In September, eBay launched its brand-new Managed Payments program, currently available to a closed group of some 20,000 sellers. With over $1 billion in processed payments and the first seller feedback coming in, it’s time to take a closer look at this project.

What’s This About

With the introduction of Managed Payments program, Adyen, the global payment processing company used by Uber, becomes eBay’s prime partner in transaction processing. This means that the sellers joining the program will no longer be able to offer PayPal as a payment option – for now, at least, as it’s yet to be integrated. Their returns will be delivered to their bank accounts with a delay of 2-4 business days, as eBay says. In summer 2020, the program will be launched in full, potentially becoming mandatory for all or most sellers.

What’s The Buzz

The feedback coming in so far is at best mixed, with eBay forums replete with panicked posts from e-sellers blasting at the Managed Payment fees (2.7% + $0.25 per item vs. PayPal’s flat $2.9% + $0.30). Other major complaints include a lack of access to the eBay’s Global Shipping Program and delays in payment transfers to sellers’ bank accounts.

Should You Opt In?

Well, here’s a few things to consider:

  • Lower fees: A 0.2% reduction in transaction fees vis-à-vis PayPal could end up saving money. Even with the extra per-listing charges. With that, even if you’re on the 6-digits sales volume, the 0.2% doesn’t change things dramatically.
  • No PayPal: If a major share of your customers prefer using PayPal, you might be better off waiting until it is integrated as a payment option with the Managed Payments, or expect some lost sales. Which means, if you sell jewelry internationally, it’s not for you.
  • No Global Shipping Program (GSP): with no access to the GSP for Managed Payment participants as of today, you will have to ship your products internationally by yourself. This could add some logistical headache. In the fashion jewelry, where the logistics plays a very important role, getting far from your clients is not a good thing. 

So for now the new Managed Payments do not look like an opportunity of the century, but it shows some direction which eBay is aiming at, and therefore is important to keep an eye on. 

Enjoy selling!