Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Mon July 15 2019 23:40:48

eBay to Institute New Managed Payment Fee on October 1

By: Ina Steiner

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On the 4-year anniversary of breaking up with PayPal, eBay sent an email to additional sellers inviting them into its own managed payments service that will become mandatory for all sellers by 2021. Included in the July 15 email was bad news regarding payment-processing fees - eBay will start charging a per-listing transaction fee beginning October 1, 2019.

We wrote about the new fee in mid-May, but some sellers were taken by surprise when they received Monday's missive from eBay. "As a seller who typically sells multiple different items on an order, this is going to be a huge increase in cost once eBay forces everyone onto managed payments," a seller wrote on the eBay discussion boards

The seller explained, "On a communication I received today from eBay, I learned they are going to charge a transaction fee of $0.25 for each different item on a customer order - where PayPal only charges me one $0.25 fee for the entire order. For example I had a $31.45 order yesterday, with 7 line items. My PayPal fees were $1.16 - with managed payments my fees would have been $2.60. I'm just sick about this."

Prior to May 21, there was no mention of a per-listing fee, and as recently as April eBay said that most sellers could expect lower costs using managed payments. 

Sellers who opted in to managed payments prior to June 4th will be grandfathered into the old rates. But that was a source of contention for some sellers:

"...User agreement aside, how is it reasonable to charge sellers .25 per listing more than early MP enrollies if you would not allow ALL sellers access to MP? Then if they turned it down too bad for them," one seller wrote. (eBay's terms still state, "Eligibility to have your payments managed by eBay Commerce is by invitation only.")

Some sellers have difficulty with the concept of a "per listing" transaction fee, and indeed, it's unique to eBay. PayPal, for example, charges a "per transaction" fee. An eBay moderator on social media explained how the per-listing fee would work:

"If two items are purchased from you for a single listing, one payment listing fee is charged of $0.25. If two items are purchased from you from different listings, two payment listing fees are charged of $0.25."

Also as of today, eBay can begin rolling out managed payments to a second market according to the terms of its operating agreements entered into with PayPal in 2015, and in April, eBay revealed it had chosen Germany. eBay Germany set up a page announcing managed payments in April and began allowing sellers to register their interest in joining the program.
 
For those not yet familiar with managed payments, eBay explains in a FAQ: "With eBay managing payments, you'll use your eBay account to sell, and you'll need to provide a bank account into which your funds will be deposited. As an eBay seller, you'll need to have a relationship only with eBay, rather than with both eBay and a payment provider. Your buyers will be able to choose how they'd like to pay, as they can at any other online retailer, and the payment processor will not be visible to them."

eBay managed payments can be seen as a legacy of former eBay CEO John Donahoe who was unable to fend off activist investor Carl Icahn, the architect of the eBay-PayPal split.

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Readers Comments

Perminate Link for eBay to Institute New Managed Payment Fee on October 1   eBay to Institute New Managed Payment Fee on October 1

by: justchangecarriers This user has validated their user name.

Tue Jul 16 00:16:40 2019

I feel great about ebay providing a "secure" transaction.

From a company hacked 24/7 and cant even run a fully functioning site. Experiencing glitches every week. Sure lets hand these people bank information.

Now I have to go open another bank account to act as a buffer from ebay touching my real business account.

Perminate Link for eBay to Institute New Managed Payment Fee on October 1   eBay to Institute New Managed Payment Fee on October 1

This user has validated their user name. by: Bill

Tue Jul 16 00:32:33 2019

If I am forced into MP my 20+ year relationship with eBay will be done, finished, kaput!

There is no way I will ever let them get to charge me $0.25 per item on multi-orders nor will I ever let them handle my money. There are to many other places to sell on and a ton of people will be leaving.

