Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Tue Feb 1 2022 11:09:22

eBay Comes Up Short with Micropayments Announcement

By: Ina Steiner

Sponsored Link

eBay underwhelmed sellers with its launch of micropayments in the UK today. Sellers of low-cost items had relied on a temporary promotion to get by after eBay took over payment-processing from PayPal. But the solution it's now offering came up short, sellers are saying.

In informing some sellers of the new option via email (it doesn't appear eBay posted the news on its website), eBay wrote: "We heard your feedback on the challenges you face when it comes to selling items under £10. We understand that with low-cost items the fee structure is not always economical and can impact your margins."

The fixed charge will be reduced from 30p to 10p per order for a total sales price up to £10.

But a big hurdle is that the micropayment rates only apply to Business sellers with a registered address in the UK who list in a limited number of collectibles categories:

- Antiques (#20081)
- Art (#550)
- Coins (#11116)
- Collectables (#1)
- Dolls & Bears (#237)
- Pottery & Glass (#870)
- Sports Memorabilia (#64482)
- Stamps (#260)

eBay has been offering a time-limited promotion for UK business sellers that expired in December and was extended at the last minute until the end of March. It appears the only categories excluded from the promotion are: Property; Cars, Motorcycles & Vehicles; and Coins, Banknotes & Bullion.

Just as concerning to sellers about the category restrictions in today's announcement is the requirement that they relist every single listing in order to qualify. "This change will apply to new listings only, listed from 1 February 2022," eBay wrote.

"I have over 2500 GTC listings, and the reduced fee would make a massive difference. Are you really going to make me cancel and relist all these?" a seller asked.

Even if sellers choose to cancel and relist their listings to take advantage of the micropayments option, eBay provided them insufficient time to prepare since the news came today, the same day the rates take effect.

Another deficiency sellers pointed to: "The discount will be applied as part of a monthly credit." One seller's reaction: "Just to point out, you'll still be charged the full fee as they will apply a "monthly credit" for eligible listings. Going on how long it takes ebay to apply promotional credits, I can see many sellers being left short and waiting months for the correct credit to be applied."

In May of 2020, we explained the importance of a micropayments offering - something eBay sellers had access to until it took over payment-processing from PayPal. 

"While the PayPal payment processing rate for most sellers is 2.9% plus 30 cents per transaction, PayPal offers a micropayment rate of 5% plus 5 cents per transaction. (Note that sellers must choose their preference and stick to it.) For a $5 sale, a seller would pay 45 cents under the basic rate, but those who chose to opt-in to micropayment rates would pay 30 cents."

If eBay wants to continue to host low-cost items, offering a viable payment-processing rate to sellers is crucial.

Comments (5) | Leave Comment | Permalink
Readers Comments

Perminate Link for eBay Comes Up Short with Micropayments Announcement   eBay Comes Up Short with Micropayments Announcement

by: Opalie This user has validated their user name.

Tue Feb 1 12:06:23 2022

It seems their implementation of an equivalent for PayPal's micro payments falls as far short as their promise to offer an equivalent of the PP Working Capital loans.

Perminate Link for eBay Comes Up Short with Micropayments Announcement   eBay Comes Up Short with Micropayments Announcement

by: Opalie This user has validated their user name.

Tue Feb 1 12:11:59 2022

Can't they poach someone from PayPal to show them how to do it right?

Perminate Link for eBay Comes Up Short with Micropayments Announcement   eBay Comes Up Short with Micropayments Announcement

by: Mazdaman This user has validated their user name.

Tue Feb 1 18:40:42 2022

So what does eBay REALLY want to do?  One announcement is Ianone saying they're trying to get big-ticket items of $5,000 or more on eBay (beyond eBay Motors), and now they want to cater to small item sellers?

But does that mean someone selling sub-$10 items, who has to pick what he wants to sell and be charged for, can't occasionally sell  something more expensive, like a vehicle even?

Face it, eBay is clueless about where they are headed, and simply are reacting to each issue as it arises - the same way they've ALWAYS worked.  So EVERYBODY thinks THEY are going to be eBay's favorite seller!

It's very clear they're clueless - I have been trying to by silver coins for the past three days, and eBay has implemented a new "security" system whereby they send you a code.  I selected "Call me with the code", and the system crashed.  Four times in a row.  Now I could go right to the sellers' website (major coin seller) and buy it, but at a higher price,  and the price was moving upward as it was.  It took TWO DAYS of eBay's usual "effective" support to resolve this while the price rose; the rep who ended up helping was astute and completely disabled the buggy "security" code, allowing me to purchase it.  The problem is that as others have reported, their "support" can't/won't call numbers reliably - which is important when you're blocking buyers from purchasing!  This has been a problem since Mangled Payments came into play, but eBay must figure this "security" is working, as it is PREVENTING EVERY BUYER FROM PURCHASING EXPENSIVE COINS - EVERY ONE!

Go eBay, and take the Bears with you!

Perminate Link for eBay Comes Up Short with Micropayments Announcement   eBay Comes Up Short with Micropayments Announcement

by: theebayguy This user has validated their user name.

Thu Feb 3 03:51:30 2022

When you dont know what you are paying the company giving the information needs to look at itself.
We opted into the trial period...then heard it was being extended... and at the moment I don't know if we are on it or not. At least with Paypal it was across the board..WTF are ebay upto.

Perminate Link for eBay Comes Up Short with Micropayments Announcement   eBay Comes Up Short with Micropayments Announcement

by: Opalie This user has validated their user name.

Thu Feb 3 11:00:25 2022

US sellers never even got a "trial period". We've been offered nothing with regards to micro payments.



Login is required to post comments.
To sign in to leave a comment, fill in the form below. If you have not yet signed up for AB Verify, or if you'd like more information, go to the Registration Page
.

Login for AB Verify
Be sure and use your email address and password to log in.

 
Email:
Password:
 
 Forgot Your Password?
 Even though you are signed in with the AuctionBytes Blog, you will have to sign in to the EcommerceBytes blog. But you can sign in with your existing AB Verify info.