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eBay to Hike eBay Managed Payments fees

By Chris Dawson May 23, 2019 - 11:14 am

eBay are to add on a fixed fee per payment which has been announced in the eBay Managed Payments fees schedule.

eBay Managed Payments Fees to include $0.25 per transaction fee

eBay will be adding a $0.25 fee per listing payments fee in addition to the percentage fee (currently 2.75%) charged for processing the payment.

The change will impact sellers who sign up on or after the 4th of June 2019 although the additional fees will be waived until the 30th of September. Sellers who signed up before the 4th of June and who’s account has been continuously opted in to eBay Managed Payments won’t have to pay the new fees.

Payments Processing Fees

If (a) you have successfully completed the managed payments onboarding process (in accordance with Section 4) prior to 00:00:00 (12:00 AM) Pacific Time on June 4, 2019 and (b) your eBay account has remained continuously enabled for managed payments: Your payments processing fees are calculated as 2.7% of the total order amount, including shipping, handling, sales tax and other amounts owed (the “payments processing rate”).
 
If you successfully complete the managed payments onboarding process (in accordance with Section 4) on or after June 4, 2019 (starting at 00:00:00 (12:00 AM) Pacific Time): Your payments processing fees are calculated as (i) the payments processing rate plus (ii) $0.25 per listing sold (the “per listing payments fee”). Notwithstanding the foregoing clause (ii), for sellers who onboard to managed payments on or after June 4, 2019 the per listing payments fee is waived through September 30, 2019 at 23:59:59 Pacific Time (11:59 PM plus 59 seconds) and will take effect beginning October 1, 2019 at 00:00:00 Pacific Time (12:00 AM).

– eBay

This is a massive change to eBay Managed Payments fees. eBay always said that those who signed up early would get preferential fee rates, but this change means users will be paying an additional 25c for each and every sale on eBay.

This change will impact sellers of low value items the most and at a stroke wipes out one of the massive attractions of eBay Managed Payments compared to PayPal. If you’re selling items for a few dollars, the fixed fee for each transaction makes up a disproportionate percentage of your overall payment fees. By adding this fee back in, sellers will have to redo their calculations on whether it’s better to opt into eBay Managed Payments on a voluntary basis or to wait until they are forced to adopt them.

Is the eBay Managed Payments Fees percentage to rise?

There’s another clause for concern in the eBay Managed Payments Fees announcement. For users who sign up before the 4th of June 2019, eBay say that “Your payments processing fees are calculated as 2.7% of the total order amount”

For sellers who sign up on or after the 4th of June 2019 eBay say that “Your payments processing fees are calculated as (i) the payments processing rate plus (ii) $0.25 per listing sold”. eBay are no longer specifying the rate as 2.7% which suggests it could be less but more likely perhaps it could be higher than 2.7%. We do not know what the percentage fee will be for sellers who sign up in the future.

Sign up early to lock in the lowest eBay Managed Payments Fees

One thing is for certain, eBay Managed Payments will come to all US users at some point in the future and to all users around the world within a couple of years. If you are in the US you have an advantage and can at least express your interest in joining the program today and if you get onboard before the 4th of June you’ll have a eBay Managed Payments fees advantage at least for the foreseeable future.

A word of warning however, eBay are currently limited to diverting 5% of GMV away from PayPal and into eBay Managed Payments and they’re very near the limit which won’t be raised to 10% until July. We believe they have a pipeline of sellers already wanting to sign up so get is soon as the more you delay the less likely you’ll be onboarded before the 4th of June.

  • 4 months ago

    Paypal always add a transaction fee of 20p anyway, but the % is unworkable if your on more preferential paypal terms. its going to be crucial for ebay managed payments to match paypal long term or they will have to severe paypal all together.

  • 4 months ago

    Here we go……

    ‘Due to market forces, we are having to raise eBay managed payment fees to £0.50 per transaction plus 5% of the total.
    Oh, and we won’t be refunding the £0.50 if a buyer cancels.
    etc etc
    This is why we’re moving away from eBay towards Magento because this is their plan, to take control of everything on their platform and get fees up to 15% minimum.

