eBay has announced that 2021 will be the year all Australian sellers can join its Managed Payments solution, which was first introduced domestically in July last year and has been undergoing a gradual rollout since. Australia is only the third country worldwide to participate, following the US introducing the solution in September 2018 and Germany a year later. By the end of this financial year, eBay says it expects to be managing 90% of Australian sellers’ payments. Move quickly to ensure your business is ahead of the curve.
What does this mean for sellers on eBay?
Primarily, the solution allows sellers to sell and get paid in one place, and buyers to have more options in how they choose to pay. For the majority of sellers, it also means overall savings.
Here are some of the potential benefits:
- Less hassle for your finance team – rather than multiple channels and third parties, sellers enjoy a single, unified place for fees, refunds and reports. Enjoy simplified Reconciliation and get support in one place.
- Simplified fees – sellers pay only the new eBay fees for Managed Payments; you no longer have to pay fees to PayPal when selling on eBay
- Immediate netting of final value fees – fees are deducted at the time of the transaction
- Control over payout schedule – sellers can opt for daily or weekly payouts, which are paid out automatically to your bank account
- eBay seller protections – simplified seller protections and dispute resolution in one central place
- Buyer’s choice – with Managed Payments, your buyers have more choices in how they can pay, with the option to choose between credit, debit and gift cards, Apple Pay, Google Pay, PayPal and Afterpay.
What are the fees?
Once a seller has joined Managed Payments, there is no separate payment processing fee for selling on eBay, and no need for third-party payments processors. This means that the majority of sellers will experience overall savings with this solution.
The final value fee for managed payments sellers is made up of two components:
- A variable percentage of the total amount of the sale, which varies by category and eBay Store tier, and
- A fixed fee of $0.30 per order.
In the event of a refund or cancellation, the variable component of the final value fee will be reimbursed to the seller, while eBay will retain only the $0.30 fee.
How do I get started?
Rithum can guide you through the phased rollout of Managed Payments. If you are an existing seller on eBay, you will receive a notification inviting you to register to join. Once you receive this notification, you can follow these simple steps to register your business:
- Confirm your identity and business information
- Provide your bank account details, and
When you register, eBay will notify you ahead of time of your activation date, and provide you with additional information about the upcoming change. No changes will occur before your activation date.
By registering, you can get ahead of the curve and prepare your business for the transition.
You can read more about Managed Payments here, or register your business at ebay.com.au/startpayments.
Contact us to learn more about how Rithum can support your transition to Managed Payments.