eBay- Long Rant

[gdr_11]

Not sure this is the proper forum vs OT, but the recent changes by eBay in their Managed Payments program has raised a red flag for me. I have been an eBay seller for more than 20 years and have seen the evolution from a true marketplace to an oppressive seller environment where the main goal is to squeeze every nickel out of it’s merchants.

Now that the rant is over, I have the following observaitions/questions:
- eBay now requires sellers to provide direct access to their bank accounts included limited power of attorney.
- sellers are now required to provide SSN or tax id information which is scary considering the majority of their customer service is overseas
- Seller payments are now made directly by eBay but not until receipt of item by buyer is verified. Considering packaging/handling/shipping and then normal ground transportation, this can mean 10-14 days to receive payment.
- Given the above, this means eBay impounds $250 million a day and holds those funds until paid out 7-10 days later. During this hold period, the impound will grow by an additional $250 million daily.
- Since eBay is not legally a financial institution they are not subject to banking regulations and are not prohibited from earning interest on any funds impounded as are mortgage escrows.
- In essence, sellers allow eBay to “borrow” their funds for 10-14 days. Instead of being paid for the “loan” sellers are charged 12.5% for the use of their own money.

In considering the above, how can eBay create a $90 billion a tear financial institution with no regulatory oversight? With the Democrats now poised to take over, it is no coincidence that eBay chose this time to roll out this program that had been in the testing stages for more than a year?

BTW, the day I was notified of these changes, I deleted all my listings and have no intention of selling there again

[Milsurp1]

Thanks for the tip, I will look elsewhere to sell anything.

[Paperchasin]

Great and very informative post! Anyone that sells on eBay should understand the new terms before agreeing to them. I personally do not agree with them either so I won't be selling anything on eBay anymore.

[denpython]

When do the new terms take place?

[ronrichards64]

I just pulled my money ,might not sell on eBay again.

[sonofeugene]

No freakin' way I'd go for that. My wife had her ID stolen a few years back and between eBay and PayPal, it took forever to straighten up. We didn't even find out about it until the IRS came to us looking for taxes on 28,000 dollars of income.

[ibanezfoo]

I had a handful of things on there to sell and right in the middle of it they forced me over to their new scam. I have the same reservations as you. Seems like some crooked sht so as soon as my last thing clears up I'm out of there too. I was perfectly happy with the Paypal method and this just seems like a whole lot of BS.

[Mute]

These are some of the reasons I've stopped selling on ebay. It's probably also the reason why a majority of items, except those that are straight up auctions, are more expensive than buying retail, even at a brick and mortar store.

[wpage]

ebay has over time lost some of its appeal. Seems like they feel the covid problem is giving them opourtunity to try to take advantage.

No dice.

[The War Wagon]

eBay- Long Rant

The short of it: ruined by mandatory pal, 15 years ago.

[usr1987]

This is why I stopped using them and also paypal! I hate them.

[XDJYo]

Rarely ever use ebay anymore. It was cool in the beginning, but it started to go south about 7-10 years ago for me.

Appreciate the heads up, just deleted my account.

[Ghn]

F e-bay, when I saw this new rules, I
Removed all my listings... they want too much of your info... ssn, bank acct, address, etc. WTF. E-bay will lose a lot of sellers because of this [emoji90]


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[Dr Pete]

I just looked into this also, removed all my listings from flea bay and the last invoice they will take payment from paypal, shocker! cause they want to get paid.

It's sad that they are so huge that it doesn't matter to them, I was small potatoes, did ~ $3K a month but it was nice side $

Someone should remind them of how they started in a garage in Mountain View making peanuts before they got greedy.

[BananaKetchup]

Pulled out all my ads when I got the notification, out of the blue, that I will be transferred to the ebay payment management system. Noped out immediately.