eBay will manage payments for most of its marketplace sellers by 2021, and all sellers will eventually be required to register for managed payments in order to sell on the marketplace. In other words, if you are selling watches on eBay, you will need to register your Managed Payments by eBay. Lucky for you, here is all you need to know about the new requirement for US Sellers.
What are eBay’s Managed Payments
The new payment system means you will now longer be forced to use only Paypal to sell your items, but the buyers will be able to choose from several different payment options.
The biggest difference is that you will get your money deposited directly in your checking account and will not have your money held by PayPal. There are also some adjustments to the seller’s fees that come along with this system.
For example, If I sell a Rolex for $10,000, the buyer will choose one of the payment methods I allow, and eBay manages the payment transaction. As the seller, I will receive the payouts in my checking account directly and don’t have to transfer any funds like it used to be when using PayPal.
Accepted Payment methods using eBays Managed Payments
- American Express
- PayPal & PayPal Credit
- Apple Pay (through the eBay app and mobile website only)
- Google Pay (through the eBay app, mobile website, and desktop)
Unfortunately, payment by bank wire is currently not supported by eBay’s Managed Payments.
How long does it take to get the money to my account?
It does not matter what kind of payment the buyer uses, the payment is initiated Monday through Friday within two business days. From the time the payment is processed, it takes one to four business days to get money in your bank account.
In some cases, there might be a hold put on your payments. According to eBay, “we sometimes place a hold on funds if there is an open claim or dispute on the transaction, if your buyer reports a problem with the transaction, if your account is restricted or suspended, or if you owe eBay money. If your funds are put on hold, we will notify you via email and, depending on the reason, may request additional information from you to help resolve the issue.”
The holds are not longer than 30 days.
The different Payout Holds using eBay’s Managed Payments.
- Transaction level holds: These types of holds are placed due to a specific buyer transaction. Sometimes eBay needs to review the details of the transactions.
- Buyer dispute holds: If a buyer reports an issue with the watch received from you, such as not as described or watch not received, eBay will hold the funds until the claim is resolved and closed.
- Payout holds have four main categories (Registration hold, Compliance hold, Non-payment holds, and Performance holds)
- Registration hold: If there are any discrepancies in your seller’s account, which you provided during the registration, the account might be restricted.
- Compliance hold: As a seller, you will need to comply with eBay policies and procedures, which are designed to protect buyers and sellers while complying with applicable laws.
- Non-payment hold: In case you as the seller have outstanding fees owed to eBay, payouts are put on hold
- Performance hold: In case your account has unusual activity such as increased customer claims, sudden changes in your selling activity, negative buyer feedback, or late deliveries.
What are the fees for eBay’s Managed Payments?
When you are selling watches on eBay, there are two main types of selling fees. The insertion fee when you are creating the watch listings, and the final value fee when the watch is sold.
Insertion Fees on eBay for watches
The cost of the insertion fee is $.35 after the first 200 free listings are used each month.
The fees for selling watches on eBay for non-Store sellers as well as Starter eBay Store
- 12.35% on the total amount of the sale up to $1,000
- 6.5% on the portion of the sale over 1,000 up to $7,500
- 2.35% on the portion of the sale over $7,500
For example: You sold Rolex Submariner for $10,000
- 12.35% = $123.5
- 6.5% = $422.5
- 2.35% =$58.75
Total fees using eBays Managed Payments is on a $10,000 Rolex watch $604.75 =6.04%
If you want to lower the fees, you can pay subscription fees to become an eBay store.
Store Types on eBay:
- Starter: $7.95 per month or $59.40 annually
- Basic: $27.95 per month or $263.40 annually
- Premium: $74.95 per month or $719.40 annually
- Anchor: $349.95 per month or $3,599.40 annually
The fees for selling watches on eBay for Basic, Premium and Anchor subscribers.
- 11.5% on the total amount of the sale up to $1,000
- 4% on the portion of the sale over $1,000 up to $5,000
- 2.35% on the portion of the sale over $5,000
For example: You sold Rolex Submariner for $10,000
- 11.5% = $287.5
- 4% =$160
- 2.35% =$117.5
Total fees using eBays Managed Payments is on a $10,000 Rolex watch $565 =5.65%
Keep in mind that the total price calculated includes the tax charge to the buyer.
The managed Payments system seems like a good idea for eBay, which will make the transaction between watch sellers and watch buyers simpler. The eBay authentication program still applies to watches.
The percentage of total fees might be slightly lower when selling higher-end watches, but as mentioned before, Value Your Watch does not charge sellers or buyers fees, and you should consider listing your watches for sale there.