Saving to Collection Ebay System Errors Pease Try Again for Days
Ready for eBay Managed Payments?
Well, ready or not, they are on their manner! (And you lot may already have switched over).
Yep, eBay will no longer be using Paypal as their payment processor.
To be honest I was not excited about the announcement two years ago. Just was even less excited when information technology was actually happening.
Who loves change?
Nope. Not me.
I've been using Paypal every bit my payment processor for eBay for nigh xx years now!
We are now a few weeks into the new Managed Payments system.
And y'all know what? Information technology's non all bad. Like anything, at that place are pros and cons and things that will be challenging.
There are definitely things about eBay Managed Payments that I'm not thrilled out, but there sure are some bully benefits to it that I'1000 surprised about!
With that said, and as much as I hate to say information technology, I think the pros may outweigh the cons in the case of eBay Managed Payments.
So let's jump into the good, the bad, and he ugly of Managed Payments.
EBay has assured its users that everyone will be switched over to this new organisation by the terminate of 2020, so in that location'southward no time like the present to find out how eBay Managed Payments will affect you and your business. This includes the positives and the negatives!
As of August fifteen, we switched to the new system then far later a total of five transactions with the new arrangement, I'thousand surprised past its benefits. With our express experience with managed payments, we are giving it a thumbs upwardly!
Time will determine if we change our minds.
And so let's unpack the pros and cons of eBay Managed Payments.
Cons of EBay Managed Payments
No Immediate Payment Options
Ane of the great benefits using Paypal was the ability to access our funds immediately.
As an established seller, every bit before long every bit someone purchased an item from me on eBay, the money showed upwards in Paypal.
Not merely did information technology testify up, I could pull it out of Paypal as presently as it landed in our account.
This was peachy for our business, as well-nigh of the items that we sell are big, high dollar items that require freight shipping.
Freight shipping our items cost in the up of $100-$300 to transport. Using Paypal, we had immediate admission to those payments right away. This immune us to employ the money to pay for our freight aircraft costs and whatsoever shipping supplies needed to get our sold items to their new owners.
Now for the negatives. Unfortunately, and not without complaints, eBay Managed Payments has a 3-v business day lag before our payments are deposited in our bank account.
Nosotros have our managed payments set to pay out to our banking concern account daily. But the payments we receive are for sales we fabricated three-5 business days before we get the money in our banking concern business relationship.
Non ideal and this new style of doing business causes two concerning new bug in our business.
Delays in Our Handling Time:
Not having access to our funds immediately slows our shipping time. Apparently and simple!
We volition not be shipping our items out to anyone without having the money in our business relationship. Often our eBay sales are large, expensive items anywhere from $1,000 to $15,000.
Yous tin bet we are non excited about or even willing to ship something that expensive out without knowing nosotros have the money transferred to our business relationship.
We've had to make certain all our freight listings are set for iii-five days handling time in club to make sure the coin has been transferred to our account.
Information technology would be disastrous if we shipped a $15K detail out just to notice out the heir-apparent cancelled the transaction and the money was non transferred to our account!
At present we need to note that most of our large turn a profit items are set to 3-5 days handling time already.
Most people expecting a freight shipment do not expect it the next solar day and know that it will accept some time to put on a pallet to ship.
For our smaller items nosotros nonetheless offer a 1-3 mean solar day treatment time.
If you accept whatever doubts about the coin in your business relationship yous tin can always phone call eBay, (Or more recently take them telephone call you), to verify the funds are there.
Paying Up Front end for Freight Charges:
As virtually of you lot know, with our concern model selling high-dollar, big items that demand to be freight shipped, not getting our coin immediately poses a problem.
Although freight shipping isn't as complicated every bit people think it is, there is a cost to getting the supplies together to build the pallet and the aircraft tin exist anywhere from $100-$500.
This corporeality is included in the transaction for the sold particular. So when we are delayed receiving it, we are stuck coming up with the funds before those funds are made available in our account.
When using Paypal, we had access to our funds immediately. When someone purchased our items, we could access the coin right there. Nosotros accept a Paypal credit card that we could access to purchase the pallet supplies and likewise pay for the freight shipping costs earlier shipping to the buyer.
