eBay split from PayPal for paying sellers comes into effect
eBay’s planned removal of PayPal as an option for paying sellers has come into effect. While eBay buyers can still pay with PayPal, sellers will be paid straight into their bank accounts.
PayPal first split from eBay in 2015, but has seen continued use on the platform
Previously eBay charged a flat 10% of the sale price, including postage, with PayPal taking a cut of 2.9% of the final amount, including postage, plus a small sum for each transaction.
As of 1 June, eBay is charging a final value fee of 12.8%, including delivery, with PayPal cut out of the equation.
PayPal was acquired by eBay in its early days in 2002, but the two parted company in 2015. The agreed split allowed PayPal and eBay to pursue partnerships with each other’s competitors, but barred them from becoming direct competitors in their core businesses.
Although there have been some grumbles from sellers about giving eBay direct debit access to their personal bank accounts, the company says the new system is simpler, convenient, and gives buyers more payment options.
Buyers will automatically have access to multiple payment options, including credit and debit cards, Apple Pay, Google Pay, PayPal, and PayPal Credit.
However, payments for sellers will now take two working days, while PayPal was usually same-day.
It has been a gradual introduction. The feature has been rolled out since about 2018, starting with business sellers.
An estimated four million sellers are already using it. The deadlines for all users are phased so while many sellers are required to move to the new system from 1 June, others will receive a message from eBay in the coming weeks and months.
Related: PayPal deepens Google Cloud relationship with new infrastructure deal
EBay has declined significantly: Not only do they require that I ship my sales DAYS before actually receiving payment for them (as I used to, with PayPal), but they’re now pocketing the 2.9% savings we as sellers should have received with PayPal out of the picture by increasing their OWN percentage! In addition, their seller/listing functionality is atrocious – particular if you use their “seller business tool” – which takes FOREVER to upload images… if it ever does! Best to NOT use that tool, but to stay with their “old” system…
This is now nothing more than a big ponzi scheme….I am still waiting for payments from 2 months after I shipped goods…
Not an hour goes by that a seller from eBay isn’t complaining about it on their own eBay user forums. I’ve been using it haven’t had any major complaints about it yet partially because I’m complaining all day long about other things that ebay is putting me through as a seller on ebay. Doesnt make a big difference to me if PayPal is floating my money during resolutions or problems or Ebay is. What concerns me about both companies just having direct access to my bank account because they make up their own rules over there they really believe that and if somebody wants a refund on something from $24 to $24,000 eBay will automatically refund that money right out of your bank account.
EBay’s price-to-earning ratio compared to the e-commerce Marketplace average is about p/e/r 18 to 1 compared to 48 to 1. That’s how poorly eBay’s ratio is compared to recent entries into the e-commerce Marketplace literally about 1/4 but when you compare eBay price earnings ratio to the bigger companies is much less than that Amazon’s is roughly 80 to 1 even ESTY is around 80 to 1 whereas eBay’s has roughly 18 to 1
before the pandemic eBay’s price earning ratio was on a steady downward spiral into the 14 to 1 region.