  • Dav
    4 months ago

    Once eBay has everyone into Managed Payments all will be paying the highest rates. Nothing will tiered anymore. They’ll probably jack up the % and per item rates even more by then. eBay is a neverending gouge to sellers and often don’t even officially announce changes. They just go ahead and change terms of use. I thought that’s illegal? But eBay has never cared about legality have they? They rely on deception and confusion to take more money from you. Nothing ever seems to be upfront. eBay is losing sales, losing sellers, losing buyers, and they’ll continue to bleed the sellers more. eBay is slowly kill itself. Extreme management incompetence (especially since Wenig) and corporate greed is the reason.

  • Brice
    4 months ago

    And to add to all that i notice more and more Chinese sellers pretending stock is in the uk
    In many areas they destroy the native market and that added to the managed payments chunk they intend taking will destroy many sellers and eventually eBay as well

    • BFT
      4 months ago

      The Chinese Location Fraud is so widespread now, I don’t even look at eBay for electronics, photo equipment etc., etc. Been caught a few times – but you won’t catch me again!

  • Toby
    4 months ago

    And so it begins…. all the wonder talk didn’t take long to vanish. Once ebay have control over the market place and payments, they will treat it like another cash cow. Selling fees up, payment fees up…. they they will be telling us they are making more money!!!
    How to destroy a great business 101…
    Won’t be long and it will be a mix of chinabay and dropshipbay.

  • Mark
    4 months ago

    It was never going to be in the interests of the seller.
    However the simple way to hurt them is to gradually move all your inventory across onto other platforms such as Onbuy.com where you get treated fairly and although the sales are not up to the ebay figures yet the gap is closing rapidly. We started with just s few listings and sold 1 to 2 items per fortnight and when we got to 50% of our inventory on there we saw sales of 12 to 14 items per week. This compared to 2,050 per week on ebay.

    Now we have all our inventory on there and it gradually rise from 80 per week in march last year to 1085 per week on Onbuy.com.

    So with more sellers joining all the time the growth is climbing. Oh and ebay sales are down month on month by around 7% every month so it will not be long when more sellers keep joining the attractiveness of the site goes through the roof.

    All we see on here is moaning about the treatment of ebay to the sellers, me included but until we all start to go elsewhere they will keep squeezing.
    when the pips pop it may be too late to find another outlet.

  • Paul
    4 months ago

    MIRROR.

    Another extra payout…Well what a shock. This will 100% hit the U.K & no doubt they will introduce a fee to withdraw the money at some point.

    Is anyone from eBay speaking to small business. Now i run a shop with around 3000 items.. ( second-hand clothing ) yes i hard section to be in, but over the last year or so, my out goings have gone up & up.

    + being down 55% on last year….. the usual ebay response ( ‘ i am certain your sales will surly pick up..’ if i had a £1 for every-time that was the answer i wouldnt be down this year. )

    I sell my items for an average of £9.99, ( Free u.k postage ) the suggested price for some of these items by eBay to sell them quickly are around £4.99 most of the time …

    Let me do some quick maths here.

    £1 say for the item cost for example, around £3 for the postage, ebays fee, & im having to use promoted listings, otherwise my sales dive, so thats around another 10%, ( then on top of the a suggestion of free returns, to get a boost, ) so say what another £3…, oh plus the vat on fees as well.

    I also seem to have a pattern after the GTC, seem to only be selling items listed within the last 2 months…. not older stuff like i used to… I guess this is because it means now.. everything will be up all the time, instead of ending and maybe making some temporary space..

    + all of the glitches, the 2 week wait for a ‘ specialist ‘ department to get back to me… who always just confirm what i said to them and dont answer the actual problem, and paste a-load of scripted paragraphs in there.

