Have you heard that eBay are changing the way they handle payments?
As a seller, instead of receiving payments direct from buyers to your PayPal account, bank account or other accepted payment method, eBay now handle receiving of the payment and will deposit funds less fees into your bank account a few days later.
As part of this change they are increasing selling fees which may sound bad (and kind of is), but keep in mind that if your buyer pays with PayPal (which most do) then you would have previously received your PayPal payment less PayPal's fees. With the new managed payments changes you don't pay the PayPal fee even if the buyer pays with PayPal. However, you previously wouldn't have any fees associated with receiving bank deposit payments, but now you will pay the same increased eBay final value fee regardless of how payment is made.
The new final value fee is 30c plus 13.4% of the sale price including postage. Without managed payments, the fee is 10.9% of the sale price including postage and if the buyer paid by PayPal then they would take another 30c plus 2.6%. (These fees are based on personal transactions and eBay Stores, some sale prices and some categories may have different fees)
So according to eBay you will pay lower fees overall.
A big selling point of the new managed payments change is that you can now list up to 250,000 items per month without paying a listing fee. This is a massive increase from the previous 30 or 40 free listings for personal accounts.
There are a few more fees that are not so attractive. If you are found responsible for a chargeback they will charge you $24.20. International transactions attract an extra 1.1% fee on the total price: this applies to any order shipped out of Australia and any overseas buyer even if they have their purchase sent to an Australian delivery address. Lastly, if you are deemed to be a seller not meeting performance expectations then you pay an extra 4.4%!
As a small-time seller of magazines online, when I got the email from eBay I thought it was too much trouble and the chargeback fee could be a problem, but after thinking about it, the lure of being able to advertise all of my excess magazines for no listing fee seemed worth it. So I have gone ahead and changed over to the new system and started the hard work of listing all of the magazines I have for sale.
If you are an eBay seller you will receive an email from eBay telling you if/when you need to transition to the new service if you haven't already. I don't think you have a choice once you get the email - you either transition or stop selling. You will need to fill out some online forms and provide proof of identity using a drivers' license or passport and that's it.
More info: https://www.ebay.com.au/help/selling/fees-credits-invoices/selling-fees-managed-payments-sellers-without-ebay-store
The requirement to provide proof of identity is how Ebay can gather more personal info about their customers for their own marketing purposes. They have no way of validating the data that you give them as they cannot access the eight state licensing authorities data systems. If you supply a licence number and date of birth in the correct format, it will be accepted no matter what and the restriction will be removed from your account. Maybe I am just a cynic regarding large corporations.
You are probably right Brian.
Just as an update, since signing up for the new service I've listed over 200 magazines and sold over 20 in three weeks (about $300). Not a huge amount but reducing my collection of double-ups and unwanted issues -- and making room for more.
The payment system works well - you get the money in your bank in a couple of days and there are no extra fees being asked for later on (so far). For me it's good that money is no longer going into PayPal where I don't need it so I would have had to withdraw it out to a bank account anyway.
eBay also have an offer where you get 10% back as a voucher for every sale. This hasn't been very useful for magazine sales, as you get individual vouchers that can't be used together - $1.50 voucher for a $15 magazine. But I received 20 vouchers from $1 to $3.
Last edited May 21 '21 at 21:46 (UTC)