topic Re: blog post - ebay move from PayPal to Adyen in Selling

blog post - ebay move from PayPal to Adyen

lm-entertainment — Fri, 09 Nov 2018 18:37:57 GMT

i read an interesting blog post regarding the change in payment processor which is coming and thought I could post it here since it's on an ebay-supported website (CrazyLister). mods, if this isn't allowed, i sincerely apologise - i couldn't see any blatant ruling in the board content policy preventing me from posting it.

a while back, news broke of the intention of ebay to change it's main payment processor from PayPal to Adyen. this is due to take place by 2021 and all sellers will eventually have to transition.

the blog post examines and answers some questions regarding the payment processor and how the transition might work - https://crazylister.com/blog/adyen-payments-ebay/

from my perspective, there are many unanswered questions and concerns which i guess, will become clear in due time.

Re: blog post - ebay move from PayPal to Adyen

chameleon54 — Fri, 09 Nov 2018 21:58:24 GMT

$120 U.S dollars, minimum monthly fee ???, Three selling accounts $360 U.S ???? Did I misread that ??? ( maybe they mean $120 U.S per month in gross sales turnover, but it doesnt quite read like that )

If I read that correctly its going to knock a lot of small sellers out and force slightly larger sellers to consolidate selling id,s You would need to be turning over $4500 U.S + per month to break even with paypal as it is set up now.

Re: blog post - ebay move from PayPal to Adyen

chameleon54 — Fri, 09 Nov 2018 22:03:00 GMT

Copy & Paste from the article

What about monthly fees?

While I was doing my research to write this post I noticed many people asked about monthly fees and found that Adyen does charge a minimum invoice of €100 ($120 U.S.) per month, depending on transaction volume and region.

They don’t call it a monthly fee because you don’t have to pay extra if your sales volume reaches $120 per month.

In my prime days as an eBay seller I was paying Paypal fees of around $8000 every month (!), so paying just $120 sounds like a great opportunity to save A LOT of fees for high volume sellers.

Re: blog post - ebay move from PayPal to Adyen

go-tazz — Fri, 09 Nov 2018 22:38:16 GMT

Sounds like another attempt to get rid of the smaller sellers,(which includes me),

If I don't sell stuff on eBay I don't buy stuff on eBay,( I suspect other small sellers do as well so they will/might

lose that side of their business as well),

It has/will be fun while it lasts but I would never sell enough each month to justify a monthly fee,

Re: blog post - ebay move from PayPal to Adyen

lyndal1838 — Fri, 09 Nov 2018 23:03:17 GMT

@chameleon54 wrote:
Copy & Paste from the article

What about monthly fees?
While I was doing my research to write this post I noticed many people asked about monthly fees and found that Adyen does charge a minimum invoice of €100 ($120 U.S.) per month, depending on transaction volume and region.
They don’t call it a monthly fee because you don’t have to pay extra if your sales volume reaches $120 per month.
In my prime days as an eBay seller I was paying Paypal fees of around $8000 every month (!), so paying just $120 sounds like a great opportunity to save A LOT of fees for high volume sellers.

That reads to me as they charge a MINIMUM of US$120 per month. If you earn more then you pay more.

Re: blog post - ebay move from PayPal to Adyen

davewil1964 — Fri, 09 Nov 2018 23:12:55 GMT

@chameleon54 wrote:
$120 U.S dollars, minimum monthly fee ???, Three selling accounts $360 U.S ???? Did I misread that ??? ( maybe they mean $120 U.S per month in gross sales turnover, but it doesnt quite read like that )

If I read that correctly its going to knock a lot of small sellers out and force slightly larger sellers to consolidate selling id,s You would need to be turning over $4500 U.S + per month to break even with paypal as it is set up now.

For Asia-Pacific a minimum invoice of $US1000 applies

Re: blog post - ebay move from PayPal to Adyen

joztamps — Sat, 10 Nov 2018 00:41:14 GMT

The question is whether those standard fees will apply in ebay's "intermediated payments model”, ie whether or not ebay has negotiated a fee structure of comparable amounts to the current paypal.

Does anyone know whether that sort of minimum monthly fee applies on etsy, which apparently uses Ayden as its processor?

If the monthly minimum fee does apply, whether it be $120 or $1000, it would obviously be the end for the overwhelming majority (by numbers) of sellers.

Re: blog post - ebay move from PayPal to Adyen

digital*ghost — Sat, 10 Nov 2018 01:45:18 GMT

I'm going to go out on a limb and suggest the monthly fee is for the merchant, not individual sellers. The writer of the article seems to think that a monthly fee of $120 is all that they'd pay and it would cover all of their payment processing fees? Someone in ecommerce should know better, lol.

eg Say I went to Adyen to do payment processing on my own site, I might be up for the fee if my volume didn't reach the minimum payment value. In this case eBay is the website owner, and I think the volume of payment processing is going to far exceed whatever Adyen's minimum is. (The article mentions Adyen does Etsy's payment processing - did they not think to just ask one Etsy seller how things work? There's quite a lot of us ). By the way, Etsy's payment processing fees are more expensive than PayPal's, even after PayPal withdrew the volume discount, and I expect eBay's will be too (despite their claim of "cheaper for most" when the annoucement was first made).

The two most serious issues surrounding the switch for me are - Adyen, and / or eBay not being subject to Australian regulations, or answerable to FOS, and what seller protections will be available. No more PayPal will obviously mean no more opportunity for proof of shipping to suffice in cases of INR, but what about credit card chargebacks?

