Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Thu Jan 2 2020 10:20:07

eBay Not Backing Down on Managed Payments or GTC

By: Ina Steiner

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An eBay executive indicated the marketplace will not be backing down on Managed Payments or the GTC mandate (Good Til Cancelled) despite much pushback from sellers. Last week, Jordan Sweetnam addressed seller concerns about two of the biggest changes to the site in 2019.

In one post on the eBay boards, Sweetnam addressed a question from a seller on whether eBay would reconsider forcing all sellers to use Managed Payments, a policy that is being phased in over time. The seller cited eBay's technical glitches on its site as well as reports that sellers enrolled in Managed Payments already had seen their funds held for weeks with no explanation.

"I am happy with PayPal," the seller wrote. " I do not want to switch. I get my payments immediately thru PayPal. Will you reconsider forcing all sellers to use Managed Payments?"

Sellers also raised the issue of eBay Managed Payment fees, which can be more costly for certain kinds of transactions - while PayPal has a per transaction fee of 30 cents, eBay charges 25 cents per listing. One seller of antique postcards explained, "If I sell 40 different postcards to a buyer, the per item fee of Managed Payments would be $10. I know of no other payment system that charges a per item fee instead of a transaction fee."

Sweetnam said there were no plans to reverse course on Managed Payments. In a confusing analogy, he compared eBay's reliance on PayPal to the US nearly pulling out of the UPU (Universal Postal Union). "When eBay is fully dependent on one solution, we can't bring the best solution/cost to your businesses," he said. 

"Moving to Managed Payments still allows buyers to use PayPal, but as we progress, it will also allow GooglePay, ApplePay and solutions like EFT + Wire Transfer," he said.

"All of these additional payments will bring more shoppers onto our platform and, in the case of EFT + Wire Transfer, allow sellers who can't make money with today's PayPal fees be successful on our platform on really high priced items. We've already processed over $1 billion in payments and have no plans to slow down."

He also criticized PayPal for not refunding transaction fees when a seller refunds a buyer, but to our knowledge, eBay has never said it wouldn't engage in the same practice.

Sweetnam actually addressed that issue on page 2 of a separate thread, writing:

"Obviously PayPal is their own business and is free to make the choices they feel appropriate for the service they provide. There is a cost to process a payment and there is a cost to refund a payment... so it's hard to question the entirety of their decision.

"Now is that cost to serve equal to the full amount of fees paid? That doesn't sit right with me. At the core I still operate under the philosophy that we (eBay) are successful when you (our sellers) our successful... if you sell something we both make money... if you get a refund I'm not sure that should put you in the negative on the transaction. 

"I can't promise you where we will land with managed payments (there is still a lot our teams are working through), but this should give you a sense of where I'm philosophically leaning."

Sweetnam also made a very surprising admission - he's unfamiliar with eBay Managed Payments per-listing fee structure. "It was actually news to me recently about the difference in the "per item" vs "per transaction" fee. If you are selling 40 different postcards to one customer in the same transaction I agree it would seem odd for us to charge the per item on each one. I don't have the full history here, but will dig into it."

Sweetnam returned to eBay in July after a stint at Walmart and is now Senior Vice President and General Manager, Americas Market at eBay.

"A lot will change and become clear as we get further into next year, so please keep providing the feedback," he said in the post on the eBay boards.

No Plans to Reverse Good Til Cancelled Mandate
Sweetnam also told sellers eBay has no plans to reverse the decision about the GTC mandate. "I’ve heard of a lot of things since I've returned that don't make sense (and will drive to change), but to be clear I haven't seen (yet) an example where the move on GTC is the wrong one," he wrote.

"GTC listings have better sell thru, the permanent item ID improves how those items appear in SEO (that helps everyone) and a consistent item ID helps search deliver better ranking."

He also said the practice of starting and stopping short duration repeatedly to appear at the top of time newly listed search results was bad for buyers and overall search relevance, which he said hurts all sellers.

"If you'd like to share other use cases, I'm certainly willing to listen and discuss," he wrote on the post about GTC on the eBay discussion boards.



Comments (50) | Leave Comment | Permalink

Readers Comments

Perminate Link for eBay Not Backing Down on Managed Payments or GTC   eBay Not Backing Down on Managed Payments or GTC

by: Runs.With.Scissors This user has validated their user name.

