Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Thu May 23 2019 09:35:52

Warning: eBay Raises Payment Processing Fees

By: Ina Steiner

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eBay is raising fees for payment processing through its Managed Payments program, and it's a major hit to sellers' pocketbooks. 

eBay did not announce the change, but on Tuesday (May 21, 2019), it updated its Payments Terms of Use to add a per listing payments fee.

Notice the term "per listing." Payment services like PayPal charge a "per transaction" fee. Presumably this means if you sell 5 items to a single buyer in a single transaction, you would pay eBay 25 cents times 5 in addition to the "payment processing fee," which is currently 2.7% of the total order amount. (See update below.) Using PayPal, you pay 30 cents on the total transaction (plus processing fee), no matter how many "listings" are included in the order.

Sellers who have completed the managed payments onboarding process prior to June 4th will not have to pay the per listing payments fee. But while they are grandfathered in to the original rates for now, there's no guarantee those terms won't change in the future.

We expect there to be pushback from sellers on per listing fee. While sellers can opt in for now, Managed Payments will eventually become mandatory for all sellers.

Here are three excerpts from eBay Payments Terms of Use showing how fees have changed.

Posting Date: May 21, 2019
Payments Processing Fees
If (a) you have successfully completed the managed payments onboarding process (in accordance with Section 4) prior to 00:00:00 (12:00 AM) Pacific Time on June 4, 2019 and (b) your eBay account has remained continuously enabled for managed payments: Your payments processing fees are calculated as 2.7% of the total order amount, including shipping, handling, sales tax and other amounts owed (the “payments processing rate”).

If you successfully complete the managed payments onboarding process (in accordance with Section 4) on or after June 4, 2019 (starting at 00:00:00 (12:00 AM) Pacific Time): Your payments processing fees are calculated as (i) the payments processing rate plus (ii) $0.25 per listing sold (the “per listing payments fee”). Notwithstanding the foregoing clause (ii), for sellers who onboard to managed payments on or after June 4, 2019 the per listing payments fee is waived through September 30, 2019 at 23:59:59 Pacific Time (11:59 PM plus 59 seconds) and will take effect beginning October 1, 2019 at 00:00:00 Pacific Time (12:00 AM).

Payments processing fees do not include any sales tax, which will be added to this fee on your invoice if applicable.

Payments Dispute Fees
Upon the conclusion of a Dispute investigation and/or re-presentment that results in you being found responsible for the chargeback or other disputed amounts, we charge a $20 payments dispute fee, excluding any applicable sales tax, for each Dispute. You may appeal the payments dispute fee within 30 days from when we invoice the payments dispute fee if you believe that you have been charged in error.

Posting Date: May 16, 2019
Payment Processing Fees
Payments processing fees are calculated as 2.7% percent of the total amount owed to you, including shipping, handling, sales tax and other amounts owed. Payments processing fees do not include any sales tax, which will be added to this fee on your invoice if applicable.

Payments Dispute Fees
Upon the conclusion of a Dispute investigation and/or re-presentment that results in you being found responsible for the chargeback or other disputed amounts, we charge a $20 payments dispute fee, excluding any applicable sales tax, for each Dispute. You may appeal the payments dispute fee within 30 days from when we invoice the payments dispute fee if you believe that you have been charged in error.

Posting Date: November 16, 2018
Payment Processing Fees
Payments processing fees are calculated as 2.7% percent of the total amount owed to the seller, including shipping, handling, sales tax and other amounts owed. Payments processing fees do not include any sales tax, which will be added to this fee on your invoice if applicable.

Chargeback Fees
Upon the conclusion of a chargeback investigation and/or re-presentment that results in a seller being found responsible for the chargeback amounts, we charge a $20 chargeback fee, excluding any applicable sales tax, for each chargeback. Sellers may appeal the chargeback fee within 30 days from when we invoice the chargeback fee if they believe that they have been charged in error.



Update 5/25/19: Dan Davis made an interesting point: the new fee is per listing, not per *item,* and that's an important distinction, not just semantics. 

Dan based this on a response he received from an eBay employee on Twitter who used the handle @AskeBay, who said, "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."



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Perminate Link for Warning: eBay Raises Payment Processing Fees   Warning: eBay Raises Payment Processing Fees

by: SomeRandy This user has validated their user name.

Thu May 23 09:54:27 2019

"Using PayPal, you pay 30 cents on the total transaction (plus processing fee)"

lol

Yeah, and you also get stuck with the transaction fee (If your American) and %2.9 fee if someone cancels, returns or competitor just wants to have some fun on your wallet.

Perminate Link for Warning: eBay Raises Payment Processing Fees   Warning: eBay Raises Payment Processing Fees

by: sasikat9 This user has validated their user name.

