eBay’s New Managed Payments Fee Raises Seller Outrage

ebay managed payments

Sellers on the eBay marketplace are dead set on leaving and selling on another marketplace, or even at a flea market, if eBay makes its new managed payments service mandatory by 2021.

ebay logoThey resorted to this decision after receiving an email from the eCommerce company last
Monday telling them that they will be charged a per listing transaction fee of $0.25 starting Oct 1st this year.

Some sellers, especially those who sell multiple items from various listings, took to eBay’s discussion boards to express their disappointment at the company and its lack of concern for them, particularly on the additional cost they will have to shoulder.

“As a seller who typically sells multiple different items on an order, this is going to be a huge increase in cost once eBay forces everyone onto managed payments. On a communication I received today from EBay, I learned they are going to charge a transaction fee of $0.25 for each different item on a customer order – where PayPal only charges me one $0.25 fee for the entire order. For example I had a $31.45 order yesterday, with 7 line items. My PayPal fees were $1.16 – with managed payments my fees would have been $2.60. Im just sick about this.” – eBay Seller

In response to that, another seller said they will shut down their eBay store for good in 2020 and sell their leftover inventory at a flea market if eBay forces to migrate all sellers on its eCommerce platform to managed payments.

Has eBay forgotten its promise of savings?

When eBay introduced managed payments last year, it said online sellers can expect to see savings compared to their current payments processing fees. However, it seems that sellers of small ticket items are bound to spend more money than save with the layers of fees that come with this new service.

Aside from charging a payment processing fee, which is 2.7% of the total order value, eBay has added a $0.25 per listing transaction fee.

“The per listing payments fee will be charged for each listing contained in an order. If an order contains more than one listing sold, the per listing payments fee will be charged more than once. If a single listing contains multiple items, or multiple quantities of the same item, the per listing payments fee will be charged once.” – eBay

The good news is that those sellers who signed up for managed payments before June 4 will not be subjected to the new fees.

What are your thoughts on eBay’s managed payments system? Let us know in the comments below or over in our Facebook Group.

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For almost 10 years Dave has been involved with eCommerce with a particular interest in the marketplaces and the huge opportunities available for sellers when utilizing a multi-channel strategy. After a year of being the UK’s youngest eCommerce consultant it was the opportunity to start UnderstandingE with Matt Ogborne showing the world how to utilize Magento as the Third Generation of Multi-Channel software. Dave also recently started a YouTube channel called the Manc Entrepreneur (click YouTube icon link below to watch Dave's videos) where he discusses all things eCommerce and entrepreneurship aimed to help young entrepreneurs get started on their own journey. When Dave isn’t working his main interests include, Technology, Cars and throwing himself off high things into water.

6 COMMENTS

  1. Very concerned over this fee per item. This will definitely get passed on to the consumer and they will possibly no longer shop on eBay because prices will have to be higher with the new fees. Very very disappointed in the greedy behavior on eBay part. I mean geeze, how much could it cost to host a listing.

  2. eBay seems to be having money trouble and the only way to get out of it is to keep charging sellers. If a Buyer opens a return and is not honest it still counts against you. In return eBay will charge you 4% more on your fees. Now they are adding the $0.25 fee. They say sales tax is hurting sellers and causing sales to decrease on eBay. They can’t sell what a seller is not willing to put on eBay. We have cut our sales down by almost 50%, we are continuing to cut as they keep charging us more. I am paying almost the same fees to eBay now that I did when I had not cut my sales. They need to take a look at what they are doing and look in the mirror and put the blame where it needs to be! I have not talked to one person who is a seller who is happy with eBay in a very long time.

  3. Ebay forcing sellers to opt into the managed payment system will kill my ability to get working capital loans. On top of that most people are already accustom to the way payments are made on ebay. Ebays reasoning for doing this makes no sense at all You can already check out without a paypal account! You can just use your credit card. What other payment method can you add? Ebay needs to stop killing small sellers or there will be no ebay. EBAY you are greedy and you know it! Shame on you!

  4. Have been seller on ebay for 11 years and $1 million in sales, with ever increasing costs both from them and post office. With the advent of forced managed payments – they are taking our financial decision process away from us just so they can increase their bottom line. NO More! We are weaning away from them and look forward to the day when we Don’t do business with these leeches. And our regular customers will thank us for it!

  5. After 17 years of eBay selling, now combining my inventory into lots, not buying anything new for weeks now. I’m selling out and getting out. Their business plan and mine are now so far apart that I’m actually looking forward to cutting that cord.

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