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.
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.
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