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eBay sellers can no longer use Paypal under new ‘simplified’ system – and they face higher fees

Ebay will now pay its sellers directly, rather than through PayPal, under new changes.

The online auction house, which has over four million sellers registered globally, said it was a ‘big step’ towards creating a simpler marketplace.  

Ebay has increased the fees it charges to sellers from 10 per cent of the item’s value to 12.8 per cent, but they will now avoid Paypal charges.  

Although sellers will now be paid by eBay, buyers can still use PayPal to purchase items. 

PayPal was acquired by eBay in 2002 for $1.5billion and the two companies have worked closely ever since.

Payment: eBay will now pay its sellers directly, rather than through Paypal, under new changes

But eBay said the changes, which came into effect on 1 June, will make it simpler for sellers to get paid.

Before this, it said sellers had to juggle between two sets of accounts, reports, online tools, policies and customer service contacts.

The process is now on eBay end-to-end, meaning there is no need for a third-party PayPal account and no more PayPal payment processing fees.

Sellers will also get paid directly to their bank account, not their PayPal account, and will be able to access everything they need in one place.

There are now new options for buyers to pay on site as well, such as Google Pay and Apple Pay. 

However, eBay has increased its own fees slightly, with payments now standing at 12.8 per cent of the final selling amount including delivery, plus 30p in the UK. 

Previously, this was 10 per cent for eBay, plus PayPal’s processing fees which were 2.9 per cent, plus 30p. 

The process is on eBay end-to-end, meaning there is no need for a third-party PayPal account

The process is on eBay end-to-end, meaning there is no need for a third-party PayPal account

What do sellers have to do?

As part of the changes, all eBay sellers will receive an email invitation asking them to complete managed payments registration by a specific date. 

The rollout is phased, so the deadline is not the same for all sellers.

Sellers should check their emails from eBay for their registration deadline, and update their account details in order to begin having eBay manage their payments. 

All sellers will have their payments managed by eBay by the end of 2021. 

What has the feedback been?  

Some sellers have threatened to abandon the service thanks to the changes. 

Certain users believe that if a dispute has been raised by a buyer and eBay takes their side, it will be able to remove money directly from the seller’s account. 

Others have taken to social media to say the fees seem to be much higher for them since the change, and that it is taking them longer to have the funds released.

Annoyed: This eBay seller is frustrated after the changes mean he has to wait to get paid

Annoyed: This eBay seller is frustrated after the changes mean he has to wait to get paid

Another user they had to wait for their funds when it was previously done quickly with Paypal

Another user they had to wait for their funds when it was previously done quickly with Paypal

However, experts say the move will actually benefit sellers, rather than hinder them.  

Libby James, co-founder of payment processing advisor Merchant Advice Services, said: ‘Although some sellers have threatened to stop using the service over the move, the changes being rolled out in June will benefit them.

‘Firstly, PayPal is making its own fees slightly higher – so not using the service will save eBay sellers fees and the changes will positively impact buyers by ensuring there are more payment options available including Google Pay, Apple Pay and PayPal credit.

‘Secondly, this will also reduce the time it takes for the payment to reach sellers, enabling funds to clear instantly before they dispatch sold items. 

‘As a result, the new system creates a simpler and more convenient experience for both buyers and sellers. We can, therefore, expect a rise in buying activity and an increase in account subscriptions of eBay sellers.’

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