Thursday, August 21st, 2008
UPDATED: A Follow Up On Payments
Timing, they say, is everything. I had no idea 3 months ago, when I booked my European trip, that we would be announcing these key changes to the eBay Marketplace this same week. On top of that, the two-day period when I’m celebrating the marriage of my little (not so little anymore I guess at 24) cousin, comes less than 24 hours after the news is announced. So I apologize for that now.
Additionally, I must thank the eBay folks back in San Jose, who, on top of everything else they’re working on, have jumped into the comments and are responding to questions and concerns right here on the blog and it’s great to see that happen. More of that in the future, I say… Inspiring stuff!
Having said all of that, I did want to take some time though to re-emphasize exactly what changes are being made with regard to payments and why those changes are taking place. I thought the microsite and other communication platforms were pretty clear but I do feel, as we have eclipsed the 100+ mark in the comments section of the previous post, that we have started to lose focus on exactly what the changes are. Particularly when talking about paying on eBay.
So, I wanted to share a few things with you. A couple of slides to show your new and improved actual buying and selling experience with the payments actually integrated into the eBay checkout process; a video featuring eBay’s one and only Griff; and a link to more information regarding the changes to payments on the eBay site that combined show why using electronic payments (and no, NOT JUST PAYPAL) makes for a better buyer and seller experience on the site. eBay will give buyers a faster, more secure checkout experience every time they pay, like other ecommerce sites. The goal is to keep them on eBay, purchasing your items. Period.
Finally, here is some more information regarding the payment changes:
http://pages.ebay.com/sell/August2008Update/Payments/
Cheers,
RBH
UPDATE: 8/25/08
Hi guys,
It’s getting a little late here in Germany but several of you have raised questions with how the payments changes will be enforced. We understand this is an important issue for sellers who have significant numbers of long-standing buyers who pay with checks or money orders. I know you are concerned both with losing buyers and with how eBay will enforce the changes. As a result, I followed up with the team in San Jose to get answers to your questions.
First, a seller can accept check and money order payment from a buyer if (and only if) the buyer requests it. We will not take action against a seller who is trying to accommodate their buyer, complete a sale and be in compliance with the policy. A seller can also decide to refuse check or money order payment from a buyer.
When these changes go into effect in late October, a seller cannot in any way solicit check or money order payment from a buyer. This is considered “abuse of the payments policy”. We will take action against such abuse. One way we will detect abuse is from reports from buyers. We will also monitor checkout completion rates for sellers, and this has generated a lot of questions from sellers. Here are some clarifications:
* eBay will not automatically take action against a seller with a low completion rate. We realize that there are many valid reasons for low completion rates, including the one raised by @Amber, who posted that she frequently uses PayPal invoices with her buyers. (We are reviewing the checkout flow with an eye towards determining and eliminating the most common reasons a seller is forced to resort to PayPal invoicing for eBay sales.)
* We will investigate sellers with low checkout completion rates on a case by case basis. Specifically, we will check to see if the seller is soliciting check or money order payment from their buyers. If we don’t find any evidence of this occurring, we won’t take action against the seller.
eBay also plans to help you retain your buyers. We are planning a series of workshops, blogs and email to buyers to provide tips on how to adjust to the changes, and assure them of both the security of the new eBay checkout and the permitted electronic payment options, as well as overall benefits to paying using electronic methods, such as buyer protection. Late last week, eBay began a phone outreach campaign targeted at top buyers who frequently use checks and money orders. These buyers were offered coupons to encourage them to continue purchasing your items.
I hope this answers a number of your questions.
Cheers,
RBH
Related Reads:
* Changes on eBay: The Impact of Eliminating Paper
Tagged: ebay, ebayink, payments, paypal
DakotaOn 08.21.2008 at 1:52 pm Said:
One of my unanaswered questions from the other thread where eBay is dumping all buyers who use checks or money orders (the thread is not off the mark - go check it out - there are many relelvant posts and more unanswered questions):
Clarification is needed after going to the boards. I read the policy to say NO checks or money orders but on one of the boards, the following is posted:
From the above thread posted by Pinkie “Lulu” - “Hello wizard,
We realize that some customers may ask to pay with a check or money order. While we prefer buyers pay with online payments, it is fine for sellers to accept checks or money orders upon the buyers request.
