The 5 Most Important Things to Know About eBay Managed Payments
eBay managed payments is coming! Starting in late July, eBay will be requiring all sellers to use eBay Managed payments.
In October, 2018 when eBay invited me to switch from Paypal to eBay Managed Payments, I opted in. eBay is constantly adapting to the marketplace, and over the past fourteen years I’ve continued to adapt with them.
In fact, eBay made a video of me talking about eBay Managed Payments and played the video in the general session at eBay Open 2019. You can view the video on the homepage of my website: https://shari-sells.com/
After using eBay Managed Payments for a year and a half, I see that eBay is now extending it to all eBay sellers, AND requiring all sellers to use Managed Payments when they roll it out in late July.
We eBay Sellers are an independent bunch who do not like being told what to do! That’s part of why we’ve chosen to be our own boss and sell on eBay in the first place.
So when eBay changes things and tells us that we’re going to have to change what we’re doing, we tend to react and be cranky about it. While there are lots of changes to get used to, overall I’m really happy with it!
There are some differences from using Paypal so not only do I want to explain Managed Payments to new sellers, but I also want to tell existing sellers who are used to using Paypal, what to expect.
So what are the 5 things you should know about eBay Managed Payments?
- There are More Options for Buyers
- In July 2020 final value fee will be taken out when the buyer pays
- The Fee Structure is Different
- It’s easier to see your money
- It saves hours on accounting
1. More options for Buyers–eBay Managed Payments enables buyers to pay with the ways they are already comfortable paying
One hurdle shoppers have had to buying on eBay is that they couldn’t just use the payment method that they are used to. It’s inconvenient for them. With eBay Managed Payments they can pay with:
- Apple Pay
- Google Pay
- Paypal
- Credit card
- Debit Card
2. Beginning in late July eBay will deduct the final value fee when the buyer pays for the item
This is big news for the eBay Seller Community!
For years I and other sellers have been asking if eBay could take their fee out of the buyer’s payment immediately, instead of invoicing us at the end of the month for those fees. eBay’s final value fee (the fee they charge when your item sells) varies by category but most categories are currently 10%. I’ve been selling $10,000 to $30,000 per month which means my monthly final value fees can be anywhere from $1,000 to $3,000 at the end of the month. I’ve wanted eBay to take their fee immediately so that I have a better sense of how much money I actually have at any given time. It can be difficult to save and come up with the lump sum at the end of the month–especially in financially difficult times.
eBay will still invoice you monthly for insertion fees, upgrades, promoted listing ad fees, store subscriptions, etc. but having final value fees deducted immediately will reduce my monthly invoice significantly.
Read eBay’s Response to Covid-19.
3. The fee structure is changing
Instead of a final value fee from eBay and a separate payment processing fee from Paypal, you will now have one final value fee from eBay (that’s including the payment processing fee).
eBay will be charging a 30 cent fee on all orders plus one final value fee which is a percentage of the total amount of the sale (including shipping and sales tax paid by the buyer). The fees will vary based on the category, but the bulk of categories will be 12.35% on the total sale price up to $7,500 and 2.35% of the total sale price for the portion over $7,500 for sellers without a store or with a starter store. Sellers with a Basic, Premium, Anchor or Enterprise Store will be charged 11.5% for the total sale price up to $2,500 and 2.35% on the portion of the sale over $2,500. For a full list of fees for all categories go to: https://www.ebay.com/help/selling/fees-credits-invoices/selling-fees?id=4822
The savings on Final Value fees is one of the many benefits of having a store on eBay. I’ll cover all the eBay Store benefits in another article.
4. You can gauge how much money you have coming right from the Payment tab in Seller Hub
If you’ve already been using Paypal, you are accustomed to an account that works a little like a bank account. With a Paypal debit card you can access the money immediately after the buyer pays, you can use your Paypal funds to purchase other items or make payments, and of course you can transfer the money from Paypal into your attached credit card or bank account.
With eBay Managed payments it is not like a bank account. eBay transfers the total amount for your sales for the day into the bank account of your choice. You can choose a daily, weekly or monthly deposit frequency. Transfers can take a few days from the time the buyer pays. In my experience, the money is in my bank account within about a week or less after an item sells. In the screenshot (below) you can see pending funds, Available for payout and Last Payout. Under results you can view each payout, the number of transactions for the payout and the amount. You can also click on the number of transactions to view the details of each transaction.
