Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Wed May 13 2020 00:20:46

eBay Scrambles to Get Payments Ready by July

By: Ina Steiner

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eBay is scrambling to get Managed Payments "ready for prime time" before it scales the program in mid-July, and some sellers are panicking because of a lack of some key information that will impact their sales: namely, category exclusions and fees.

These aren't little issues: sellers in categories like bullion are panicked that the program excludes the products they list on eBay. They're forwarding a link to a May 9th YouTube video by a vlogger known as the Auction Professor who said sellers like himself may be out of business when they're forced into Managed Payments due to the category exclusions - and he's got some sellers riled up.


In February, eBay executives Marni Levine and Jordan Sweetnam discussed the Managed Payments fee issues and category exclusions during a Town Hall Meeting. Sweetnam offered assurances that Managed Payments category exclusions would not be permanent, pointing to regulations that were holding eBay up. As we reported at the time:

"Marni Levine, Vice President of Seller Operations and Engagement for eBay Americas, addressed questions about Managed Payments category exclusions, saying they would all be included - though she didn't say how long it would take. "This will be 100% rolled out over time, so anything that's not included currently will be included."

"Sweetnam agreed, saying there were lots of regulations, but eBay was working on all of the payments requirements - these categories, cross-border scenarios. It all takes time, but there's no incentive or reason for eBay not to support them, he said."

But do those reassurances still apply today? 

You can view the Town Hall discussion on the following YouTube video (8:14 minutes in).


It's stunning to realize that sometime between February 25 and May 7, eBay decided to radically change the Managed Payments fee structure - and equally stunning that it has yet to publicly post the details.

Despite sellers' current concerns, two eBay executives who addressed Managed Payments this week failed to discuss the new payments fee structure or address the ongoing category exclusions:

eBay published a post today by Shan Vosseller, VP of Product, Payments, focused on the benefits Managed Payments.

- In her Monday Seller Check-in video, Marnie Levine did address why some sellers had not yet been notified they would be enrolled in the program in July: eBay continues to build certain capabilities such as the charity program, she said. 

In other words, nearly 5 years after splitting from PayPal, and 2 months before eBay scales the program, it's missing some functionality.

The CEO who took over in 2015 after the split with PayPal and decided to move to managed payments told Wall Street analysts in 2018 that the rollout would be like a "Big Bang" and said eBay would not hold peoples' hands and beg them to move over.

His permanent replacement hasn't been on the job long, but he may want to take a look at the way eBay is communicating with sellers about the imminent change to how payments are processed on the marketplace. Sellers should know what they're in for, both the benefits and the blemishes.

Comments (29) | Leave Comment | Permalink
Readers Comments

Perminate Link for eBay Scrambles to Get Payments Ready by July   eBay Scrambles to Get Payments Ready by July

by: FeelingFroggy This user has validated their user name.

Wed May 13 07:43:27 2020

So one would expect Ebay to have it all together and announce it before July. Ebay is so incompentent that they still are dealing with known problems (ie relisting sold items) that have been around for YEARS. And you want Ebay to have it all together with MP in five months. Now thats laughable.

Perminate Link for eBay Scrambles to Get Payments Ready by July   eBay Scrambles to Get Payments Ready by July

by: lancecorp This user has validated their user name.

Wed May 13 10:26:24 2020

They had 2 yrs to get this project together. Enrolling hundreds of thousands of sellers in a short period of time is just going to create more problems, They are going to lose sellers and buyers who will go elsewhere to get what they want.

Perminate Link for eBay Scrambles to Get Payments Ready by July   eBay Scrambles to Get Payments Ready by July

by: ebayout This user has validated their user name.

Wed May 13 10:34:07 2020

This is like 2 trains on the same track headed for each other.
One is named "ebay", the other "reality".
The ebay executive genii must think she's bulletproof, and have no Plan B for when MP sign-ups fall far short of expectations. and they then CAN'T afford to dump sellers without going into the tank.

Perminate Link for eBay Scrambles to Get Payments Ready by July   eBay Scrambles to Get Payments Ready by July

This user has validated their user name. by: toolguy

Wed May 13 10:35:59 2020

@lancecorp

Some of those other sites will leave you empty handed.

