eBay Managed Payments: What’s changing and what to expect

Last year, eBay announced the launch of Managed Payments with the goal of being less reliant on PayPal payment services. The objective was to create a more streamlined payment process and increase checkout completion rates.

Due for a full release during the summer, the system will slowly become mandatory for all buyers and sellers. It’s always beneficial to begin the transition process early, avoiding any of the issues that may arise once PayPal is phased out. According to eBay’s own calculations, it is expected that most sellers will have transitioned to Managed Payments by 2021.

What’s changing?

The idea of this new system is to simplify the selling process for merchants. It will merge selling and payments without the requirement of an account on an external platform. Customers will be able to complete purchases directly from the website with multiple payment options included.

As well as faster payments, the new system offers lower fees. Currently, PayPal charges 2.9% + $0.30 per transaction whereas eBay is charging 2.75% + $0.25 for the existing users that have enrolled and will continue to do so for all merchants. eBay’s data reveals that based on the

A simpler invoicing system is also implemented to assist sellers with managing transactions and payments easier. eBay's data also reveals that the new processes should lower buying reluctance from customers. Other data reveals that mobile payments are expected to increase to 28% by 2022, which is likely to contribute to the expected boost in transactions.

Currently, there are restrictions on international sales, with only US merchants having access if certain criteria such as self-shipping are fulfilled. There’s also no open API for third-party integration, which can make early transitions difficult for larger sellers.

It is certain that eBay will continue tinkering and perfecting the platform and address some of the current issues. As a seller, it is worth considering a transition as early as possible so that your account is prepared for the inevitable public release. In the meantime, using the Inventory Management Software can help to scale a store domestically and internationally, saving valuable time and money.

For additional help with establishing and growing a successful eBay store, our experts at Activ8 are here to help. Contact us below and find out how we can help you optimise and grow all your commerce.