Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Tue June 30 2020 09:24:21

An Intriguing Question about eBay Managed Payments Fees

By: Ina Steiner

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Will eBay still charge insertion fees under Managed Payments? That's the question I received from a reader who added, "I have not heard any eBay reps mention that, and nobody is asking."

It's a great question, and shows that sellers continue to deal with uncertainties around Managed Payments, especially when it comes to fees.

The news that eBay would begin intermediating payments isn't new - we wrote about it in the fall of 2017, and it became official in January 2018.

But in the two-and-a-half years since, eBay has changed the fees several times, and as we pointed out in a blog post yesterday, eBay has yet to publish the full rates on its website.

Sellers are growing increasingly concerned about what to expect from the new payment system - fees are just one area of concern. We foresee "high anxiety" in the weeks ahead unless sellers receive clearer information from eBay about what they can expect under the new system.



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Readers Comments

Perminate Link for An Intriguing Question about eBay Managed Payments Fees   An Intriguing Question about eBay Managed Payments Fees

This user has validated their user name. by: CanBrit

Tue Jun 30 11:09:18 2020

Other than my sales are going to stop flat in a few weeks, I'm not really that anxious. I do have a few other accounts that haven't been asked to sign up, so I guess I'll be moving things over there after a holiday (or maybe not).

I am alarmed at the way they are doing this. 30,000 existing users and they are going to try to throw millions into the pit in a very short period of time? Is there not anybody out there in the eCommerce and Financial world that doesn't think this is utterly insane.

Sure, other eCommerce sites have their own payment methods. Etsy's doesn't bother me at all. It's just that this is one of Wenig's creations and we all know what motivated him. He managed to destroy everything he touched. Why would this be any different.

I sure hope Mr. Iannone puts the brakes on this at least for a few more months. I think there is going to be a lot of eggy faces if not.  

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by: FeelingFroggy This user has validated their user name.

Tue Jun 30 11:51:53 2020

Ebay won't be stopping or delaying the MP. They are desperate to fatten their bottom line and MP is prime fruit for it. Do you really think ebay cares about you or your business???????? Come on say it DO YOU????

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by: pace306 This user has validated their user name.

Tue Jun 30 13:23:54 2020

There are still many questions about Maniacal Payments - it wont be delayed or stopped.

Its an avalanche thats picking up steam - mostly from the lame brains on Wall Street.

There, they cheer eBay on like trained seals - clapping on demand so that eBay stock prices rise. The bulk of eBay stock is institutional (funny - most eBay employees deserve to be institutionalized - but thats a different topic) and eBays stock going up in price means that the portfolios that they add it to/recommend get fatter and they make better commissions.

Those stock traders are mostly bottom feeders - and they ignore eBays fake numbers like they did to Pan Am, Packard, Studebaker, Pen Central and of course ENRON.

eBays ONE AND ONLY plan fore the next yr or so is Payments - they couldnt stop it even if they wanted to - they've got nothing else.

eBay is at that point - where the majority of smaller sellers and buyer so hate/distrust the company - that even begging sellers themselves to bring in buyers and other sellers - doesnt work. They have reached that tipping point.

eBay sold off Paypal, Stuhub and now Classifieds and yet admits that they wont be using any of those funds to fix "the marketplace" ...... tells you alot about how eBay views its own properties.

But as long as you can stranglehold your sellers and force them into "Payments" and you not only have %100 of sellers funds to hold as you see fit PLUS you are making alot more $ - no one cares.

eBay rehired 2 old yoyos - and now is going back to the same poisoned well to bring back Dr Frankenstein himself (Cassinis ALIVE!) and it still doesnt help/wont help.

MP is the only card left and for the next yr or so - it should bring in big money and make Wall Street leave it be - even though quarterly results are like the Hindenburg/Titanic.

Another item not mentioned is why sellers are not being rewarded/compensated tof paying eBay COD instead of net 30!

