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eBay Payments Beta trial insights from eBay Open
Following a payments session at eBay Open, some eBay Payments Beta trial insights have emerged giving us an ideal of what eBay Payment will look like. eBay are already inviting sellers to sign up to the eBay payments beta in the US and members of eBay staff have been using the new payments flow for a couple of months. Here’s what we know to date:
eBay Payments Beta trial insights
Features we already knew
- eBay will consolidate payments and invoices into a single account
- Payouts will be made daily to your bank account
- eBay are exploring faster ways to get paid with partners
- All fees will be on a single eBay invoice – this will include payment fees
- Those who take part in the Beta will get special discounted pricing for early opt in
- eBay will automatically update all existing listings to add eBay Payments as the default payment option
New features we now know
Should you sign up to eBay Payments?
Obviously during the beta trials, signing up to eBay Payments is entirely optional and you should consider the above points in relation to your business. When use of eBay Payments is enforced then you won’t have choice but we know that some features (like the ability to accept PayPal) will return as we hope would support for the eBay Global Shipping program.
Currently we’d suggest that the trial is probably not suited for larger experienced eBay sellers as it’s likely to be too disruptive to their existing business automation (e.g. accounts), but if most of your processes are manual then you may like to get a jump on the competition and get to grips with eBay Payments early, if you’re invited to the trials.
No good news there. So much for cheaper fees and instant access to your funds…
Let’s hope that there’s a volume discount coming because as it stands, it’s more expensive than our current 1.9% +20p PayPal rate.
A lack of an API could be a serious issue too. That simply has to be in place before this goes live. However, eBay’s recent performance doesn’t fill one with confidence.
Do not opt into this Beta program.
No Paypal payment option means hundreds of buyers will just abandon their carts. Its a seller nightmare.
Why cant Ebay get anything right?
Its just one disaster after another.
A seller in Ebays discussion board predicts Ebays demise by 2021 – i think they are so right
Why are you advising it is not suitable for larger sellers? They are the ones who dont have to worry about the Paypal option and have large floats from mutli channels they sell in.
That is bad advice you are giving – its the smaller sellers that are affected.
This is why im advising do not opt in to the Beta test, you can never opt out – the Beta test lasts for a couple of years.
Larger sellers will get screwed over more on the fees, even ignoring all the other factors
The smallest group of sellers, those on a 3.4% rate with paypal, would in theory get a benefit in that 2.7% rate on ebay payment is less. But with the other factors costing them potential buyers, their already small amount of sales would get even smaller, making it not a benefit at all.
I know it is only a beta test and you expect things to be not great or the finished article, but do they try on purpose to do it as badly as possible?
No GSP = No global sales (unless you want to do a LOT more legwork)
No Paypal payments = Less sales
Fees that are higher than many business sellers will be being charged via paypal. = Getting charge MORE for accepting payment on a LOWER amount of sales
Worst Beta Test Ever!
Payments every day!! Our business bank account charges £0.35 on every incoming credit. At present we disburse from paypal twice a month (£0.70) . If ebay pursue this line of payment it will be £10.85 per month and an extra 28/29 transactions to be accounted for
Honestly think ebay have no idea about running a business
then just get your payments into a different account, without punitive charges for getting paid, and transfer to your business account monthly.
or get a better account, one which realises being paid is a good thing for most people.
“Honestly think ebay have no idea about running a business”
That is funny as you are the one with a bank account that charges 0.35p for depositing with them… Maybe shop around before thinking thats a good idea?
@Anne, obviously you have no problem with cash flow or your turnover is so small that its not an issue.
most business sellers would welcome daily disbursements.
The fact that you are being charged by your bank ……. is that ebay fault?
again ebay listen to the sellers, try and do the right thing and get criticised for it. Daily disbursements was something business sellers were pushing for.
if this is a problem Anne, dont blame ebay and consider changing banks.
What works for one person won’t work for someone else. Surely it is not to much to ask that as sellers we are given a choice of daily, weekly, monthly, instead of being forced into a one size fits all approach. I like a few on here will be paying a daily transaction fee so over the course of the year will cost me around £70 extra.
In response to @alanpaterson – we do not have any issues with cash flow that is why we do not need to move money EVERY day. We like the flexibility of paypal where you can move as much as you need at any time (or even disburse every day if you need to which seems to be what you need. ) . I did not suggest that it was ebay’s fault that most business account holders are charged per item – what I do not like is the idea that if ebay go down the route of daily disbursements then it will cost us (as Rob mentions below !!) not only hard cash but it will mean an extra 29 transactions to reconcile each month on each of our 2 ebay accounts ( such a waste of time) . Surely it would be just as easy for them to offer either option ?
Tom & James – where do you send you paypal payment if you are not incurring any bank charges on your business accounts? As you suggest we may have to look at a separate bank account – most business bank accounts to offer free banking for a limited period but can’t find one that offers it permanently.