(PS Sellers in the US have been able to opt in to the new payment processing system, you can read a bunch of forum posts here: https://community.ebay.com/t5/Payments/bd-p/payments-db )

Re: blog post - ebay move from PayPal to Adyen

lyndal1838 — Sat, 10 Nov 2018 02:21:38 GMT

Digi, I think you will find that ebay/Adyen will have to be registered with APRA as paypal is.

Re: blog post - ebay move from PayPal to Adyen

digital*ghost — Sat, 10 Nov 2018 02:36:49 GMT

@lyndal1838 wrote:
Digi, I think you will find that ebay/Adyen will have to be registered with APRA as paypal is.

Etsy isn't.

There is a slight difference there as they don't actually have a .com.au site, but the key differnce is that PayPal operates in Australia via an independent, .com.au site, and as a financial institution are subject to Australian regulations. Adyen does not have a .com.au site, and they don't hold funds, just process them.

I hope that means ebay will have to be whereas Etsy don't, but I don't know enough about the industry, I only know enough about eBay to be greatly concerned that they will be able to 'manage' my payments.

Re: blog post - ebay move from PayPal to Adyen

brerrabbit585 — Sat, 10 Nov 2018 23:32:42 GMT

Thankfully, I'll be out of here by time it's implemented!

Re: blog post - ebay move from PayPal to Adyen

beautbots01 — Mon, 12 Nov 2018 02:32:03 GMT

Etsy are going into meltdown atm over financial problems. They are in the process of changing their setup for financial reporting and it has seriously gone off the rails. There is already discussions about an exodus back to eBay as a result.

Re: blog post - ebay move from PayPal to Adyen

digital*ghost — Mon, 12 Nov 2018 03:39:14 GMT

@beautbots01 wrote:
Etsy are going into meltdown atm over financial problems. They are in the process of changing their setup for financial reporting and it has seriously gone off the rails. There is already discussions about an exodus back to eBay as a result.

Is this due to the new fee payment system? I like it, makes things easier for me since I paid my fees every few days anyway, but I did expect sellers would be up in arms about it (for the curious, all seller fees are now being deducted from payments before being credited to the seller - It happened already with payment processing fees, but now includes listing fees, FVF, fees for promotions, postage labels etc ).

The only thing I don't like the sound of is apparently, if you have fees owing (which now also means a $0 account balance) and you need to refund a buyer, the refund and all current fees owing are debited to your card on file, even though you only authorise the refund to the buyer - that needs to change.

Re: blog post - ebay move from PayPal to Adyen

beautbots01 — Mon, 12 Nov 2018 04:29:42 GMT

A lot of disgruntled sellers outside of the US. Seems this new payment system has exposed an overcharge of some .2% over the 5% on transaction fees, Questions asked of Admin indicate a "bug" in the system but there has been no indication of how or when they are going to rectify it. Historic invoices have been amended adding to the anger of sellers who are not able to balance their accounts.

I thought it was going to be a good move too (as did many others). But, the refund issue is just one problem, sellers have had their bank accounts overdrawn all for a $2 refund of postage overages.

Now there are massive complaints that payments for sales have been processing for days. Customers are wanting to know when they will get their items and talking about opening a case against shops because ofit. A big mess.

Re: blog post - ebay move from PayPal to Adyen

digital*ghost — Mon, 12 Nov 2018 04:36:48 GMT

I see what you mean - the switch was sort of unannounced as well, so I can understand how a few sellers were caught out even if the transation had been perfect (they did announce it months ago, then deferred it, then just switched everyone without a reminder). I've now got a few orders racking up where the payments are processing. It's only been happening today, though, and I was switched over last week.

Will have to check my fees.

Re: blog post - ebay move from PayPal to Adyen

clubesquire — Mon, 12 Nov 2018 04:42:11 GMT

In reality, at least for now, it’s another giant mess in amongst a few other giant messes with Etsy. Theres been an exodus going on for awhile now, but I think some of the Etsy behaviours of the past couple of months has hurried that up a bit.

Massive profits were recently handed down to shareholders and Josh is safe for the moment because Etsy make their money more so out of selling seller services as opposed to seller sales. And, up until now there’s been more sellers starting than departing, but the moment that pendulum shifts just one poofteenth too far, and the trend is reversed, he’s in it deep. He could become ‘smelly’ overnight if the exodus gains much more momentum. But, a lot of that operating profit resulted from upping the seller fees. There’s not too much imagination or dynamic leadership involved in that, and he was lucky this time. No one was happy of course, but most copped it sweet. I think he’s the type of arrogant (he’s full of BS too) sod that will push the envelope and try again as early as next year. He won’t be so lucky if he does!

Personally, I love Etsy and I’d hate to see anything happen to it, but I do think under Josh’s Leadership it has developed a bit of an odor (even internationally it would seem) and it won’t take that smell long to permeate, even among those thinking of starting with Etsy. I think too, that it has taken on the outline of a train. Not a complete drawing yet, but certainly the outline and shape is undeniably there. But, if it does turn into a train, which is probable at the moment, and a wreck ensues, he’ll just move in with not a care for the human trauma left in his wake.

The whole thing of Etsy stinks already. We started here after Josh left, so I don’t know what his leadership performance was like here, but if it was anything like his current behaviour on Etsy, it can’t have been too much fun here, especially for sellers.

Interesting times. Very difficult times for sellers on Etsy.

Melina.

Re: blog post - ebay move from PayPal to Adyen

go-tazz — Mon, 12 Nov 2018 08:23:21 GMT

Sounds similar to the CEO at one of the club that's due to depart this month leaving the club over 800 thousand

in debt,,(he was known for leaving every club that he departed in debt and the board still allowed him to spend

over half a mil this year on stuff that hasn't made a bit of difference).

Both of the other clubs made over a mil in profit,