It used to be that you payed your invoice every 30 days - but not with MP! Now you are on COD - thats worth (if you have been in the business) AT LEAST a point or two ...

So eBay gets COD, sellers get the shaft, the stock brokers get fat, and .... well I guess its the same as usual in San Jose......

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by: ebayout This user has validated their user name.

Tue Jun 30 14:59:07 2020

Anybody else think this roll-out is looking like "The Producers" with a twist...???
ebay execs actually think it'll succeed.

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This user has validated their user name. by: toolguy

Tue Jun 30 16:29:43 2020

Things could be much worse!

You could actually have Covid 19 (of which I don't know a single soul who has/had it)

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by: coffeetable This user has validated their user name.

Wed Jul 1 03:08:47 2020

Does Ebay treat all sellers equal? Not sure. Example: Seller with user name usedvending (https://www.ebay.com/usr/usedvending?_trksid=p2047675.l2559) This seller’s listings are clearly conflicting Ebays rules strictly prohibited/enforced on all other ebay sellers. See usedvending feedback troubles. Usedvending listings show contact info on every one of their listing, direct links to their web site, their user name reflects their business name/address/info, buyer discouraging comments (do not bid, do not send offer… may means: buy outside of ebay, contact us for directions of how to do that), etc… Everything that is strictly forbidden to other ebay sellers. Usedvending list items on ebay with intention of not completing any sale on Ebay (see their transaction/sale history) - not many feedbacks on big ticket sales completed on ebay. And usedvending has over 1500 big ticket listing on ebay. All of their big ticket sales are completed outside of ebay and ebay is all quiet about that because they receive/earn listing fees on 1592 listings of this seller. $20/listing per month = $3040/month paid to ebay in listing fees. $3040/month to keep ebay quiet?

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by: FeelingFroggy This user has validated their user name.

Wed Jul 1 04:39:50 2020

$3040 a month isn't even enough for petty cash to ebay. Better known as CHUMP CHANGE. We have a friend who spends more than that a month and says he doesn't worry about it as he is to busy minding his own business and isn't the police.

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by: lancecorp This user has validated their user name.

Wed Jul 1 06:04:53 2020

The fact of the matter is everything coffeetable said is true as we other sellers would be reported and suspended in a minute if we did the same. I could care how much your friend spends each month but will say it's only due to others checking out listings that we can see how unfair Ebay is. If you want to mind your owqn business - have at it but don't fault someone for actually caring about their business and trying to bring to light the inconsistencies we see all the time on Ebay.

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This user has validated their user name. by: Ric

Wed Jul 1 10:44:26 2020

eBay's lack of transparency with regard to Mangled Payments should surprise no one.  The company's standard operating procedure is to release as few facts as possible leading up to site and policy changes so that the onerous details are not discovered by users until after the changes are in place.

Fact: There will be no delay is mandating Mangled Payments by eBay.  The reality is that if it were not for the Wuhan Corona virus, eBay's GMV would be near zero or even negative.  Controlling payments, and the associated transaction fees will fatten eBay's bottom line and help them conceal that their marketplace is imploding.

Fact: Ebay's Board of Directors is guilty of selecting their CEO's based on the presumption that Wall Street will approve.  This has resulted in the steady decline of the market place driven by decision makers who have zero experience in eCommerce.

Fact: Decisions made by eBay's CEO's have not been driven by what is best for sellers or buyers, but rather, they are driven by what will satisfy Wall Street analysts and drive stock values up. If CEO's were awarded shares in the company based on factors related to increased sales growth and marketplace performance instead of as a gift of appointment, decisions, changes etc... would be very different than the marketplace killers we have seen since Meg Whitman held the position.

Fact: eBay's marketplace might just find itself on the sales block. As such, every decision, every effort by eBay management will be based on the goal of artificially fattening the financial pig before it is brought to slaughter.  The needs of sellers and buyers will remain in last place in the corporate decision making process.

