In any business with changes, there comes a time where hard decisions have to be made. When it could mean losing control of your cash flow and possible higher expenses, it's especially important. The earlier a decision is made, the easier it is to make a smooth transition and control the direction of your eBay DropShip Business I hope you take action to prepare before eBay forces you to optin to their Managed Payment Processing System to stay at the helm of your DropShip Store Business. eBay's Mandatory Optin Push begins October 1st! eBay will beef up their requests to apply for their Managed Payment Processing to random eBay Sellers. Since it's MANDATORY, you want to be prepared, prior to your account being selected.
Key Managed Payment Elements: Payment Processing and Final Value Fees.
eBay's Payment Processing Fees will save Sellers an average of $0.41 compared to current PayPal Fees.
Final Value Fees are charged prior to Payouts.
Multiple quantity sales are charged $0.25/item sold.
Sales Payout Delivery
Sales payout payments are deposited directly to your Bank Account submitted within the application.
1-Day Payment Turn-around time from Sales Date to Payment received.
Cancellations and Returns
eBay will automatically process sales cancellations and return requests.
$20 charge if Seller challenges and loses a customer return requests
Little, if any Seller Protections
eBay Managed Payment Cost of Fees Outweighs Benefits! Although, it's true, processing fees will save you $0.41 per transaction and provide buyers with more payment option gateways such as ApplePay or GPay, eBay's overall associated fees, runs a high-risk to being a DropShip Business Killer.
Sale Payment Withhold Time Affects DropShipping Order Methods
The whole beauty of dropshipping is ordering immediately after sale using funds from sales with remaining accounted as profit. eBay states 1-day turn-around from sale to payment issued, however, to date, this hasn't been the case and it could be up to 5 days, depending on your Banking Institution. This means eBay DropShip Sellers will have to use their own monies to fund ordering products from dropship suppliers to fulfil orders -AND- drastically change simple accounting to a more complex system.
Additional Fees & Charges
It seems, sellers of small ticket items are bound to spend more money than save in this new service with additional $0.25 listing fee and separately charging per listings purchased within bundled listings. This also includes....$20 Charge for challenging and losing an eBay decision in favor of the buyer within the processing time. During this time, eBay has full control of transactions and customer return request. Sellers have no way to know why a customer requests a return due to eBay's option to select AMBIGUOUS as their reason to return. Without detailed knowledge to challenge a return request, it would be fool-hearty to challenge and can safely assume, eBay will favor a buyer. Not only is this method a sure way of losing sales revenue, it also prevents Sellers from directly working it out with their own customers. Again, eBay has FULL CONTROL of pending Transactions with no seller protections from fraudulent return claims.
NOW is the TIME to DECIDE! Yes, eBay states Managed Payment eBay Accounts will receive higher search ranking for buyer visibility..... but is it worth it, when eBay DropShip Store Owners will have to:
Pay dropship supplier orders, out of their own pockets?
Wait to receive sales payment up to 5 days?
Setup new accounting system to accommodate sales/fees transactions?
Endure more fees above processing fees?
No control over customer return requests?
No Seller Protections against fraudulent claims?
.....And should setup a new Bank Account dedicated to eBay transactions?
Right now is the time to decide BEFORE you receive the mandatory application to optin to eBay's Managed Payment Service.
Alternative Easy Solution If you love dropshipping as much as I do...but decided eBay's Marketplace is no longer a viable dropship selling platform for you, now is the time to take action BEFORE you MUST decide to optin into eBay's Managed Payment and prepare for the upcoming Holiday Sales Season. One alternative is to move your dropship business using Shopify Lite ($9.00/mo) Platform in conjunction with DSMTool DropShip Suppliers and selling from your FREE Facebook Store. The setup is easy, fast and automatic to start selling immediately. Better yet, you can have sales transaction processed with instant deposit to your PayPal Account and/or GPay Account (zero fee) with fast deposit directly to your Bank Account Debit Card and you control 100% of your dropship Store Business, enjoying higher profit revenue and direct contact with your customers. If you would like this alternative to selling dropship on your Facebook Store, I would be happy to hold your hand throughout the whole process from setup to sales.
"Success doesn't just happen...You have to go out and get it!"
Hi! My name is Ms. Deb, and I love dropshipping! Seriously - it's all I think about. Which is why I started this blog - to share my ultimate guide to dropshipping with you. I hope you enjoy reading (and making money) along with me!
DropShip Supplier Services
Ms. Debra Bee-Stefani eBay Top-Rated Power Seller - eBay Trained Education Specialist - eBay Coach/Trainer since 2013. Specialized in: SEO Applications & Techniques; Higher Profit Strategies and Inventory Management