Best,
Lulu”
—
Right. But let’s be crystal clear here: Seller are free to accept any payment type request a buyer might send them but post October, they will not be able to offer the option of checks or money orders in their listings or their email to buyers.
Griff
—
j-t*
Griff, can sellers then put a note in their listings for the buyer to contact them to use other payment methods not listed without saying what type?
- JT
pepinski9
Or can we say in our email to buyers contact us for other methods accepted or please let us know your preferred payment method…..
No.
Sellers will not be permitted to solicit paper payments in any way shape or form. Email, listing descriptions, etc. A seller will not be permitted to solicit buyers with a “please let us know your preferred payment method” email. If the buyer reports the seller and provides the email, the seller will risk sanctions.
Griff
****
Ok, which is it? Checks and money orders - yes, no or only under certain circumstances?
Yet a seller has to worry about the eBay police monitoring their activities and risk sanctions.
We need a 100% clear cut answer please.
DakotaOn 08.21.2008 at 1:55 pm Said:
Are there going to be seperate threads to deal with the other issues in the latest policy change?
There are many unanswered questions on the other thread about all aspects of the new policy.
They are need answers.
DaveyOn 08.21.2008 at 2:18 pm Said:
I’m still waiting to hear how eBay will align its electronic payment arm to address those things that do not currently “delight” its customers, namely very poor customer service when it comes to solving problems, unreliable availability of the platform for both accepting payments and for fulfulling orders, failure of promotional discount coupons, delays in clearing payment forms, and the list goes on. I’ve heard a lot of “you will’s” directed at sellers, but very few “we will’s” to address long-term shortcomings of the platforms we are now being forced to use for all practical purposes. A few commitments from Paypal are long overdue.
DawnOn 08.21.2008 at 2:19 pm Said:
Prohibiting checks and money orders is a bad idea, period. It’s bad for buyers, and it’s bad for sellers. As has been stated over and over, buyers who refuse or are unable to pay with an electronic payment are just not going to buy on eBay any longer. It’s just that simple.
As for sellers, those who do not accept PayPal for financial reasons have not been given a viable option. If they don’t make enough profit to be able to afford PayPal fees, how are they going to pay higherProPay fees or merchant account discount rates? They aren’t. Again, it’s a no-brainer.
I’m all for a faster, easier checkout system. But there is no valid reason not to include options for check and money order payments in the super duper new system. I have those options in the checkout system on my website. Why can’t eBay include them on theirs?
And, I agree with Dakota that there were many other (more important, IMO) changes announced yesterday that need to be addressed specifically.
LurchOn 08.21.2008 at 3:16 pm Said:
Didn’t know about the microsite. It states this: “Also, auction-style listings continue to receive great visibility in search because they are sorted based on time ending soonest. Auctions will always have a place on eBay.”
How come I always get a sort of Best Match?
TonyOn 08.21.2008 at 3:25 pm Said:
The good part of this is the checkout with credit card payment, that’s a vast improvement and should be welcomed by all who offer that option.
The responses in the previous post were also most welcome, even though some of those guys got a hard time it was nice to see more reps posting.
I’m a bit bemused as to why the seller who thinks cheques and money orders are time consuming thinks the buyers who use those options will happily switch to paperless payments. There’s a high probability they won’t buy from her at all…although I guess that will free up more of her time too.
I don’t understand why ebay are so hellbent on reducing consumer choice on this issue. Some people simply don’t like putting their credit or bank details on the internet, they will choose to shop elsewhere, who does that benefit?
