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

Sun Jul 21 14:57:13 2019

@go tell the spartans

eBay does all of this because they know that no one of any significance will challenge them and make it uncomfortable.

I doubt very much that this extra fee is being charged to the large/big box accounts as they all have separate agreements than the rest of us do which I am sure many limit their monthly fees and definitely the discount rates they pay to Mangled Payments.  That is why Ebay needs to charge all of us more money and this will continue as long as Wenig is the CEO.  Ebay does all it can to board these larger companies and give them a much greater boost in the search engine, but they don't think about the fact that this is going to continue to lower their revenues due to the lower fees.  Hence the increases like this on everybody else.

As I have said many other times, just wait until Ebay forces all Sellers who want to Sell on Ebay into their Mangle Payments account.  Once Ebay has complete control of your money they can change anything they want and you are stuck with it.  Wenig wants more money from the existing Sellers so he can increase the discount rate at any time, same with the transaction fee and any other fees he decides he wants to change.  I would not be at all surprised to see the hold times on your payment increase so that they can earn additional interest or whatever else they want to do with the money.

If i am still stuck selling on Ebay at that time I will open a completely new checking account that will always have a zero balance in it and will only have a one way automatic transfer of funds to my other accounts, but no way for ebay to charge me or collect anything but current from the current sales for anything i owe them.  I am sure that Wenig is watching all of the "glitches" that keep happening at Etsy and wind up taking money from sellers that they are not owed so he can copy that down the road and once again keep all the money that the sellers dont catch on their monthly invoices.

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.

Sun Jul 21 15:10:15 2019

@Toolguy

I really cannot wait to see your reaction and response once you are thrown into the Mangled Payments and suddenly have to open a bank account (like more normal people do) and then have to wait 2-4 days for the money from Ebay.  At this point in time you can change your handling time to accommodate this issue of not having instant payment, but what will you do if Ebay changes the rules to you must ship in order to get your money, which is actually what CC rules and regulations state is supposed to happen.  That is why Amazon does not charge my CC until the day the items are going to ship.

I also cannot wait to see how you react to any other great ideas to grab more money from your account begin to happen and they do have a significant effect on your money.  Believe me, this is just the beginning of the games that Ebay is going to be playing once they control your money.

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

Sun Jul 21 15:15:57 2019

@Silvericeking

I have a BofA account that was opened in 1979.

I won't be a happy camper when I'm thrown into managed payments, but we'll cross that bridge when it comes. . .

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

Sun Jul 21 15:18:27 2019

@Silvericeking

When eBay hides seller ID's most sellers will go ballistic.

I see it coming so it won't hurt as bad, those in denial are in for a huge surprise!

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

Sun Jul 21 15:59:23 2019

Tool said, "eBay's doing this because THEY CAN"

Tool, the good news is we have finally found common ground on something with which we can both agree! 👍

The bad news is you have once again simply verbatim parroted something I've stated previously. /Irony

"Unless something's changed that multi item transaction fee applies when items are from different *listings* which was the source of much confusion and covered in ECB's updated article here after @askeBay on Twitter clarified this confusing multi item transaction fee bundling  👉http://bit.ly/2RDLn67

There is no precedent for this, eBay is just doing it because THEY CAN." -June 28th

So congrats, you're a parrot! 🦜 (and we all know who owns parrots, right?)

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.

Sun Jul 21 18:21:41 2019

@Toolguy

Ebay has been headed that way for a long time, which is why they destroyed the individuality of sellers Stores.  The problem is, and Ebay can't see it because they so badly want to be Amazon Jr. is that was the beginning of their true downfall as buyers preferred Ebay because they knew who they were buying from.

Ebay has been doing all it can to get buyers to say I bought it on Ebay instead of i bought it on Ebay from so and so, and it has done nothing but continue to fail in doing so.  Amazon is successful in hiding names because they own a large share of the merchandise, so a buyer is comfortable saying i bought it from Amazon.  But Ebay owns NOTHING and never will own anything because that was never the original concept.  Buyers want to know who they are buying from and when Ebay changes things to not seeing sellers names, but when there is a problem, suddenly it is the sellers problem and Ebay will step aside, just like always and blame the seller, that is going to piss what few buyers Ebay has left.

Ebay continues to lose marketshare each quarter now and Wenig is fine with that as long as he can steal more money from the Sellers each quarter.  I can't wait to see your reaction the first time that Ebay suddenly takes your money out automatically due to some glitch and then you have to sit there and try and figure out how to get it back .  I guarantee you that Wenig has been watching what Etsy has been getting away with and he is so egotistical that he will think that Ebay can easily steal more than that and will go for it.  

I will lay odds that within 3 months of all Sellers having to use Mangled Payments that Ebay will begin deducting their fees up front before you ever see a penny of the money, just because they can and Etsy has shown them the way to do it.  Next, I fully expect Ebay to REQUIRE that ALL SELLERS use their Shipping so that they get the extra money from that also, again because they can.  This is where things are headed unless Ebay gets rid of Wenig and gets a CEO who actually understands what he is doing and how Ecommerce should function.

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

Sun Jul 21 18:56:18 2019

Tool said, ''When eBay hides seller ID's most sellers will go ballistic.

I see it coming...''
=============

Actually no, Tool...*you* never saw that coming at all (you needed a lot of help).

This notion of sellers being relegated to fulfillment with their identities marginalized and supplanted with eBay's is yet *another* completely unoriginal concept you simply ripped-off and started regurgitating.

However, you do seem to have self-deluded into believing this was your own 'A-ha!' moment after repeatedly re-reading this idea.  420 thinking?

But congrats! you're two for two today!🥂

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

by: donald This user has validated their user name.

Mon Jul 22 21:27:13 2019


@ toolguy ,

Amazon lets me withdraw daily but Ive been with them since the late 90s. Im guessing is the grandfather clause. I do hear on the Amazon forums that new sellers need to wait longer to withdraw. I guessing similar to ebay 30 or 90 days.

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 23 02:25:49 2019

@Donald

"I guessing similar to ebay 30 or 90 days"

30 days?

What in the world are you talking about?.

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

by: donald This user has validated their user name.

Wed Jul 24 17:28:13 2019

@ toolguy ,

Sorry I met when you are a new seller on ebay that they hold your funds for an x amount of time. I don't remember exactly but I believe is 30-90 days until you've proven to be a good seller.

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: Map

Wed Jul 24 23:42:48 2019

I quit selling on ebay 4 1/2 years ago and got a different job.

Just walk away and do something different. You can not survive their greed and programing.

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