eBay Has Only About 3,500 Sellers in eBay Managed Payments Beta

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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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  1. 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?

  2. 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!


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