EricOn 08.21.2008 at 3:29 pm Said:
Thank you for showing the mockups of the new eBay checkout options. How will “the payment will be routed to the seller’s Internet merchant account”? This integration is key to moving towards a unified checkout. I talked with my eBay top seller account manager and he didn’t know the answer. I find the announcement is long on the what and why of the changes while short on the how things will work.
I strongly discourage eBay to use a payment gateway like ProPay to integrate the credit card payments. Usually Internet merchant accounts will only accept charges from trusted sources (IP addresses) which are determined when you setup the account. I don’t see how eBay will insert themselves as a trusted source in every merchant’s Internet merchant account. The only way I see this happening is with a payment gateway. Then this puts the costly development work on the sellers for eBay’s decision.
This is how I see it working for sellers.
eBay Checkout -> Payment Gateway??? -> Seller Secure Site -> Internet Merchant Account -> Customer’s Credit Card
DakotaOn 08.21.2008 at 4:38 pm Said:
Why do my posts keep getting held up?
This is crud.
If I write more than a few lines, it takes MANY hours to post.
I guess my thousands and thousands in eBay fees each year ($5000 - $8000 on the high end during the holidays each month)are not any more mportant here than they are to eBay on the actual site - the only ones (and their opinions) that matter at eBay is the big dogs themselves.
I get little services for the buck on the site and here - I get censored. What a sham!
LurchOn 08.21.2008 at 4:42 pm Said:
Usher - thanks for the, um, clarification? It’s good to hear that soon “Ending Soonest” will be the default sort again, but it’s definitely not now (can’t tell if you’re trying to say it is). You have to choose it from the drop-down menu sort menu. Unless ending in 6 hours is supposed to be sandwiched between 4 and 6 days. For example (that was one of many on a short results search I just did).
BTW: people getting the login/password prompt - it may be if you forgot to enter a name and email. I just did, tried to submit and got the login/password. That’s an odd way to handle required fields.
Patricia1On 08.21.2008 at 5:28 pm Said:
Sorry Mr. Lieberman but its clear as mud to me 
I guess we’re going to have to actually see it in action.
MechelleOn 08.21.2008 at 6:03 pm Said:
You guys can’t even get search right with the current model how are you going to manage adding another component? The glitches in eBay right now are by far more common than not.
The little boo boo when you guys were rigging DSRs for the 15th invoice caused a lot of problems for people- yes I know eBay tried to tell everyone that it was only the view not the search- but I don’t believe that for a second unless the DSRs actually have nothing to do with search???
The new store listing glitch giving people a message the item had been removed by eBay- you messed that up too, and how many sells where lost because of that top notch tech programming
Double listing - not listing - gone missing listings
What does eBay pay these people minimum wage???
You play all these games with our lives and s…w up constantly- no apologies, no restitution, no explanations to our customers.
So next week they’ll be forcing people to participate in eBay’s new search failure to view listings that are a mess and utterly worthless for the hope of multiple purchases. Where is the ethics in this company?? Can’t you ask people to participate? Do you always feel it necessary to strong arm everyone into doing what you want?? Pathetic
And why are you hiding the new pages with all the new features from sellers? These are their listings that they pay for and you are manipulating them and hiding your manipulations from the sellers who own those listings.
I ask again, does eBay see we are people?? Do you not realize that we have families to support, mortgages to pay, and food to buy?? What type of character would play such games with peoples lives.
I am stunned at the decrease in sells I have had this year. I am almost 1/2 less in gross sales this year relative to last year.
Someone called live chat today, because they have noticed a severe decline in their traffic reports and the rep asked her what suggestion she would like?? Of course she asked what? and the rep informed her that there is a link issue and the other day they were getting a lot of complaints so they were given a list of generic BS to feed us as to why are traffic is dead. What is that? You can’t inform us when your glitches have caused us a loss??
Patricia1On 08.21.2008 at 6:36 pm Said:
Hmmm…well, to simplify things why not separate them and have two tabs on the listing page - one for auctions and one for fixed price. That would not only keep the two searches and the two types of listings separate but it would also tell you which the buyers prefer 
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