But with Managed Payments, eBay is taking control of the payment process and handling it in-house. This means that eBay will now be the primary payment processor for all transactions on its platform.
What does this mean for eCommerce businesses selling on eBay? Here’s what you need to know.
What is Managed Payments?
Managed Payments is eBay’s new payment processing system that allows sellers to receive payments directly from eBay. Instead of relying on third-party payment processors like PayPal, sellers will receive payments directly into their bank account. eBay will handle all payment processing, including fraud detection and chargebacks.
Why is eBay launching Managed Payments?
eBay is launching Managed Payments to provide a more streamlined and simplified payment process for its sellers. By taking control of the payment process, eBay can offer a more consistent and reliable experience for both buyers and sellers. Additionally, by handling payment processing in-house, eBay can offer lower payment processing fees compared to third-party payment processors like PayPal.
What are the benefits of Managed Payments for sellers?
There are several benefits of using Managed Payments for sellers. First and foremost, Managed Payments offers a more streamlined payment process that simplifies the payment process and eliminates the need for third-party payment processors. Sellers can receive payments directly into their bank account, and eBay will handle all payment processing, including fraud detection and chargebacks. Additionally, Managed Payments offers lower payment processing fees compared to third-party payment processors like PayPal.
Another benefit of Managed Payments is that it provides sellers with a single view of all their transactions on eBay. Sellers can see all of their eBay transactions in one place, including sales, fees, and payouts. This makes it easier for sellers to track their sales and manage their finances.
What are the fees for Managed Payments?
Managed Payments fees vary depending on the category of the item being sold and the payment method used by the buyer. For most categories, the fee is 2.7% of the total sale amount, plus a fixed fee based on the currency used. The fixed fee is $0.25 for US dollars and varies for other currencies. For example, the fixed fee for Euros is €0.25.
For sellers using Managed Payments, there are no additional fees for PayPal or other third-party payment processors. All payment processing fees are included in the Managed Payments fees.
When will Managed Payments be mandatory for all sellers?
Managed Payments is available to sellers on a voluntary basis, but eBay plans to make it mandatory for all sellers in the near future. By the end of 2023, eBay plans to have all sellers on Managed Payments.
How do sellers sign up for Managed Payments?
Sellers can sign up for Managed Payments by going to their eBay account settings and enrolling in the program. eBay will review the seller’s account and notify them once they are approved for Managed Payments. Once approved, the seller will need to provide their bank account information to receive payments.
What are some common issues with Managed Payments?
While Managed Payments offers many benefits for sellers, there are some common issues that sellers may encounter. One common issue is payment holds, where eBay may hold payments for a certain period of time to ensure that the transaction is legitimate. Sellers may also experience longer processing times for refunds, as eBay needs to review and process refunds before releasing funds to the seller’s account.
Another issue that sellers may encounter is disputes and chargebacks. eBay will handle all disputes and chargebacks on behalf of the seller, but sellers may need to provide additional information or evidence to support their case.
Final Thoughts on eBay’s Managed Payments System
eBay’s new Managed Payments system offers several benefits for eCommerce businesses selling on the platform. With Managed Payments, sellers can receive payments directly from eBay and eliminate the need for third-party payment processors. Additionally, Managed Payments offers lower payment processing fees compared to third-party payment processors like PayPal. However, there are some common issues that sellers may encounter, such as payment holds and longer processing times for refunds. Sellers should be aware of these potential issues and take the necessary steps to ensure a smooth transition to Managed Payments.
If you are an eBay seller, it’s important to understand the implications of Managed Payments and how it may affect your business. While the transition to Managed Payments may be challenging for some sellers, the benefits of a streamlined payment process and lower payment processing fees may outweigh the potential issues. If you haven’t already enrolled in Managed Payments, now is the time to do so to ensure a smooth transition and avoid any potential disruptions to your business.
Looking to stay ahead of the game in eCommerce? Purple Cow offers top-notch services that keep you on track with eBay’s new Managed Payments system. Our team of experts can guide you through the process and ensure your business runs successfully. Don’t get left behind – choose Purple Cow’s eBay marketing management services for all your eCommerce needs.