Maybe that is what eBay wants.

eBay = Dead Man Walking

Perminate Link for eBay to Institute New Managed Payment Fee on October 1   eBay to Institute New Managed Payment Fee on October 1

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

Tue Jul 16 01:03:39 2019

I also notice that they never mention anything about a potential Micropayments account similar to what Paypal has.  Wenig is desperate to squeeze every penny out of Ebays existing Sellers without the Seller having increased sales because they have finally realized they have no clue what they are doing and have given up trying to truly grow their marketplace.  Now its grow revenue from already decreasing sales by forcing Sellers to pay more for their processing fees of which Ebay gets almost the entire amount (other than the pittance they have to pay to Adyen). Can't wait to see how many sellers bail immediately upon having to deal with Mangled Payments and then to see how many,  if any, Sellers actually win a Chargeback as it is always in Ebays best interest to rule against the seller and charge them another $20 ( at least for now it is that low) chargeback fee.  That number will probably go up as Ebay finds they now need to play games with the Mangled Payment fees in order to show any growth to Wall Street.

Perminate Link for eBay to Institute New Managed Payment Fee on October 1   eBay to Institute New Managed Payment Fee on October 1

This user has validated their user name. by: toolguy

Tue Jul 16 01:54:17 2019

eBay expects sellers to ship the item before getting paid for it.

On Mondays I can't afford to pay shipping out of my own pocket. . .

When I'm forced into managed payments my handling time will go up to 5 days!

Perminate Link for eBay to Institute New Managed Payment Fee on October 1   eBay to Institute New Managed Payment Fee on October 1

by: notfunanymore This user has validated their user name.

Tue Jul 16 07:44:59 2019

Honestly, this should not be a shocker, they will figure out ways to nickel and dime their way, on YOUR back!! It’s amazing how your “partner” treats you. It’s all smoke and mirrors, they want you to feel like “wow, eBay is my business partner”. You are their pawn is more like it. Step in line! Or your gone! Good luck to anyone left selling

Perminate Link for eBay to Institute New Managed Payment Fee on October 1   eBay to Institute New Managed Payment Fee on October 1

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

Tue Jul 16 08:42:29 2019

It's quite sad that one of the only ways eBay has come close to approaching anything close to actual 'disruptive innovation' (as opposed to aping Amazon or copying long-available 'personalized' features of other internet properties), is in creating an all-together new way to scam their seller-customers in a brand-new made-up fee.

Perminate Link for eBay to Institute New Managed Payment Fee on October 1   eBay to Institute New Managed Payment Fee on October 1

by: pace306 This user has validated their user name.

Tue Jul 16 09:08:24 2019

"eBay managed payments can be seen as a legacy of former eBay CEO John Donahoe who was unable to fend off activist investor Carl Icahn, the architect of the eBay-PayPal split."

YES - but thats NOT why he did it.

Carl didnt want the split because he loves eBay and hoped that the split would help them grow - it was/is the EXACT opposite.

PAYPAL was the "star" here - and every time someone wanted to business with them and help Paypal grow - they were reminded that they were attached to slimy corrupt eBay.

Carl wanted Paypal to be THE internet payment wallet and eBay was/is (like they are to sellers) an albatros around their necks.

As for eBay - they dont care about the split - they never did.

Paypal was just a way to control sellers. They used Paypal to play good cop/bad cop - blaming them when they wanted to steal from sellers.

Once Paypal got too big to order around - eBay stopped telling every one who'd listen how great Paypal was. Its the classic mafia move where the don realizes that the new kid is "too good" and is moving up in the ranks too fast. Any faster and he will over take the old guard and we cant have that. (Each and every move DW makes is a Sopranos episode). Paypal is the Richie Aprile to Tonys eBay.

eBay always saw this move as win/win.

1) DIRECT control over sellers via:

A) when you get your money (days)
B) how you would get your money (terms - before or after shipping etc)
C) eliminate chargebacks by always finding for the buyer
D) being able to institute any new fee at any time

2) "Proving" to the community that you are a grownup

A) the industry looks down on poor eBay - they are the unwanted one in the litter of ecommerce. TWICE et al talk about Walmart, Target, Amazon, Jet etc but never about eBay ... this (being in a payments relationship thats not really part of their company (Adyen)) may prove they can be a grown up. Wont help though.
B) eBays made an @ss of themselves many times at shows - they dont even show up to CES etc. I doubt it will change anything ... as no one inthe indusrty even mentiones "eBay closed's" seller gathering.

Getting back to the main point - where are all the eBay cheerleaders????????

There used to be TONS of them here - all crying how stupid we the sellers are, and how we have no right to complain about anything - cause its eBays site (or some cr@p like that).