Bottom line, as I have said before, sellers pay the bills at eBay.  If the company every changed course and made decisions based on what is best for EVERY seller's success instead of what is in the best interest of Wall Street then sales would soar and share price would take care of itself in the process.

Sadly, no one should expect this course correction to take place anytime soon.

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by: FeelingFroggy This user has validated their user name.

Wed Jul 1 10:53:16 2020

#Ric

Fact I see no proof of all the so called facts you state. Where is the proof????? Just because you think it doesn't make it true FACT......

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This user has validated their user name. by: Covid-20

Wed Jul 1 11:47:34 2020

@Coffeetable

Ebay is the ''MySpace'' of the modern era. It's the urinal cake of ecommerce.
I have had this issue with Ebay years and years back. I made issue out of it when a direct competitor of mine was ''Allowed'' to do what you claim. Leaving address details, phone numbers etc... on EVERY one of his listings. I spoke with top managers SEVERAL times and addressed this vigilantly and wouldn't back off until I got a straight answer. Guess what happened?  You are correct. Nothing.
Their code is so polluted with data fungus it's beyond repairable. NOBODY knows anything about anything from department to department. My latest issue was with the ''Be a new seller'' promotions they were sending out that expired yesterday. They were sending these promos to dormant accounts that if you ''Sign Up'' to sell, the first five items are free from any fees.
I got them on two different accounts I had laying around that were highly active in buying. The accounts were each about fifteen years old and had all current information and phone numbers attached. Accounts were created on two different occasions , in two different states and at two different times - so it's not a ''server'' problem. It's as usual AN EBAY PROBLEM.

3 hours in phone calls, One hour in chat and countless ''we are here to help''  robotic response emails later - they still couldn't ''Verify'' me as a human being.

Sending Pin codes to a valid number, clearing caches, clearing cookies, installing different browsers, talking to four different departments . . . . NO ONE KNEW ANYTHING and why.  Of course I was promised the phone call back to which I laughed and stated I have never received a call back since ''Pierre'' was in charge. Guess what again?  No call.
A TERRIFIC idea to get new sellers to your platform when it will NOT let you even be verified to get to the next screen.

Want ANOTHER example?

Ebay's saved search. I have addressed this problem since 2011 to countless managers. Nobody knows a thing. Time and time and time again.
My saved searches (the kind where you only see items form certain sellers and are able to block other sellers listings) -will absolutely NOT let you go past page ONE. Will NOT let you change the count from 50 items to 200 items per page, or add more sellers to an already existing list.

Still want to talk Ebay broken code??
I am in the process of rounding up 5-10 items laying around the house for my final week (this week) and that's it. No WAY are these clowns getting my banking information. Twenty years almost. Haa  . . . ''Whatever''

Ebay is that dead raccoon carcass on the forestry trail that no one wants to pick up and set aside or give a proper deserved burial.




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by: RL15 This user has validated their user name.

Wed Jul 1 13:57:28 2020

@Frog
"$3040 a month isn't even enough for petty cash to ebay. Better known as CHUMP CHANGE. We have a friend who spends more than that a month and says he doesn't worry about it as he is to busy minding his own business and isn't the police."

Fact I see no proof of all the so called facts you state. Where is the proof????? Just because you think it doesn't make it true FACT"..

Wheres the proof? You state how much your friend spends. You have no proof do you? So, must not be a fact.

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by: mindelec This user has validated their user name.

Thu Jul 2 00:50:43 2020

why wouldn't they still charge insertion fees? this change only affects payment and FVF fees.

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This user has validated their user name. by: Lightning

Thu Jul 2 01:01:24 2020

Your competitor's business IS your business.  We all have to eat at the same table, so it had better be the same for everyone.  We each pony up money for services, and there is no reason someone's dollar buys more, or that they get the wink-wink from management.