Thu May 23 10:19:38 2019

Well that didn't take Fleecebag long.

Perminate Link for Warning: eBay Raises Payment Processing Fees   Warning: eBay Raises Payment Processing Fees

by: industrystones This user has validated their user name.

Thu May 23 10:46:17 2019

'' we charge a $20 payments dispute fee ''

-Brutally hilarious. I was giving the INSIDE WORD from contacts down at Ebay in 2008 that they were going to aggressively drive sellers away in hopes of emulating an Amazon like site. Everyone with a source down there knew this. What took so long??

I knew this for years, but have never seen the pompous savage 'in your face' tactics until this very year. The countdown begins . . .  

Perminate Link for Warning: eBay Raises Payment Processing Fees   Warning: eBay Raises Payment Processing Fees

by: hopeforthebest This user has validated their user name.

Thu May 23 10:47:19 2019

So much for Managed Payment costing so much less than Paypal!

I never thought I'd see the day when I'd miss Paypal's predatory confiscatory practices.

Perminate Link for Warning: eBay Raises Payment Processing Fees   Warning: eBay Raises Payment Processing Fees

by: Disgruntled_Seller This user has validated their user name.

Thu May 23 10:48:03 2019

How many Chinese Yuan will that increase be for our fine friends that own eBay or have eBay management by the gonads? Oh, wait eBay management doesn't have those, my bad.  

Perminate Link for Warning: eBay Raises Payment Processing Fees   Warning: eBay Raises Payment Processing Fees

by: Geetar This user has validated their user name.

Thu May 23 10:48:17 2019

Raisebay, scumbay!

Who would have figured. You would have thought that they would have been happy with just collecting the fee's from managed payments. Not even completely rolled out and they are finding new ways to charge more. Would have never seen this coming! Ha!

Makes sense, since they loathe sellers that still have calculated shipping (cant collect the fee of multiple items shipping fee's added into the price's). "Well' get the money anyway" Dont want to screw your customers by adding shipping into each item. Well YOU, the seller will pay. We will get our money any way.

Perminate Link for Warning: eBay Raises Payment Processing Fees   Warning: eBay Raises Payment Processing Fees

by: Deacon Blues This user has validated their user name.

Thu May 23 11:04:36 2019

Well that didn't take long... so much for touting all the benefits of managed payments.

Maybe the increase is to fund another DW homesick NYC nostalgia project, like a replica of Tavern on the Green or Studio 54.

Perminate Link for Warning: eBay Raises Payment Processing Fees   Warning: eBay Raises Payment Processing Fees

by: maxmad This user has validated their user name.

Thu May 23 11:17:52 2019

it will never end,,,,,,

ebay will continue to make up for their profit loss in market share from their Only source of revenue AKA "the sellers"

The more market share they loose, the more it will cost YOU

They loose market share, You loose money, , it's just that simple.

Perminate Link for Warning: eBay Raises Payment Processing Fees   Warning: eBay Raises Payment Processing Fees

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

Thu May 23 11:23:07 2019

I guess the movement from Paypal to Managed Payments is not going as smoothly as well as they thought it would.  So now those in the program will get a whole 3 month longer period not getting charged the per listing $0.25 charge.  So now those on the Managed Payments program have just seen their savings go right out the door and will now, at least in many cases, be paying more fees per sale than they would on Paypal.  This just confirms what i thought when all my accounts received a 500 free listings offer last week, Sales on Ebay must be way down as they are now even going deeper into the pockets of those that agreed to try out their program in advance.  Welcome to another Ebay Money Grab.

I also would hate to have Ebay have the responsibility to deal with a chargeback on my behalf as once again this puts them in a position where they benefit more if  you lose and anytime something is to Ebays advantage you better believe they will take full advantage of it.

Whats even more amazing is the lack of advance notice.  Ebay is getting worse and worse about giving Sellers advance notice of these changes which is usually the sign of a company that is not doing well and needs additional income quickly.  I know they are not hurting for cash at this time, unless they have suddenly blown through the remaining $3 billion or so they had offshore, but Wenig is definitely feeling pressure for Ebay to start showing better numbers than he was before Elliott got on the BOD.

Perminate Link for Warning: eBay Raises Payment Processing Fees   Warning: eBay Raises Payment Processing Fees

by: RL15 This user has validated their user name.

Thu May 23 11:48:22 2019

they need more money to buy more booze for the delusional ceo's playhouse.

Perminate Link for Warning: eBay Raises Payment Processing Fees   Warning: eBay Raises Payment Processing Fees

by: Mark4 This user has validated their user name.

Thu May 23 11:48:28 2019

Ebay just can't get out of its' own way. So glad we have moved on and are off that sinking ship. Ebay = Dead Man Walking

Perminate Link for Warning: eBay Raises Payment Processing Fees   Warning: eBay Raises Payment Processing Fees

by: pace306 This user has validated their user name.

