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eBay Managed Payments Q&A with Vikas Mehta

By Chris Dawson October 31, 2018 - 10:00 am

eBay Managed Payments aren’t yet a concern for sellers in the UK as they are currently only a small scale test for invited volunteers in the US. However, changes to how payments will take place on eBay are of great interest to sellers as the consider what the future holds so an eBay Managed Payments Q&A is of interest.

eBay devoted their weekly chat exclusively to an eBay Managed Payments Q&A and some interesting tidbits were revealed. To save you reading the entire thread, we’ve cut and pasted the most pertinent questions and matched them with the answers from Vikas Mehta (Senior Director, Payments Go-To-Market, Americas at eBay) who is leading the rollout of eBay Managed Payments in North America.

eBay Managed Payments Q&A

Will eBay give sellers a notice before enrolment in eBay Managed payments?

“Currently participation into managed payments is by invitation only, and for those sellers who choose to be part of the program. Eventually, we will manage the transition into managed payments with notice and education/support for our sellers.”

What are the benefits of eBay Managed Payments?

“A goal behind managed payments is to drive more purchases through offering buyers more checkout options. Some sellers are benefiting strongly with Apple Pay as a payment method, as well as the streamlined checkout experience.”

How are eBay educating buyers?

“Buyers are being educated on the payment options, including those listings that don’t offer PayPal, via automated messaging in Message Center, during the checkout process, and can now scan their credit card in the iOS app.”

What about PayPal?

“We know that many buyers on eBay are accustomed to paying with PayPal and that PayPal is important to have long-term. Offering PayPal in a managed model required a new integration for us, and we’re working on it and expect to make PayPal available in summer 2019.”

When PayPal is integrated, will sellers will have to pay eBay AND PayPal’s fees?

“No they wont have to pay PayPal fees. Even after PayPal is rolled out as a form of payment, eBay sellers will be charged only the eBay fees regardless of how the buyer chooses to pay.”

Can sellers issue partial refunds through eBay Managed Payments?

“We realize the ability to do partial refunds is an important part of doing business on eBay. It is a top priority for us. Stay tuned on the timing for this change.

In the meantime, for those sellers who need a bit more information -You can issue partial refunds for your transaction through the returns process. If there is an issue with the item, please ask your buyer to file a return request using a reason that indicates there is a problem with the item. You can then offer and send a partial refund once your buyer accepts the offer. For non-claim related reasons (like a shipping discount), ask your buyer to file a remorse claim so you can issue a partial refund. A remorse claim won’t negatively impact your seller ratings.”

What happens if a buyer abandons purchase at time of checkout due to not being aware that seller no longer accepts PayPal?

“We are actively educating and incentivising our buyers to purchase with our managed payments sellers.”

Will there be support for accounting solutions?

“We are actively improving and simplifying some of the current accounting / reconciliation effort for sellers.”

  • Jay
    3 weeks ago

    “No they wont have to pay PayPal fees. Even after PayPal is rolled out as a form of payment, eBay sellers will be charged only the eBay fees regardless of how the buyer chooses to pay.”

    Would someone care to clarify exactly what this means? I see something crafty going on in this statement.

    • 3 weeks ago

      It means eBay will cut an attractive rate with PayPal and pay them the lowest fee rate they can negotiate. Adyen will also get a tiny cut from each payment.

      eBay will then charge sellers the eBay Managed Payments fee which will be higher than their negotiated PayPal fee and make a profit on the difference.

      It wasn’t in eBay’s interest to negotiate a highly attractive rate with PayPal for eBay sellers when they owned PayPal as the profits went into the eBay Inc pot, but now it’s a separate company it is in their interests as the lower the rate they can cut a deal on the more profits they’ll make from payments. Once the marketplace is migrated eBay are expecting to make $2 billion revenue and $0.5 billion profit from eBay Managed Payments

    • Jay
      3 weeks ago

      I thought as much. I bloody knew it was stale when I read it!

    • 3 weeks ago

      To be fair, eBay should be negotiating cracking deals on behalf of sellers on everything from payments to carriers and warehousing to packaging. Those on low (or no) merchant rate discounts will get a better deal that they could never access themselves.

    • jim
      3 weeks ago

      who knows ?
      ebay could even negotiate a cracking deal with themselves on FVF fees on behalf of sellers

  • 3 weeks ago

    No mention of when Managed Payments hit the UK then and if it will be a trial period first?

  • 3 weeks ago

    I would love to know when this will be open to other countries. They have not seemed to give any information, so maybe they don’t know themselves when it will be ready. Interesting they are testing it in the US being the biggest market instead of in a smaller market first. I can only see this being a good thing for most sellers and buyers.

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