Unfortunately, because of the 3-5 business day delay in receiving funds, we are stuck paying out of pocket.
Considering freight aircraft is a trivial more complicated than shipping Fedex or UPS, we get started on our pallets as presently as the sale happens. That way we tin get the item out in a timely manner. This makes our customers super happy!
We don't want to stop this, and then as presently as the auction happens, nosotros are immediately preparing the pallet for shipment. In doing this, we like to purchase our freight shipping labels equally soon every bit we tin can to upload the tracking number to the customer.
Due to the three-5 business days delay in getting funds, nosotros've had to make some changes in our business organisation budget to have the funds bachelor to pay for these things BEFORE we have the sale money available to united states of america.
It's not platonic and the delay in receiving funds puts a damper on our bank business relationship, specially when we are shipping multiple freight items. This is a new change for united states and something that we take to suit to in our business concern and program for.
Complicated Accounting
Paypal was and so simple and easy to employ. Or mayhap I was just used to using it and comfortable with it over 24 years. So many skillful benefits with Paypal:
- Immediate access to funds
- Paypal Credit Bill of fare for Like shooting fish in a barrel Admission
- All Payments and Fees In One Easy Report
We loved the idea that subsequently you become established, when y'all got paid, you had full access to the funds without filibuster. Paypal became our business organisation account with all of our profits in ane place.
We would use our Paypal credit carte and apply the funds available through Paypal for shipping supplies, freight labels, and anything else that was business organization related.
At the stop of the year, nosotros had i study to print with all of our purchases through Paypal, fees, payments we received, and much more. It was uniformed and piece of cake to get the information.
We loved it and information technology made our life easy. (Except for that one fourth dimension they tried to agree $25K of our money...)
Things will be a bit more complicated at present with eBay Managed Payments. Instead of using Paypal's credit card and having access to the funds, nosotros will have to open up a divide business account.
Nobody wants to sort through the craziness of sorting through eBay deposits in their regular bank account.
And so we decided to open up a separate online checking business relationship with CIT Bank.
They take no fees (unless international) and you lot tin can get a debit card for your business relationship (and no ATM fees). They take both website and mobile banking functions
We simply recently started using it, just then far so good! (We did attempt 4 others before we settled on CIT Bank!)
The biggest drawback is you have to open up your account with $100. Not the end of the world, just a little inconvenient.
Check out CIT Bank to use for your eBay account
Now I don't desire you to experience discouraged past the negatives about Managed Payments. It's not meant to be!
Let's switch gears and get to the good part. Let's talk about eBay Managed Payment Pros – And there are a few skillful ones!
Pros of eBay Managed Payments
Less Fees
Okay, at present this is a large ane for us.
Who doesn't love saving money, right?
I cringe sometimes when I see how much my eBay fees are at the terminate of the calendar month. It's groovy when we make amazing coin, but it sure isn't fun paying eBay when the fees are due.
There'southward good news with eBay Managed Payments – It volition cost you less!
Before managed payments, we would have two fees to pay: Ebay Fees and Paypal Fees. Combined it would be most 13%. We would pay eBay ten% for their part and almost 3% to Paypal for funding the transaction. When nosotros bought a store subscription, it was effectually 12% total for the 2 as we paid 9.one% to eBay instead of 10%.
All in all, we expected to pay 9.one% to eBay with a fee cap of $350.
For example, if we sold something for $4,000, we would only owe eBay $350. After the transaction was complete with Paypal, they would have their 3% of the $4,000 total.
We were pleasantly surprised after completing our first four transactions with eBay Managed Payments – Nosotros paid less – much less!
Because we sell such expensive items, the change in fees is a big game changer for u.s.! We sold a large commercial stove for $2,800 recently.
Using the former arrangement, nosotros would accept paid $334 between eBay and Paypal feels. With the new eBay Managed Payments arrangement, we paid $294! That's a savings of $40.
How the new system works is with a store subscription, nosotros pay 11.5% (combined final value fees and payment fees) on the get-go $two,500 and ii.35% for the corporeality over $2,500.
Anything over $2,500, we pay 2.35% on the difference. This saves u.s.a. quite a bit of money.