Thu Jan 2 10:42:08 2020

If they ever force me to use managed payments as a seller,
I'm out of ebay forever.  (On all 3 of my ID's).
I will only do PayPal.  ebay can't be trusted to get into any
of my bank accounts.

Perminate Link for eBay Not Backing Down on Managed Payments or GTC   eBay Not Backing Down on Managed Payments or GTC

by: seb This user has validated their user name.

Thu Jan 2 11:13:51 2020

Runs.With.Scissors, I agree with you totally. I have 2 accounts and joined eBay in 1998. The day they make managed payments mandatory is the day I close my accounts. I'll manage my own money, Thanks but NO THANKS TO MANAGED PAYMENTS!

Perminate Link for eBay Not Backing Down on Managed Payments or GTC   eBay Not Backing Down on Managed Payments or GTC

by: eBay Shill Buster This user has validated their user name.

Thu Jan 2 12:15:10 2020

The questions that he is addressing are the reasons Wenig was fired, when the new CEO is hired he most likely will clean house in the executive ranks of all the White Collar criminals that are running eBay today who are only worried about cashing in stock options.

GTC automatic relisting is a massive fraud that eBay does not want to address because they are depending on fraud to prop up the house of cards.

Perminate Link for eBay Not Backing Down on Managed Payments or GTC   eBay Not Backing Down on Managed Payments or GTC

by: 1st Armored Division 1971-1973 This user has validated their user name.

Thu Jan 2 12:41:20 2020

I have sold 40+ photos to customers before. It is not all that rare.

More often I sell 2-4 photos which makes a mockery of their claim it is a lower cost alternative.

Perminate Link for eBay Not Backing Down on Managed Payments or GTC   eBay Not Backing Down on Managed Payments or GTC

This user has validated their user name. by: NoMoreEbay

Thu Jan 2 13:44:30 2020

A more accurate title to this thread -  ''ebay is not backing down on anything and never has.''

I've seen it time and time again for over a decade. The new talking-head-of-the-week, i.e Sweetnam rides into town with piles of disingenuous new hopes for the future. A new dawn with all kinds of false promises. ASK ME ANYTHING AND I MEAN ANYTHING. ONLY KEEP IT AT 5 QUESTIONS. They proclaim over and over again ''We hear you THIS TIME. We are listening THIS TIME.

Sellers, even long term veterans to my amazement actually believe them THIS TIME and get their hopes up that maybe THIS TIME it will be different. Only to be let down and stabbed in the back yet again as proven here in Sweetnam's refusal to abolish two fraudulent, broken and fee churning policies. And in about 6 months, no one will here from Sweetnam again as he acclimates into ebay's Bain driven dysfunctional climate.

Then sure enough in a year or so an announcement will be made that ebay has fired Sweetnam and hired a new shiny talking head where the whole laughable process starts all over again.

But hey, he's going to look into the pay per item fees. There is hope! LOL.

   

Perminate Link for eBay Not Backing Down on Managed Payments or GTC   eBay Not Backing Down on Managed Payments or GTC

This user has validated their user name. by: toolguy

Thu Jan 2 13:56:08 2020

If eBay doesn't release funds for shipping as soon as the transaction happens a lot of sellers are going to be late shippers!

I myself can't afford to pay shipping out of pocket.

My customers will have to wait until I get funds to ship.

My 1 day handling will be going to 5 days as soon as they put me into MP.

I will also have to stop offering "FREE" shipping as they call it. . . . . .

Perminate Link for eBay Not Backing Down on Managed Payments or GTC   eBay Not Backing Down on Managed Payments or GTC

This user has validated their user name. by: iheartjacksparrow

Thu Jan 2 14:41:09 2020

"There is a cost to process a payment and there is a cost to refund a payment..."

I use only Stripe for my eCrater store, and since I get a lot of multiple purchases, I give out a lot of refunds. Not once has Stripe ever charged me a fee on a refund.

"It was actually news to me recently about the difference in the 'per item' vs 'per transaction' fee.":

Is this guy for real? He's the current spokesperson for eBay yet he doesn't even know what their policies are?

"GTC listings have better sell thru, the permanent item ID improves how those items appear in SEO (that helps everyone) and a consistent item ID helps search deliver better ranking."

Can anyone verify that statement? Or is eBay making up statistics like they make up their quarterly financials?  

"When eBay is fully dependent on one solution, we can't bring the best solution/cost to your businesses[.]"

