eBay

desertmodels_uae · ‎09-30-2021

When eBay decided to launch it is Managed Payment platform, it was marketed as better and cheaper for seller to do business on eBay than before.

Is this the case? Let me share my view based on my experience so far:

1. Better: I believe so because now seller don't have to manage to deal with two policies not aligned between what eBay is offering as a buyer protection and what PayPal offering for buyer protection (180 days)

2. Cheaper: That is not entirely true. There are two aspects to this: financial and none-financial

Start with Financial aspects:

1. eBay adds 1.3% to the FVF for international sales which was not there before that.

2. PayPal had a different PayPal fees based on from where the seller is receiving the payment and where is the seller resides. The difference in rates is around 0.5% (ignore those countries which is having an extreme / predatory tax regimes)

3. Payoneer has no charges on funds/payout is not true. There is a 2% charges on funds withdrawal from Payoneer account if you are transferring funds to a bank account with different currency or same currency but in a different country. PayPal charges US$ 5 flat rate on the transfer transaction.

To illustrate this lets take example of selling Toys on eBays:

1. If you are US based seller and sell to a US based buyer, with PayPal you would pay 13.05% while with eBay managed payment you will pay 11.7%

2. If you are US based seller and sell to an international seller: with PayPal you would pay 13.05% while with eBay managed payment you will pay 13%

3. If you are International based seller selling internationally: with PayPal you would pay 13.55% while eBay managed payment you will pay 14.74%

This lead to following:

1. It is less attractive to do business internationally no on Bay compared to how it all started

2. The platform with the new payment system for international seller is either less profitable (assuming you absorb the 2% transfer fees from your profit) or less competitive compared to other sellers (assuming you will factor the 2% into your pricing)

How significant is this analysis? Depends on each individual seller objective from joining the eBay seller community.

None-financial aspects:

1. Now it is much easier for seller to understand how much he paid transaction by transaction. Good bye for the old eBay invoice

2. It is not straight forward to deal with Payoneer CS, seems they are not readily available to reply to requests (or understaffed). Example the issue of processing account verification is taking ages and it generally ends with a problem (be it rejecting the request or verification or completing it but adding wrong address information)

3. Withdrawal funds seems have hidden capital control on it which doesn't make sense to have after verifying the account holder information down to current utility bills and checking with his bank.

All above has hidden cost to seller in form delayed payments, needs to fund his business from other means (maybe borrowing) while waiting for the fund to arrive to his account.

What I see from interactions with Payoneer CS, I can see them a reason for many to leave the eBay or downsizing the business.

desertmodels_uae · ‎09-30-2021

Another update fresh from a conversation with Payoneer CS:

If you receive payout in USD from eBay to you Payoneer account you will have two options to withdraw your funds:

1. Withdraw your funds from your USD balance to a USD bank account in your country (assuming it is allowed) . You will pay 2%

2. Withdraw your funds from your USD balance to a bank account dominated in your country currency. You will be charged with 2% above the market exchange rate.

The cost associated with the two scenarios:

1. First scenario (USD balance to USD bank account): 2% and another charge by your bank (you have to check with your bank) when you want to withdraw USD Cash or transfer it from USD account to local currency bank account

2. Second Scenario: 2% above prevailing rate which is a floating/unpublished rates. So you won't be able to judge (or compared exchange rates between Payoneer and your bank) if it is better to withdraw to USD account or to local currency account

PayPal allow you to have the choice either to convert at the source (i.e. PayPal do the F.X) or simply withdraw the funds in foreign currency and let the conversion happens at your bank.

Payoneer doesn't allow you to have the same choice PayPal is offering.

The question that come-up to my mind: eBay couldn't reach to the same agreement where they become payment processing party and PayPal fund management platform?

coastaltechsolution · ‎09-30-2021

Don't know, this is a USA board and we do not use Payoneer

fab_finds4u · ‎09-30-2021

What does it matter if Managed Payments is better or worse or costs more or less?

You can't change it. All you can do is gripe or quit. Or have a pity party. Which plenty of others will be coming to the party!

coastaltechsolution · ‎09-30-2021

desertmodels_uae · ‎10-02-2021

It is not about whatever you wrote in your reply.

It is simple analysis to address the misleading message promoted about the managed payment with partnership with Payoneer.

inhawaii · ‎10-02-2021

A) You have posted on the US board.

B) We don't use Payoneer in the US.

C) For those reasons, you shouldn't be asking Payoneer questions here.

D) Have a nice day.

Smooth Operator - Sade

desertmodels_uae · ‎10-02-2021

A) International Buyers are on the US Board, all international sellers who sign-up for eBay.com show as domestic US with ship from location is their actual location

B) My Post is not a question

C) Good to knew that Payoneer is not in use in US

D) Have a great day

inhawaii · ‎10-02-2021

International Buyers are on the US Board, all international sellers who sign-up for eBay.com show as domestic US with ship from location is their actual location

International buyers/sellers are on the US board. Understood. That still doesn't change the fact that we don't use Payoneer here. This is not a good place to discuss it. That would be like me going to a board where they don't use managed mayments to discuss managed payments.

My Post is not a question

The title of your post ends with a question mark.

Smooth Operator - Sade

desertmodels_uae · ‎10-02-2021

Here is Global is not US alone. So you need to filter and see if posts are related to US or International. If you have a problem for whatever reason with International sellers on eBay.com posting on this board, please contact eBay directly.

The question mark in the title doesn't mean a question by me but a question mark that someone else, who is his is here Global and is forced to use Payoneer, may have.

Thank You