    Of which alot of the response contradict the answer. then they back track when i have found the answer.

    plus

    When an item abroad has been delivered attempted but the seller isnt sure where they have taken it. so contacts me, in which i contact ebay & they just say… not sure where the parcel is but dont worry we will refund them, and it wont affect me, ( i dont want them refunded, i want my customer to get the item ) after my own research i found the item on a local Sweden delivery company.

    plus i should

    ‘ respond to customers as soon as possible to boost sales…… i would if the app actually worked when im out and about.

    plus

    a website that is 30% up to date and always has problems & the other 70% from the 90’s

    * just to add, to the comment above i have been wanting to buy things lately from a few sellers. U.k Based. When i ask if they could delivery quicker than 7 days, they say no not possible, even for something small…. why? They are not u.k based.

    I could go on & on….. At the end of the day my business wouldnt be here if it wasnt for ebay…

    But for a business that has 100% perfect everything, feedback, listing specifics, requirements, a great customer service & actual care for the customer, im getting no care back for small business.

    The problem here? No other marketplace has the reach that ebay has, for used clothes. Even all the new apps, make up about 10% for me. so at the moment i am stuck…

    I was hoping not to do this… but i dont see any improvement without having to pay yet another fee for something i will have to close on ebay,,, really is a shame. It really is.

    I know alot of sellers wont have any problems… but thats from my side,

    Rant over.

  • paul
    4 months ago

    Just to add. i was looking for a mirror when i posted that.. thats why it says mirror at the top. sorry about that… Looks like i am glitching now.

  • jim
    4 months ago

    as long as ebay makes us a” profit” we dont care
    we know they dont love us
    they are a for profit business
    its up to us if we use them or not

    • 4 months ago

      Right behind you Jim…

      Whilst I continue to look at new markets and ways of selling I will still be selling on eBay, as long as, like Jim, I am returning a profit.

  • 4 months ago

    “eBay Managed Payments Fees to include $0.25 per transaction fee”

    So this strangely constructed “per listing payments fee” component is predicated on the number of listings bundled in a transaction only. The number of items within each listing are irrelevant.

    Thus if a buyer makes a purchase of multiple quantity items from one listing, and a single item off a second listing, the “per listing payments fee” component will be 50 cents.

    https://twitter.com/FidoMaster1/status/1132069826585927682

    To me it doesn’t seem completely implausible that a future eBay UA update just might MIRROR (h/t Paul) this payments TOU discontinuing front-loaded insertion fees in an effort to bolt a turbo on eBay’s inventory and GMV while recouping the insertion fee with this “per listing payments fee”. 🤔

    • Dav
      4 months ago

      Really how many more schemes can eBay keep coming up with? They are far beyond ridiculous at this point. Many sellers offer lower-priced items and count on multi-item purchases to make decent profit. Lower cost per item shipping that way. But now eBay reaches their greedy fingers into this as well. Most of these schemes always seem to aimed at smaller sellers, new sellers, and those that don’t pay close enough attention to the constant changes. eBay uses these tactics to trick people into taking more of their money, until the seller notices it or not. And what should enrage everyone is how they go about this. More often than not they don’t make any official announcement of these changes (schemes). They just make stealth changes to the terms of use as they see fit to accommodate their schemes. It happens constantly. How do they keep getting away with this conduct? Because eBay is run by lawyers? This company is in need to be investigated and exposed by a consumer advocate group , corporate watchdog, and/or news media. It’s long overdue.

  • jim
    4 months ago

    and again,
    we dont give a hoot what ebay do as long as were receiving our slice of flesh

  • 4 months ago

    I pieced together a few examples illustrating how hard this can hit sellers who frequently sell items from multiple listings

    👉 https://twitter.com/FidoMaster1/status/1134449154464407552

  • Steve
    4 months ago

    The way eBay has gone over the last 24 months: constantly pushing for better ‘customer service’ as they see it – leaving the door open for fraudsters, free post, free returns, longer returns window, several fee increases, changes to the search engine, pay for views, and now the new payment system, which is on it’s second price increase before it has even been fully rolled out – I have responded by closing my eBay store and decreasing my in inventory. My inventory is 20% of what it used to be and I am removing more items than I adding. eBay tell the value of my sales is down 95% on the last 12 months sales. 12 months ago sales were falling 30% a month on the year prior to that, even though I was expanding my inventory. I am convinced it will soon be eBaylibaba.com, eBay have their eye on China’s internal market, but they are unlikely to get a look in.

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