Hasn't it already been proven that Mangled Payments is not the "best cost" for businesses?  

Perminate Link for eBay Not Backing Down on Managed Payments or GTC   eBay Not Backing Down on Managed Payments or GTC

by: eBay Shill Buster This user has validated their user name.

Thu Jan 2 14:43:05 2020

Tool, you have to ship or eBay will suspend you as a seller, that is the way Amazon does it.

Perminate Link for eBay Not Backing Down on Managed Payments or GTC   eBay Not Backing Down on Managed Payments or GTC

This user has validated their user name. by: RKTOYS

Thu Jan 2 15:49:23 2020

This dunce apparently doesn't realize that Ayden (Mangled Payments) is a single point of failure every bit as much as PayPal.

Every one of these payment processors has an API.  The real solution is to implement an offer at least a dozen of them.  That would be real choice and real competition.  So of course that's why they won't do it.

Perminate Link for eBay Not Backing Down on Managed Payments or GTC   eBay Not Backing Down on Managed Payments or GTC

This user has validated their user name. by: CanBrit

Thu Jan 2 15:59:14 2020

@eBay Shill Buster

You don't have to ship before your handling time. Mine is always five days.

Perminate Link for eBay Not Backing Down on Managed Payments or GTC   eBay Not Backing Down on Managed Payments or GTC

by: pace306 This user has validated their user name.

Thu Jan 2 16:26:43 2020

Of course they wont - those are the 2 main THEFT-TASTIC ways eBay keeps control over its sellers.

GTC continues because:

1 - it helps eBay lie about the gross dollars worth of inventory "on eBay".
2 - it keeps eBay from having to spend money on Google placement ads
3 - it keeps eBay from having to apologize to Google and admit they were wrong
4 - it allows eBay to lie to the SEC, Wall Street, and investors on how eBay is "growing", when its not

As for Managed Payments ...... While most people understood eBay had "no choice but to do SOMETHING" when Paypal was yanked from them (with good reason - eBay is an albatross around your neck, concocted by thieves and charlatans) ... the eBay/Paypal relationship wasnt so hot anyway. eBay didnt cry tears that Paypal left.

If anything - it was an opportunity - one they took FULL advantage of.

Dont listen to that Jordan Sweetbuns guy - hes a dope first class. He went back to eBay and didnt even bother to prepare to the job interview (hint: know something about the companies major pushes !)(dope)

Managed payments allows eBay to:

1 - control sellers ....
A) returns
B) VIG on shipping
C) you get your money when WE tell you
D) continue the customer is always right (Paypal started ruling against eBay BS when they saw eBay was strangling their business - eBay is a contaigent)
E) claim its being done to broaden eBays "ways people can pay" ...... BS - Paypal can take Applpay and others !
F) make $$$$$$ on the interest/float. A BIG part of eBays profits come from holding the money and making a day or so float - they think we are all so stupid.

eBay (as stated above) doesnt "backdown" on anything - what mafioso worth his salt does?

Perminate Link for eBay Not Backing Down on Managed Payments or GTC   eBay Not Backing Down on Managed Payments or GTC

by: Bob V2 This user has validated their user name.

Thu Jan 2 16:35:37 2020

I sell, among other things, antique photos and postcards.  It is not at all unusual to sell 10 to 20 at a time to a single buyer.  These are mostly low end items.  I can't afford to pay a per item fee.  

I am also convinced that the GTC mandate hurts sellers of OOAK items.  I find I do better if I can re-evaluate pricing every 30 days and then decide if I want to relist or let certain items cool for a couple months.  Fortunately, I can circumvent GTC listing by using SixBit.  I believe other 3rd party listing software packages can do the same.

Perminate Link for eBay Not Backing Down on Managed Payments or GTC   eBay Not Backing Down on Managed Payments or GTC

by: purpleiris This user has validated their user name.

Thu Jan 2 18:01:00 2020

"He also criticized PayPal for not refunding transaction fees when a seller refunds a buyer"

PFFT! Says the man running the monster that forced PayPal to recover the heavy costs of all the fraud the monster allows.

I had more to say, but now realize it's not even worth commenting on. This guy is an idiot and NoMoreEbay is right about another patsy being brought in to build up false hope with empty promises and vague mentions of improvements and fabricated statistics. I fell for it at Etsy...never again.

