If you haven’t kept up to date with the business side of eBay, you may not be aware of why eBay Managed Payments exists. In 2015, eBay and PayPal became separate companies, but they were bound to a 5-year operating agreement that ensured a smooth transition for the buyers and sellers in the marketplace. The operating agreement is why eBay sellers didn’t see an immediate difference when the companies split. However, 2020 marked the official end of the contract, which is why the eBay Managed Payments program has been formally introduced to sellers.
eBay Managed Payments was first introduced in 2018 in beta mode. The invitation-only feature was reserved for specific sellers as eBay focused on working out the kinks and readying it for prime time in its full 2021 rollout. According to eBay,
Buyers can customize their payment options with more ways to pay, including mobile options like Apple Pay and Google Pay which are becoming increasingly popular with consumers. In turn, this provides more opportunities for sellers to earn since they can welcome all shoppers, regardless of which payment methods they prefer. Additional features for sellers include a centralized management center for all sales and payments and the ability to create a direct link between their eBay accounts and bank accounts.
As the complete Managed Payments rollout continues, let’s take a look at some of the pros and cons that all sellers should be aware of. As of June 1, 2021, approximately 4 million eBay sellers were already using the new system.
eBay aims to make the buying and selling process as painless and beneficial as possible with the eBay Managed Payments program. Overall, this new system will streamline the accounting side of the equation for sellers and make it more convenient for shoppers to complete their purchases.
As with any new program, eBay Managed Payments has some work to do to maintain all of the benefits that PayPal offered previously and keep sellers happy. The company continues to receive feedback from users and will surely improve the service over time, especially once the priority functions and features are completed. For now, here is what sellers should expect when switching to eBay Managed Payments.
Although the cons may weigh heavier for some eBay sellers, it’s important to consider the overall value of eBay sales to your business before making a drastic decision to leave the platform altogether. A few inconveniences are unlikely worth losing out on the opportunity to be discovered in eBay‘s vast marketplace or the ability to have the majority of the selling process managed for you.
Searchability and brand awareness are crucial to the success of an ecommerce company, and these are some of the primary benefits of eBay, which attracts over 187 million users worldwide and 180 million active buyers. In Q1 of 2021 alone, $27.5 billion of goods were bought and sold on eBay. These numbers add up to an excellent opportunity for sellers. So, the real question is probably, “How do I optimize my listings on eBay?”
One of the biggest concerns for eBay sellers is the lack of access to PayPal Working Capital. But there’s no need to panic. As mentioned above, Yardline provides an excellent capital solution that will work well with eBay Managed Payments. The
Yardline provides loans of up to $1 million, which covers the needs of most eBay sellers who would have otherwise relied on PayPal Working Capital. Business owners don’t have to wait long since decisions are made within 24-48 hours, enabling you to move forward with your launch or growth plans right away. Unlike bank loans, Yardline does not charge a compounding interest rate. Instead, they opt for a fixed fee that saves eBay sellers a ton of money and makes it easy for them to understand the full scope of the loan and payment terms.
One of the most appealing benefits to eBay sellers is that the payment terms are linked to the business revenue. Instead of owing a set monthly payment or percentage of the loan amount each month, the payment due is a percentage of the revenue. By aligning the payment amount to the business’s success, eBay sellers can rest easy. You will never be stuck struggling to pay a massive monthly amount if you experience a slow month or a surprise downturn like the pandemic has caused for many companies.
eBay continues to offer terrific opportunities for companies of all sizes to build brand awareness, meet their target audience, and bring in sales. eBay Managed Payments will continue to add value to sellers and buyers by introducing features that make the entire process—from listing to purchase—as smooth as possible. Though there are a few inconveniences, most eBay sellers are unlikely to dramatically change their selling practices or switch to other marketplaces. While many sellers will consider multiple marketplaces as part of their omnichannel approach to marketing and selling, eBay is still a valuable piece of the strategy.