This is eBay at it’s best, but fear not, all the above could change for the worse, nobody will sign up to the beta so eBay will just switch us all over and work out the problems as they go…
@Tyler – thats true. Im so glad i moved over to Etsy – Ebay has turned into a bargain bin place, im making better revenue on Etsy with the exact same items i sold on Ebay.
Plus, Etsy show ALL your listings ALL of the time, unlike on Ebay with their throttling and when they feel like showing them.
@ Will, I am curious …….. what is your turnover on Etsy compared to the same listings on ebay? (as a ratio or percentage)
@alan paterson I do not sell on Etsy but comparing eBay to Amazon, selling the same products, is not good.
My “Last 31 days” on eBay are 28% of my “Last 30 days” sales on Amazon.
My eBay sales are nearly 40% down on last year and I am seeing more and more sales on Amazon from customers who used to buy from me on eBay.
My total sales, on Amazon & eBay, for July were 15% up on last July.
My opinion on selling on Etsy is – its a waste of time unless you have your full inventory on ebay. Sellers need to look at the return they are getting for the time they have invested in listing their inventory. You get a far far better return for your time invested in ebay than on Etsy (I wont comment on Amazon).
Sellers keep coming on here and banging on about how excellent Etsy is compared to ebay. To be quite frank these sellers seem to have a gripe with ebay and I do not believe that they are getting a better return on Etsy. Its not possible – the difference in traffic / reach / potential buyers is colossal.
I’m surprised you sound surprised lol
It is eBay after all,,, no thought, no planning and next to no idea.
Surprised wouldn’t be quite the right word. Exasperated, or in a state of stunned disbelief perhaps, that once again, they’ve managed to wrap up a piece of dog doo in newspaper and smile at us as they pass it off as a lovely present.
I have not opted in for the beta test but are you guys above saying that when you do……. it removes the paypal option? Surely not.
it was always ebay intention to always have paypal as an option.
According to the above article, there will be no PayPal available for sellers who opt into Beta testing.
“PayPal will be included when eBay Payments rolls out more widely after the end of the beta trials”
There is a good reason for this, the ease of just paying for an item using PayPal means hardly anybody would choose the new method.
The risk is that buyers will choose another seller to buy from using PayPal, unless eBay offers the buyers an incentive.
Hi Mr Patterson – just a quick change of subject to pick your brain.
With regards the new returns metrics –
(1) Would a return which has been started via the Ebay returns process – but the buyer does not bother to post the item to the seller . Will this still be a return which counts against you?
(2) Again as question 1 – if buyer does not post the item – is seller still liable for the Ebay postal charge which as been generated – or is there a refund to seller.
Many thanks Plasticman
Hi Plasticman, my understanding of the metrics is once a buyer clicks a certain button like arrived damaged or not as described you will be landed with the defect which will count against your returns metric no mater what level of customer service you give them. I currently have a few returns that are counted against me some of them my fault as they have been damaged during delivery. Others where they are claiming not as described due to the label in the duvet cover having made in a different country to when they bought a similar duvet. And others just trying it on to get money off.
You are only charged for the postage label when the item is dropped off. Similar to the Shutl programme where you can print as many labels off as you want for an item but only charged when scanned.
thanks for the explanation Tyler. I missed that bit in the terms. Oh dear. I hope nobody has opted in not realising this.
I think it’s the only way.
I wouldn’t do it even for a 100% refund on all ebay fees for the whole period of the beta test and boosting to first place in all search results. It still wouldn’t be worth it.
Wonder if it’s a sign of Paypal flat out refusing to help ebay and that’s why it’s missing?
I think its just ebay poking finger in the eye of paypal
How could you not miss paypal is not a option??, bank transfers also take 2-4 days!!
You state in your post above “Daily disbursements was something business sellers were pushing for.” where is this information you state??. Sellers can dispurse funds at any time to any of their accounts with paypal already often arriving in a few minutes
I dont want transfers done every day like most on here and certainly dont want them on my private account either. For the few items i sell on my private account i normally keep the funds in paypal for purchasing other things with paypal not just ebay.
@ Alan Paterson
I have been just one month on Etsy so its too early to say i’m afraid.
We have 20,000+ feedback on ebay 600+ sales on etsy over the roughly same period. Etsy selling price can be set higher than ebay’s to give better margin, because we think etsy customers are more affleunt and are looking for higher quality items and not cheap tat!
That said, etsy buyers will also get the very best product & service from us and give zero problems.
Ebay is the cheaper end of what we make and riddled with problems of ebay’s own making, that we have to negotiate our way through.
It all depends on the product with etsy, but it’s not easily dismissed. Etsy is another profitable add-on to our business and has given an easy return on the time invested in it.