Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Fri Aug 23 2019 22:22:22

eBay to Begin Forcing PowerSellers into Managed Payments

By: Ina Steiner

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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.



Comments (76) | Leave Comment | Permalink

Readers Comments

Perminate Link for eBay to Begin Forcing PowerSellers into Managed Payments   eBay to Begin Forcing PowerSellers into Managed Payments

by: tango This user has validated their user name.

Fri Aug 23 22:55:05 2019

yup, they are forcing us - we have no choice per Ebay - they are parking OUR money 2-4 days in their account = % interest for Ebay, UNHEARD of in the Payment Process Industry (unless there is a risk on the seller side....aka poor performance-not shipping per promise).  As a 11 year TSR+ - averaging 1Mil p.a. in Revenue at the Ebay site  - they will loose us - Ebay in fact has become too big a risk on the balance sheet! Put that together with the arbitrary charge back fiasco they already created for some Sellers who are participating in this program - its a loose/loose for sellers.  If they loose enough 1 Mil $+  accounts - maybe they are the once who will reconsider...it will take time, but we are not into financing Ebay.  There are plenty of options for good sellers in this marketplace.  Chers!

Perminate Link for eBay to Begin Forcing PowerSellers into Managed Payments   eBay to Begin Forcing PowerSellers into Managed Payments

by: Scotty This user has validated their user name.

Fri Aug 23 23:20:08 2019

I can't wait for this China trade war to kill ebay....

Perminate Link for eBay to Begin Forcing PowerSellers into Managed Payments   eBay to Begin Forcing PowerSellers into Managed Payments

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

Fri Aug 23 23:32:00 2019

Ebay evidently cannot reach the 10% of total sales allowance that is called for in their contract with Paypal.  Its pretty bad when a company is thought of so poorly that they cannot even get 10% of Sellers to try their new payment platform.  Of course that might have to do with the fact that Ebay still does not have any way to get the sales reports from their site that will assist in a Sellers preparation of their Sale Tax Returns or Income Tax Returns.

All Ebay cares about is stealing as much money as they can from their Sellers while once again providing an inferior product to the one they currently are using.  They give no consideration as to reporting at all and even worse is they still have not fixed the hole where the only way a Seller can give a Buyer a refund of overcharged Shipping costs (again due to Ebays broken cart that has been talked about for at least 2 years) is for the buyer to file a SNAD against the Seller, once again helping push that Seller closer to the 5% FVF penalty for excessive returns or SNADs.  

Every glitch seems to always be in Ebays favor and never gets enough attention to be universally fixed so Ebay continues to rake in money they really are not entitled to.  They just do not care as they are to big for any of their sellers to sue them.  Eventually they are going to run out of ways to keep stealing their sellers money or they are going to lose all of the decent sellers they have left to other marketplaces.  Its going to be interesting to see how the BOD reacts to all of these repeated acts of theft and fraud and if they are also willing to go down with the Ship!!!!

Perminate Link for eBay to Begin Forcing PowerSellers into Managed Payments   eBay to Begin Forcing PowerSellers into Managed Payments

by: mjr55 This user has validated their user name.

Sat Aug 24 00:27:20 2019

@tango

Huh? Amazon holds your money for 14 days between disbursements. What are you even talking about?

Some of you undermine your credibility when you just post stupid, blatantly false statements.

Perminate Link for eBay to Begin Forcing PowerSellers into Managed Payments   eBay to Begin Forcing PowerSellers into Managed Payments

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

Sat Aug 24 06:45:29 2019

I've had to deal with Etsy managed payments since it was invented.
The only time it's a hassle is when I have relisting fees and No Sales.
Doesn't happen often, but when it does.........
eCrater really is The Model, the STANDARD other venues must live up to.
Having a product that sells a good number of itself weekly is key to a no hassle experience with Managed Payments.
But, there should be a way to make life more bearable for those who's products don't "mesh" with managed payments.

