New eBay payments and fees

Dan S · Dec 11, 2020

Sorry if I missed a discussion about this, but (in the US at least), there is a major change coming on eBay. No more payments via PayPal (or 2.9% domestic PP fees) or end of month billing. eBay will take payments themselves and transfer the funds directly to your bank account after subtracting their fees. The final value fee structure has also changed, and eBay seems to be taking 2.35% for payment processing. There is another favorable fee change for watches over $1k (see below). So now they need my SS # and bank account info. My immediate reaction to this is resistance, but I suppose I will come around eventually and give them that information. After all, I gave it to PayPal so why wouldn't I give it to eBay.

Any thoughts?

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kov · Dec 11, 2020

Hopefully this will kill PayPal.

josiahg52 · Dec 11, 2020

As a buyer, I have no beef with PayPal and use it very frequently when I can on eBay and elsewhere. I don't like PayPal but it works for me. I don't like eBay and am purchasing from there less and less. The shift to eBay businesses and retail products being sold there have soured me. I like buying used stuff at good prices. That's not what eBay is about any longer. I've purchased some great items including a dozen or so vintage and new watches, even Omegas, but will probably stop purchasing from there all together when the PayPal option is removed.

sonicosa · Dec 11, 2020

I’ve been using this new payout method for a few weeks now and am finding that I don’t mind it too much.

However, I’m also finding the fee % they’re charging me seems to be slightly higher than advertised in their terms.

Dan S · Dec 11, 2020

josiahg52
As a buyer, I have no beef with PayPal and use it very frequently when I can on eBay and elsewhere. I don't like PayPal but it works for me. I don't like eBay and am purchasing from there less and less. The shift to eBay businesses and retail products being sold there have soured me. I like buying used stuff at good prices. That's not what eBay is about any longer. I've purchased some great items including a dozen or so vintage and new watches, even Omegas, but will probably stop purchasing from there all together when the PayPal option is removed.

I believe that buyers can still pay using PayPal, but eBay is the payment processor. Just like paying with PP to any online vendor. Supposedly the payment method (cc, PP, Apple Pay, google pay, etc.) is transparent to the seller.

josiahg52 · Dec 11, 2020

Dan S
I believe that buyers can still pay using PayPal, but eBay is the payment processor. Just like paying with PP to any etail vendor. Supposedly the payment method (cc, PP, Apple Pay, google pay, etc.) is transparent to the seller.

I see. With what you were saying and the frequent emails and notification during checkout mentioning that PayPal was now not the only way to pay during checkout for some items made me think the change was actually happening across the board. I'm sure it will at some point anyway for buyers, too.

Dan S · Dec 11, 2020

sonicosa
I’ve been using this new payout method for a few weeks now and am finding that I don’t mind it too much.

However, I’m also finding the fee % they’re charging me seems to be slightly higher than advertised in their terms.

I read that it takes several days before eBay transfers funds to your bank account. I wonder what happens if you ship an item and then the buyer cancels the order.

Dan S · Dec 11, 2020

josiahg52
I see. With what you were saying and the frequent emails and notification during checkout mentioning that PayPal was now not the only way to pay during checkout for some items made me think the change was actually happening across the board. I'm sure it will at some point anyway for buyers, too.

Maybe, but eBay seems to be promoting this as a way to increase flexibility in payment options for buyers. From their perspective, PP is not much different than Visa.

Dan S · Dec 11, 2020

sonicosa
I’ve been using this new payout method for a few weeks now and am finding that I don’t mind it too much.

However, I’m also finding the fee % they’re charging me seems to be slightly higher than advertised in their terms.

Do you know which part of the fees they are overcharging? The fee reduction in the $1,000-$7,500 range for watches is the most appealing part of this for me. It's a 5% savings for the seller on a $5,000 watch. I don't sell a ton of watches on eBay, but 6.5% is much more tolerable than 12.9%.

josiahg52 · Dec 11, 2020

Dan S
Maybe, but eBay seems to be promoting this as a way to increase flexibility in payment options for buyers. From their perspective, PP is not much different than Visa.

There's money to be made if involved in every aspect of the purchase, however. I suspect that's what this is more about. I agree it doesn't make sense to remove a means for a buyer to pay if your entire business hinges on sellers selling their products and getting paid so you can collect the fees.

Dan S · Dec 11, 2020

josiahg52
There's money to be made if involved in every aspect of the purchase, however. I suspect that's what this is more about. I agree it doesn't make sense to remove a means for a buyer to pay if your entire business hinges on sellers selling their products and getting paid so you can collect the fees.