I have to wait months even years for some of the items I'm looking for to show up on eBay!

Right now I'm the only one selling a "Bantam Bully" on eBay!

Perminate Link for eBay Scrambles to Get Payments Ready by July   eBay Scrambles to Get Payments Ready by July

by: Shanna This user has validated their user name.

Wed May 13 10:41:21 2020

This is what you get when you hire $2/day people instead of competent American IT professionals.  

Perminate Link for eBay Scrambles to Get Payments Ready by July   eBay Scrambles to Get Payments Ready by July

This user has validated their user name. by: toolguy

Wed May 13 11:11:40 2020

@Shanna

Where do you get workers for $2 a day?

This isn't 1970

Perminate Link for eBay Scrambles to Get Payments Ready by July   eBay Scrambles to Get Payments Ready by July

by: lessthanthreerecords This user has validated their user name.

Wed May 13 11:23:18 2020

I have been given so many mixed messages with regards to Managed Payments that it is absolutely impossible to make important business decisions in regards to preparing for it.  I thought that by opting in the first day I got the e-mail, I would be ready (though likely not happy) by the end of July when I am forced into the program.  But it seems that eBay's MP terms contradict themselves, and the parts that don't contradict themselves, well, eBay's customer service associates will take care of that by telling you the terms are in error!  I won't go into every contradiction that's been made, but will focus on the issue in this article: excluded items.  Thankfully, I don't sell many of the excluded items, although I do sell an occasional coin (they are not actual currency, but rather collectibles, usually related to movies or comics, so I can get away with listing them under entertainment memorabilia or another similar category).  Still, I wanted to know what the restrictions were about, and I was very confused by eBay's MP terms.  As most of us know, the "Coins & Paper Money" category is going to be (at least for a time) restricted from managed payments.  What I have not heard people talk about is eBay's notation under the MP eBay store page that states that among the categories that you can use your monthly store listing credits is "Coins & Paper Money".  To clarify, the page I'm referring to is not general information about a current (non-MP) eBay store.  This page specifically applies to an eBay store as part of MP.  I asked an eBay associate by phone how I'm able to use my monthly store listing credits to list in a category that I am not able to list in at all.  She said that they were working on allowing "Coins & Paper Money" but that as of now that category is not allowed under MP.  I told her that that was not my question.  I wanted to know how during the period that "Coins & Paper Money" was restricted, I could use my monthly store credits to list "Coins & Paper Money".  She did not know the answer, and was not willing to find out.  Then, another mixed message.  I stated that it seemed as though these restricted categories would be blocked from eBay entirely (at least for the time-being), but that the terms only stated that they would be blocked from MP.  I asked whether there was some other way to sell such items on eBay (I did not think that would be the case, but I wanted to know, just in the off-chance that maybe I could list it and accept a different payment method just for those categories).  This is how that conversation went (note: this is by no means verbatim, but also not exaggerated in any way, the basic idea is exactly what this eBay rep conveyed):

eBay: You could list in the excluded categories, but you would need to do so with a separate eBay account and a separate store.
Me: I recently cancelled my store, but was previously paying $59.95 per month, and plan to opt back into that same store at some point in the near future.  Are you suggesting that I would need to pay $59.95 twice a month, once for each account?
eBay: Yes, that is correct.
Me: That would be out of the question, as it would not be profitable for me to pay twice the store fees in order to list the few items that are in those categories, but out of curiosity, what would the difference be in the second store that would allow listing of excluded categories?
eBay: Well, the second store would not be enrolled in MP.
Me: Really?  I thought ALL eBay accounts needed to be enrolled in MP?  If that's the case, why can't I just not enroll my existing (single) eBay account in MP?
eBay: Yes, all eBay accounts must enroll in MP to continue selling on eBay.
Me: Well then what are you saying about my second eBay account not being in MP?
eBay: That one would need to be in MP too.
Me: Well, then how would I be able to list in an excluded category.
eBay: You would not be able to list in an excluded category, at least for the time-being.

Honestly, you couldn't make that up!

