EBAY is shaking up the way people can earn money from selling on the platform.
Fees are set to change and sellers will no longer have to use PayPal but this means it will take longer to get paid.
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EBay is moving payment processing away from PayPal and will handle it themselves instead. This means shoppers can still use PayPal to make purchases.
PayPal will no longer get a cut of sales for processing payments and instead eBay will take a larger cut than it did before.
Paypal’s cut is 2.9% and 30p per transaction at the moment, with eBay taking up to 10%, depending on the item.
Without Paypal, eBay will now take a higher fee of 12.8% and a fixed 30p per transaction fee, which woks out as slightly less overall.
This cut is called a final value fee and is a percentage of the sale price, including delivery.
EBay’s new fees: How do they work?
When selling something on eBay you may have to pay fees, one is a final value fee – this is a percentage of the sale price, including delivery costs. Here’s how they are changing:
Before
- Seller fee that goes to eBay: 10%
- Seller fee that goes to PayPal: 2.9% and 30p per transaction
After
- Seller fee that goes to eBay: 12.8% and 30p per transaction
- Seller fee that goes to Paypal: 0%
But it means sellers will have to wait longer to get their money after selling an item.
While payment lands immediately in Paypal accounts, eBay’s own processing will take two business days and this means it could take up to four days for the funds to clear.
But the money will go straight into sellers’ banks accounts and sellers can also choose to have these payments scheduled to drop in their accounts daily or weekly.
Another change from the shake up is that eBay will now accept more types of payment.
Top tips for selling on eBay
NEW to eBay? It’s head of secondhand, Emma Grant, reveals how to optimise your listings:
- Use key words – eBay automatically filters listing titles for key words, so it’s crucial to use the terminology people search for – especially brand and product names.
- Choose the right category for your product – It might sound obvious but it’s important to always choose the most specific category to sell in.
- Pictures are important – Most users will not bid on items they cannot see. For best results, take photos in natural light against a neutral background and be honest about any scratches or damage to the item.
- Be as detailed as possible – Be honest about the condition of the product and be sure to note any wear and tear.
- Look at past sold items– eBay has a function that allows you to search for the item you want to sell and then filter the results by sold items. Here, you can view the price the item has sold for and get insight into how others have listed it.
- Selling Sundays – Get the timing right. The busiest time for buyers is Sunday evenings, so schedule your listings to end around that time. Opt for seven-day auctions to ensure the max number of bids. The longer your item is listed, the more chance of people seeing it, so unless it’s time-sensitive, pick seven days. December is the busiest month on eBay.
- Be realistic with pricing – Try searching for similar items on eBay, to make sure you’re going for the right price and always ask yourself “would I pay this price for this item?”
- Donate to charity – When listing your item, consider donating a percentage of the sale to a cause of your choice – from 10% to 100% – you can donate the funds raised from your item straight from the platform.
Customers have been able to pay using PayPal, credit or debit card.
EBay will continue accepting these payment methods and will now accept Apple Pay and Google Pay too.
The changes are being rolled out to private sellers already and everyone will use this new process by the end of 2021.
Sellers will receive an email asking them to make the switch away from PayPal.
It means money from sales will no longer be paid into your PayPal account and you’ll have to connect a bank account to receive payment.
PayPal customers will be charged £12 a year if they don’t use accounts from December 16 – but there are steps you can take to avoid it.
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