In August 2020 eBay launched it’s Managed Payments System in the UK. The new payment solution has been tried and tested by some eBay sellers over the last couple of years and finally gone live after much discussion on the internet.
If you have not been invited to the program yet, you will. It will become mandatory for each seller with most sellers being migrated by the end of 2020.
What is eBay Managed Payments?
eBay’s Managed Payments solution is replacing individual PayPal solutions. Whilst buyers will still be able to pay for their items via PayPal they will also be able to use Google Pay, Apple Pay, credit and debit cards and gift cards. All centrally documented on your eBay account.
In addition to the benefits for your buyers, it will cost you less to accept payments via eBay’s Managed Payment solution, your fees are consolidated with your final sale fees. Further more you have access to customized reports, refunds and returns, labels, simplified protections and tax documentation. All in all in our humble opinion it’s good alround for both the buyer and the seller.
How are Fees Charged?
As a general rule your payment fees will now be included with your final sale fees. As an example one of our customers was offered the rate of 5p per order and 15% of the final sale fee as the majority of the items they sell are under £10.
So what does this mean in real time for an item selling at £5 using the above example?
|Charge Description||Old Solution||eBay Payments|
|Final Listing Fee||£0.50||£0.75|
|PayPal Additonal Fee||£0.20||£0.00|
As you see from the example above on a sale of £5.00 the costs using the new eBay Payments gives the seller cheaper fees in total, whilst it is not a ginormous in pounds and pence it is still a saving of over 10%.