Policing the platform is a constant need, everyone's responsibility, or your business suffers.  Ignore the business landscape and you might as well pull dirt over your own grave.  It's not being nosy - it's being diligent.  Where your money is concerned, or fair play, that's a huge distinction.  It's bad enough that we get less and less for our good money, a shorter leash, while others are enjoying greater latitude, special deals, better value.  And if it's someone you compete with directly, all the more critical.

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by: Xena This user has validated their user name.

Thu Jul 2 01:29:26 2020

In Australia (don't know about other countries) they offered near limitless free insertion fees, indefinitely, if we signed up to managed payments before 31st May.
I did this, and with a Featured Store the amount of listings for the month isnt changing from
Used/Left:   0 used / 1500 left

But it brought to light two questions -
What if i had an anchor store? It would pay me to downgrade to a featured store as the insertion fees were now free......but would ebay accept this?  
And secondly, what about those sellers that werent offered managed payments?  What will happen to them come July? Will they be offered the same ''bait'' at a later date?
Or for that matter, those with an anchor store that didnt downgrade and accept the offer, they would be paying almost $500 more a month for nothing.......

Ebay havent been very forthcoming about everything to do with MP, and the only way we can find out more is to contact CS.......  contact 5 different CS reps in the same day and ask them the same question and you will get 5 different answers.

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This user has validated their user name. by: Marie

Thu Jul 2 01:53:56 2020

I'm not sure what listing fees have to do with MP!  I don't think anyone thought to ask the question because it has nothing to do with it.  Listing fees have no more to do with MP than Store fees.

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by: pace306 This user has validated their user name.

Thu Jul 2 16:07:16 2020

Marie is correct - listings costs (insertion) have nothing to dp DIRECTLY with MP.

If your allotment is free then theres no question, if you get charged - then you are billed via MP like you are for every OTHER eBay rip off ... pardon me I mean FEATURE.

As for the remainder - while I like you Froggy ...... RIC is %101 correct (in my mind since to me the facts line up) about everything he said. You may mean his last comment on eBay being up for sale .... Id say possible not probable - since its a cash cow that the San Jose Mafia will loathe to give up (unless somebody drives a dump truck of money to eBay HQ)(and makes them an offer "they cant refuse" - like any other "family").

Where else would eBays BOD or top level staff find a business where you do nothing all day and "print money" ? The Gambinos had to PHYSICALLY get their hands dirty in all parts of the business but here the manicured hands of he San Josians would continue to stay clean.

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This user has validated their user name. by: Lightning

Thu Jul 2 16:13:32 2020

@mindelec and @Marie

You are both spot on.  Since MP has no effect on listing, only payments and getting paid, it is not addressed.  People, for some reason, expect to see ''and the insertion fees remain the same'' or they think eBay will just let that go away.  There are probably a ton of things not mentioned, so they must be omitted now.  NO.  It's just not the focus of the conversation.

Every time eBay makes changes to one thing involving payments, FVF's, some obscure listing rule, the people who see that they didn't mention listing fees spring alive with their theories that eBay must be skipping them now.  Every time.  How many times does it take to learn the inevitable truth.  EBay will hang onto listing fees with its dying breath.  And maybe that's ironic, since it might be one of the causes of said ''dying breath''.

Surely to follow this post will be someone saying, ''Yes, but they didn't specifically SAY the listing fees would be continued.''  Another trap slamming closed from the bait provided by the subject of this article.  Don't fall for it (again).

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This user has validated their user name. by: CanBrit

Thu Jul 2 16:46:07 2020

I ended a GTC listing today to renew it before the 30 day period. Now they are popping up messages before you press list item tell you that you MUST enrol in managed payments.

I guess I'll be seeing that a lot over the next 13 days.

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This user has validated their user name. by: CanBrit

Thu Jul 2 16:59:17 2020

My new signature on messages.......LOL

💥💥NEW STORE LINK https: www.ebay.com/XXX/xxxxxxxxxxxxxxxx EFFECTIVE JULY 16, 2020. PLEASE UPDATE YOUR FAVORITES.💥💥

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