If you practise not have a shop, it's ok. You are withal paying less! You will pay 12.35% instead of xiii%. It's withal nice to pay less.
Some of y'all may have heard of our bus launder. We have it listed for $15K. This tin can equal a lot of fees! If we were still on our old arrangement, we'd pay $785 in combined fees. Just nosotros will salvage $217 with the eBay Managed Payments system paying simply $568.
To put information technology lightly, we are thrilled by the savings and yous should be too!
Saving coin makes the states happy and this is one of the all-time perks most this new system that we are really looking forrard to!
More than coin in our pocket is always the business end-goal!
No Outrageous eBay Fees Billed Monthly:
As I said before, since nosotros sell such big items, you lot can just imagine how much we paid in fees at the end of the month. Sometimes our eBay invoice would exist over $1,000!
And then at the cease of each month selling on eBay, I would sometimes take a big surprise and I would oft forget all about the eBay invoice in the excitement of my big sales!
Merely eBay didn't forget and at the terminate of the month, they would remove the fees from my Paypal account and it was a big striking.
One of the changes with Managed Payments is eBay at present removes the final value fee at the time of the transaction.
This is very helpful for united states of america and we really love this new alter. Nosotros like to know our bottom line and having the coin taken immediately helps us with that.
No more than surprise $i,000 final value fees from eBay. It's all taken care of right at the time of transaction and that's the way I like it.
Now don't get too excited that you will never see some other invoice from eBay. Subscription fees, ad and promotional fees, and fedex shipping fees volition even so be invoiced to you at the terminate of the month. But you will no longer be seeing large invoices that include final value fees!
I think that's a big plus and improvement to the whole selling feel using eBay Managed Payments.
More Options For Buyers To Pay
With eBay Managed Payments buyers have more than options to pay. As a seller this is bully because it increases your chance for the sale.
Buyers now accept the pick to use credit, debit, and gift cards; Apple Pay; Google Pay; PayPal and PayPal Credit). No separate PayPal account required – for buyers or sellers.
Convenience for Reporting
Nosotros talked nearly accounting being more than difficult as a con to managed payments, simply really that's only because nosotros have to move from Paypal to a separate depository financial institution account.
One time that's set upwardly, reporting should actually be easier because of having all the information in one spot in your seller hub.
Instead of having to suspension down eBay fees and Paypal fees in dissever locations, it's all in one spot. (Y'all will at present get your 1099's from here too)
Streamlined Returns:
Along with Managed Payments, eBay announced they are working to streamline returns.
EBay is trying to make the process easier for the heir-apparent and give them admission to the aircraft label immediately. Nosotros are still waiting to run across how this plays out for sellers.
We do not have returns as part of our business model and they haven't taken that option away.
You also notwithstanding take the option to accuse a restocking fee and accuse the buyer with return shipping.
Nobody wants returns, just we all get them. If we can brand the feel better for everyone, it will get smoothly. If the return procedure is less frustrating, we will protect our feedback and have a improve overall experience and that's expert for business.
Refunds & Claims Held From Pending Payments
With the new organisation having a filibuster in payments, yous volition have awaiting payments subsequently each sale. If you accept a refund or a claim made the money volition exist taken from your pending payments.
If there is no money in your pending payments and so you will exist charged past the payment method you have on file with eBay in 14 days.
This is non really a pro or a con, just a fashion of doing business. And it'southward worth to note because I was super curios how they were going to handle processing refunds and claims since information technology wasn't through Paypal anymore.
Our Have On Managed Payments
In conclusion, there are always pros and cons to everything. Educating yourself on the pros and cons that volition directly touch your reselling business is crucial.
Check out the positives and negative, and anticipate changes you have to brand in your business to assist you make the negative aspects of the change less of an issue.
All in all, we look to take some growing pains with the eBay Managed Payments and nosotros volition demand to make some changes to our business.
But we are hopeful and nosotros feel the positives of the change definitely outweigh the negatives with eBay Managed Payments and we will come out better on the other side!
I mean, who doesn't love paying less fees!
We want to hear from you
Comment below and let us know your questions nearly eBay managed payments or your experience so far.
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Further RESOURCES
eBay Managed Payments Registration
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