eBay Managed Payments Frustrates Sellers Again With Payout Failure

eBay sign at its corporate offices

eBay sellers went on social and community forums complaining that scheduled payouts from the eBay Managed Payment system were not showing up in their bank accounts.

The company initially told sellers to check with their banks (likely a boilerplate response), but then later issued a statement:

“There was an issue that affected payouts for a number of managed payments sellers on December 2nd, 2020. This issue has been resolved and all affected payouts were re-sent on December 2nd.

“We do not expect sellers to experience any delay in receiving their funds. Depending on your bank, your payouts should be reflected in your bank account in the next 1-4 business days.  There is no action for you to take at this time. 

We apologize for any inconvenience.”

There is no word from eBay about what caused this problem with payouts this week. But any issues with its eBay Managed Payments system immediately gets many long-time sellers upset that are not happy about being forced into the program versus staying exclusively with PayPal.

eBay Managed Payment’s Rocky Start Continues To Dog The Program

eBay’s Managed Payments program had a rocky roll out as the company poorly explained some of the beta restrictions which led to sellers becoming infuriated that they could not accept PayPal payments during that period.

Equally, buyers did not understand that sellers that had opted in to this new payments program could not accept PayPal and become angry with sellers who appeared to be “refusing” to accept PayPal.

Additionally, many sellers used PayPal as a defacto bank account using the funds from sales to pay for shipping labels, business services, and even more inventory. PayPal’s business debit card made it easy for sellers to avoid having to maintain a separate business checking account.

Just the simple omission to not allow sellers to use funds from eBay sales to pay for shipping labels created a lot of uproar. Now sellers had to use another funding source (credit card or bank account) to pay for the label just to complete the transaction.

eBay seemed to have misread how sellers were operating on their platform. Many sellers did not have separate business bank accounts and used PayPal to keep business and personal finances apart. The shipping label issue alone comingled finances for many sellers, adding to more headaches on how to track business expenses.

While many issues have been resolved, sellers can again accept PayPal and funds from eBay sales can now be used to buy shipping labels, the beta rollout was hampered by poor communication and implementation.

New eBay sellers are likely to have a favorable view of today’s eBay Managed Payments as the system is on par with many other marketplaces and services.

But with the initial rollout being as rocky as it was, any subsequent issue such as yesterday’s payouts failure will bubble up seller negativity again. It also acts as a reminder that eBay still has a long way to go to rebuild trust in its Managed Payments program with a large base of long-time sellers on the platform.

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