eBay Sellers Forced To Use Bank Accounts

After a 19-year partnership, eBay and PayPal are parting ways. With the Managed Payments system, eBay sellers’ payments won’t go to their PayPal account, but directly to their checking account, the BBC reports. The change was introduced to eBay’s terms of service on Monday and will apply to all sellers.

Over the years, eBay has established its reputation as the largest ecommerce platform by allowing users to sell various goods, from books, cosmetics, collectibles, POS systems, and computer software to a Dorito shaped like the Pope’s hat.

According to eBay, this move “simplifies the end-to-end experience for both buyers and sellers” while eliminating PayPal fees. Still, the overall fees will be lower compared to the previous ones coming from both eBay and PayPal. Seller fees will rise to 12.8%, plus 30p in the UK. Previously, sellers paid 10% to eBay in addition to PayPal fees and 30p for UK-based sellers.

Sellers will also have to wait 48 hours before they can access their money, while they only had to wait one day with PayPal. The Managed Payments system has been around since 2018 and has been used by approximately 4 million sellers. Throughout the last 2–3 years, there have been complaints of delays of up to 7 days and frozen accounts.

Sellers Threaten To Leave eBay

Although the major ecommerce corporation has repeatedly highlighted the benefits of this update, sellers are voicing their dissatisfaction and even threatening to boycott the platform.

Users are reluctant to give eBay access to their personal bank accounts and fear delays and account issues that will make it harder to receive payments. The sellers also have no option to opt out and change the payment method, as this change is compulsory.

Over the years, sellers have voiced their opinion that eBay has always favored its buyers, often at the expense of its sellers, and many feel that this latest development is further proof of this.

If recent ecommerce statistics are to be believed, by 2040, over 95% of all purchases will be made online, and eBay has the largest userbase of all ecommerce websites. To keep this userbase happy, eBay is constantly looking to make their shopping easier at any cost, even if it causes disappointment to its sellers.

ABOUT AUTHOR

My eyes rarely take a break from staring at my laptop's screen—I am Big Brother, scanning the web for news and information worth sharing. Full transparency—a substantial chunk of my screentime is also dedicated to watching TV shows, but balance is key, right? Writing is how I choose to share my findings with the world while keeping my love of language and creativity alive.

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