I find myself on this page when I’m paying bills and trying to see how much money I have coming in. I log into my bank account and match up the most recent payouts to see which have posted to my bank account. Then I add payouts that have not posted yet and the Available for Payout and Pending Funds to determine where I stand financially.
Then I go to my active listings, create some mark-downs to move some product and list more items.
5. It saves me hours per month on accounting
Before I was using eBay Managed Payments I was downloading Paypal directly into Quickbooks. In 2017 I actually reached the maximum number of transactions allowed in Quickbooks which caused half the transactions to be imported, but not the rest. As a result. I had to create a whole new company file on Quickbooks.
With managed payments, I just have the actual deposits in my bank account to reconcile on Quickbooks. Each deposit is a consolidation of all my sales each day. And as I mentioned earlier, you can opt to change your deposits to weekly or monthly for even less accounting.
eBay is offering a discount for ONESAAS which will integrate eBay with your accounting software.
A couple of other tidbits for existing sellers already using Managed Payments:
eBay’s Global Shipping Program (GSP) is now available with Managed Payments.
You can set up your shipping labels to be charged to your pending funds in addition to using Paypal to pay for shipping labels.
For more information about eBay Managed Payments you can go to: https://pages.ebay.com/seller-center/service-and-payments/managed-payments-on-ebay.html
And feel free to email me if you have any questions at shari@shari-sells.com
Learn More About eBay Shipping here : 5 Things You Need to Know About Shipping on eBay
{ "@context":"http://schema.org", "@type": "BlogPosting", "image": "https://shari-sells.com/wp-content/uploads/2020/05/The-5-Things-you-Should-know-about.png", "url": "https://shari-sells.com/the-5-most-important-things-to-know-about-ebay-managed-payments/", "headline": "The 5 Most Important Things to Know About eBay Managed Payments", "description": "eBay managed payments is coming! Starting in late July, eBay will be requiring all sellers to use eBay Managed payments. In October, 2018 when eBay invited me to switch from Paypal to eBay Managed Payments, I opted in. eBay is constantly adapting to the marketplace, and over the past fourteen years I’ve continued to adapt with them. ", "datePublished": "2020-05-24", "dateModified": "2020-07-14", "inLanguage": "en-US", "isFamilyFriendly": "true", "copyrightYear": "2020", "copyrightHolder": "ABC", "author": { "@type": "Person", "name": "Shari Smith" }, "publisher": { "@type": "Organization", "name": "Shari Sells", "url": "https://shari-sells.com/", "logo": { "@type": "ImageObject", "url": "http://shari-sells.com/wp-content/uploads/2019/12/ShariSellsLogo.png" } }, "mainEntityOfPage": "True", "keywords": [ ], "genre":["SEO","JSON-LD"] } { "@context": "https://schema.org", "@type": "ItemList", "itemListElement": [{ "@type": "ListItem", "position": 1, "name": "More options for Buyers–eBay Managed Payments enables buyers to pay with the ways they are already comfortable paying", "url": "https://shari-sells.com/the-5-most-important-things-to-know-about-ebay-managed-payments/#1_More_options_for_Buyers8211eBay_Managed_Payments_enables_buyers_to_pay_with_the_ways_they_are_already_comfortable_paying" },{ "@type": "ListItem", "position": 2, "name": "Beginning in late July eBay will deduct the final value fee when the buyer pays for the item", "url": "https://shari-sells.com/the-5-most-important-things-to-know-about-ebay-managed-payments/#2_Beginning_in_late_July_eBay_will_deduct_the_final_value_fee_when_the_buyer_pays_for_the_item" },{ "@type": "ListItem", "position": 3, "name": "The fee structure is changing", "url": "https://shari-sells.com/the-5-most-important-things-to-know-about-ebay-managed-payments/#3_The_fee_structure_is_changing" },{ "@type": "ListItem", "position": 4, "name": "You can gauge how much money you have coming right from the Payment tab in Seller Hub", "url": "https://shari-sells.com/the-5-most-important-things-to-know-about-ebay-managed-payments/#4_You_can_gauge_how_much_money_you_have_coming_right_from_the_Payment_tab_in_Seller_Hub" },{ "@type": "ListItem", "position": 5, "name": "It saves me hours per month on accounting", "url": "https://shari-sells.com/the-5-most-important-things-to-know-about-ebay-managed-payments/#5_It_saves_me_hours_per_month_on_accounting" }] }