I agree 100% regarding eBay's primary motivation. I was just suggesting that the ability to pay using PP will probably remain as an option.

sgrossma · Dec 11, 2020

They have been phasing this in over the last year.
The final value fee difference I think in the watch category is much more beneficial for regular / private sellers.
For those with a store, the final values are capped at $350.

So unless there is something that I am missing, it gives me much less incentive to have an ebay store.

sgrossma · Dec 11, 2020

Using the above table, final value fees for a $5k watch are $383.

The used to be $645 without a store. But with a basic store (ebay fees capped at $350) they would have been $495.

So I don't see why I would bother paying the $22/month anymore for the basic store.

Even on much higher value watches, the 2.35% vs the 2.9% old paypal fee is not a massive difference.

josiahg52 · Dec 11, 2020

sgrossma
They have been phasing this in over the last year.
The final value fee difference I think in the watch category is much more beneficial for regular / private sellers.
For those with a store, the final values are capped at $350.

So unless there is something that I am missing, it gives me much less incentive to have an ebay store.

I love that people have eBay stores and can even make some decent money selling stuff but I wish it would go back to more people just selling stuff they don't want. That's a very naive and even selfish outlook but it's what I loved about eBay in the very beginning over 20 years ago. I definitely don't like some of the stuff that eBay has put some sellers through, however. I have some items I'd like to get rid of and maybe make some money on but I'm hesitant going to eBay and would rather just list it on one of the forums I'm a member of. It's all watches, knives, car parts, stereo stuff, etc. that would probably get a higher price in a dedicated forum.

Dan S
I agree 100% regarding eBay's primary motivation. I was just suggesting that the ability to pay using PP will probably remain as an option.

I am in agreement with you and my initial post was due to me not realizing what you were saying.

Dan S · Dec 11, 2020

sgrossma
They have been phasing this in over the last year.
The final value fee difference I think in the watch category is much more beneficial for regular / private sellers.
For those with a store, the final values are capped at $350.

So unless there is something that I am missing, it gives me much less incentive to have an ebay store.

sgrossma
Using the above table, final value fees for a $5k watch are $383.

The used to be $645 without a store. But with a basic store (ebay fees capped at $350) they would have been $495.

So I don't see why I would bother paying the $22/month anymore for the basic store.

Even on much higher value watches, the 2.35% vs the 2.9% old paypal fee is not a massive difference.

Here are the new fees for a basic store. For a $5k watch, the total will be $275, but the advantage is even greater in the $5k-$7.5k range.

Screen Shot 2020-12-11 at 2.03.06 PM.png

Darlinboy · Dec 11, 2020

Right now eBay have a final value special (at least it was offered to me directly) - 10 items max - $1 final value fee.

I still prefer a direct deal on forums, but eBay has its uses, and those fees are an improvement.

Haven't been subjected to the "authentication" process yet - so the jury is out on that for me.

Cheers.

Dan S · Dec 11, 2020

Darlinboy
Right now eBay have a final value special (at least it was offered to me directly) - 10 items max - $1 final value fee.

Actually, an offer like that would probably incentivize me to list a few watches I've been meaning to sell. Otherwise, it's just so easy to procrastinate.

The only promotion I have right now is a weird one. If I sell a watch, they will give me a coupon in the amount of the final value fee to use on the purchase of a watch. So I guess it's like a free listing, if there's a watch I want to buy.

sonicosa · Dec 11, 2020

Dan S
Do you know which part of the fees they are overcharging? The fee reduction in the $1,000-$7,500 range for watches is the most appealing part of this for me. It's a 5% savings for the seller on a $5,000 watch. I don't sell a ton of watches on eBay, but 6.5% is much more tolerable than 12.9%.

I’ve only been selling misc watch parts at around $50 - $150 range, so haven’t tapped into the fee reduction aspect yet, but here is an example:

I sold a movement for $135 with free shipping.

My payout was 116.49. Their advertised fee of 12.5% + $0.30 should net me 117.82 and 116.79 (accounting for the $0.30) puts their fee 13.5%.

I was an english major, so feel free to check my math here.

It just occurred to me, maybe they are including sales tax in the amount they are calculating the final value fee on? If so, that kind of sucks for sellers.

Vercingetorix · Dec 11, 2020

Who the hell would ever give ebay their social security number?

pdxleaf · Dec 11, 2020

I soured on PP when they started charging their fee even if the buyer returned the item.

Any idea if this will stop that or a way to get around PP?

New eBay payments and fees

Dan S

kov

josiahg52

sonicosa

Dan S

josiahg52

Dan S

Dan S

Dan S

josiahg52

Dan S

sgrossma

sgrossma

josiahg52

Dan S

Darlinboy

Dan S

sonicosa

Vercingetorix

pdxleaf

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