Perminate Link for eBay to Begin Forcing PowerSellers into Managed Payments   eBay to Begin Forcing PowerSellers into Managed Payments

by: HappyOne This user has validated their user name.

Sat Aug 24 07:47:25 2019

I do not understand Etsy uses Ayden for their “Etsy Pay”. Etsy has choice of payout timing. Etsy refunds are easy to make for shipping overpayments. They must have used a “canned package”. Ebay must be reinventing the wheel with all these common/expected requirements being talked about or still to come in future. Ebay pushed/required GSP yet it is not in Managed Payments? Etsy converts foreign payments to US$ no problem. What is Ebay’s problem paying Pitney Bowes?

Perminate Link for eBay to Begin Forcing PowerSellers into Managed Payments   eBay to Begin Forcing PowerSellers into Managed Payments

by: tango This user has validated their user name.

Sat Aug 24 10:20:52 2019

mjr55

maybe yours, not mine :)
Website processors do not hold the money either - bang in the account day after payment
Get an education!

Perminate Link for eBay to Begin Forcing PowerSellers into Managed Payments   eBay to Begin Forcing PowerSellers into Managed Payments

by: ebayout This user has validated their user name.

Sat Aug 24 11:24:05 2019

Wenig aimed for his foot and managed to shoot himself in the head.

Perminate Link for eBay to Begin Forcing PowerSellers into Managed Payments   eBay to Begin Forcing PowerSellers into Managed Payments

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

Sat Aug 24 12:50:03 2019

ebayout >
You'd better NOT be kidding......
That would be too good to be true.

Perminate Link for eBay to Begin Forcing PowerSellers into Managed Payments   eBay to Begin Forcing PowerSellers into Managed Payments

by: RL15 This user has validated their user name.

Sat Aug 24 12:52:03 2019

@mrj55
you are wrong. on amazon as soon as you confirm a shipment you can transfer your money. you have no credibility at all posting stupid, blatantly false statements.


"Huh? Amazon holds your money for 14 days between disbursements. What are you even talking about?

Some of you undermine your credibility when you just post stupid, blatantly false statements."

Perminate Link for eBay to Begin Forcing PowerSellers into Managed Payments   eBay to Begin Forcing PowerSellers into Managed Payments

This user has validated their user name. by: toolguy

Sat Aug 24 13:22:23 2019

@RL15

Who should I believe? You or Amazon?

https://pay.amazon.com/help/201212160

Perminate Link for eBay to Begin Forcing PowerSellers into Managed Payments   eBay to Begin Forcing PowerSellers into Managed Payments

by: TomH This user has validated their user name.

Sat Aug 24 13:47:11 2019

Amazon payments. Generally, after an initial 14 day hold, funds are available daily. There are still several different payment scenarios in action on Amazon, regardless of what the basic Help information indicates.  I personally am on a two week payout. I was on a weekly but got them to change to a two week period. Some of it depends on when you started selling on Amazon and whether Amz Prime or just seller shipping, or both.

There is no 100% accurate short answer to Amazon seller payment.  

Perminate Link for eBay to Begin Forcing PowerSellers into Managed Payments   eBay to Begin Forcing PowerSellers into Managed Payments

by: thriftyattireandstuff This user has validated their user name.

Sat Aug 24 15:42:00 2019

You know when I google that notification text you quote Ina.. the only search result is yours. Now I'm not saying anything about your reporting, but there are so many doomsdayers out there that love to exaggerate reality.  So I'm not sure where the buzz is but I can't find it anywhere but in this post and also in the other one the other day where the seller said that eBay told them over the phone about September. Same seller? One wonders.

Perminate Link for eBay to Begin Forcing PowerSellers into Managed Payments   eBay to Begin Forcing PowerSellers into Managed Payments

by: Jairib This user has validated their user name.

Sat Aug 24 16:03:39 2019

@thriftyattireandstuff
I have seen it in several places plus a screenshot of the letter they sent to someone yesterday.  Unfortunately it is true.

