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.

17 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.

  6. I’ve been selling on eBay for over 15 years and I’m sad to say that it is time to part ways. They seem to have forgotten that sellers are their bread and butter.
    treating us like milk cows will no longer be tolerated. So many ecommerce sites will wecome our business and we will take our customers with us !

  7. Ebay accidentally sent me a lengthy email today stating that on October 22nd you would be forced to join managed payments or else you wouldn’t be able to list any new items. This layed out alot of technical policy. They then sent another email a few hours later saying the previous email was sent in error and to disregard it. I just wanted to let people know be aware that this looks to be coming down anyday now!!! B.S

  8. BEWARE!!! Heres the email EBAY accidentally sent me today and then sent another one saying it was sent in error!
    To list items after October 22, 2019, you are required to register for managed payments eBay As a follow up to our previous email on August 22, 2019, your account is required to participate in managed payments. This is a reminder to sign up at ebay.com/paymentsregistration before October 22, 2019 so that you can continue to create new listings and avoid any interruption to your business. Based on our review of your account, the features and tools you use on eBay are fully compatible with this payments experience. Managed payments delivers a more streamlined experience for both buyers and sellers. Buyers have more ways to pay with credit, debit and gift cards, Apple Pay, Google Pay, PayPal, and PayPal Credit. Sellers have one place to sell and get paid, with payouts automatically deposited to their bank account. Sellers who have already managed payments joined report high satisfaction and recommend it to other sellers1. Most sellers on managed payments can expect to see savings compared to their current payments processing fees. Further, the per listing payments fee is waived through September 30, 2019. Sellers can use our fee calculator to see what this means for their costs. To receive specialized payments support at sign up or for ongoing business needs, call us at 800-456-3229. Please register for managed payments by October 22, 2019 to continue listing as usual. Frequently Asked Questions: • What are the benefits of managed payments? Managed payments offers more ways for buyers to pay with credit, debit and gift cards, Apple Pay, Google Pay, PayPal and PayPal Credit. Payouts will be automatically deposited to your bank account. Sellers receive consolidated reports, simplified seller protections, one monthly bill for all fees, and access to dedicated customer support. Newest features provide sellers with a single unique number to reconcile from order to payout, and allow them to issue full or partial buyer refunds, directly on eBay or via a third-party platform. Sellers can now also issue more than one refund per order, up to the full order amount. Those who integrate using eBay APIs can update their integrations to view payout information. To learn more about managed payments, visit ebay.com/payments. • Why am I getting this notice? Our records indicate you have been previously invited to managed payments – eBay’s simplified seller experience to sell and get paid. Based on our review, the features and tools you use on eBay are fully compatible with managed payments and accordingly, you have been selected to participate in managed payments by October 22, 2019. • What happens on October 22, 2019? Starting October 22, 2019, you will be able to create new listings only after you have enrolled in managed payments. This message provides you advance notice of the upcoming change so you can choose the best time to join, prior to the effective date of October 22, 2019. • What happens to existing listings? Once you’ve signed up for managed payments, all of your existing listings and buyer feedback will be automatically updated and will reflect the different ways your buyers can pay. If you do not join, existing listings will still continue as is till they need to be renewed. • What is currently not supported in managed payments? We currently do not support the Global Shipping Program for sellers who are participating in managed payments. However, all non-US buyers can shop and pay on eBay.com as they do today. If they are buying from a seller who has opted into managed payments, the non-US buyer can pay using credit or debit cards (Visa, Mastercard, American Express, etc.) and the seller would ship internationally on their own. Charity and donations are not yet supported on managed payments. We will automatically revise listings with charity or donations to remove this option. Payouts will be paid directly to your bank account. Since payouts are no longer sent to PayPal, there’s no need to transfer funds between accounts. Depending on your bank, you can typically expect payouts to be sent to your bank account within 2-4 business days of an order confirmation. • How are refunds, chargeback, and claim obligations handled? As a managed payments seller, you will need to work only with eBay for support and service on claims, refunds, and returns. Any refunds, chargebacks, or claim obligations for transactions processed on eBay prior to October 22, 2019, or before you join managed payments, whichever is earlier, should be handled through PayPal. Learn more at Seller Center. Twitter LinkedIn Facebook Facebook Pinterest
    Learn more to protect yourself from spoof (fake) e-mails.

