Ebay sellers can no longer be paid via PayPal as the auction site has switched to a “simpler” system: however, some buyers complain about long waiting times and higher fees
- eBay now pays its sellers direct instead of PayPal
- However, buyers can still use the payment service to purchase goods on the website
- It has increased the fee charged by sellers, but they are now avoiding PayPal fees
- The changes are intended to make the process “easier,” said the online auction house
- But some users have criticized the move, saying it will take them longer to get paid
Ebay will now pay its sellers directly instead of through PayPal as part of the new changes.
The online auction house, which has over four million registered sellers worldwide, said it was a “big step” towards a simpler marketplace.
Ebay increased the fees it charges sellers from 10 percent of item value to 12.8 percent, but they will now avoid PayPal fees.
Although sellers are now paid by eBay, buyers can still use PayPal to purchase items.
PayPal was acquired by eBay for $ 1.5 billion in 2002, and the two companies have worked closely ever since.
Payment: As part of the new changes, eBay will now pay its sellers directly instead of through PayPal. Paypal
However, eBay said the changes, which went into effect June 1, will make it easier for sellers to get payments.
Previously, salespeople had to juggle between two accounts, reports, online tools, guidelines, and customer service contacts.
The process is now end-to-end on eBay, eliminating the need for a third-party PayPal account and PayPal payment processing fees.
Sellers are also paid directly to their bank account, not their PayPal account, and have access to everything they need in one place.
There are now new ways for shoppers to pay locally, such as Google Pay and Apple Pay.
However, eBay has slightly increased its own fees, with payments now being 12.8 percent of the final sales amount including delivery plus 30p in the UK.
Previously, this was 10 percent for eBay plus PayPal’s processing fees, which were 2.9 percent plus 30p.
The process is end-to-end on eBay, meaning no third-party PayPal account is required
What do sellers have to do?
As part of the changes, all eBay sellers will receive an email invitation inviting them to complete their managed payments registration by a specified date.
The introduction takes place in stages, so that the deadline is not the same for all sellers.
Sellers should check their emails from eBay for their registration deadline and update their account information so eBay can manage their payments.
All sellers will have eBay manage their payments until the end of 2021.
How was the feedback?
Some sellers have threatened to discontinue service thanks to the changes.
Certain users believe that in the event of a dispute raised by a buyer and grabbing their side, eBay can withdraw funds directly from the seller’s account.
Others have said on social media that the fees seem to be much higher for them since the change and that the funds are taking longer to be released.
Annoyed: This eBay seller is frustrated after the changes mean they’ll have to wait to get paid
Another user had to wait for his money when it was previously quick with PayPal
However, experts say the move actually benefits sellers rather than hindering them.
Libby James, co-founder of payment processing advisor Merchant Advice Services, said, “Although some sellers have threatened to stop using the service during the move, the changes introduced in June will benefit them.
“First, PayPal is increasing its own fees somewhat – not using the service will save eBay sellers fees and the changes will have a positive impact on buyers by ensuring that more payment options are available, including Google Pay, Apple Pay and PayPal Credit.
Second, it will also reduce the time it takes for payment to get to the sellers so that funds can be settled immediately before they ship any items that are sold.
‘As a result, the new system creates a simpler and more convenient experience for both buyers and sellers. We can therefore expect an increase in buying activity and an increase in account subscriptions from eBay sellers. ‘