eBay Managed Payments 2020 | Everything You Need To Know!
eBay Managed Payments 2020 | Everything You Need To Know!
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2. Should you get rid of PayPal once you switch?
No. Paypal is still a great tool to have in my opinion, you can use it for a lot of other “off ebay” payments, it’s still a very common tool for resellers to pay one another, some people use PayPal credit or short term loans, and a lot of other companies accept PayPal as a payment option. I would keep your account active.
3. The big question: As a seller on ebay what are my fees now?
So before the switch the fees were roughly 10% final value fee on ebay, 2.9% + $.30 fee on PayPal. Yes there can be discounts on ebay for top rated seller status or having a certain store level but for the sake of argument we’re going to go based off those fees.
So if I sold an item for $10 + $5 shipping or if I sold an item for $15 free shipping the fees would be the same. Roughly $1.50 ebay fees and $.74 PayPal fees. $2.24
Fees are calculated off the total sales price (WITHOUT) sales tax.
Now the top line fees are 12.35% + $.30
So if I sold an item for $15 the fees would be about $2.15 before any discounts. (real life example) Yesterday we sold this Eddie money shirt for $130.95, our total ebay fees were $13.85 ( $13.55 ebay final value fee + $.30 transaction fee) - you’ll notice the little note at the bottom that says you saved $1.51 for having a top rated plus discount. So let’s add that back in so we can get the full fee amount. $15.36 total fees on a $130.95 sale. So that works out to 11.73% - with the discount it’s 10.6%
OKAY, so if that wasn’t confusing enough let’s go a bit deeper.
The $.30 transaction fee only applies to each time a buyer checks out, so if a buyer buys 5 of the same item from you can checks out one time, that fee is only charged once. It’s basically ebay passing on the “credit card transaction” fee to us.
So the above example is because on this account we have a store discount as well as top rated plus status, so without that the fee would go back to the 12.35% + $.30 so on a $130.95 sale the total fee would be $16.47 - before managed payments the fees on the same transaction would have been $17.19 so yes, there is a savings there.
4. How are fees paid?
The only fees you are separately invoiced for would be insertion fees, subscription fees stuff like that. The final value fees are taken out automatically. So yes, you will probably still get a bill at the end of the month but it will be much lower than normal. The bad part for us is we used to pay those fees on our business credit card and get a ton of points but now as far as I am aware, we cant.
5. Getting Paid Out:
so now we have to talk about how payments are distributed once the sale happens. Payments are now distributed directly to a bank account, not PayPal. You can choose for ebay to distribute those payments daily or weekly, but note there is still a delay. With “daily payouts” selected it’ll typically take around 2-5 days to receive the payment depending on your bank. We use a suntrust business account for ebay payments and it’s been pretty fast. Real life example, September 2nd I was sent a payout of $454.97 from ebay - I received that payout in my bank account on September 3rd, it can take longer when you take into consideration weekends and holidays but It has been really fast for us, again, we were sent a payment of $288.73 on Friday the 4th right before labor day weekend and we received that payment same day, on the 4th, but you’ll want to track that as well, for us it’s pretty much the same as PayPal because with PayPal you still had to transfer the money to your bank account unless you use a PayPal debit card. Either way just make sure you’re tracking and monitoring your incoming funds and structure your business to allow for a few days delay in getting those funds in your bank account.
6. Shipping:
shipping remains pretty much the same, you can choose to pay for your shipping with your pending ebay balance or you can choose to use your PayPal account still. Either way, if you don’t have the funds available it reverts to your secondary funding source so your bank account, you can choose how you pay for shipping, it’s an option when you go to ship your items.
7. Returns & refunds:
When you issue a refund it comes out of your pending balance, if you don’t have enough balance it’s charged to your credit card or bank account on file.
returns are now immediate based on your return policy, ebay creates and sends the buyer the return label. When a return is opened funds are automatically held until the return is closed, when you or ebay closes the return the funds are released to the buyer. Final value fees are credited back to the seller!