Well here you go cheerleaders. Heres a NEW fee for you - just because eBay CAN.

eBay employees drinking to much at the new bar???? DW needs more fuel for his plane? hiring back some $2 cockaroach for a big salary over at eBay??? JUST CHARGE THE STUPID SELLERS ANOTHER FEE TO COVER IT.

Perminate Link for eBay to Institute New Managed Payment Fee on October 1   eBay to Institute New Managed Payment Fee on October 1

by: Just Plain Irritated This user has validated their user name.

Tue Jul 16 09:19:03 2019

When our annual Premium Store subscription ends 1st of April, we will probably be done with eBay.

Perminate Link for eBay to Institute New Managed Payment Fee on October 1   eBay to Institute New Managed Payment Fee on October 1

by: Jack This user has validated their user name.

Tue Jul 16 09:21:56 2019

This is how eBay is going to "save" sellers money with their Managed Payments money grab. They are crooks. Wenig and his thugs can't bring more buyers to the market place they have ruined so they are just going to take more and more from sellers for bogus stuff. This will boost profits for a bit until they break the sellers backs and they have to leave. You can't take money from people who can not afford to sell on your platform. I sold fewer items and made twice as much a year 5 years ago. It really is pathetic what they have done.  

Perminate Link for eBay to Institute New Managed Payment Fee on October 1   eBay to Institute New Managed Payment Fee on October 1

This user has validated their user name. by: toolguy

Tue Jul 16 09:54:11 2019

My average sale is $40

I'm not going to cry over .25 cents!

It's not even 1%, in fact it's just a fraction over 1/2%

When customers buy items 1 at a time Paypal charges me .30 a transaction

Perminate Link for eBay to Institute New Managed Payment Fee on October 1   eBay to Institute New Managed Payment Fee on October 1

by: pace306 This user has validated their user name.

Tue Jul 16 10:31:14 2019

"My average sale is $40

I'm not going to cry over .25 cents!"

You may be %100 right - but thats NOT the point here - the one most of us are making.

Lets say this goes through (and it will), what stops ebay from doing it AGAIN (and they will), and again and again and again - but this time it may not be 25 cents.

What if its a dollar amount that offends you?

At this moment, eBay listings are free because:

1) eBay needs to show "inventory" - cause alot of sellers have left
2) it gives them a legal out on the games they play - the "cost of the listing" aka the fee is offset by the new money grab they designed

But what if tomorrow that all ends? Alot of sellers (im not one of them but I understand what they do) only list when there are free listings - and you may be one of them.

What if eBay becomes $2 a listing plus %10 fvf. They can, and if they wanted to they could. They would loose 2-3 hundred thousand small sellers but then the big guys and the chinese would have free run of the place - and eBay only cares about them anyway.

What if it stays the same but the increase is 50 cents not 25?

"what would be your limit"?

If people dont say anything now - when will they? (not that eBay cares).

"this rarely happens to me so PERSONALLY Im not at arms over it" ... but if I dont stand up for my fellow sellers - how can I expect them to stand up for me - when its an issue thats important to me????"

Perminate Link for eBay to Institute New Managed Payment Fee on October 1   eBay to Institute New Managed Payment Fee on October 1

by: thievesBay This user has validated their user name.

Tue Jul 16 10:55:42 2019

Managed Payments was only offered to "select" sellers to start with, more than likely most of them being larger sellers. That's why they temporarily will get a better rate. As for anyone else they're trying to coax into it now, meaning "everyone else" they're being targeted by eBay to be screwed over with higher rates. But have no fear, by the time Managed Payments is in full force, EVERYONE will be paying more than they are now. It's a trap. I thought less than 1 year ago at the eBay Open Wenig was touting how much everyone would be saving on this? Anyone opting into this now will be paying more. eBay and Wenig are two-faced liars. All they have left are money grabs. Keep driving everyone away and let's see how this all works out for you. Idiots.

Perminate Link for eBay to Institute New Managed Payment Fee on October 1   eBay to Institute New Managed Payment Fee on October 1

by: thievesBay This user has validated their user name.

