First came the "carrots" - a sweepstakes, lower rates, and even a waiver of a certain fee. Now eBay sellers should brace themselves for a "stick" as the marketplace prepares to take over payment processing.
eBay is informing some PowerSellers that they must sign up for managed payments by October 22, 2019. A reader told us some PowerSellers were buzzing about the notification they received from eBay that read in part: "As a seller selected for managed payments, please sign up at ebay.com/paymentsregistration before October 22, 2019 so that you can continue to create new listings and avoid any interruption to your business."
That means those who received the notice have 2 months to prepare to make the leap to eBay managed payments - at which time they'll be at the early stages of the holiday shopping season.
News that eBay is forcing sellers to use the new system does not come as a surprise to readers who remember eBay CEO Devin Wenig's discussion with Wall Street analysts in February of 2018
when he said the move would be more like a "Big Bang" than the gradual transition it had made when rolling out its Structured Data Initiative.
At the time, Wenig said eBay would not "beg" buyers and sellers to change. He told attendees of the 2018 Goldman Sachs Technology and Internet Conference that the new way of paying for items would not be optional.
Along with the "big bang" of forcing sellers into managed payments, eBay is trying to entice sellers as well: "If you sign up by August 31, 2019, you can also take advantage of the Summer Sign Up program, which includes a chance to win up to $10,000*, and receive 10% off Final Value Fees and $0 per listing payments fee through September 30, 2019."
According to the reader, an eBay moderator went into the PowerSeller board and said eBay had never intended to wait until just before 2021 before moving sellers into managed payments. "Sellers will be progressively moved to managed payments between now and then. The recent notice to eligible sellers that we will be moving them to managed payments is not a change to our timeline, simply the next step on our way to meeting our goal."
He also mentioned payout schedules and said eBay would continue to work on improvements as time goes on. The fact that sellers must wait for disbursements into their bank accounts through managed payments rather than gaining access to funds immediately through PayPal is another concern for many sellers.