Danny Hone from HoneVille1 on eBay Managed Payments
eBay‘s first case study for eBay Managed Payments was Danny Hone from Honeville1, a seller of printed t-shirts and related products. At the time he said he was “leery about the effect that not accepting PayPal would have” but early on results were positive. Danny has recently revealed more insights into his experiences including some of the downsides of being an early adopter, but still says that saving 30 cents per transaction compared to PayPal is working in his favour:
“So far I’ve received 464 payments through managed payments. I opted in on day 1. So far I’ve saved just over $150.00 in payment fees with this new payments. I am thrilled with the payments portal, it was very well thought out and I still have zero issues to report in terms of payment issues on eBay’s end. All is going well.
I had a shirt featured on deals last night and was a little nervous about how that would go but received zero questions or complaints about not having PayPal as an option. I don’t recommend this yet for everyone simply because of the complications surrounding loss of PayPal … specifically loss of global shipping right now, if that’s an issue for you hold off and know a fix is coming. Also if you do lot’s of charity listings, hold off as it’s not supported yet. And, if you are a low volume seller who won’t appreciate the per transactions savings and are leary go ahead and hold off while eBay gets this up the way they want it.
I remain very glad that I opted in, and I’d do it again if I knew on Sept. 25th everything I know now. I have no regrets. Oh… one other thing… I’m now migrating all payments through a credit card, including shipping, that pays me back 1%. I was able to refinance my debt and now have plenty of credit available as working captial but payments are coming in as fast as 2 days so no issues there.”
– Danny Hone, HoneVille1
To put Danny’s comments into context, he has over 2 million listings and we estimate his average selling price as $20 giving a turnover for his 464 payments as approximately $9,280 over roughly a five week period. In these terms, we at Tamebay would classify him as a small seller and so his experience with savings may not be applicable to large eBay sellers.