• FEATURED POSTRichard Brewer-Hay / Thursday, August 21st, 2008

    UPDATED: A Follow Up On Payments

    Fees August 2008 Accepted Payments Policy Changes

    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