Perminate Link for eBay Not Backing Down on Managed Payments or GTC   eBay Not Backing Down on Managed Payments or GTC

by: OnlyPollyPocket This user has validated their user name.

Thu Jan 2 19:07:42 2020

@iheartjacksparrow

"Is this guy for real? He's the current spokesperson for eBay yet he doesn't even know what their policies are?"

OMG!  Exactly my thought...whaaaaat?

IF ( and it is a big if) I stay when forced into managed payments, my prices will all be going up to account for the per item "transaction" fee.  I sell tiny dolls and often sell several in one transaction.  I just never heard of any payment processor charging a per item fee...ridiculous.

Perminate Link for eBay Not Backing Down on Managed Payments or GTC   eBay Not Backing Down on Managed Payments or GTC

by: mcposty This user has validated their user name.

Thu Jan 2 19:43:41 2020

what a liar. ebay needs to be investigated for fraud as well as lying to investors.



Perminate Link for eBay Not Backing Down on Managed Payments or GTC   eBay Not Backing Down on Managed Payments or GTC

by: Jairib This user has validated their user name.

Thu Jan 2 19:57:13 2020

Bull, when they first implemented the GTC I let my items ride believing that they might be right. My sales dropped like a rock.  So I end my items every 29 days and reevaluate them and sell similar the ones I want to keep and my sales rebounded.

As far as Managed Payments go, I am still pissed.  You are paying more for less.  That is the bottom line.  More fees for way less.  No immediate access to funds.  No pp working capitol loans which has helped grow my business.  No business debit.  And you still have to pay for shipment immediately THROUGH paypal.  Ridiculous.  And with the number of glitches their site has had and the number of times it has been hacked, there is no way they are getting access to my bank account.  
And if ebay could stop making changes to the entire site 10 months out of the year and go back to beta testing and spring and fall updates twice a year, that would be great.  There site was glitchy for the entire year except for November 15th til December 31st.  Is that anyway to run a business??

Perminate Link for eBay Not Backing Down on Managed Payments or GTC   eBay Not Backing Down on Managed Payments or GTC

by: Jairib This user has validated their user name.

Thu Jan 2 19:58:13 2020

Oh, and the whole tax fiasco with managed payments is a whole other ball of crap....  

Perminate Link for eBay Not Backing Down on Managed Payments or GTC   eBay Not Backing Down on Managed Payments or GTC

This user has validated their user name. by: NoMoreEbay

Fri Jan 3 10:28:43 2020

Instead of an annual 5 question choreographed stage show. How about an open dialog all year long. You know like most companies operate with their "partners." Considering ebay's constant changes, you'd think that would be a given.

That will never happen however because ebay doesn't want dialog because first they never actually listen or do anything in response to sellers complaints or suggestions. Second because all they are interested in is money.

With a track record of complete indifference and arrogance for literally 12 years and counting. I know I've said this before but I am really blown how anyone save for 1st time sellers continue to buy into this crap.  

Perminate Link for eBay Not Backing Down on Managed Payments or GTC   eBay Not Backing Down on Managed Payments or GTC

by: Smallseller This user has validated their user name.

Fri Jan 3 11:04:00 2020

Here is what I am hearing from Ebay. We want to improve communication with sellers so that we can better inform them of all the changes that we will be imposing on them that they will be opposed to and we will not listen to (or we will pretend to listen) their concerns. The only times my GTC rolls over is when I forget to end it myself. And then I am unhappy because I have wasted a listing that I did not choose to relist myself. Ebay has 1 way communication only. I will never post on the ebay boards for fear of repercussions. Thank you Ina for providing this forum for us.  

Perminate Link for eBay Not Backing Down on Managed Payments or GTC   eBay Not Backing Down on Managed Payments or GTC

This user has validated their user name. by: CanBrit

Fri Jan 3 11:12:42 2020

@Bob V2

I completely agree with you. If I want to sell similar a third of my inventory every month I will do as I please.

Mr Sweetnam, it is not we sellers who are doing this that's the problem, it is your unstable platform and your dictatorial, greedy mentality that is causing the problem.

GTC IS a problem and will ALWAYS be a problem for sellers. Managed Payments is a scam and as much of a mess as your platform. How is it Etsy sellers can get their payments the next day and they use Ayden just like eBay. I'll tell you why. Pure and utter GREED by eBay!

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