Tue Jul 16 11:04:32 2019

I also wanted to add, Amazon didn't crash yesterday and there's gonna be less traffic today so I doubt anything happens. You know, because Amazon actually fixes past issues, unlike eBay who never even try to fix anything. So just how stupid does this make eBay look with their ridiculous Crash Sale promotion? Pretty bad in my estimation. I wish Bezos would say something like "Amazon didn't crash on Prime Day, so I guess eBay didn't have much of a Crash Sale". That would be perfect.

Perminate Link for eBay to Institute New Managed Payment Fee on October 1   eBay to Institute New Managed Payment Fee on October 1

by: Disgruntled_Seller This user has validated their user name.

Tue Jul 16 11:45:22 2019

25 cents isn't a killer, and my company won't be paying it ... the customer will. When the customer won't, eBay won't be making our item sales. And when eBay inventory isn't moving, it will be dropped from the platform and eBay will incur more revenue loss from the listing fee loss. Same for FVF, shipping, etc. It is all a numbers game, eBay, Amazon, Walmart, eCrater, Bonanza etc etc. This stuff is just like a phone bill, there is always creeping crud making the bill go up. And when the threshold is crossed, it gets dropped without emotion playing any part of the equation. Will we as a seller or our income to eBay matter, probably not.  

Perminate Link for eBay to Institute New Managed Payment Fee on October 1   eBay to Institute New Managed Payment Fee on October 1

by: thievesBay This user has validated their user name.

Tue Jul 16 11:52:17 2019

LOL supposedly some Amazon customers experienced a "glitch" yesterday. See link below. Would anyone consider that to be a Crash? I think not. But of course the snakes at eBay consider it to be so they activate the Crash Sale. How hypocritical are eBay? Seriously, is anyone ever gonna publicly ask Wenig about the THOUSANDS of glitches, site issues, and checkout errors that happen DAILY on eBay?

https://www.cbsnews.com/news/amazon-prime-day-problems-pr
ime-day-delivers-glitches-for-some-customers/

Perminate Link for eBay to Institute New Managed Payment Fee on October 1   eBay to Institute New Managed Payment Fee on October 1

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

Tue Jul 16 13:46:17 2019

@Toolguy

Remember that when they take control of everything with Mangled Payments, you may not have a problem with the $.25 per item transaction fee, but what if they change the rules to state that all items MUST SHIP and have a valid tracking number before they will release the funds to you?  They have the right and ability to do that also and i really would not put it past them saying they are only protecting the buyers.  They might even change to only releasing payment  once the items show delivered and the buyer checks off that they actually got the item instead of their neighbor..  

Once they have total control of your money, you better believe there is going to be more crap dumped on the Sellers, probably including Free Shipping  I am sure there will also be other ways to dig deeper into the Sellers pockets as that is basically what Wenig stated they were going to start doing when he was discussing the 1st Qtr results with Wall Street.  

Will you still be singing the Ebay praises then?????

Perminate Link for eBay to Institute New Managed Payment Fee on October 1   eBay to Institute New Managed Payment Fee on October 1

by: Suki This user has validated their user name.

Tue Jul 16 14:32:48 2019

This is not good for sellers like us who have close to 5k listings running at all times with a 5% discount on two or more items... We get multi-line orders daily sigh.

Perminate Link for eBay to Institute New Managed Payment Fee on October 1   eBay to Institute New Managed Payment Fee on October 1

This user has validated their user name. by: toolguy

Tue Jul 16 14:55:25 2019

@pace306

"What if its a dollar amount that offends you?"

When and if it becomes unprofitable to sell on eBay i'll stop selling there.

Perminate Link for eBay to Institute New Managed Payment Fee on October 1   eBay to Institute New Managed Payment Fee on October 1

This user has validated their user name. by: toolguy

Tue Jul 16 15:04:37 2019

Last week I sold 25 items for just over $1000

I had 3 orders with multiple items, 2 orders had 2 items and 1 order had 3 items

So with the new system I would pay $1 more on sales of $1000

It's a non event for my business model. . . . .

Perminate Link for eBay to Institute New Managed Payment Fee on October 1   eBay to Institute New Managed Payment Fee on October 1

This user has validated their user name. by: RKTOYS

Tue Jul 16 16:17:03 2019

Hypothetically, it may not affect me.  I've had a customer buy two listings together maybe twice in the last seven years.  Hell, it's rare for eBay to deliver two sales I'm the same month anymore.

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