eBay

hero-for-hire · ‎08-17-2021

My Theory on Ebay Managed Payments:

While Ebay tries to paint a rosy picture of 'EMP' as being a positive move to 'simplify and improve' the buying & selling for both Buyer AND Seller...

What it really does is give Ebay the opportunity to inject itself into the transaction and control the money...high-probability; for their own corporate benefit.

How So?

Well; note that under 'EMP', when an item is paid for, the $$ is NOT available to the Seller.

Ebay has total control of that $$ for at least A FULL DAY...

A full day where--if I am right--that $$ sits in an Ebay Bank Account ....and COLLECTS INTEREST!

Now, one day of Interest may not be much for just ONE sale...pennies, at best.

But...How many sales happen on Ebay in a given day?

How much $$$ would be collecting Interest..for one full day?

(Que the sound of Lots O` Pennies of Interest adding up! CHA-CHING!...EVERY 24 HOURS!)

I know this much; BEFORE, when PayPal was handling things, I had my payment from a sale within one day of the transaction--(within 30 MINUTES, if I wanted to sacrifice a nominal transfer fee).

With 'Ebay Managed Payments', I wait for DAYS before Ebay tells me that they are sending my payout, and that it may still take' 1-2 Business Days' to show up in my Bank Account.

Question: If PayPal could zap my $$ so fast...

WHY does it take Ebay so much more TIME to do the same thing?

(My theory does not sound quite so wild now, does it?)

I spent 15 years as a Private Investigator, and Motive is always the prime consideration when seeking answers. Ebay inserted it`s corporate nose into everyone`s Business (literally) for a reason that benefits Ebay, not to 'simplify and improve' things.....by making them more complicated and time-consuming!

So: Cui Bono? ('Who Benefits?')

Well --- Follow The Money !

Incidentally...IF this theory is correct...

The least Ebay could do is eliminate their Fees, considering the pile o` $$$ they are making for doing..nothing .....but let Our Money sit in Their Bank !

It`s one thing to take advantage of an actually quite legal financial opportunity..

It`s another to DOUBLE-DIP and charge us all FEES for that opportunity!

north40sales · ‎08-20-2021

@options4all wrote:
Overall, between PayPal and eBay I paid less than what I pay now to just eBay. And have to wait longer before the money is put into my account. It’s not like I take the money out right away because it’s not for bills but for growing the business. But I earn at least a little something with it in my account.

That is unlikely unless you are just looking at a couple of transactions. If you look at your fees for a full month you will likely see that it is pretty neutral, or it was over the old PP fees. Now it would absolutely be a savings with the new PP fees and fee increases.

Your fees aren't different for the categories you sell in over other sellers. So if you were to compare a months worth of sales, you'd see it is really a very neutral change. Some transactions cost a little more and some cost less. Overall it is neutral or close to it.

I would agree with this. I onboarded to MP a couple of years ago and the fees are pretty much a push when looking at monthly totals. It did take a little bit of adjusting to the whole Managed Payments thing compared to PayPal.....the biggest change that I did not like is the lack of reports that were initially available in the MP control panel which made my bookeeping a pain for a while.

north40sales · ‎08-20-2021

Look again next time you go to the gas station. Your bank puts ahold on the money right away which reduces your available balance in your account. You will see the funds usually won’t leave your account for 1 to 3 business days.

That is the pending authorization from the merchant account to the funding source. Its instant and with gas pumps, the authorization request is oftentimes much higher than what the pump ends at. When the gas station closes their batch of charges that evening, it converts that pending authorization to a settled payment request to their Payment processor. That payment processing company will then initiate a transfer of funds from the cardholder's funding source that will clear to the processor's account and then it will be transferred again from the processing company to the gas station's checking account and show as available in their balance in 1-3 days. If the retail customer used a credit card, this authorization request effects their available credit balance. If its a debit card, it will lock up real money in their account until the authorization becomes a settled charge.

Yes, its more complex that it should be.

chanyuc · ‎08-21-2021

I watched a Korean news documentary a month ago. There is an "American" company called Coupang, one of the biggest e-commerce site in South Korea. The founder copied Amazon and UberEats. The founder founded his company in America to dodge many issues and not comply with Korean regulations. His key to success was to have a distributor's warehouse tied to a rocket shipping (aka 4-24 hr to your doorstep) option.

Coupang has been into many troubles, with poor working environment, low-price dominant system, etc. One of the major issues with the sellers were, funds get to hold by Coupang for 2-3 months AFTER the item has been sold. They hold the money until the Customer's return window closes (aka their MBG system). Sellers protested against it, but the only solution Coupang gave out is to register under their bank system. You'd still have to wait 14 days to be paid out with through bank though.

But yeah if you ever wanted to see a company that profits from interests, this might be it.

chanyuc · ‎08-21-2021

True, more buyers means more selling, otherwise sellers would open more Shopify, SquareUp or whatever. Those don't attract enough foots to survive. Even if a customer wants to find one, they're barely visible.

As a buyer, I come here the most, cause the amount of collectibles on this site. Other sites can't compare to eBay. So I value the sellers as well, it's sad to see many of sellers leaving after being scammed. I'd rather have them leave (invisible) neu/neg feedback away from the public view. If that customer decided to buy your product, you should be able to see some of those HONEST FB.

Scammers creating a new account, I mean eBay can easy trace down and link the potentials if they wanted to. I interned for Sa-Fif-Ave (you know who), I've been exposed to one of their technologies, recreating every action you've done on their app/site to narrow down the bug. It contained a lot of "stuff". When you have the data, you can play around a lot, just saying.