Perminate Link for eBay to Begin Forcing PowerSellers into Managed Payments   eBay to Begin Forcing PowerSellers into Managed Payments

This user has validated their user name. by: Fan Favis

Sat Aug 24 16:40:53 2019

@tango

Telling someone to "get an education" when you don't know the difference between lose and loose is funny.

Perminate Link for eBay to Begin Forcing PowerSellers into Managed Payments   eBay to Begin Forcing PowerSellers into Managed Payments

by: Grady This user has validated their user name.

Sat Aug 24 16:54:49 2019

Forced managed payments, forced refunds, forced forced........

Perminate Link for eBay to Begin Forcing PowerSellers into Managed Payments   eBay to Begin Forcing PowerSellers into Managed Payments

by: Snapped This user has validated their user name.

Sat Aug 24 19:18:33 2019

''...there should be a way to make life more bearable for those who's products don't ''mesh'' with managed payments.''

It's a recurring theme.  One way San Jose.  And more to slip through the ''mesh'' again.

eBay has never considered legacy or foundation while building their house of cards.  This latest cash flow interception won't either, losing out to another parasitic nerve numbing wrest of their ''seller's'' biz ops control.  

Their visibility manipulation, experienced as unpredictably unseasonable freezes and thaws in sales for independent 'bays' is all about inventory control.  

Search returns are a bleeding ulcerated symptom of that, shrugged off as irresistible to mass eConsumers.  Their 'buy your own bullet' cataloging plan, along with long standing puritanical listing 'tolerances', cold ocean shrinkage of seller identity discrimination (except behind the 'W'iz's curtain of 'protection') - all add up to a venue no longer able to masthead ''bringing buyers and sellers together''.  Rather, buyers, suppliers, and eBay.    

Those unmeshed be naught but noise, forevermore.

Perminate Link for eBay to Begin Forcing PowerSellers into Managed Payments   eBay to Begin Forcing PowerSellers into Managed Payments

by: pace306 This user has validated their user name.

Sat Aug 24 22:05:31 2019

The topic here is eBay coercion. "Do it our way OR ELSE"

Hmmmm reminds me of some people in Little Italy/North Jersey. "pay the vig or BAD things will happen to your store"

Silver is right - no one (almost no one) VOLUNTARILY wants "IN" on eBays payments plan - you just have to look at any OTHER eBay idea (1/2 assed, theftastic, 1/2 baked) and understand why sellers are RUNNING away.

Paypal was "bad", this is MUCH worse.

With eBaypay, they now have fully %100 control over your business - like it or not.

THAT is the issue here - one no one seems to be worried about.

(not that it matters, but as an Amazon 20 year seller - I too get funds right after I ship) BUT, it does happen to some sellers - that Amazon puts you on 14 day pay out - I dont know the criteria - so BOTH sides are right.

The point here is that eBay sucks - can we please get back to it :) !

Perminate Link for eBay to Begin Forcing PowerSellers into Managed Payments   eBay to Begin Forcing PowerSellers into Managed Payments

This user has validated their user name. by: toolguy

Sat Aug 24 23:10:54 2019

Hot item on eBay (pun intended)

Rosin Press

Perminate Link for eBay to Begin Forcing PowerSellers into Managed Payments   eBay to Begin Forcing PowerSellers into Managed Payments

by: mjr55 This user has validated their user name.

Sun Aug 25 00:32:38 2019

@tango

Guess it’s hard for me to take someone who doesn’t know the difference between loose and lose seriously.....especially when said person is telling me to get an education (I have a JD, pretty sure that’s a bit more education than you have). But I digress.....

I love people who say they do so and so in gross sales on eBay per year and then claim they are leaving over something so trivial. Doing a mil per year means nothing when you profit $15k per year off that million.

98 percent of the sellers on Amazon have 14 day disbursements. Then again, if you are hard up for cash, I can see why you would need your money every day. We aren’t in that category.


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