Thu May 23 11:52:50 2019

"If you like your healthcare provider, you can keep him!"

"There are WMDs in Iraq"

"eBaypay/Managed Payments will save you money"

All 3 were lies, we all knew all 3 were lies - Oh great eBay cheerleaders .... where are you NOW?

Perminate Link for Warning: eBay Raises Payment Processing Fees   Warning: eBay Raises Payment Processing Fees

by: Shanna This user has validated their user name.

Thu May 23 11:55:59 2019

Can't wait for the eBay apologists to explain why this is great for sellers!

Perminate Link for Warning: eBay Raises Payment Processing Fees   Warning: eBay Raises Payment Processing Fees

by: mcposty This user has validated their user name.

Thu May 23 11:57:07 2019

Heh, what a rip off! No way is it worth all the fees and hassles to sell on Ebay anymore

Perminate Link for Warning: eBay Raises Payment Processing Fees   Warning: eBay Raises Payment Processing Fees

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

Thu May 23 12:05:33 2019

There goes the Old Ball Game.

Perminate Link for Warning: eBay Raises Payment Processing Fees   Warning: eBay Raises Payment Processing Fees

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

Thu May 23 12:07:20 2019

And Mercari takes "A Flat 10%".
And THAT's a PayPal plant.
We're getting squeezed off the internet.
Plain and Simple.

Perminate Link for Warning: eBay Raises Payment Processing Fees   Warning: eBay Raises Payment Processing Fees

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

Thu May 23 13:13:25 2019

Well, well, well. No surprises here. If anyone still can't see what a sick, entitled, corrupted and dishonest company this is, then they really are living in fantasyland.

It has been a month since I closed my store and told E-bay to go pound sand and it feels amazing. I focused on my existing customers, and filled a few want lists that exceeded what I sold on E-bay and have decided to do trade shows instead.

Oh, they also sent a troll out on Facebook to comment on a post I put up announcing that I was off E-bay. The troll, said that they had been following my posts and my website and the reason for my failure on E-bay was that I had made a series of bad decisions and had "buggered everything up". What is interesting is that my post was a happy one and no where in it did I say I had failed. I am sure this was either a paid troll or a bot sent out by E-bay to scour facebook, as they were not on my friends list, not members of any groups I was part of and were commenting on a post that was over a week old. Have you ever tried to find a week old post in your newsfeed on FB? Well nigh impossible as it is buried under so many posts after a week. So, this was clearly a troll. Pathetic E-bay.

I know it is tough to make the decision to leave, but part of that is because you have been abused for so long that you actually don't think you can make it without E-bay, but you can. They will never stop charging you more. That is very, very clear now. Everything that they have done, and I mean everything in the past 5 years is to position themselves to charge you more as a seller. NONE of it has been to improve the usability of the site or expand their market.

Get out now while you can.  

Perminate Link for Warning: eBay Raises Payment Processing Fees   Warning: eBay Raises Payment Processing Fees

by: notfunanymore This user has validated their user name.

Thu May 23 14:02:04 2019

Yep, your partners! Thank God I don't deal with these morons any longer. They will nickel and dime you into bankruptcy.  

Perminate Link for Warning: eBay Raises Payment Processing Fees   Warning: eBay Raises Payment Processing Fees

by: Whatever This user has validated their user name.

Thu May 23 14:47:52 2019

I'm still selling on ebay - I need the client list. Simple.  Since all my existing inventory is bought and paid for they could charge me 50% and I'd at least get my money back.  Interesting thing happened this past week or so.  I put my store on vacation and actually took one (what a concept right?)  After the first week - well I just really didn't care if I opened back up.  After 10 days I did and since my shipping is 3 days I took a 3 days weekend off.  When I came back I had 3 sales on ebay. They totaled less than $100. However on my own website I had another 3 sales - they totaled $300.
I've been paying much more attention to my own venue these days and it's paying off. Thank God.
Will I stay till the stinking ship sinks? Sure. eBay actually is promoting my items on Google shopping. Their coming up on page one of google searches. For $60 a month I can't get much bigger bang for my bucks but they sure are not my main focus anymore.

Perminate Link for Warning: eBay Raises Payment Processing Fees   Warning: eBay Raises Payment Processing Fees

by: thievesBay This user has validated their user name.

Thu May 23 14:57:14 2019

Devin the eBay pirate is coming to steal even more from your bank accounts! Get away while you can!

https://www.instagram.com/p/BbADivrjgTj/

P.S. Someone should do a photoshop of this isolating Wenig, and put the eBay building/logo behind him, or anything else one could come up with. This could be gold for eBay memes!

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