eBay Managed Payments Advantages And Disadvantages
One of the great benefits of using Paypal was the ability to access our funds immediately.
As a seller, soon as the product has been ordered and the buyer pays the money for the products, the profit showed up immediately on the sellar PayPal account.
Moreover, the seller could pull out the profit from Paypal as soon as it landed in our account.
This was an amazing platform for online sellers, and great for online business.
Most of the items that sell are large, in a high profit and that require freight shipping.
Unfortunately, managed payments on eBay have a delay of 3-5 business days before our payments are deposited into our bank account.
The managed payments are set up to pay out to the bank account daily, but the payments that sellers receive from buyers are made 3-5 business days before the sellers get the profit in their bank account, this system is not that ideal and causes some difficulty.
Not having the access to the funds immediately causes slow shipping time, the order will not ship until the buyer completes the payment and the money will be on the seller’s bank account.
To avoid late deliveries, the seller needs to ensure that their delivery policies are set for 3-5 days, they collect the money from the buyer, and they handle the money to make sure it is transferred to their bank account.
If you have large profit items set the sipping policy to 3-5 days handling time instead. For smaller items, we still recommend a handling time of 1-3 days.
The most amazing part of the manage payment are the coasts,
eBay fees can be very high every month.
The good news with the new eBay Managed Payments – that sellers will pay less!
Before the new eBay managed payments, we had to pay two fees:
- eBay Fees
- Paypal fees
The average amount is 13% of the monthly profit, 10% fees to eBay, and 3% fees to PayPal
For instance, a seller sold a product in the amount of $4,000, the seller needs to pay a fee of $350 to eBay
and after the transaction, the seller will pay 3% fees to PayPal.
Saving money makes every business owner happy and this is one of the best parts about this new system that we are looking forward to!
The manage payment will low the fees, with the new eBay Managed Payments, sellers pay less, much less!
No outrageous eBay fees are billed monthly.
sometimes sellers pass their eBay limits, products, or the maximum profit, on every over the limit, seller pay pees. with the new mange payment, eBay offers high limits for a lower price, which means you can upload more items for less money.
One more change, with Managed Payments, eBay removes the final value fee at the time of the transaction.
During the month, eBay will continue to charge you for subscription fees, advertising fees, promotional fees, and FedEx shipping fees.
The managed payment has a big plus and improvement to the whole selling experience using eBay Managed Payments.
Payment options.
With eBay Managed Payments buyers have more options to pay.
As a seller, this is a benefit because it increases your chance for the sale.
Now Buyers can credit, debit, and gift cards; Apple Pay; Google Pay; PayPal and PayPal Credit). PayPal account is not required for buyers or sellers
Reporting
The reporting should be easier because all of the information is in one spot.
There are now different info areas within the report, so it is a little more difficult to provide a report.
- Streamlined returns:
eBay announced they are working to streamline returns, eBay tries to make the process easier for buyers and quickly providing access to shipping labels.
Every seller wants to avoid returns, If sellers can make the buying experience better for everyone If the return process is less frustrating, sellers will protect their feedback and have a better overall experience and that’s good for business.
- Refunds and claims:
One of your daily tasks is to pay attention to delay in payments, you will probably have pending payments after each sale. The money will come from your pending payments if you have a refund or a claim to make.
The seller will send an invoice in 14 days if there is no money in the pending payments.