Ebay`s 'INTEREST' In Managing Your Payments ?

[hero-for-hire]

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!

[mr_lincoln]

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@mam98031 wrote:

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@options4all wrote:

They still don’t allow negative feedback for buyers.

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Hurray for that.  Publicly shaming customers is simply a very poor business practice.  It cause other customers to be cautious from purchasing from a seller that does this too.  While the seller may think they are doing the right thing by leaving negative FB on a buyer, what they are really doing is harming their own sales.

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@mam98031   Any system that is unbalanced is a poor system so I don't agree with this view point.  It is a well known and unspoken truth that eBay allows Neg or Neutral FB by Buyers as a form of leverage against Sellers.  What is the purpose of a system if it isn't fair to both sides?

[chanyuc]

If that's how some sellers want to run their store, then let them be. Why is eBay the one stopping them?

Sellers being able to leave neu/neg FB would help other sellers to sort out potential scammers.

[kensgiftshop]

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@chanyuc wrote:

If that's how some sellers want to run their store, then let them be. Why is eBay the one stopping them?

Sellers being able to leave neu/neg FB would help other sellers to sort out potential scammers.

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How?

If they got negative feedback, they would just open a new account.

[mr_lincoln]

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@kensgiftshop wrote:

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@chanyuc wrote:

If that's how some sellers want to run their store, then let them be. Why is eBay the one stopping them?

Sellers being able to leave neu/neg FB would help other sellers to sort out potential scammers.

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How?

If they got negative feedback, they would just open a new account.

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@kensgiftshop    eBay has many ways to protect bad Buyers ... I don't know what the new rules are with Managed Payments but with PayPal members could only have 8 eBay accounts linked to one PayPal account, at least for Selling.  I would assume that applied to Buyers too.  

eBay's Feedback system is just not an optimum system, that's pretty apparent from the history of The Community and all the threads about it.  Any system that can be used for manipulation or revenge is bound to be a failure in the long run ... not to mention completely subjective because it relies on the honesty or dishonesty of the parties involved. 

[eleanor*rigby]

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@options4all wrote:

Overall, between PayPal and eBay I paid less than what I pay now to just eBay. 

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@options4all 

You've seen PayPal's recent (August 2, 2021) rate increases, right? 

• From 2.9% to 3.49% fee--a 20+% increase
• From $ .30 per transaction to $ .49 per transaction--a 63+% increase

[yuzuha]

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@options4all wrote:

Then why am I paying more now?

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Don't forget that you were also paying 2.9% + 30 cents to PayPal for each sale. A lot of people tend to forget about the PayPal fees since they weren't itemized on the eBay transactions.

[donsdetour]

Just no proof ....

Just admit it.....

[mam98031]

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@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.

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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.

[mam98031]

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@dnasilver wrote:

and yet your response says nothing about who "controls the flow of funds"? Why reply if you are not going to reply to what was stated?

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And yet you still have no experience with MP yet you continue to spread incorrect information.

I didn't avoid the question, I didn't realize the question was asked.  As Ebay has stated and it should come as no surprise to anyone, Ebay manages the flow of MP.  I don't know why anyone would think any differently.

[mam98031]

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@mr_lincoln wrote:

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@mam98031 wrote:

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@options4all wrote:

They still don’t allow negative feedback for buyers.

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Hurray for that.  Publicly shaming customers is simply a very poor business practice.  It cause other customers to be cautious from purchasing from a seller that does this too.  While the seller may think they are doing the right thing by leaving negative FB on a buyer, what they are really doing is harming their own sales.

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@mam98031   Any system that is unbalanced is a poor system so I don't agree with this view point.  It is a well known and unspoken truth that eBay allows Neg or Neutral FB by Buyers as a form of leverage against Sellers.  What is the purpose of a system if it isn't fair to both sides?

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@mr_lincoln 

Us disagreeing about something isn't new.  We do it all the time.

I never said that buyer's could not leave negative or neutral FB.  I think your concern over a buyer using it as leverage is going to depend on the seller they are trying to run that game on.  For me, I simply don't play.  If that is what they want to do, fine.  I just use their threatening emails to get Ebay to remove it, if they actually follow through with the threat.  But it is rare for them to follow threw in my experience.

But if you are one that is inclined to allow a buyer to do this to you, that is a personal choice.  One in which can be changed.  Stand your ground so to speak.

[mam98031]

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@chanyuc wrote:

If that's how some sellers want to run their store, then let them be. Why is eBay the one stopping them?

Sellers being able to leave neu/neg FB would help other sellers to sort out potential scammers.

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@chanyuc 

If it only damaged the sellers that left this type of FB, I would tend to agree with you, but the fact is that it bleeds out on the rest of us as well.  Buyers get concerned that a seller may have a bad day and hit their FB with no good reason and then they have to live with that.  Perfectly good and honest buyers will simply go elsewhere so they don't even risk this.

[mam98031]

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@mr_lincoln wrote:

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@kensgiftshop wrote:

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@chanyuc wrote:

If that's how some sellers want to run their store, then let them be. Why is eBay the one stopping them?

Sellers being able to leave neu/neg FB would help other sellers to sort out potential scammers.

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How?

If they got negative feedback, they would just open a new account.

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@kensgiftshop    eBay has many ways to protect bad Buyers ... I don't know what the new rules are with Managed Payments but with PayPal members could only have 8 eBay accounts linked to one PayPal account, at least for Selling.  I would assume that applied to Buyers too.  

eBay's Feedback system is just not an optimum system, that's pretty apparent from the history of The Community and all the threads about it.  Any system that can be used for manipulation or revenge is bound to be a failure in the long run ... not to mention completely subjective because it relies on the honesty or dishonesty of the parties involved. 

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@mr_lincoln 

You are assuming that the buyer actually did something wrong.  Back when we could leave the negative FB on a buyer, that wasn't always the case.  Perfectly good buyers were getting hit with negative FB that did not deserve it for a variety of reasons.  That revenge and manipulation goes both ways.  And that is why Ebay changed the rule.

[chapeau-noir]

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@chanyuc wrote:

If that's how some sellers want to run their store, then let them be. Why is eBay the one stopping them?

Sellers being able to leave neu/neg FB would help other sellers to sort out potential scammers.

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The shorthand answer to this is that eBay needs more buyers a lot more than they need yet more sellers.  They can't afford to alienate buyers in an etailing landscape which is naturally dispersing to begin with and the site is not growing (profits at this point are mostly generated internally - promotions, transfer to MP etc.).  So sellers take it in the shorts.

As for us making the decision ourselves - we're "vendors on a managed marketplace", using eBay's real estate - we can make that decision when we open our own websites.

[theteamsetguy]

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.

[north40sales]

Do you know of any site that has their own Money Processing program that allows this?

There are a couple of large sites I sell on that allow the seller to either use their built in checkout / CC processing or use their own method ( customer owned CC processor, paypal, money order, check, etc).   

However, most sites that have their own checkout features control the process from start to finish and the user has no option other than what is offered by the house.   The old axiom of "their house, their rules" applies here.