An eBay seller was surprised to learn that she would no longer be able to pay Store fees using her credit card. She was told today by a customer service rep that moving forward, all her eBay Store fees and charges would be deducted from her Managed Payments payout - "It seems there will no longer be an option to pay by PayPal, credit card or a "different" bank account," she told us.
The seller had a couple of issues with how eBay will now deduct her fees. "For anyone who uses, as I do, a cash-back business credit card to pay business fees, this becomes another "added" cost of doing business while eBay, yet again, "adds" to their bottom line at sellers' expense."
She also pushes back against the eBay's contention that Managed Payments streamlines seller operations. "As for the accounting impact and one of the reasons I don't use eBay's shipping service, it adds yet one more layer of complexity. Business fees for tax purposes are readily segregated through my credit card monthly reports. Now it's going to require pulling them from what masquerades as "sales reports.""
Interestingly eBay has changed Managed Payments fee structure since first introduced, and it's now difficult for sellers to know if they will end up paying more in total fees under Managed Payments than they had under PayPal.
According to an eBay FAQ, "Most sellers can expect to see overall savings," with an asterisk pointing to the following statement: "Savings are based on annual total sales volumes, and comparisons of (a) prior eBay final value fees plus typical 3rd party payment provider fees, with (b) new eBay final value fees (without any 3rd party processing fees)."
Sellers who have transitioned to Managed Payments, tell us if you find the cost of selling on eBay has changed as a result.
Seller Points to Added Cost of Doing Business on eBay
by: N0NNIE
Mon Jan 25 18:16:52 2021
@lightning
I usually just read through the latest, create my own opinions, then log out. I have never posted on any blog here until now. Every time I do stop in to catch up and read through a few comments, you always seem to keep it fair by pointing out that there’s always at least two sides to the story. And you do it with class without insulting anyone. Just turns out that today is the day I decided to break my silence and say thank you. In the world and times that we’ve living in, being able and willing to look at the big picture while possessing candor and the ability to be reasonable is very refreshing!
Seller Points to Added Cost of Doing Business on eBay
by: Lightning
Mon Jan 25 19:24:18 2021
@N0NNIE
Thanks for the kind words. And welcome to the interesting world of blogging. Hope to see you in print again.
Seller Points to Added Cost of Doing Business on eBay
by: Marie
Mon Jan 25 20:14:03 2021
I second Nonnie !!!
Seller Points to Added Cost of Doing Business on eBay
by: Lightning
Tue Jan 26 02:20:16 2021
Thank you, too, @Marie. I know this blog isn't primarily about how eBay works, but I do know that you are an authority on it.
EBay can be a minefield, sometimes very dangerous territory. It's good to have someone who helps you avoid self-inflicted damage.
Seller Points to Added Cost of Doing Business on eBay
by: MakingEndsMeet
Tue Jan 26 02:23:42 2021
@lightning Thank you.
Seller Points to Added Cost of Doing Business on eBay
by: Marie
Tue Jan 26 03:46:43 2021
@lightning
Believe me I have inflicted plenty of pain on myself over the years learning how it all works or don't work depending on the situation! I don't know about being an authority, but I do learn from my mistakes and I have a very curious mind so I like learning things.
Seller Points to Added Cost of Doing Business on eBay
by: flybuy
Thu Jan 28 06:31:42 2021
Yesterday I requested a call back from EBay twice. The message received said I would get a call back in one minute. The call arrived 8 to 10 hours later which leads me to think there are MANY EBay sellers unhappy with Managed Payments.
Despite selecting daily payouts the response received states:
We sent your payout of $XXX on Jan 27, 2021 to your bank account ending in XXXX. It will take 3-4 business days to reach your bank account. For more details please visit the selling section of My eBay.
How is a 3 to 4 day processing time labeled daily? I told the agent ( who was probably burned out from listening to complaints) that I will go back to selling on IG and FB. Also said rolling this out during the pandemic was cruel because so many people are out of work and reselling to pay bills.
Lastly I pointed out there are many more platforms competing with EBay so they can watch their sellers move to those platforms depending on the type of things they sell.
It probably falls on deaf ears but hopefully they lose enough business to hit their bottom line. Once the payment is received I will go the bank and get a new debit card and instruct them from blocking any attempts by EBay to withdraw money from my account.
Seller Points to Added Cost of Doing Business on eBay
by: ttesty
Sun Jan 31 08:10:14 2021
This is simple - mangled payments gives eBay more cash (by sandwiching all charges) while they use it as a float to get interest and pay you back very slowly.
Seller Points to Added Cost of Doing Business on eBay
by: seller4334
Mon Feb 1 12:51:20 2021
Note you mention this seller was able to switch to paying store fees via paypal. I was not. I phoned and was told there is no way for me, in group 2/phase 2, to pay anyother way than my balance from sales and then from my checking account. Therefore, eBay will be requiring all sellers to pay store fees in cash, yet allowing our customers to pay their bills with their preferred payment method.
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Seller Points to Added Cost of Doing Business on eBay
by: Lightning