eBay Has Only About 3,500 Sellers in eBay Managed Payments Beta
Reading Time: 2 minutes One of the early numbers released from the slide deck for the earnings call is a breakout of eBay’s Managed Payments program.
The beta, which started about six months ago and is limited to US sellers only, only has about 3,500 participating sellers at the end of Q4, 2018. In Q3, 2018, the company reported 2,500 participating sellers.
eBay claims that it limited onboarding to this new program during the holiday season, presumably to explain the slow growth of participating sellers in Q4.
So far, the program mediated $143 million in sales (as of 12/31/2018). The company claims participating sellers are saving approximately 25 percent in payment processing fees, which is a total savings of $1.2 million.
Slow Start
It seems the numbers show there are a lot of apprehensive sellers who are not willing to join the payments beta program.
While eBay is restricted to only manage a maximum of 5 percent of US transactions during the first year (US GMV), the $143 million over the two full quarters is well below the 5 percent mark.
In the US, eBay’s GMV for Q3 and Q4 totaled $19.8 billion, which would allow for nearly 1 billion in transactions that could be processed by eBay Managed Payments.
The bottom line is the biggest hurdle for many sellers is the inability to continue to accept PayPal while in the beta program.
Until the company fixes this shortcoming sometime in the summer of 2019, it appears many sellers will just wait and see on eBay Managed Payments.
READ MORE: New eBay Payments Beta Comes with Significant Restrictions
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Richard Meldner
Richard is co-founder of eSeller365. He has over 17 years of experience on eBay which includes tens of thousands of sales to buyers in over 100 countries and even has experience with eBay’s VeRO program enforcing intellectual property rights for a former employer. And for about two years Richard sold products on Amazon using Amazon FBA in the US.
To “relax” from the daily business grind, for a few weekends a year, he also works for IMSA as a professional race official.
We are waiting for this to become available in Australia which I have heard will be mid year. It seems like everyone will be better off (besides Paypal) once managed payments will be in full working order. More payment options and lower fees. I can see why US eBay stores are hesitant to move over to it without Paypal. Would be interested to know if there have been any nightmare stories of sales tanking after moving over?
I hate the managed payment system. I have a small store. I only do maybe 4k a year. I just had to use my dc to pay the tax on shipping supplies. My PayPal account is only used for my eBay business. I can see at a glance my expenses and income from my store. It makes absolutely no sense for me to use a different account for any of my expenses. DH and I don’t believe in credit cards so that means I now have to bring my bank account into this. Ridiculous!
I started with managed payments mid July 2019. I thought it would be easier. I called to opt out when I realized it takes 5-7 days for the money to hit my bank account. I am on eBay and PayPal daily and it used to take only 2-3 days for transactions to show up in my bank.
Ebay does not let you opt out! DO NOT DO IT! They hold on to your money for 3-4 days before they release it.
I also noticed I no longer receive a buyers email address.
Like Leslie above, I am not going to do this. I will continue with ebay till they force me to and then I will close down my stores. All my customers (I HAVE A HUGE PAYPAL TURNOVER) want to use paypal…My whole business is within paypal. Easy to track and doo all facets and my money is there ready to use daily! Ebay is currently taking 3-4 days to make deposits and the banks are taking another 3-4 days to release those pending deposits (now up to 7-10 days depeding on weekends) … yet all this time I am expected to ship all items within my ship time using my money while waiting a week plus to get the actual funds. And no one is speaking of the rights ebay is making you agree to so they can go and pull out “whatever” from your checking account with no your consent. And just wait till the banks get tired of processing these daily deposits. That banks are going to begin charging a process fee you reach you deposit limit…My bank allows 50 before it begins charging…When they find out there can make bookoo money the limit will drop and it will be a blood bath taking money. 20 years jumping through ebay hoops, this is one I am not jumping through.
The only point I will make is that if your bank is taking 3 to 4 days to release or process ACH deposits (which is what eBay, PayPal, and anyone transferring money is using), then it is time to switch banks! I think the fact that so many small sellers use PayPal to pay for shipping and other business expenses is really the biggest issue. eBay can’t match that as all monies have to flow to a bank account.
Richard
You can see the buyers email address. You will have to click on the buyers ID no. of purchase item. You click on it and you will be able to see the email address.
.contact Ebay customer service and they will guide you
I have been selling on Ebay since 2001, stopped for a few years and then started back up 2 years ago. I do about 4K a year, but it is a much needed supplement to my retirement income. When I’m paid it only takes 1 business day for money to go from Paypal to my account. I ship through Ebay and Ebay shipping takes the money from my paypal account to pay for shipping. I do not ship free, so when buyers pay me it’s for item and shipping. Are you telling me that if I switch to this I will have to pay for shipping out of my personal bank account before the funds from buyer (which include shipping fee) are in it? How can they possibly expect small sellers to benefit from that. I can’t pay for something with money I don’t have.
I trade on eBay and Reverb and use both their version of managed payments and Paypal. From my experience just this year only, eBay managed payments take twice as long to receive the actual funds in my bank account as the other 2 payment systems. PayPal about a day faster than Reverb payments, but eBay about 3 days longer. That sure put a crimp on cashflow. My last 2 transactions with eBay managed payments, one took 4 days and the other took 5 days.
DON’T SIGNUP FOR THIS IF YOU CAN AVOID IT. eBay paints it as efficient, fast and convenient. Everything is rosy but if far from it.
When I first signed up for managed payments I thought it would be a good thing because now I could accept other forms of payment such as credit cards. I am not happy at all with this new system!! I don’t make that much money and it’s taking 3-4 days for the money from the sales to reach my personal account! WHY SO LONG!! So I end up having to pay a lot of shipping cost out of my own money ! Plus, you basically have to open a separate checking account to keep things organized. Business purchases vs personal.
I called to opt out and THEY WON’T ALLOW YOU TO OPT OUT!!
I wish I had seen this blog before I thought it was a good idea to sign up for it. I’m so, so sorry I switched.
DON’T DO IT!!!
I just got this email from ebay:
” Hi Jerry,
We sent your payout of $485.00 on Aug 23, 2019. It will take 3-4 business days to reach your bank account. For more details please visit the selling section of My eBay.”
The paypal payment for my sold item was made by the buyer on 8/21. So who gets the interest on this money while it slowly floats over to my bank? 5-6 days interest on daily total ebay sales of tens of millions could add up to a nice payday. What gets me is that an internet based company is so slow to get the money to my financial institution. Paypal was able to get it done more quickly. What… is ebay sending paper checks by mule train?