Perminate Link for eBay Scrambles to Get Payments Ready by July   eBay Scrambles to Get Payments Ready by July

This user has validated their user name. by: NoMoreEbay

Wed May 13 13:09:02 2020

Major infrastructure rollout in the middle of a pandemic. Only ebay would be that callous and selfish. Talk about a huge failure in action.  

Perminate Link for eBay Scrambles to Get Payments Ready by July   eBay Scrambles to Get Payments Ready by July

by: jimcooncat This user has validated their user name.

Wed May 13 13:43:03 2020

I'm confused about it and really not interested enough to figure it out. I'll just wait and see what happens, probably will have to bail for the FB Marketplace and we'll be turning our own website back on in July anyway.

Perminate Link for eBay Scrambles to Get Payments Ready by July   eBay Scrambles to Get Payments Ready by July

by: lancecorp This user has validated their user name.

Wed May 13 14:31:02 2020

tool - would you make up your mind - you either love Ebay or hate it, You're either praising Ebay or dissing it. We all know that Ebay is great for many niche items but other sites have opened their doors to many of the same items now sold on Ebay. You yourself were going to use FB groups a few weeks back. Please make up your mind.

All I know is that many sellers on FB, Instagram and Twitter that are currently selling on Ebay are closing their stores. You can have the only Bantam Bully on Ebay but your item didn't show up on neither Bing nor google search when I looked for it. Searching Ebay for your Bantam Bully - it comes up 4th behind Bantam chicken hatching eggs and 2 Bantam reels - so search isn't picking up your item as it should be 1st place under Best Match.

Perminate Link for eBay Scrambles to Get Payments Ready by July   eBay Scrambles to Get Payments Ready by July

by: ShortSeller This user has validated their user name.

Wed May 13 15:34:22 2020

Ebay's standard operating procedure: 1) Lie to the seller base to encourage adoption so earnings calls can brag about the adoption rate 2) Change the rules before the program is even implemented to raise margins to appease the vultures running the board and activist investors 3) Outsource the job to the cheapest foreign contractor and end up with a complete mess.

If people haven't figured out by now ebay is no longer interested in competing for growth. The company is being gutted and pimped out by activist investors that just want to suck every last dollar out of the company which the executive team is happy to do given their stock options. If ebay is your only channel may your chosen deity or AI substitute help you.

Perminate Link for eBay Scrambles to Get Payments Ready by July   eBay Scrambles to Get Payments Ready by July

This user has validated their user name. by: RKTOYS

Wed May 13 18:55:59 2020

That's what happens when IT's focus shifts from delivering technology services to providing jobs for India.

Perminate Link for eBay Scrambles to Get Payments Ready by July   eBay Scrambles to Get Payments Ready by July

This user has validated their user name. by: CanBrit

Wed May 13 19:58:19 2020

So, from a measly 23,000 subscribers (coerced victims) on Managed Payments, they are going to ramp it up where they don't even know if they can handle it. They are not ready for certain categories.

Mr. Ionone....are you hearing....are you listening. This is going to be the end of your career if you don't step in soon.

You are going to be Mr I own none.

Perminate Link for eBay Scrambles to Get Payments Ready by July   eBay Scrambles to Get Payments Ready by July

This user has validated their user name. by: cfrphoto

Thu May 14 01:07:43 2020

Sellers who must file schedule C tax returns and who want to report revenue and expenses correctly may encounter difficulties with capturing financial data. It took more than a year for eBay to resolve Market Facilitator sales tax reporting issues. Some sellers still report failure to provide sellers with state-mandated reports.

Why will Managed Payments be better? So far, reporting has been a chore. The Payments report must be joined (a database term) with the Orders report to be useful. The Orders report goes back only 90 days, unlike PayPal which retains seven years of data. Capturing Managed Payments data from the eBay API should have worked since it is two years since the API was published. Is it reliable? Has it been tested enough to go live for the entire eBay community?

I am not optimistic. The latest proposals to deduct listing and final value fees from payments will further obfuscate seller understanding of their income and expenses. Deducting the PayPal fees has made importing PayPal data easily into financial software difficult. Will Managed Payments make it better, the same, or worse? My guess is the latter.

