It’s been less than a month since we rolled out managed payments, and we’re seeing positive results for both our business and our sellers in this experience.
Since introducing managed payments on a small scale in the U.S. 21 days ago, we’ve already intermediated more than $20 million in GMV—tracking at an annualized run rate of nearly half a billion dollars.
Sales for the initial sellers in managed payments are going well. Some of these sellers are seeing increased sales velocity compared to their sales prior to signing up. And, many sellers are reporting that it’s easier to manage all of their transactions in one place and they’re benefitting from the lowered costs.
Last week, my team spoke with seller Danny Hone who sells t-shirts through his eBay store Honeville1. “I was expecting a slowdown, but within an hour of being opted-in I had my first cha-ching,” Danny said. Moreover, his overall sales for the last 30 days are up.
Most exciting to Danny, and to many of our other sellers, is their lowered costs. “When I decided to sign up for managed payments, it was really about the 30 cents savings. I do more than 5,000 sales in a year, so that savings adds up to over $1,500 back in my pocket. If you’re a higher volume seller, that 30 cents adds up fast. It’s a huge advantage for me.” Danny told us.
Overall, sellers in managed payments are benefitting from reduced costs:
- A 25% reduction in their payment processing fees1;
- This reduction represents approximately $175,000 in seller savings to date;
- This translates to almost $4 million in seller savings on an annual basis.
In fact, for invited sellers who are interested in understanding their own savings in managed payments, we’ve created a calculator to show seller savings here.
Offering more payments options is also proving to be a driver for buyers. For instance, over 1 in 10 eligible transactions are being completed on Apple Pay, a new option for buyers using their iPhones to shop in the new experience. We believe this positive momentum can be directly attributed to the simplified checkout experience enabled by managed payments.
Another seller, Brian Kearns, who sells auto parts on eBay store ReadyToMount, said, “Everything is working well. Visibility and access to my funds from the Payments tab in My eBay is really nice.” He underscored the ease of the new payment options, adding, “Our customers are easily paying with their credit card without any problems or issues."
And before signing off, I wanted to remind sellers who are looking to get quick, easy access to capital about the partnership we announced with Square Capital earlier this summer. You can find more information here.
Check back here for more updates and insights from me soon. For sellers interested in more information, go to ebay.com/payments.
- Based on a July 2018 eBay study of provider rates among leading competitors as they would apply to the average selling price of the invited seller population in the past 90 days, comparing flat rates charged for online processing only and excluding any applicable monthly fees. We encourage sellers to calculate how these fees will affect their own selling costs.