    eBay sent this

  9. I too just found the “forced to use managed payments”. Uh….NO. PERIOD. NON NEGOTIABLE. The simple reason is with PayPal payments money is 1. IN MY BANK the next day AND could be instant if I paid a small fee OR the funds are available via my PayPal debit card. EBay passes off “direct to your bank account in 2-4 days” as if it’s just so much better.

    WHAT. ARE. YOU. SMOKING. EBAY??

    2-4 days is NOT easier, better and definitely not faster than PayPal.

  10. At J.B. so glad you posted that !!!
    I got the same correspondence and read it very late last night. I decided that today I would opt-out of eBay’s Global Shipping Program today (check YouTube for easy instructions to opt out if you’re interested, anyone) and then see how it rolls out with eBay when I’m not self opted-into any international shipping of any kind.
    If they force me to ship internationally or start charging fees significantly higher than what I’m paying now, I’ll definitely close down 100% my eBay business.
    I live very far out in the country and it takes me 20 minutes to make the post office at the least. It’s already hard enough as it is and with their new screwed up shipping interface which takes more steps to complete each order, and is more annoying in several ways, eBay can go suck it if they think I’m going to do the song and dance with international shipping and significantly higher fees on domestic sales.
    There are much more profitable and higher earning things for me to do in my life. I chose eBay to do because of it’s simplicity and because of how much fun it is to flip antiques. I love the antiques business, but not if it becomes something that’s not fun to do.
    EBay seems to be getting stupid again like they were in 2006/2007 when there was a huge exodus of sellers, a good tranche of which never came back. It took years and years for eBay recover…… actually it could be argued that they never did completely recover and are now paying the price, which brings us around what they’re doing now, the same thing. it’s looking like a downward spiral.
    Maybe it’s worth looking into taking a short position on their public stock, huh?

  11. I’ve been selling on eBay for 17 years. I was forced to use managed pmts and sold an item 1 week ago and still haven’t seen this. My credit card gets charged the shipping fee instead of it being taken out of the pmt received.

    These changes are awful.

    I’m tired of eBay and its changes. There are other places to sell and Amazon may be easier and better

  12. WHY WHY WHY is eBay forcing sellers into their managed payment account? The current system using Paypal has worked flawlessly for me and my buyers for over 20 years. If I want money out of my Paypal account all I have to do is request a transfer into my bank account and it is there the next day, no fees. Or, I can use a Paypal debit card to make purchases or withdraw money from an ATM. PLEASE eBay..if it aint broke don’t fix it.

  13. I called eBay today 9-23-19 and went through three people. The final person Josh said I could close my account but they would not opt me out of Managed payment. Does anyone have a current name or number to call to get out of managed payments program until they fix it? thanks!

  14. I’ve gotten several Emails and phone calls from eBay telling me I have untill Oct 22nd to Opt In to managed Payments and if I don’t, then I won’t be allowed any new listings nor a renewal of existing listings. When i asked if this was absolutely required, they affirmed that is was. For some really strange reason, I’ve always thought that Opt or Opting was short for Option, which means there’s more then One Choice!

  15. Switched to Ebays managed payments in August 2019. Has been nothing but a headache. Takes days to get access to my money up to 7 days in some cases. I am expected to ship the item out with in 24 hours and I do not get the money for days. How can a company whom has had Paypal basically lay out a blueprint for them to follow screw things up this much. It has to be a bunch of idiots designing there systems. I have spent up to 2 hours a week just contacting them to solve problems. Now I noticed if I refund a buyer say for a shipping discount they are taking extra for the refund. A 13 dollar refund cost me 13.54. What the hell? Crooks and Idiots. That is what Ebay Headquarters is.

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