Perminate Link for eBay Scrambles to Get Payments Ready by July   eBay Scrambles to Get Payments Ready by July

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

Thu May 14 06:16:18 2020

MOVE TO eCRATER.
It has been here the WHOLE time we've been agonizing.
eCrater is (so far) the BEST alternative to Ebay AND Etsy.
DO IT.
You'll thank me.
eCrater is ripe for being molded into EXACTLY what we want and need.
You Will LOVE it.
3% - 5% depending on which Promotion level you choose.
It's PERFECT for all of us.
SCREW Ebay and Etsy.
eCrater (so far) has hardened itself against corporate interference.
Now SHOO ! Get over there and set up your shop.
I'm TELLING YOU......

Perminate Link for eBay Scrambles to Get Payments Ready by July   eBay Scrambles to Get Payments Ready by July

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

Thu May 14 06:36:24 2020

On eCrater :
We can Finally keep our shipping rates low....eCrater won't take a cut.
We can finally keep our prices low....eCrater won't take a cut.
And they don't take a cut from the taxes charged.
We will not be FORCED into ANYTHING :
No "Free Shipping" scam.
No mandatory advertising schemes.
No "Managed Payments".
Just a Great Night's sleep knowing your profits are back up where they belong.

YOUR JOB : go to eCrater, list ALL your stuff, set up Pinterest Promotions (dirt cheap).
                   Set up some extra promotions with Google if you like.
In my experience, it takes about 2 weeks for the stuff to Seed Through the internet.

GET STARTED NOW. then, by Fall, we should be back to normal or better.                                  

Perminate Link for eBay Scrambles to Get Payments Ready by July   eBay Scrambles to Get Payments Ready by July

by: Evenger This user has validated their user name.

Thu May 14 07:50:36 2020

I recently received an email from eBay starts by telling me:
"Managed payments is the new way to sell and get paid on eBay, providing sellers one place to sell and get paid, and buyers more ways to pay. eBay will manage payments for most sellers in 2020, and your account, xxxxx, will be activated for managed payments starting late July. To ensure you are ready in advance of the change and that there are no interruptions to your business, you will need to register by July 15, 2020.

Please click here to register for managed payments by July 15, 2020.

Here’s what you need to know about managed payments:
blah, blah, blah, blah about how it is easy and "better""

Then I get the strong arm at the end of the email:
"YOU ARE REQUIRED TO REGISTER for managed payments BY July 15, 2020.
TO ENSURE THAT YOUR SALES CONTINUE UNINTERRUPTED, and no restrictions are applied to your account, please be sure to register before your account is activated starting late July. Nothing will change on your account or how you manage your business on eBay until your account is activated for managed payments starting late July 2020. We will ensure you have access to all the detailed information you may need to be prepared before activation and you will be notified of your activation date well in advance.

Please click here to register for managed payments by July 15, 2020."

I am NOT planning to register.  I have no trust in eBay handling this correctly, do not like the fees on shipping AND now taxes, do not like the percentage they are taking for final value fees, and do not want them holding my money at their will.  For now I will be listing more on Etsy, although unfortunately, they always seem to follow eBay's more ridiculous polices.   If they got rid of the fees on taxes I would consider registering and staying, but for me that is the final straw.  

Perminate Link for eBay Scrambles to Get Payments Ready by July   eBay Scrambles to Get Payments Ready by July

by: Runs.With.Scissors This user has validated their user name.

Thu May 14 08:48:27 2020

On July 14th, I'm deleting all my listings for all 3 of
my ebay selling accounts.  No managed payments for me!
Still selling on Amazon, ecrater, and Bonanza.  

Perminate Link for eBay Scrambles to Get Payments Ready by July   eBay Scrambles to Get Payments Ready by July

by: Disgusted This user has validated their user name.

Thu May 14 10:14:04 2020

I will be curious to see how many sellers will drop out after they don't get paid.

Perminate Link for eBay Scrambles to Get Payments Ready by July   eBay Scrambles to Get Payments Ready by July

This user has validated their user name. by: toolguy

Thu May 14 10:42:53 2020

We'll see how this works out

I'm going to give it a chance to see if it works for me or not

(like I have a choice)

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