay using a catalog - just dont whine and beg your sellers (whom you abuse regularly) to create it for you. MAYBE had you asked NICELY and demonstrated some good will towards them - they would have volunteered to help.

For electronics - the catalogs are freely available from many places - including the  makers websites themselves - no clue why it was ever a big issue. For those items with no upcs - they wont ever have one - so why cry and stamp your feet?

eBays menacing, adversarial position(s) are not just limited to sellers sadly, it extends to makers as well. Even though they arent mentioned when you sign a dealer agreement - it doesnt mean they LIKE eBay - quite the contrary.

*MY* only concern with the whole payments thing is giving eBay total control - they cant be trusted and they cant be relied upon. When you call them to fix easy things - things that have no "real consequences" they refuse to be of help - so I cant imagine calling them wit a REAL issue (and my VERO entanglements have shown that when it is "serious", eBay simply ignores it all).

Its gonna be a rough 4th quarter for eBay sellers.

Perminate Link for eBay Bans PayPal in Early Payments Beta   eBay Bans PayPal in Early Payments Beta

This user has validated their user name. by: FidoMaster

Wed Aug 1 12:21:28 2018

Interesting find on the ASD info. I'm not familiar with this expo, is it a pretty big one?

So the eBay business represented shows as "eBay Advertising". I believe this is the new biz unit Wenig was gushing all over himself during one of the last earnings calls at the end of last year (the same one repeatedly blathered on about "surfacing" new promoted listings).

I've never seen the eBay advertising site either, but a quick scan suggests there may be some groan-worthy snippets. Here's one to start with, "Shopping happens everywhere these days and no one understands that better than eBay."

They're the best technology company out there, dontcha know?

LINKSāž½ http://bit.ly/2vlTjxY

Perminate Link for eBay Bans PayPal in Early Payments Beta   eBay Bans PayPal in Early Payments Beta

by: pace306 This user has validated their user name.

Wed Aug 1 12:57:58 2018

#ebaysellerlivesmatter

Perminate Link for eBay Bans PayPal in Early Payments Beta   eBay Bans PayPal in Early Payments Beta

by: ebayout This user has validated their user name.

Wed Aug 1 13:11:19 2018

Meanwhile, ebay stock continues to tank...went below $33 briefly today.

The BOD is between a rock and a hard place. They can fire Wenig...
...and cause a precipitous stock drop.
Or, they can keep the dimwit...and watch the stock slowly drop for the next two months and then watch it crash and burn after the 3rd quarter results.

Perminate Link for eBay Bans PayPal in Early Payments Beta   eBay Bans PayPal in Early Payments Beta

This user has validated their user name. by: toolguy

Wed Aug 1 13:18:09 2018

I HATE to do this but let's put the shoe on the other foot.

I've been selling on eBay for years, I have no holds on my funds or account limits.

I find myself in a bind, I list 100 items that usually sell for $500 at $400

I sell all 100 items in just 2 days!

That's $40,000

I withdraw my money from Paypal and decide NOT to ship!

Who's left holding the bag?

I'm sitting here with $40,000 thinking how I got the last laugh on eBay on the way out the door!

And to top it off I stiff eBay for the FVF. . .

eBay wants to be able to stop this kind of behavior before it starts.

What I don't understand is why eBay doesn't take their fees at the point of sale instead of piling it up for a monthly bill.

Perminate Link for eBay Bans PayPal in Early Payments Beta   eBay Bans PayPal in Early Payments Beta

by: ebayout This user has validated their user name.

Wed Aug 1 13:26:39 2018

Speaking of ebay advertising...http://www.ebayadvertising.com/

Has not been updated since last year...it's boasting 168M buyers vs. the current bogus number of 175M.

Rock on, ebay.

Perminate Link for eBay Bans PayPal in Early Payments Beta   eBay Bans PayPal in Early Payments Beta

by: pace306 This user has validated their user name.

Wed Aug 1 16:36:17 2018

TOOL

LMAO - same answer as eBay gives sellers when they screw them "taking losses is part of business - here take a loss - its good for you and your business"

No one is loosing sweat over eBay loosing money... PLUS they have your bank account/cc info on file over at Adyen ...  

Perminate Link for eBay Bans PayPal in Early Payments Beta   eBay Bans PayPal in Early Payments Beta

This user has validated their user name. by: toolguy

Wed Aug 1 17:05:38 2018

@pace306

I have NO credit cards!

And the bank account can be closed easily. . .

Perminate Link for eBay Bans PayPal in Early Payments Beta   eBay Bans PayPal in Early Payments Beta

by: ebayout This user has validated their user name.

Wed Aug 1 18:17:00 2018

@ pace 306

ebay is cool with sellers losing money, even when its's ebay's fault.

Ironic that shareholders are now losing money...and it's ALL ebay's fault.
Karma is real bee-otch.

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